FTC Secures $47.2 Million Settlement with Invitation Homes: Are You Eligible for a Refund?

Over 400,000 renters may be receiving checks as part of a landmark $47.2 million settlement reached between the Federal Trade Commission (FTC) and Invitation Homes, one of the nation’s largest single-family rental companies. The FTC announced the settlement on March 11th, aiming to provide relief to consumers impacted by what the agency deemed “an array of unlawful actions.”

What Were the Allegations Against Invitation Homes?

The FTC’s September 2024 lawsuit accused Invitation Homes of engaging in deceptive and unfair practices, including:

• Misleading Leasing Costs: Applicants were allegedly misled about the true cost of renting.
• Hidden Fees: Undisclosed fees were charged for services like “smart home technology” and “utility management.”
• Unfair Security Deposit Withholding: Tenants’ security deposits were unfairly withheld, often for normal wear and tear or pre-existing damage.
• Fabricated Move-Out Charges: The company allegedly fabricated charges when renters moved out, leading to improper fees.
• Excessive Move-Out Fees: Invitation Homes returned only 39.2% of security deposit dollars between 2020 and 2022, significantly lower than the national average of 63.9%.
• Non-Refundable Fees: Prospective tenants faced non-refundable reservation and application fees ranging from $55 to $500.
• Deceptive Inspections: The FTC alleged the company lied about pre-move-in inspections.
• Poor Property Maintenance: Tenants were left to deal with “significant disrepair” in their rental homes.

These “junk fees” could add up to $1,700 per renter annually, according to the FTC. Between 2019 and 2024, Invitation Homes collected $18 million solely from application fees.

The Settlement Details: What Does This Mean for Renters?

As part of the settlement, Invitation Homes will pay $48 million in compensation to affected renters. Beyond the monetary payout, the company has agreed to:

• Full Disclosure of Leasing Prices: Invitation Homes must fully disclose all leasing costs upfront.
• Fair Security Deposit Refunds: Implement a new system for refunding security deposits fairly and transparently.

“No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords,” stated then-FTC Chair Lina M. Khan in a September 2024 statement. “The FTC will continue to use all our tools to protect renters from unlawful business practices.”

Am I Eligible for a Refund?

The FTC will be sending checks to 444,131 affected consumers. To be eligible, you must have been a renter of an Invitation Homes property and impacted by the deceptive practices outlined in the FTC’s complaint. The FTC is handling the distribution automatically; you do not need to apply.

How to Claim Your Refund

If you are eligible, you will receive a check in the mail. You must cash your check within 90 days of the issue date.

Where Can I Find More Information?

If you have questions about the settlement, you can contact the refund administrator, Rust Consulting, Inc., at:

• Phone: (800) 804-6915
• Email: info@InvitationHomesRefund.com

You can also find more information on the Federal Trade Commission’s website. This settlement serves as a crucial reminder of the FTC’s commitment to protecting consumers and holding large corporations accountable for unfair business practices. For further insights into consumer protection laws, consider exploring resources from the Consumer Information section of the FTC website.