FTC to Distribute $47 Million to Renters Wronged by Major Landlord The Federal Trade Commission (FTC) has announced a $47.2 million settlement with Invitation Homes, one of the nation’s largest single-family home landlords, to compensate over 400,000 renters who were allegedly misled by the company’s deceptive practices. The agreement, finalized in March 2026, follows a lawsuit filed by the FTC in September 2024 that accused the company of engaging in widespread fraudulent behavior. According to the lawsuit, Invitation Homes engaged in multiple unlawful actions, including misleading applicants about leasing costs, charging undisclosed fees for services such as “smart home technology” and “utility management,” and unfairly withholding tenants’ security deposits. The company was also accused of fabricating charges when renters moved out, leading to improper fees for normal wear-and-tear, pre-move-in damage, and unnecessary renovations. Between 2020 and 2022, Invitation Homes returned only 39.2% of security deposits to tenants, far below the national average of 63.9%. The FTC alleged that some mandatory fees could total up to $1,700 annually per renter, while prospective tenants paid non-refundable reservation and application fees ranging from $55 to $500. Application fees alone generated $18 million for the company between 2019 and 2024. The agency also claimed Invitation Homes lied about pre-move-in inspections, leaving tenants to deal with “significant disrepair” in their units. As part of the settlement, Invitation Homes agreed to pay $48 million in compensation to affected renters, though the total payout is listed as $47.2 million in the agreement. The company also faces new rules, including full transparency in leasing prices and a system for refunding security deposits “fairly.#ftc #invitation_homes #lina_m_khan #rust_consulting_inc #invitation_homes_refund_com
