Invitation Properties has agreed to pay $48 million to settle federal claims that the nation’s largest landlord for single-family houses deceived renters about lease charges and different prices, whereas unfairly pocketing tenants’ safety deposits, the Federal Commerce Fee mentioned Tuesday.

The Dallas-based firm charged tens of tens of millions of {dollars} in “junk charges” between 2021 and 2023, the FTC mentioned in an announcement. The necessary month-to-month charges lined companies reminiscent of smart-home know-how and air filter supply that would value as much as $1,700 a yr, however that weren’t disclosed till renters acquired their lease or generally not till after they’d signed it, in line with the company.

“No American ought to pay extra for lease or be kicked out of their house due to unlawful ways by company landlords,” FTC Chair Lina Khan mentioned in an announcement.  

The settlement comes because the Biden administration takes motion to stamp out junk charges within the airline, occasion ticket and different companies.  

“Seen rodent feces”

Invitation Properties, which owns or manages greater than 100,000 houses across the U.S., “can be refunding $48 million to residents and altering its practices,” mentioned Larissa Bungo, a senior lawyer on the FTC, mentioned in a publish on the company’s web site. 

The corporate additionally made misleading claims in regards to the situation of the properties it listed for lease, withheld safety deposits with out trigger and didn’t let tenants find out about federal eviction protections throughout the pandemic, the company alleged.

Advertising and marketing a “worry-free leasing way of life” and promising pre-inspected houses earlier than transfer in and 24/7 upkeep, new residents as a substitute confronted points like “sewage backup, damaged home equipment and visual rodent feces,” Bungo wrote. 

In an announcement, Invitation Properties mentioned its settlement with the FTC does not admit any wrongdoing by the corporate, which is publicly traded and valued at almost $22 billion. 

“At present’s settlement brings the FTC’s three-year investigation to an in depth and places this matter behind the corporate, which can, as at all times, transfer ahead with its steady efforts to higher serve its prospects,” Invitation Properties mentioned.

The proposed settlement, which should be authorised by a federal choose, requires Invitation Properties to reveal charges in marketed rental costs. It additionally stipulates that the corporate can’t withhold safety deposits to make things better not brought on by tenants. 

The enforcement motion is the primary by the FTC for the reason that company shaped a working group to look at unfair, misleading and anticompetitive practices affecting renters.