Staff Reports
Dallas-based Invitation Homes has agreed to pay $48 million to refund customers in Dallas and other major markets affected by the single-family rental home company’s alleged misconduct, the U.S. Federal Trade Commission announced Tuesday.
As the Dallas Business Journal reported, the settlement order requires Invitation Homes to:
- disclose its leasing prices,
- prohibits the company from withholding security deposit money to fix issues that are present before tenants moved in
- notify customers about federal, state, or local programs designed to assist residents facing eviction.
The real estate investment trust (REIT) was accused of civil misconduct including deceiving renters about lease costs and charging undisclosed junk fees.
The settlement is pending approval by a federal judge. The FTC filed the complaint and final order in the U.S. District Court for the Northern District of Georgia.
FTC and Invitation Homes Respond
“No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords,” FTC Chair Lina Khan said in a statement. “The FTC will continue to use all our tools to protect renters from unlawful business practices.”
In an Invitation Homes statement released today, the company says their disclosures and practices are “industry leading.”
“Today’s agreement brings the FTC’s three-year investigation to a close and puts this matter behind the Company, which will, as always, move forward with its continuous efforts to better serve its customers and enhance its practices. Invitation Homes remains committed to providing a high-quality living experience for individuals and families who want flexibility and choice in housing and to transparency with all stakeholders.”
Federal Settlements
The Federal Trade Commission isn’t messing around. The agency required iBuyer Opendoor to refund home sellers $62 million earlier this year for making “false, misleading and unsubstantiated claims about how much money sellers will receive when they sell to Opendoor or about the costs of using Opendoor’s service.”
And the latest FTC action comes on the heels of a U.S. Justice Department lawsuit against Richardson-based RealPage in late August.
RealPage, a property management software company, was accused of contracting with competing landlords who agreed to share their proprietary rental rates and lease terms to run RealPage’s algorithmic pricing software. According to the lawsuit, the landlords effectively colluded and set rents above market rate in North Texas and across the country.
Who Is Invitation Homes?
Invitation Homes bills itself as the nation’s largest single-family home leasing and management company with 80,000 single-family rental homes across 16 markets. The publicly traded company (INVH) was founded in 2012 by Brad Greiwe and Dallas B. Tanner, who serves as CEO. The Dallas Business Journal did not reach Invitation Homes for comment.
A Dallas-Fort Worth map of Invitation Homes rentals shows the majority of its 248 homes for rent are located in neighboring suburbs such as Irving, Carrollton, Lewisville, and Grapevine. Interestingly, there are no Dallas homes for rent “inside the loop” 635.
Back in 2022, the City of Dallas floated an idea to restrict institutional investors (those who own 100+ homes) like Invitation Homes from buying up large swaths of homes. Texas leads the nation in share of institutional buyers.
