Homes invitation, the largest unifamilial owner in the country, agreed to pay $ 48 million to pay a handful of allegations, in particular that he illegally billed non -disclosed waste costs, retained from the security deposits of tenants and engaged in unjust expulsion practices.
The regulations were announced Tuesday by the Federal Trade Commission. Among the main allegations formulated by the FTC, there were that the invitation houses deceived the tenants on the total cost of the rental of one of its houses.
The company, which has or manages more than 100,000 houses nationally, including more than 11,000 in California, has not included compulsory “waste” costs during the advertising of its rental Prices, according to the FTC.
These fees – for things such as intelligent house technology and public services management – have sometimes increased the cost of rent by more than $ 1,700 per year and were only disclosed when consumers went to sign their lease, said the FTC.
At that time, the agency said that consumers were in conjunction because they had already paid non-refundable requests of up to $ 55. They may also have spent more than $ 500 to book a specific house, which they would only come back if they sigated the lease.
Sometimes consumers were not informed of junky costs before signing the lease and moved, the authorities said.
In addition to junk food costs, the alleged invitation houses of the FTC praised houses that were often in poor condition and systematically retained security deposits for articles that were not the responsibility of the tenant.
Invitation Homes is also engaged in several unjust expulsion practices, said the agency. Among them, the company declared in difficulty tenants During the pandemic that their only options were to pay, move or face expulsion and failed to inform them of the federal expulsion protections available at the time, according to the FTC.
“No American should pay more for the rent or be expelled from their house due to illegal tactics by business owners,” the president of the FTC said Lina Khan in a statement. “The FTC will continue to use all our tools to protect tenants from illegal commercial practices.”
In a press release, invitation Homes said that he had not been admitted to reprehensible acts in the context of the regulation and described his disclosure and practices as “leader of the industry”.
“Today's agreement brings the FTC's three -year investigation to the end and puts this question behind the company, which, as always, will evolve with its continuous efforts to better serve its customers and improve its practices,” invitation Homes in a press release.
The company, which began to buy thousands of houses following the great recession, has reached several colonies this year.
In July, he agreed to pay Almost $ 20 million To resolve the allegations that he has made unforeseen renovations in his portfolio in California. In January, he agreed to pay several million to settle the allegations according to which raped The State Rent Ceiling Act.
Under the regulations announced on Tuesday, which must always be approved by a judge, consumers would receive reimbursements and invitation houses will have to include all compulsory monthly costs in its announced rent.
