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Invitation Properties, the nation’s largest single-family landlord, has agreed to pay $48 million to settle a handful of allegations, together with that it illegally charged undisclosed junk charges, withheld tenant safety deposits and engaged in unfair eviction practices.
The settlement was introduced Tuesday by the Federal Commerce Fee. Among the many essential allegations made by the FTC was Invitation Properties deceived tenants over the full price of renting one in all its properties.
The corporate, which owns or manages greater than 100,000 properties nationwide, together with greater than 11,000 in California, didn’t embrace obligatory “junk” charges when promoting its rental charges, in keeping with the FTC.
These charges — for issues like good dwelling expertise and utility administration — at instances raised the price of lease by greater than $1,700 a yr and have been solely disclosed when shoppers went to signal their lease, the FTC alleged.
By that point, the company stated shoppers have been in a bind as a result of that they had already paid a nonrefundable utility price of as much as $55. They might have additionally forked over $500 to order a selected dwelling, which they might solely get again in the event that they signed the lease.
Typically, shoppers weren’t made conscious of the junk charges till after they signed the lease and moved in, authorities stated.
Along with junk charges, the FTC alleged Invitation Properties rented out properties that have been typically in disrepair and systematically withheld safety deposits for objects that weren’t the tenant’s accountability.
Invitation Properties additionally engaged in a number of unfair eviction practices, the company stated. Amongst them, the corporate instructed struggling tenants through the pandemic that their solely choices have been to pay, transfer out or face eviction and failed to tell them of federal eviction protections obtainable on the time, the FTC alleged.
“No American ought to pay extra for lease or be kicked out of their dwelling due to unlawful techniques by company landlords,” Federal Commerce Fee Chair Lina M. Khan stated in an announcement. “The FTC will proceed to make use of all our instruments to guard renters from illegal enterprise practices.”
In a information launch, Invitation Properties stated it made no admission of wrongdoing as a part of the settlement and described its disclosures and practices as “trade main.”
“Right this moment’s settlement brings the FTC’s three-year investigation to a detailed and places this matter behind the Firm, which can, as at all times, transfer ahead with its steady efforts to raised serve its clients and improve its practices,” Invitation Properties stated in an announcement.
The corporate, which began shopping for 1000’s of properties within the wake of the Nice Recession, has reached a number of settlements this yr.
In July, it agreed to pay almost $20 million to resolve allegations it made unpermitted renovations throughout its portfolio in California. In January, it agreed to pay a number of million to settle allegations it violated the state’s lease cap regulation.
Below the settlement introduced Tuesday, which nonetheless should be authorized by a decide, shoppers would obtain refunds and Invitation Properties shall be required to incorporate all obligatory month-to-month charges in its marketed lease.
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