LAS VEGAS (KLAS) — A company that owns about 3,500 homes in Clark County has agreed to a proposed settlement over deceptive practices on rent costs, charging undisclosed junk fees and unfairly holding security deposits, according to the Federal Trade Commission (FTC).
Invitation Homes has agreed to a $48 million nationwide settlement that will provide refunds to consumers, the FTC said in a Tuesday news release. Invitation is the nation’s largest landlord of single-family homes. As of June 30, Invitation owned or managed more than 109,000 homes across the U.S.
U.S. Rep. Dina Titus, D-Nev., issued a statement regarding Invitation’s operations in Clark County:
“The FTC took a major step in addressing deceptive rental practices in Southern Nevada which have contributed to skyrocketing rental costs,” Titus said. “Invitation Homes is the second-largest owner of single-family homes in Clark County, with some 3,500 homes. The FTC action requires Invitation Homes to make refunds to consumers and sends a strong message that rent gouging will not be tolerated.”
Invitation Homes also failed to inspect homes before allowing residents to move in, the FTC said. The settlement would provide refunds to consumers harmed by the company’s actions. The corporate landlord will also be required to clearly disclose its leasing prices, establish policies and procedures to handle security deposit refunds fairly, and stop other unlawful behavior, the FTC said.
The company preyed on tenants through a variety of unfair and deceptive tactics, the FTC said. Invitation was accused of saddling people with hidden fees and misleading people about eviction policies during the pandemic. In some cases, Invitation even pursued eviction proceedings after people had moved out, according to FTC Chair Lina M. Khan.
“No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords. The FTC will continue to use all our tools to protect renters from unlawful business practices,” Khan said.
The settlement states that Invitation Homes will be:
- prohibited from deceiving consumers about the true rental price of a house, including a requirement to include all mandatory monthly fees in a house’s advertised rental price and disclose whether listed fees are mandatory or not.
- prohibited from withholding security deposit money for damages that are part of normal wear and tear and requiring that any money withheld be used to repair or correct the damage for which it was withheld.
- prohibited from using withheld security deposit money to fix issues that were present before the renter moved in or to cover the cost of maintenance, repairs, or capital improvements not related to damage caused by a renter.
- required to notify consumers about federal, state, or local programs designed to assist people facing eviction.
- prohibited from filing evictions against certain renters who have already moved out of their house and notified Invitation Homes of their departure.
The company’s website lists properties available in Las Vegas, Henderson and North Las Vegas, touting Invitation’s “professional property management and ProCare service.”