FTC To Distribute $47 Million In Checks To Renters Who Paid Unfair Charges To America's Largest Corporate Landlord: Here Is What You Need To Qualify

The Federal Trade Commission said Wednesday it is sending more than $47.2 million to renters who paid hidden or unfair charges to Invitation Homes Inc. (NYSE:INVH), the nation's largest owner of single-family rental homes.

FTC Targets Hidden Rental Fee Scheme

The payouts stem from the FTC's September 2024 lawsuit against the Dallas-based company, which accused it of misleading applicants about lease costs, piling on mandatory fees, failing to inspect homes before and after tenancies, and unfairly withholding security deposits. Invitation Homes agreed to settle for $48 million without admitting wrongdoing.

The FTC said the undisclosed charges covered services such as "smart home technology," air-filter delivery and "utility management," and that renters could not opt out. The agency alleged the company collected tens of millions of dollars in junk fees between 2021 and June 2023, with some applicants also paying nonrefundable application fees of up to $55 and reservation fees of up to $500 before learning the true cost of the lease.

Renters also complained that Invitation Homes charged them for ordinary wear and tear, pre-existing damage and even renovations when they moved out.

Refund Checks Reach Over 444,000

More than 444,000 consumers will receive checks under the refund program. To qualify, renters must have paid Invitation Homes at least $45 in covered fees or charges between January 2021 and September 2024 and must not already have received a company credit or refund. The FTC urged recipients to cash the checks within 90 days.

Settlement Forces New Pricing Rules

As part of the settlement, Invitation Homes must also clearly disclose leasing prices, stop the unlawful practices cited by the agency and establish procedures to handle security-deposit refunds fairly. The Associated Press reported in September that the company managed or owned more than 109,000 homes as of June 30, 2024, highlighting its reach in the U.S. rental market.

Price Action: Shares of INVH fell 2.10% to close at $25.21 on Wednesday and slipped another 0.04% in after-hours trading, according to Benzinga Pro.

According to Benzinga’s Edge Stock Rankings, INVH shows a negative price trend across the short, medium and long term, while its Quality score ranks in the 73rd percentile.

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