The Federal Trade Commission says a $48 million settlement should put an end to what it calls “predatory” tactics by the nation’s largest landlord of single-family homes.
The FTC says Invitation Homes was charging hidden fees and withholding security deposits.
“Not even maintaining livable conditions at various points,” FTC Chair Lina Khan said.
FTC Chair Lina Khan says this was a deliberate strategy “to really create revenue even though it was coming at the expense of honest renters.”
Invitation Homes says the agreement contains “no admission of wrongdoing.”
The company says the settlement: “puts this matter behind the Company” and it will “move forward…to better serve its customers.”
“It’s a win for families. But let’s be clear. These abuses are symptoms of a much larger problem,” Sen. Jeff Merkley (D-Ore.) said.
Oregon Democratic Sen. Jeff Merkley says corporate investors are invading the housing market.
A forecast by MetLife Investment Management found institutional investors could control 40% of single-family rental homes by 2030.
“They’re driving up the price to buy a home, putting a stake through the heart of the dream of homeownership,” Sen. Merkley said.
Merkley is sponsoring a bill he says would stop that. It would ban hedge funds from buying single-family homes and make them sell the homes they do own.
“These are common sense guard rails,” Merkley said.
Merkley’s bill has stalled since he introduced it last year, but he says he’s encouraged by the FTC’s actions.
The FTC says the settlement money will refund renters hurt by the company. The funds are subject to approval by a federal judge.
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