Landlord of 3,500 Clark County homes agrees to $48 million settlement for tenant fraud

LAS VEGAS (KLAS) — A company that owns about 3,500 homes in Clark County has agreed to a proposed settlement in a dispute over fraudulent practices in rental costs, charging undisclosed junk fees and improperly withholding 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 press release Tuesday. Invitation is the largest landlord of single-family homes in the country. As of June 30, Invitation owned or managed more than 109,000 homes in the U.S.

U.S. Representative Dina Titus (D-Nevada) issued a statement regarding Invitation’s activities in Clark County:

“The FTC has taken an important step to crack down on deceptive rental practices in Southern Nevada that have contributed to skyrocketing rental prices,” Titus said. “Invitation Homes is the second-largest owner of single-family homes in Clark County, with approximately 3,500 homes. The FTC’s action requires Invitation Homes to refund consumers their money and sends a clear message that rent gouging will not be tolerated.”

Invitation Homes also failed to inspect homes before residents were allowed to move in, the FTC said. The settlement would provide reimbursement to consumers harmed by the company’s actions. The commercial landlord would also have to clearly disclose its rental rates, establish policies and procedures for fairly handling security deposit refunds, and refrain from other unlawful conduct, the FTC said.

Invitation Homes agrees to pay $48 million to settle claims it imposed hidden fees on its tenants

The company exploited renters through a range of unfair and deceptive tactics, the FTC said. Invitation was accused of charging people hidden fees during the pandemic and misleading them about eviction policies. In some cases, Invitation even initiated eviction proceedings after people had already moved out, said FTC Chair Lina M. Khan.

“No American should have to pay more rent or be evicted because corporate landlords engage in illegal practices. The FTC will continue to use every tool at its disposal to protect renters from unlawful business practices,” Khan said.

The agreement states that Invitation Homes:

• It is prohibited to deceive consumers about the true rental price of a property. This includes the requirement to include all mandatory monthly fees in the stated rental price of a property and to indicate whether the listed fees are mandatory or not.

• It is prohibited to withhold deposit funds for damage resulting from normal wear and tear and to require that the amount withheld be used to repair or remedy the damage for which it was withheld.

• It is prohibited to use retained security deposit amounts to correct problems that existed before the tenant moved in or to cover the costs of maintenance, repairs or major improvements that are not the result of damage caused by the tenant.

• required to inform consumers about federal, state, or local programs designed to assist people facing eviction.

• prohibited from filing eviction lawsuits against certain tenants who have already left their home and notified Invitation Homes of their departure.

The company’s website lists available properties in Las Vegas, Henderson and North Las Vegas and touts Invitation’s “professional property management and ProCare services.”

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