NASHVILLE, Tenn. (WTVF) — Federal regulators are cracking down on a corporate landlord that owns thousands of rental properties across the country, including many in Middle Tennessee.
NewsChannel 5 Investigates first exposed some of the problems with Invitation Homes several years ago. Now those affected could get some money if they ever rented from this company.
In 2019, Desiree Tromblee told us what a nightmare it had been to rent from Invitation Homes.
"You start to think, 'It's just the way this company is.' Predatory almost, you know?" she said.
Invitation is the largest of the so-called "Wall Street landlords" that popped up after the housing crisis around 2007. Investment groups bought up foreclosed and distressed homes and turned them into rental properties. The Dallas-based company now has more than 80,000 properties across the country.
"I'm speaking out because there are so many other people that are in the same position I am," Tromblee said as she described her experience with Invitation.
Now the Federal Trade Commission has filed a federal complaint against Invitation Homes after the federal agency's own investigation confirmed what renters had been saying for years.
"What we saw was a pattern of negligence at best, negligence and at worst, exploitation, using a lot of these illegal tactics in order to show off good returns for investors," FTC spokesman Douglas Farrar told NewsChannel 5 Investigates.
The FTC found Invitation Homes deceived renters by advertising that its homes had passed thorough inspections and claiming to offer 24/7 emergency maintenance service when it didn't. The FTC also found the company charged undisclosed and excessive junk fees and was not transparent about the true lease costs. It also found that it often unfairly and illegally withheld tenants’ security deposits when they moved out.
"It was difficult to get a hold of anybody," Tromblee said of trying to reach Invitation employees.
The Tromblees' rental home was in LaVergne in a subdivision where Invitation had 28 properties at the time and another 260 others nearby.
When the family decided to move, Tromblee said she gave the required 30-day notice and left the house as she'd found it when the family moved in.
But Invitation Homes then informed her that the company would be keeping her $1,300 security deposit and charging her an additional $7,600 for damage Invitation said had been caused by a burst pipe that flooded the inside of the house after she had moved out.
"I was shocked," Tromblee said. "The last time I saw (the inside of her rental home) it was in perfect, pretty much move-in condition."
We told the FTC's Farrar about Tromblee's experience with Invitation Homes.
"Certainly what you described sounds like the kind of behavior that we found in our investigation," Farrar said.
He said the proposed settlement with Invitation Homes calls for the company to pay $48 million to consumers who were harmed by the company’s unlawful actions. Invitation will also be required to truthfully advertise its prices and services, clearly disclose its leasing prices, establish policies and procedures to handle security deposit refunds fairly and stop all other unlawful behavior.
What Invitation Homes has to say
When contacted about the settlement, Invitation Homes provided a statement.
"(The)agreement brings the FTC’s three-year investigation to a close and puts this matter behind the Company, which will, as always, move forward with its continuous efforts to better serve its customers and enhance its practices."
Did this happen to you?
The settlement still has to be approved by a federal judge.
Once that happens, the FTC will contact consumers who are eligible for some of the settlement money. It will likely be a couple of months before the agency is ready to start distributing the money.
If you think you might be eligible, you can reach out to the agency yourself through its website FTC.gov.
