The largest operator of single-family homes in the nation will now reimburse some California tenants after raising their rents above California limits, in a settlement reached with the state’s attorney general.
He said the recent settlement should remind California landlords “to familiarize themselves with the law” and the “protections” in the state for tenants.
An estimated 1,900 tenants had their rent illegally raised above California limits by Invitation Homes, which owns and manages more than 80,000 units nationwide and 12,000 in California.
In an investigation by California’s Department of Justice, the agency found that some of the increases Invitation Homes imposed on tenants between 2019 and 2022 were out of compliance with California’s Tenant Protection Act of 2019, which among other things restricted rent increases by no more than five percent plus inflation or 10 percent total, whichever is less.
Also, California’s price-gouging law, prohibits landlords from increasing rents by more than 10 percent during or after a state or local emergency, such as COVID-19.
The tenants will now be reimbursed, after the leasing giant agreed to pay $2 million in civil fines and another $1.7 million in refunds for the excess rent charged, plus five percent interest.
Under the settlement, Invitation Homes must lower rents for those affected to match California’s limits, conduct audits every quarter on processes and systems used for rent increases, and report back to the Department of Justice every year for five years on its progress in complying with California’s laws, according to Mr. Bonta’s office.
