Single-family rental company Invitation Homes has been hit with a potential class-action lawsuit in California over its late fee practices, which the plaintiffs claim to be excessive and illegal.
According to the suit, Invitation Homes charges a late fee of $95 for any rent paid late, even by an hour. In addition, any accrued balance of late fees can incur its own late fees of $95 of more, even if the most recent rent is paid on time. According to the complaint, this practice violates state law in each of the 12 states in which it does business.
“The penalty is illegal, and thus, void, because it is excessive and bears no relation to any actual damages incurred by [Invitation Homes] when rent or other fees are paid late,” the lawsuit reads. “Some people have been evicted purely as a result of this late rent penalty, and in particular, this penalty stacking practice.”
Invitation Homes is the largest single-family rental company in the country, with 82,570 single-family units. A spokesperson declined to comment to Curbed on the pending litigation.Read More