Invitation Homes Inc. has been hit with a class action lawsuit challenging its practice of charging tenants late fees even when the rent is paid just one hour late and the company incurs no actual damage from the delay.
According to the rental late fee class action lawsuit, the rental market has changed substantially since the market crash 10 years ago caused millions of families to lose their homes through foreclosure, short sale, or surrender to a lender.
“Since then, national and global private equity firms have snatched up tens of thousands of single-family homes at hugely discounted prices (sometimes subsidized by the government and taxpayers), which they have then turned into rental properties,” the Invitation Homes class action lawsuit says.
“In short, the residential rental industry has recently undergone a massive transformation and consolidation out of the hands of small and family landlord businesses (who had direct ties to and relationships with their tenants), and into the large arms of private equity, hedge fund, and other Wall Street giants whose allegiances run solely to their investors, and whose motivations are driven purely by stock price and by showing and growing those all-important quarterly earnings.”
Plaintiff Jose Rivera says these Wall Street landlords evict their tenants at a far higher rate than other landlords of single-family homes. According to the Invitation Homes class action lawsuit, they also increase the rent for the properties, fail to do necessary maintenance, and assess illegal fees on tenants.
Rivera says the Wall Street landlords impose inflated “late” rent penalties and “penalties that stack on top of penalties that, themselves, cause a tenant to fall behind (even when they are paying their actual rent), leading to their eviction.”
According to the rental late fees class action lawsuit, publicly-traded Invitation Homes is the “largest player in this newly transformed rental market.” Rivera claims Invitation Homes charges tenants an initial fee of $95 for late rent payments, even if the payment is received just one hour past the grace period.
Rivera says he was a tenant of an Invitation Homes property in California. He claims he was subjected to the company’s allegedly illegal late rent penalty policy and was forced to pay the fees to Invitation Homes.
On at least one occasion, when Rivera attempted to pay his rent online through the company’s web portal, the web portal was not working. He contacted the company and was allegedly told not to worry about it and to keep trying. After multiple attempts to pay online were unsuccessful, he mailed in his payment, at which point it was technically “late.”
Invitation Homes reportedly returned Rivera’s check to him because the payment was late and did not include payment for the additional late fees and penalties.
According to the late rent fees class action lawsuit, Invitation Homes threatened to evict Rivera even though he paid his rent in full but failed to pay the late fees. Not wanting to be evicted from his home, he paid the $95 late fee plus $895 in “legal” fees.
Rivera claims these fees are arbitrary amounts and constitute illegal penalties. He filed the Invitation Homes class action lawsuit on behalf of himself and a proposed nationwide Class of tenants who were charged penalties or fees for paying rent that was deemed late or deficient. He also seeks to represent a California Class.
The plaintiff is represented by Craig M. Nicholas, Adam Tomasevic and Shaun Markley of Nicholas & Tomasevic LLP.
The Invitation Homes Late Fees Class Action Lawsuit is Jose Rivera v. Invitation Homes Inc., Case No. 3:18-cv-03158-JCS, in the U.S. District Court for the Northern District of California.
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53 thoughts onInvitation Homes Class Action Challenges Rental Late Fees
I had to pay a ridiculous late fee one month after trying to make an arrangement. The lady emailed me back after 5 so I ended up paying late fee because I missed the 5 o’clock cut off.
Shady ass company. Maintenance is questionable if it comes at all. I have mold expose in a Florida home for eight months while they told the contractors to stop work. Leaving us to live in the construction filth and mold. I’d join a class action against them. The only time shit gets done is when u threaten legal action against them in writing.
We went through that too. You’re so right, we have to all come together and go after them. I have everything documented and it’s insane. They cost my family of 7 everything including the possibly of my dad’s unexpected death at 60. My email is Ryanannwyrosdick@gmail.com if you want to get in touch. Join the facebook groups for tenants of Invitation Homes and Slumlords of Invitation homes, ext. They can’t keep getting away with this. Something isn’t right because I can’t seem to find anyone who will go against them. It’s like they have people in high places paid off or something shady.
How do I get in on this. They were horrible and uprooted my family with a 28 day notice.
They give you the first 3 days of the month to pay but if you pay by check and the 2nd and 3rd happened to be saturday and sunday, how can you possibly have the oportunity to have your check recieved by the 3rd if 2 of those days are not functional. It is happening to me now. They received it on monday the 4th when clearly USPS would have delivered it on the 2nd Satuday. charging $170 in late fee in GA and I am disputing over email and would like to join the class action!
No this company is terrible I paid on the day the said it was my last day to paid on the 3rd and they give a late fee because I paid after 5:00. Wait? What? Went I contacted them and explain to them hey I’m sorry but I been doing funeral arrangements because two of my kids passed.. manager answered that was not an excuse to be late. They need to be sue seriously because is horrible what they do as a company. Also they charge you for water and electric and I never see exactly what I spend according to them. I have to take their word but I do not trust them already. This company is not only unprofessional they are just pure thieves and evils.
Your absolutely right! I have called for break downs on water bc my water was almost 100 EVERY MONTH and I know I do not use my water like. I still haven’t received no break down. These people are rip offs and I really hope this class action can go through. I was also in the hospital having my daughter I tried to pay my rent online it wasnt working and due to their website technical difficulties they tried to charge me late fee after i called them and told them the website was not working it was before the grace period so they wouldnt hit me with you should have paid before and not wait til the day of it took them a few days but the only reason they waived it its because i wasnt the only resident that was experiencing the problem and i was going down the chain of command the late fees are ridiculous $95. This my second yr renting with them and NEVER been late with any rental company. I will DEF be moving out next may I will NEVER rent from them again. Oh! And maintenance is HORRIBLE i have been without my dishwasher for a month and they still havent fixed it but you want your rent on time FREAKING PEOPLE ARE A DAMN JOKE.
the irrigation system is my responsibility but it’s not in my lease like they said it leaks waterand they wont fix it i am on ssi i am fixed income amd i have learning disabilities and make it hard to remember things like pay rent on time even if i paid 1 hr late it 100 buck more i am falling behind because of th fees my fire place dont work it smoke us out and i have kids 2ed time calling about this and each time they sent some one out that cant do the job because they cant go on the roof its 30 degrees when i wake up i would like to be warm from the fire but nope that wont happen this house is falling apart and they just fix it with a bandage this is crazy if i chould move i would but i am on ssi and have no money i can save due high rent that gose up every year and to fees they charge me but when there late all i get is sorry and then they still cant do the job right
Invitation Homes is even more shady than that. They claimed that my lease agreement states that I am responsible to maintain and fix the sprinkler heads at my own cost. I have looked on their website and combed my lease and found nothing that states I have to maintain the irrigation system. When they came out to fix one they said they it would Cost me $75. I asked for them to call their supervisor And show me where it states in the lease that I must maintain and pay for those repairs . The supervisor said this time they wouldn’t charge me but failed to tell me exactly where in my lease it’s stated that. She just kept saying it was in there. Later after I okayed the work because she said they would not charge me then they charged me anyway and I could not pay my rent without paying the charge online. I would have had to pay late fees if I didn’t pay the $75 charge. I had no option to dispute it. Turning them in to better business bureau and anywhere else I can! Slum Lords is what they are.
O man! i thought i was the only one mad about this company’s shady practices.
Yeah, if anyone has any info about how to join the class action please post!
This also happens in Arizona, and once you are late on rent it becomes difficult to pay on time because of the extremely high late fees this becomes repetitive. Late fees amass $500, 600, and $700 a month. How do I join the class action suit???
Same in Florida but 150 late fee. I world like to be party of law suit