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WEBVTT SAY THEY SAW LARGEINCREASES IN RENT AND PROBLEMSJUST TRYING TO GET THEIR RENTPAID ON TIME.>> WE DID NOT KNOW THE AREA, SOWE WANTED TO LEARN MORE BEFOREWE PURCHASED AT HOME.KEVIN: THEY MOVED FROM OHIOTHREE YEARS AGO.THEY WERE LOOKING FOR A RENTALONLINE AND A COMPANY CALLEDINVITATION HOMES ALLOWED LARGEDOGS.>> ONE OF THE REASONS WE PICKEDTHEM WAS BECAUSE WE COULD GOONLINE AND HAVE DEBT AND THEYHAVE A PROFESSIONAL-LOOKINGWEBSITE, DIFFERENT HOMES TO LOOKAT AND ALL KINDS OF PRICES.KEVIN: I SELECTED THIS HOME AT$1300 A MONTH INCLUDINGUTILITIES.BUT THE PLANS HAD TO CHANGE WHENTHEY STARTED GETTING CHARGEDFEES.THE WEBSITE HAD ISSUESPROCESSING PAYMENTS.>> WE PAID ONLINE AND GOT BACKTHE NUMBER DID NOT GO THROUGH.MAYBE YOU ENTERED IT INCORRECTLYAND THEN THERE WOULD BE ARETURNED CHECK FEE AND A LATEFEE.KEVIN: SACRAMENTO WAS NOT THEONLY MARKET WHERE THIS HAPPENED.IN ATLANTA, RENTERS IN THAT AREAFACED SIMILAR ISSUES, WITHINVITATION REQUIRING TENANTS PAYTHE RENT ONLINE WHILE THEWEBSITE DIDN'T ALWAYS WORK.THE REPORT SAYS THAT LED TO LATEFEES, RETURNED CHECK FEES ANDQUICK EVICTION NOTICES.SHE AND OTHER TENANTS WOULD PAYTHEIR RENT IN PERSON.>> THERE WOULD BE A LINE OUT THEDOOR FOR PEOPLE GOING INTO THEOFFICE TO PAY THEIR RENT.KEVIN: THE COMPANY SAYS WEBSITEPROBLEMS WERE TEMPORARY.>> WHAT THEY ARE TRYING TO DO ISSQUEEZE AS MUCH MONEY AS KABULOUT OF TENANTS AND THEY HAVEVARIOUS WAYS OF DOING THAT,CATCHING FEES AND THINGS LIKETHAT.KEVIN: AMY IS WITH A TENANTSRIGHTS GROUP.SHE SAYS COMPANIES LIKEINVITATION HOMES START ADDINGFEES AND UTILITY PAYMENTS TO GETMORE MONEY OUT OF TENANTS.>> FROM SEEING THEM VIA BOBBY'SHOMES, SEEING MORE TENANTS BEINGPUSHED OUT INTO THE RENTALMARKET AND INTO THE ARMS OFTHESE INSTITUTIONAL INVESTORSWHO HAVE MORE MARKET SHARE ANDTHUS MORE POWER.HEAVEN: RANDOM SAYS THE RENTROSE HIGHER AND HIGHER EVERYTIME THEY RENEWED THEIR LEASE.INVITATION STOPPED PAYING FORUTILITIES.WHEN THEY WERE READY TO MOVEOUT, THE CONSTRUCTION ON A NEWHOUSE WAS DELAYED AND THEMONTH-TO-MONTH LEASE COST THEMEVEN MORE.>> PLUS UTILITIES, PLUS FEESFROM THE COMPANY THAT DOES YOU,PLUS $250 ON TOP OF THAT AND ARATE INCREASE BECAUSE WE DID NOTSIGN ANOTHER LEASE.KEVIN: IMITATION HOME SAYSSOMETIMES UTILITIES WEREINCLUDED IN THE RENT.BUT TODAY, IT IS STANDARD POLICYIN BOTH THE MULTIFAMILY ANDSINGLE FAMILY RESIDENCE --RENTAL INDUSTRY FOR RESIDENTS TODIRECTLY PAY FOR THEIR OWNUTILITIES.AND RENTS ARE SET IN LINE WITHBROADER MARKET RATES, INCLUDINGDATA FROM THIRD-PARTY SOURCES.IN THE 1990'S, STATE LAWMAKERSPASSED A LAW THAT PROHIBITSRESIDUAL IN SINGLE-FAMILY HOMESAND THERE IS NOTHING ILLEGALABOUT AN INVESTMENT FIRM OWNINGA LARGE SHARE OF THE HOUSINGMARKET.INVITATION HOMES CLAIMS THEYDON'T HAVE A MAJOR IMPACT ON THEOVERALL MARKET AND THATCORPORATE PURCHASES OFSINGLE-FAMILY HOMES HAVEACTUALLY DECLINED IN THE LASTFEW YEARS.>> EVERY PENNY YOU HAVE LEFTGOES INTO YOUR HOME.KEVIN: SHE SAYS SHE FELT STUCKWITH SO MUCH OF HER MONEY GOINGTO HER RENTAL HOME.>> IT FELT LIKE A CYCLE WE WERESTOPPED IN.WE TRY TO GET OUT OF THE RENTALCYCLES FOR TWO AND HALF YEARS.

Advertisement Tenants feel pinch in corporate-owned rental homes in Sacramento Some residents in single-family homes say they have had issues with corporate landlords Share Shares Copy Link Copy

Rents in Northern California, and Sacramento in particular, are climbing. They have increased by more than 10 percent in the last year. Critics claim one company, the Blackstone Group -- operating as Invitation Homes -- could be influencing rent prices. Blackstone said it is professionalizing the market. However, some people living in Blackstone-owned homes said they've seen their rent increase.Billie Branham moved to Sacramento from Ohio three years ago with her husband, daughter and dog. "We didn't know the area, so we wanted to learn more about it before we purchased a home," she said.++ MORE: How one company affects rent prices in Northern CaliforniaThe family was looking for rental homes online and eventually settled on a home owned by Invitation Homes. Branham said they chose the company specifically because they allowed large dogs. "One of the reasons why we picked them was because we could go online," she said. "They had a real professional-looking website, lot of homes to choose from in all different price ranges."Invitation Homes also paid for the utilities. When they first sign their lease, the Branham Family agreed to pay $1,300 a month for rent.Map of Rental Homes Owned by Invitation Homes in Sacramento County (Can't see the map below, tap here)Branham's plan was to live in the rental home for a year and then buy a house. But, their plans changed when they started getting charged fees and Invitation Home's website had issues processing their payments."There were times where we paid online and didn't go through," Branham said. "Then there would be a return check fee and a late fee on that. So, we decided that I was just going to go there and drop off the check and get a paper receipt, which I kept every month."Sacramento wasn't the only market where tenants had problems paying their rent. A report by a tenants rights group in Atlanta said renters in the market faced similar issues with Invitation Homes, which required renters to pay online, but the website didn't work. The report said the issues led to late fees, returned check fees and even quick eviction notices. Branham said she and other tenants in Sacramento resorted to showing up at the Invitation Homes offices on the first or fifth of the month to make sure that the payment really went through."There would be a line out the door," she said."There have been occasional portal issues in the past, but they have been fixed," Invitation Homes spokesperson Claire Parker said. "However, in any instance where a resident was unable to pay their rent due to a portal issue, we waive or credit late fees."Aimee Inglis, with the San Francisco-based tenants rights group Tenants Together, said investment groups like Invitation Homes/Blackstone start adding fees and utility payments to get more money out of tenants. "What they're trying to do is squeeze as much money as possible out of tenants," Inglis said. "They have various ways of doing that, attaching fees and things like that."Branham said the rents rose higher and higher when they renewed their lease. Invitation Homes also stopped paying for utilities. The Branham Family wanted to move out, but construction on their new home was delayed and the month-to-month lease cost them even more.They paid "$1,560 plus utilities, plus the fee from the company that bills you, plus $250, plus rate increase because we didn't sign another lease," Branham said. She said maintenance issues were handled well by the company, with the online forms for that division working very well. She said the company was always available to fix her problems.Invitation Homes said in some cases they used to include utilities in rent. Today, however, "It is standard policy in both the multi-family and single-family rental industry for residents to directly pay for their own utilities," Parker said. "Rents are set in line with broader market rates, including data from third-party sources."Invitation Homes claims it doesn't have a major impact on the overall market and that corporate purchases of single-family homes have actually declined in the last few years. Branham said she felt stuck with so much of her money going to her rental home."It felt like such a cycle," Branham said. "We were stuck and we tried to get out of the rental cycle for at least two and a half years, and felt like we were stuck because we'd never had the extra funds to put for a down payment."