Home365 to return money to renters under settlement with Pennsylvania attorney general

Pennsylvania Attorney General Dave Sunday has announced a settlement with Home365, LLC, which was the focus of an Action News Troubleshooters investigation.

The property management company will be required to pay thousands of dollars in restitution to impacted renters.

Home 365 manages properties across country, many of them in Pennsylvania, including an off-campus apartment building that is home to Temple University students.

Back in 2022, families told the Troubleshooters that Home365 was failing to make timely repairs, even putting the safety of students at risk.

Faith Smith told us, "You want to feel safe, but no one feels safe here."

She told the Troubleshooters her lock broke and she put in a request with Home365 to fix it, but it took 10 days to schedule a maintenance person.

She said before the lock was repaired, her unit was broken into and burglarized, shattering her sense of safety and her mother's.

Kelly Smith, Faith's mom, told us, "When something like this happens, you want them home."

Linda Smith, who's unrelated to Faith and Kelly, told the Troubleshooters Home365 was unfairly keeping more than $500 of her daughter's security deposit. Home365 denied her claim, but Linda Kelly still said Home365's "customer service is really very poor."

Kelly Smith said, "They need to be held accountable... They need to do better."

Home 365 has now settled a case with the Pennsylvania Attorney General, which alleged the company failed to provide safe and habitable housing, failed to address tenants' maintenance needs in a timely manner, and failed to return security deposits.

The attorney general says the company used an artificial intelligence-based platform that resulted in maintenance delays and unsafe housing.

The settlement with Home 365 comes in the form of an Assurance of Voluntary Compliance. Under the terms, Home365 will pay $45,000 to the Office of the Attorney General, including $30,000 in consumer restitution.

The commonwealth will be distributing refund checks to consumers, who've already filed a complaint, ranging from $375 to $10,450.

Other consumers who believe they've been a victim of Home365's business practices have 90 days to file a complaint with the PA Bureau of Consumer Protection to be eligible for restitution. They can call A-G's Bureau of Consumer Protection at 1-800-441-2555 or file a complaint online.

The settlement also requires changes to Home365's business practices.

Home365 released this statement in response to the Pennsylvania Attorney General's announcement:

"Home365 is a technology-first property management company managing thousands of rental homes across nine states. Our mission is to modernize the rental experience through innovation, technology efficiency, and accountability.

During the COVID-19 pandemic, Home365 acquired several legacy property management portfolios in Pennsylvania - more than 7,000 units owned by thousands of third-party real estate investors, many in distressed condition and in some of the state's most challenged neighborhoods.

Despite these conditions, Home365 successfully resolved over 99% of all service issues- tens of thousands of maintenance projects and thousands of move-ins and move-outs promptly and professionally.

Naturally, at this scale a small number of complaints occurred, which were not reflective of our overall performance or standards.

While we strongly disagree with the allegations, we chose to settle to avoid costly litigation and focus on serving our clients. The settlement includes no admission of wrongdoing and is based solely on unproven allegations.

Home365 remains committed to the highest standards in property management and will continue to lead the industry through technology, transparency, and service."