FirstKey Homes, the Cerberus-owned single-family rental operator that manages more than 50,000 homes across roughly 28 markets, is the subject of a growing set of lawsuits and government actions. The FirstKey Homes lawsuit picture includes a 2025 North Carolina attorney general enforcement resolution over utility billing, an Ohio appellate ruling in a tenant’s favor on mold habitability, a Cook County eviction judgment the company won, a federal wage-and-hour case brought by former employees, and a Senate inquiry into its rental practices.1Cerberus Capital Management. FirstKey Homes
North Carolina Attorney General Settlement Over Utility Billing
In May 2025, North Carolina Attorney General Jeff Jackson announced a resolution with FirstKey after his office received complaints that the company had told tenants to transfer utility accounts into their own names, even though their leases said not to. Tenants who followed those instructions were then charged fees or accused of lease violations.2North Carolina Department of Justice. Attorney General Jeff Jackson Secures Refunds for 161 North Carolinians
Once contacted by the state, FirstKey identified 159 additional affected tenants, bringing the total to 161 North Carolina residents. The company agreed to reimburse tenants at 200 percent of the utility-related fees they had incurred. Tenants who were told to transfer utilities but who did not end up paying extra fees received $250 each. FirstKey also committed to improving its lease-inquiry communications and retained outside counsel to review its internal policies.3Yahoo News. More Than 150 People in NC Getting Refunds Jackson said the company acted “quickly to fix this problem.”4North Carolina Department of Justice. Attorney General Jeff Jackson Pushes for Changes to Make Rental Housing More Affordable
Ohio Mold Case: Johnson v. First Key Homes
An Ohio appellate court sided with a FirstKey tenant in March 2025 in a mold habitability dispute that also exposed a lease-drafting problem tenants elsewhere may want to check. Jennifer Johnson, a renter in Clermont County, reported persistent mold beginning in August 2023. She said FirstKey tried to remediate the problem and failed. In March 2024, she sent a formal noncompliance notice to FirstKey’s corporate office in Marietta, Georgia, and deposited $1,600 in rent with the county clerk under Ohio’s rent-escrow statute.5Supreme Court of Ohio. Johnson v. First Key Homes LLC, 2025-Ohio-882
FirstKey argued Johnson had sent her notice to the wrong address. The Twelfth District Court of Appeals rejected that defense. Ohio law requires landlords to list a business address within the county or state where the rental property is located, and FirstKey’s lease did not include one. Because of that omission, the court held FirstKey had waived the strict notice requirements it was trying to enforce. The court also confirmed that Ohio’s rent-escrow process does not require formal service of a summons on the landlord; notice from the clerk is sufficient. Johnson testified that the mold was never remedied before she moved out, and FirstKey offered no contrary evidence. The trial court released the escrowed rent to her, and the appellate court affirmed.5Supreme Court of Ohio. Johnson v. First Key Homes LLC, 2025-Ohio-882
Illinois Eviction Case: FirstKey Homes v. Mahwikizi
Not every tenant defense has succeeded. FirstKey filed an eviction action in Cook County, Illinois against Justin and Lauren Mahwikizi for $4,511.16 in unpaid rent. The tenants asserted improper service, breach of the implied warranty of habitability, and constructive eviction, but the trial court struck those counterclaims. A jury returned a verdict for FirstKey, and the circuit court awarded possession plus $25,812.42 in unpaid rent and $816.81 in costs. In December 2025, the Illinois Appellate Court affirmed the judgment and rejected all ten issues the tenants raised on appeal.6Illinois Courts. FirstKey Homes LLC v. Mahwikizi, 2025 IL App (1st) 241613-U
Federal Wage Lawsuit by Former Employees
A separate case in the Northern District of Texas is not a tenant matter. Former employees Taki Harper, Shawnte Leigh, and Kelly Williams brought Fair Labor Standards Act claims against FirstKey. In November 2025, a magistrate judge granted in part and denied in part the plaintiffs’ motion to compel discovery, and the case remained active as of that ruling.7GovInfo. Harper et al. v. FirstKey Homes LLC
What Tenants Are Complaining About
Beyond formal litigation, FirstKey’s Better Business Bureau profile lists more than 1,350 complaints over the preceding three years, with over 400 closed in the most recent twelve-month period. Service or repair issues account for roughly 810 of them, with product issues, order issues, and billing disputes making up most of the rest.8Better Business Bureau. FirstKey Homes – Complaints
Recent filings describe charges for maintenance items tenants believed the company should cover, disputes over move-out fees tied to notice requirements tenants say they were verbally told they could ignore, and security deposit refund checks flagged by banks as altered or fictitious, requiring replacement checks weeks later. FirstKey holds a BBB accreditation and an A+ rating, which reflects responsiveness rather than the absence of complaints. The vast majority of complaints are marked “answered,” meaning FirstKey addressed them without necessarily satisfying the tenant. Roughly 144 were marked “resolved,” where the complainant confirmed the matter was settled.9Better Business Bureau. FirstKey Homes – Complaints
Congressional Scrutiny and Pending Legislation
FirstKey is one of 14 corporate landlords that Senator Elizabeth Warren, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to in March 2026. Her letters requested detailed information about rental portfolios, business practices, and landlord-tenant disputes, and asked the companies to disclose communications with the Trump administration. Recipients were given until April 8, 2026 to respond.10Multifamily Dive. Warren Investigate Rental Housing Industry Warren’s office cited data showing institutional investors own roughly 450,000 single-family homes nationally, with the five largest controlling nearly 300,000.11U.S. Senate Committee on Banking, Housing, and Urban Affairs. Warren Probes Biggest Corporate Landlords on Predatory Rental Practices Across Housing Sector
The Senate has also passed the 21st Century ROAD to Housing Act, described as the largest bipartisan housing supply legislation in more than 30 years. Section 1001 prohibits large institutional investors from purchasing certain single-family homes, though thresholds and enforcement mechanisms were not fully detailed in available summaries.12U.S. House Financial Services Committee. 21st Century ROAD to Housing Act H.R. 206, the Landlord Accountability Act of 2025, was also introduced in the 119th Congress; its status is unclear.13Congress.gov. H.R. 206 – Landlord Accountability Act
The Broader Corporate Landlord Backdrop
The pressure on FirstKey mirrors action against other large single-family operators. In September 2024, the Federal Trade Commission filed a complaint against Invitation Homes over deceptive advertising of rental prices that excluded mandatory fees, systematic withholding of security deposits for normal wear and tear, and false promises about maintenance quality. Invitation Homes agreed to a $48 million settlement funding consumer refunds and permanent changes to how it advertises prices, handles deposits, and manages evictions.14Federal Trade Commission. FTC Takes Action Against Invitation Homes for Deceiving Renters, Charging Junk Fees, Withholding Security Deposits The federal antitrust case United States v. RealPage, Inc. raises separate questions about whether large residential landlords conspired to fix rents through shared algorithmic pricing software, with state attorneys general joining the litigation.