Pennsylvania Attorney General Dave Sunday has reached a settlement with Lancaster, Pennsylvania-based Home365 LLC, regarding its management platform and alleged delayed responses to maintenance requests, according to a news release from Sunday’s office on May 27.

Home365 LLC is an ownership entity associated with San Jose, California-based multifamily property manager and investment broker Home365. The company uses a proprietary artificial intelligence-based platform to automate property and investment management, including maintenance requests and assignments, according to the company website.

The attorney general’s office said that consumers have complained that Home365’s platform was responsible for delays responding to maintenance requests and for leasing properties that had not been inspected and were unsafe, according to the release. 

It alleged that the company violated the state’s Unfair Trade Practices and Consumer Protection Law by failing to provide safe habitation to customers, according to the settlement, filed in the Allegheny County Court of Common Pleas on May 22. These include utility services, such as heat and water, and timely repairs. It also claims that the company failed to return tenants’ security deposits in violation of Pennsylvania’s Landlord and Tenant Act, according to the settlement.

“As artificial intelligence finds its way into many aspects of modern society, it is imperative that those choosing to use this new technology ensure it is working effectively,” Sunday said in the release. “This company left many tenants waiting for fixes to water and sewage leaks and structural flaws, and failed to return security deposits to others.”

Under the terms of the settlement, signed by Home365 CEO Daniel Shaked, the company must pay $45,000 to the attorney general’s office, including $30,000 in restitution to its renters and $15,000 in additional costs, set aside for public protection and educational purposes, according to the settlement. These refund checks will range from $375 to $10,450, according to the attorney general.

In addition to this fee, Home365 must also:

• Fully comply with the Consumer Protection Law and Landlord Tenant Act.
• Inspect properties it plans to lease before making them available to customers and ensure they are approved for occupancy by local authorities. 
• Maintain its properties in a safe and habitable condition. 
• Provide and staff an email and telephone number for maintenance requests. 
• Respond to emergency requests within 24 hours.
• Return security deposits in accordance with the law.

Home365 is currently active in 18 cities across nine states, including nine Pennsylvania metropolitan areas, according to the company website. Approximately 6,000 of its properties are in Pennsylvania, following the company’s acquisition of Lancaster-based SlateHouse Property Management and Realty in 2021, according to court documents. The company did not respond to a request for comment from Multifamily Dive.