Investor-owned rental houses provide an important housing option for families who aren’t ready or don’t want to buy. But as investors acquire more single-family homes, another question is gaining attention: What kind of landlords are they?
A new Kansas City lawsuit raises that question about FirstKey Homes, one of the nation’s largest single-family rental companies.
Three Kansas City-area families allege FirstKey and related companies were quick to enforce rent and other financial obligations but repeatedly failed to adequately address mold, flooding, electrical hazards and other dangerous conditions in their homes.
The allegations have not been proven in court.
FirstKey manages more than 50,000 single-family rental homes in nearly 30 markets nationally. The lawsuit says FirstKey-related companies have acquired about 540 properties in the Greater Kansas City area since 2011.
The plaintiffs contend their experiences weren’t simply individual maintenance failures. Their lawsuit alleges FirstKey’s corporate structure emphasizes financial returns and cost reduction while delaying or limiting necessary repairs.
FIRSTKEY BY THE NUMBERS
50,000+ homes managed nationally
~540 properties acquired by related entities in Greater KC
1,000+ landlord-tenant cases filed in the KC area since 2011, according to the lawsuit
517 Jackson County landlord-tenant actions in 2024
~450 in 2025
~147 so far in 2026
Families Describe Dangerous Conditions
Darius Dodson says his family dealt with mold, flooding, sewage backup, defective locks and electrical problems in the Kansas City house they rented beginning in 2019.
According to the lawsuit, one electrical outlet caught fire but wasn’t repaired, causing the family to stop using living-room outlets.
Dodson also alleges a furnace problem persisted for about two years before a contractor he hired discovered a rusted exhaust pipe. The lawsuit says the Kansas City Fire Department determined the condition created a potentially life-threatening carbon-monoxide hazard. It was then repaired.
Kristina Thomas and her family moved into a FirstKey property in Raytown in 2022. Before signing the lease, they noticed signs of previous water problems and say they specifically asked whether the basement had water-intrusion issues. They allege they were told it did not.
They found standing water in the basement their first day in the house.
The lawsuit says water problems continued for years before an independent contractor discovered extensive mold contamination in the basement and air ducts. The family was eventually told to leave the house immediately.
Kemba Lee, a pregnant mother of three when she moved into a Northland Kansas City house in 2024, alleges repeated basement flooding and mold. The lawsuit says Kansas City’s Healthy Homes program had identified electrical violations, water damage and suspected mold at the property before Lee moved in.
Quick to Collect, Slow to Repair?
The lawsuit points to a striking contrast between FirstKey’s enforcement of tenant obligations and the families’ allegations about repairs.
FirstKey-related companies have filed more than 1,000 landlord-tenant cases seeking back rent or eviction in the Kansas City area since 2011, according to the lawsuit.
The plaintiffs say that included 517 Jackson County landlord-tenant actions in 2024, about 450 in 2025 and approximately 147 so far in 2026. The Community Voice has not independently verified those figures.
Meanwhile, the three families say they sometimes waited months or years for serious problems to be permanently corrected.
The lawsuit also cites more than 1,400 Better Business Bureau complaints against FirstKey during a three-year period. Those complaints are national, not limited to Kansas City, and include complaints about maintenance, water intrusion, mold, plumbing, heating, electrical problems, fees and security deposits.
The families are suing FirstKey, FirstKey Homes of Missouri, private-equity firm Cerberus Capital Management and several affiliated property-owning companies. Their claims include alleged violations of the Missouri Merchandising Practices Act and the state’s implied warranty of habitability.
“No family should have to accept unsafe housing simply because they cannot afford to move,” said Amy Sweeny Davis, an attorney representing the families.
The lawsuit is one case involving one corporate landlord. But as investors acquire more single-family homes and convert them to rentals, it highlights another part of the debate over investor-owned housing: Buying the house is only the beginning. How those homes — and the families living in them — are treated after the purchase matters, too.
