From The Banner · Hallie Miller · · 1m 10s
Baltimore sues property managers for hidden rent fees
Baltimore city sues property managers and software vendors for illegal 'junk fees' on rent payments.
In brief
Baltimore city sues property managers and software vendors for illegal 'junk fees' on rent payments. Baltimore sues Pennrose Management Co., RentCafe, and Yardi Systems for charging renters hidden fees that violate Maryland's consumer protection law. Originally reported by The Banner.
Baltimore sues property managers
Baltimore city solicitor sues Pennrose Management Co. and two software vendors for illegal 'junk fees' on rent payments.
“Baltimore’s city solicitor is suing a major city property management company and two technology vendors, alleging they are charging tenants illegal "junk fees."”
Hidden rent fees
Tenants of Pennrose Management Co. face annual service fees of $300 to $420 for electronic rent payments through RentCafe and Yardi Systems.
“Tenants who pay by credit or debit card have faced annual service fees totaling $300 to $420, the lawsuit says.”
Un disclosed fees
The suit claims tenants don’t receive additional services for paying these fees but must 'pay-to-pay' or risk eviction.
“The suit alleges that tenants don’t receive additional services for paying these fees, but that they have been forced to "pay-to-pay" or else risk being evicted.”
Violates law
The fees violate Maryland’s consumer protection law due to unfair trade practices and inadequate fee disclosure.
“That would violate Maryland’s consumer protection law, according to the lawsuit, because of unfair trade practices and a failure to adequately disclose the fees.”
Pennrose's impact
Pennrose operates nine low-income housing developments in Baltimore with rents starting at $869 for one-bedroom apartments.
“Pennrose, which operates across the U.S. and has nine low-income housing developments in Baltimore, houses many older adults, people with disabilities, and others on low or fixed incomes. Rents typically start at about $869 for one-bedroom apartments and go as high as $1,654 for four bedrooms, according to the lawsuit.”
Switch to digital
Pennrose switched from in-person rent payments to RentCafe processing around 2024.
“Around 2024, according to the lawsuit, Pennrose switched from accepting rent in person to processing rent payments via RentCafe.”
Tenant success
Baltimore resident Rodney Deaver won $250,000 in court after fighting unfair charges from his rental building.
“Baltimore resident Rodney Deaver’s 2024 lawsuit against his rental building and property manager resulted in a judgment of more than $250,000 in his favor, roughly 800 times what the defendants acknowledged they owed.”
The bottom line
Baltimore sues Pennrose Management Co., RentCafe, and Yardi Systems for charging renters hidden fees that violate Maryland's consumer protection law.
