Local
Baltimore lawsuit targets monthly rent-payment fees at hundreds of properties
Baltimore City is suing Yardi Systems, RentCafe and Pennrose Management, alleging renters face mandatory service fees and unclear disclosures when paying rent online. The city says the platform is used at hundreds of local properties, including nearly 50 with income-restricted or affordable housing.
Baltimore City has sued Yardi Systems LLC, RentCafe LLC and Pennrose Management Company LLC, alleging the companies charged renters fees to pay rent and failed to clearly disclose those costs.
The lawsuit claims the practices violate Baltimore’s Consumer Protection Ordinance. Yardi and RentCafe jointly sell the RentCafe payment platform, while Pennrose owns and manages hundreds of rental units in the city, including housing for lower-income residents, according to the city.
The complaint alleges RentCafe directs tenants toward payment options that carry extra charges, while making information about the fees difficult to find. Disclosures may be spread across multiple webpages, buried in fine print or shown only at the last stage of a transaction, the city alleges.
Hundreds of Baltimore rental properties use RentCafe to process payments, the complaint says. Nearly 50 are income-restricted properties or buildings that include affordable units. The city alleges most tenants encouraged or required to use the platform pay a nonrefundable service fee each month, effectively adding to their housing costs.
“These illegal junk fees effectively raise the rent for thousands of Baltimore residents,” Mayor Brandon Scott said in announcing the suit. He said the case seeks to hold the businesses accountable and protect residents’ money.
City Solicitor Ebony Thompson said renters should be able to understand what they are being charged without searching through multiple pages or fine print. The complaint presents the city’s allegations; the source material did not include responses from the companies.