Rent Payment Platforms Face Legal Challenge Over Undisclosed Transaction Fees
Baltimore’s city solicitor filed suit against Pennrose Management Company, RentCafe, and Yardi Systems, alleging they charged tenants undisclosed fees for electronic rent payments that violate Maryland consumer protection law. Tenants at nine Pennrose-operated low-income housing developments faced annual service fees of $300 to $420 when paying by credit or debit card through the RentCafe platform, according to the complaint filed in Baltimore Circuit Court. Pennrose switched to mandatory electronic payments in 2024, eliminating in-person rent collection. A free automatic payment option exists but requires a bank account, which many low-income tenants lack.
Rents at Pennrose properties range from $869 for one-bedroom units to $1,654 for four-bedroom apartments, housing primarily older adults, people with disabilities, and residents on fixed incomes. The lawsuit argues tenants received no additional services in exchange for the fees but risked eviction if they refused to pay. City Solicitor Ebony Thompson said renters should not have to navigate unclear charges to understand their payment obligations. Representatives for all three defendants did not respond to requests for comment.
Baltimore renter households paying more than they can afford for rent and utilities account for roughly 40 percent of the city’s rental market, with very low-income renters facing the most acute burden. A 2024 lawsuit filed by Baltimore resident Rodney Deaver against his landlord over similar charges resulted in a judgment exceeding $250,000, roughly 800 times what the defendants acknowledged owing. Baltimore Circuit Judge Catherine Chen justified that award based on the inconvenience and dismissiveness Deaver encountered. Organizations in neighboring Howard County, Maryland have begun warning tenants about mandatory fees for trash valet services, parking permits, and other charges residents cannot decline.
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