Baltimore’s city solicitor is suing a major city property management company and two technology vendors, alleging they are charging tenants illegal “junk fees.”
According to a complaint filed this week in Baltimore Circuit Court, tenants of Pennrose Management Co. who pay their rent electronically through a platform owned by RentCafe and Yardi Systems have been charged “service” fees that aren’t disclosed up front or in their lease agreements.
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. 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, 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.
Around 2024, according to the lawsuit, Pennrose switched from accepting rent in person to processing rent payments via RentCafe.
Tenants who pay by credit or debit card have faced annual service fees totaling $300 to $420, the lawsuit says. The automatic payment option is free, but it isn’t available to tenants without bank accounts and isn’t well-advertised, according to the lawsuit.
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Representatives for the three companies did not immediately respond to a request for comment.
The Washington, D.C., law firm Relman Colfax filed the suit in Baltimore.
City Solicitor Ebony Thompson said in a statement that renters shouldn’t be made to “navigate a maze” to understand where their money is going.
Attorneys and tenants’ rights advocates have increased their focus on the junk fees market in response to an economy where everything from gas to groceries costs more. These hidden, often vague charges have been pursued by Presidents Joe Biden and Donald Trump, who have attempted to crack down on what they have called unfair pricing, especially within the entertainment and short-term lodging industries.
Critics have argued that processing, convenience and service fees have been put in place to help disguise the true cost of some goods and experiences.
Around 40% of Baltimore renter households are paying more than they can comfortably afford for rent and utilities, with very low-income renters struggling the most, city data shows.
Some tenants who have fought back against what they perceive as unfair charges have found success in court. 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.
In a sharply worded opinion, Baltimore Circuit Judge Catherine Chen said the award was justified by the inconvenience and “disregard and dismissiveness” that Deaver, a retired Postal Service worker, encountered.
Howard County organizations have also begun canvassing the area to warn tenants about hidden fees and have asked county lawmakers to pass legislation that strengthens renters’ recourse against bad-actor landlords.
According to research from the Horizon Foundation, residents have been unable to opt out of mandatory fees for services they may not use, such as a “trash valet” fee for having staff carry garbage to the curb, parking permit fees for those without cars, and dumpster fees for those hauling their own trash. The Horizon Foundation is a donor to The Banner.
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