Baltimore sues RentCafe operators, property manager over alleged hidden fees

BALTIMORE — Baltimore City is suing the companies behind RentCafe and a local property manager, accusing them of charging renters hidden fees just to pay their rent.

The lawsuit names Yardi Systems LLC, RentCafe LLC and Pennrose Management Company LLC. Yardi and RentCafe jointly sell the RentCafe platform, while Pennrose owns and manages hundreds of rental units for lower-income renters in Baltimore, according to the city.

The city alleges the companies violated Baltimore’s Consumer Protection Ordinance through mandatory “pay-to-pay” fees.

According to the complaint, RentCafe steers tenants toward payment methods that generate additional fees while making those charges difficult to find. The city alleges information about the fees can be spread across several webpages, placed in fine print or not disclosed until the final step of the payment process.

The complaint also alleges hundreds of Baltimore rental properties use RentCafe to process rent payments, including nearly 50 income-restricted properties or buildings with affordable units. It says most tenants who are encouraged or required to use the platform have to pay a nonrefundable service fee each month.

The city argues those charges effectively increase what renters have to pay each month.

“These illegal junk fees effectively raise the rent for thousands of Baltimore residents,” Mayor Brandon Scott said in announcing the lawsuit. “This is about holding these businesses accountable for their deceptive practices and protecting Baltimoreans' hard-earned money.”

City Solicitor Ebony Thompson said renters should not have to navigate multiple webpages and fine print to figure out what they are being charged.

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