Mayor Brandon M. Scott and City of Baltimore Take Action Against Property Technology Platform for Allegedly Using Hidden Fees to Squeeze Every Last Dollar Out of Economically Vulnerable Renters
BALTIMORE, MD (Monday, October 19, 2026) — Today, Mayor Brandon M. Scott and the City Council of Baltimore sued the operators of one of the largest property management platforms in the country and a major Baltimore property manager that uses the platform, alleging that defendants surprise vulnerable tenants with compulsory junk fees in violation of Baltimore’s Consumer Protection Ordinance.
The defendants are Yardi Systems, LLC and RentCafe, LLC, which jointly sell the RentCafe platform at issue in the lawsuit, and Pennrose Management Company, LLC, which owns and manages hundreds of rental units for low-income renters in Baltimore City. The complaint alleges that RentCafe and Baltimore’s property managers use predatory practices to squeeze every last dollar out of economically vulnerable renters.
The complaint alleges that RentCafe steers tenants toward fee-generating payment options by obscuring the fees associated with each payment method behind multiple clicks, embedding fee information across several web pages in fine print, and failing to disclose the fee associated with a selected payment method until the last step of the payment flow. Tenants do not receive any additional “service” for paying them; they have to incur these “pay to pay” fees for the privilege of paying rent, or risk being charged late fees or evicted.
“These illegal junk fees effectively raise the rent for thousands of Baltimore residents,” said Mayor Brandon M. Scott. “This is about holding these businesses accountable for their deceptive practices and protecting Baltimoreans' hard-earned money."
“Renters should not have to navigate a maze of web pages and fine print to understand what they are being charged,” said City Solicitor Ebony M. Thompson. “When companies obscure the true cost of rent, we will use the City’s consumer protection laws to hold them accountable.”
In recent years, consumers have increasingly been surprised by “service fees,” “administrative fees,” “processing fees,” and similar junk fees that are driving up their bills. These junk fees are not only costly; they are also illegal. Month after month, these fees add up significantly. Last year, four of ten households renting in Baltimore spent 35% or more of their income on rent and utilities. And for Baltimoreans making $35,000 or less a year, more than half spent 50% or more of their income on rent and utilities.
“Hard-earned money paid in fees to RentCafe means less money for groceries, transportation, or medical bills,” said Tara K. Ramchandani, Co-Managing Partner at Relman Colfax. “We are proud to partner with the City of Baltimore to protect these consumers.”
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