A State College company that took advantage of Penn State renters has settled claims, Pa. AG says
A property management company that operates several apartment buildings in State College agreed to pay $25,000 to settle claims that it illegally added surcharges to tenants’ security deposits, the state’s top prosecutor said in a statement Tuesday.
McKinney Properties was accused of adding a 15% administrative fee on top of all damage charges assessed against tenants’ security deposits between August 2010 and August 2016. Many were Penn State students.
The company manages Calder Commons, Meridian on College Avenue and Heights at State College. The business only collected security deposits from those who leased spaces at Calder Commons and the Meridian.
“Some of these tenants were students away from home, on their own, for the first time and signing their first leases. Schemes like these are Scams 101,” state Attorney General Josh Shapiro said in a statement. “My office won’t allow Pennsylvania students like these and others to be taken advantage of, we’re prepared to step up and protect their interests.”
McKinney’s leases gave landlords the right to apply $100 of each tenants’ share of the security deposit toward repairing damage in common areas. That practice had been ongoing since August 2010, state prosecutors wrote in the settlement.
Collecting those charges without proof the damage was caused by a specific tenant is illegal under state law, Shapiro said.
The company does not believe it violated state law, according to the settlement, but signed the agreement to “forgo the cost of litigation.” Company attorney Susan Yocum declined to comment Tuesday.
The settlement barred the company from deducting any administrative costs associated with remedying damages and general maintenance from tenants’ security deposits.
The money from the settlement is set to be distributed to those who were slapped with the illegal administrative or common area charges. Complaints must be filed within three months to be considered and can be submitted at www.attorneygeneral.gov/submit-a-complaint.