State College landlord settles lawsuit that accused him of ‘unfair and deceptive’ practices
A State College area landlord will pay $30,000 and offer better protections to tenants, many of whom are Penn State students, after a lawsuit settlement was approved Tuesday by a Centre County judge.
The settlement resolved a yearslong dispute between Rodney Hendricks and the state Office of Attorney General, which had accused him of levying illegal charges on tenants and leaving his properties in unlivable condition.
“For many, student housing marks their first experience living independently, but this landlord turned it into a negative experience for many tenants,” state Attorney General Dave Sunday said in a statement. “All Pennsylvania property managers must abide by landlord/tenant laws, and this settlement ensures that Hendricks Investments will no longer provide subpar properties or make excessive deductions from security deposits.”
A message left Friday afternoon with Hendricks’ attorneys was not immediately returned.
The 2021 lawsuit said the Bureau of Consumer Protection received myriad complaints about Hendricks’ business practices. Some tenants reported Hendricks retained thousands of dollars from security deposits for excessive cleaning and maintenance fees.
The suit claimed Hendricks effectively offloaded the cost of doing business to tenants in violation of state law. Hendricks’ company was also accused of entering residences without prior notice, and occasionally without knocking.
Under the agreement that was approved by Centre County President Judge Jonathan Grine, Hendricks is required to provide tenants with a written and itemized list of actual damages when making deductions from security deposits.
He is also prohibited from issuing deductions for normal wear and tear and must add disclaimers to all photos used to promote his properties before a lease is signed. All tenants will also be given at least 24 hours notice before Hendricks or his employees enter a property, unless it’s in response to a tenant request or an emergency.
Of the settlement, $20,000 will go toward restitution for consumers who have filed complaints. The remaining $10,000 will reimburse the state for the costs of its investigation and fees in filing the lawsuit.
Hendricks did not admit he engaged in illegal conduct under the settlement. The two sides reached an agreement to “avoid the costs and uncertainties” of a trial, according to the 18-page agreement.
But in court filings, Hendricks railed against the integrity of the lawsuit. His attorney cast it as a “politically motivated complaint without requisite legal foundation.”
“The Attorney General’s intent is clear: To file a formbook complaint without any substantiating facts with only unspecific, generalized averments, then run to the press and publicize that the Attorney General is fighting on behalf of consumers to assist in his current campaign for governor,” Hendricks’ attorneys wrote in December 2021.
The suit was brought by former state Attorney General Josh Shapiro, who was elected Pennsylvania governor the following year.