Renters already grappling with steep housing costs may want to pay extra attention before clicking "pay" on a rental management portal going forward.
A class action lawsuit alleges Zillow added a hidden "junk fee" to online rent payments.
Here's what to know
In a lawsuit brought by plaintiff Sara Nour last spring against Zillow Group, Inc., the online real estate marketplace is accused of adding an unlawful transaction charge to rent payments processed through its Rental Manager.
According to Justia, the matter was moved from the Superior Court of Washington, D.C., to the U.S. District Court in the capital in May.
Per the complaint, renters do not encounter the charge until the final checkout stage. Nour alleges that Zillow does not fairly disclose how to avoid the fee and does not clearly inform consumers about other ways to pay rent without the added cost, which could lead them to believe the fee is required, as outlined by Top Class Actions.
The case could cover a nationwide class of consumers who paid the fee, along with a multistate class under similar consumer-protection laws and a Washington, D.C., class. Nour is seeking a jury trial, along with declaratory and injunctive relief, damages, interest, and payment of expenses.
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Lawsuits like this may pressure companies to make pricing more transparent or stop charging fees that consumers say are misleading. As the complaint puts it, per Top Class Actions, "Indeed, the transaction fee amounts to additional, unexpected rent for tenants that is undisclosed in lease agreements."
How can I protect myself?
Saving screenshots of payment pages, confirmation emails, lease language, and any notices about accepted forms of payment can help clarify whether a fee was disclosed and whether it aligns with the lease.
It may also help to check whether a landlord or property manager offers other payment methods outside a platform portal. Even when one option appears to be the default, tenants may want to ask directly whether there is a no-fee alternative.
Where can I learn more?
These articles look at billing disputes, rules for renters, and a separate lawsuit involving Zillow:
• A landlord's lawn irrigation requirement left one tenant paying for wasted water.
• In Nevada, a homeowner filed suit over a disproportionate solar charge.
• Home sellers accused Zillow of misleading flood-risk data after taking losses on property sales.
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