MUNCIE, Ind. — The Indiana Attorney General's Office reports it reached an agreement with a Muncie real estate company to refund consumers $35,000 and stop alleged "unfair and deceptive practices."
An investigation by the Homeowner Protection Unit found Middletown Property Management LLC and Middletown Property Group LLC have been using the unregistered trade name “BSU Rentals.” The concern is that could confuse people by suggesting it is associated with Ball State University.
Tenants also complained about:
- Invasions of their privacy without proper notice
- Use of a deceptive redecoration fee in place of a security deposit
- Repeated failures to deliver units to tenants in a safe, clean and livable condition in compliance with Indiana law
“People living in apartments and other rental properties deserve fair treatment and peace of mind. That’s why we work so hard to hold landlords accountable for following the law," Attorney General Todd Rokita said.
Under the agreement with the AG's office, the Middletown companies committed to the following:
- Issue credits and refunds to consumers totaling $35,000, as well as a payment to reimburse the Homeowner Protection Unit for $10,000 in investigative costs
- Cease the use of the BSU Rentals unregistered trade name on all marketing materials
- Make affirmative changes to all current and future residential leases requiring reasonable notice prior to entry of leased units by these companies or their agents
- Cease the use of a “redecoration fee,” which had the effect of charging tenants for a preexisting legal duty to deliver leased units in a safe, clean and livable condition
- Remove “as-is” language from all the companies’ leases and agree to abide by the landlord obligations found in Ind. Code § 32-31-8-5
- Participate in compliance monitoring, requiring the companies to issue quarterly reports to the Homeowner Protection Unit for a compliance period of two years running from Sept. 1, 2023 to June 1, 2025.
To read more on the agreement, click here.
