South Florida Billionaire Orlando Bravo's Company RealPage Allegedly Colluded to Raise Rent Prices While Bravo is Serving as a Director of Partnership for Miami, a Group that Says They are "Addressing Affordable Housing" Issues
The investigation centers on RealPage's software, a powerful tool used by landlords to set rental rates. Critics argue that the software enables landlords to collude, effectively fixing rents and violating state and federal laws that prohibit such practices.
Adding another layer of complexity to the story is Orlando Bravo's position on the board of the Partnership for Miami, a nonprofit organization dedicated to addressing affordable housing issues. This apparent conflict of interest has raised eyebrows and fueled accusations of hypocrisy. Critics argue that Bravo's involvement in the Partnership for Miami is a cynical attempt to deflect criticism and portray himself as a champion of affordable housing, while his firm's actions are contributing to the problem.
Background RealPage, based in Texas, was acquired by Thoma Bravo, a private equity firm founded by Miami billionaire Orlando Bravo, in 2021. The acquisition, valued at approximately $10.2 billion, transformed RealPage into a privately held company. Thoma Bravo's involvement in RealPage has drawn attention due to the firm's significant influence in the real estate industry and its connections to some of the largest property management companies in the country.
The DOJ's legal theory posits that even if landlords do not explicitly agree to fix prices, their participation in RealPage's software constitutes concerted action under Section 1 of the Sherman Antitrust Act. This interpretation of antitrust law has broader implications for the use of algorithms and artificial intelligence in various industries. In other words, RealPage is currently a loophole in the Sherman Antitrust Act.
Attorney General Josh Stein has launched a separate investigation into RealPage's practices in North Carolina, citing concerns that the company's use of private data may violate antitrust laws and artificially raise rents.
Orlando Bravo and the Partnership for Miami Orlando Bravo, the founder of Thoma Bravo and a key figure in the acquisition of RealPage, is also a board member of the Partnership for Miami, a nonprofit organization focused on addressing affordable housing issues in Miami. This connection has raised eyebrows, as Bravo's involvement in both RealPage and the Partnership for Miami presents a potential conflict of interest if not a very bad look.
Housing advocates have been quick to point out the irony of Bravo's dual roles. "It's deeply troubling to see someone who claims to be working on affordable housing solutions potentially profiting from practices that make housing less affordable," said a spokesperson for a tenants' rights organization, who requested anonymity due to the ongoing nature of the investigation.
Moving Forward The ongoing investigation into RealPage highlights the complex interplay between technology, real estate, and antitrust law. As the DOJ and other authorities continue to scrutinize RealPage's practices, the outcome of this case could have far-reaching implications for the rental housing market and the use of algorithms in setting prices. Meanwhile, Orlando Bravo's involvement in RealPage and the Partnership for Miami underscores the need for greater transparency and accountability in addressing the affordable housing crisis.
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