Washington State has joined seven other states in a lawsuit filed by the U.S. Department of Justice against RealPage Inc. The antitrust suit, lodged in the U.S. District Court in North Carolina, accuses the company of enabling landlords to collude and inflate apartment rents through its software.
The lawsuit alleges that RealPage’s software, which processes detailed rental data from competing landlords, facilitates price-fixing. This data includes details on lease prices, renewals, and rental inquiries. According to the complaint, RealPage’s algorithmic pricing system uses this information to recommend rental prices and lease terms, leading to coordinated rent increases.
U.S. Attorney General Merrick Garland criticized the company’s actions, asserting that Americans should not face higher rents due to unlawful coordination among landlords facilitated by RealPage’s software.
The lawsuit also claims that RealPage has cornered the market on commercial revenue management software for landlords, controlling approximately 80% of the sector. The Texas-based company, however, has denied the allegations and stated its intent to defend itself vigorously. Despite ongoing discussions, Jennifer Bowcock, a spokeswoman for RealPage, expressed disappointment over the DOJ’s decision to pursue the lawsuit and claimed that their software is designed to comply with legal standards.
Since 2017, around 800,000 leases in Washington have utilized RealPage’s revenue management tools. ProPublica’s reporting on the company’s potential role in driving up rents spurred the state's investigation into RealPage. Washington Attorney General Bob Ferguson accused RealPage of conspiring to inflate rents for increased profits.
In addition to Washington, Attorneys General from North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, and Tennessee have joined the legal action. RealPage offers several revenue management systems, including YieldStar, AI Revenue Management, and Lease Rent Options, and is said to have access to confidential data on over 16 million rental units nationwide.
Deputy U.S. Attorney General Lisa Monaco emphasized that using technology to facilitate illegal conduct is still unlawful, underscoring the DOJ’s commitment to addressing anticompetitive practices driven by technology. What do you think? Do you believe that RealPages software was using their power illegally?
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