Justice Department accuses RealPage of helping landlords collude in scheme to hike rent

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Justice Department accuses RealPage of helping landlords collude in scheme to hike rent
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The Justice Department filed an antitrust lawsuit Friday against real estate software company RealPage Inc., accusing it of an illegal scheme that allows…

The lawsuit alleges the company is violating antitrust laws through its algorithm that landlords use to get recommended rental prices for apartments.filed an antitrust lawsuit Friday against real estate software company RealPage Inc., accusing it of an illegal scheme that allows landlords to coordinate to hike rental prices.

In a statement, Attorney General Merrick Garland said,"Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law."In a statement, RealPage said the Justice Department's claims were “devoid of merit and will do nothing to make housing more affordable."

The use of data to help property managers set their rents isn’t new or, on its face, illegal. But state prosecutors argue that RealPage is different. According to lawsuits filed in the past year by the attorneys general for Arizona and Washington, D.C., RealPage doesn’t just use publicly available data — it uses confidential data that RealPage’s clients have agreed to privately share to help RealPage’s software to determine the highest price.

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