Software helped landlords inflate rents, including in Southern California, US lawsuit alleges

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Software helped landlords inflate rents, including in Southern California, US lawsuit alleges
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The Justice Department filed an antitrust lawsuit Friday against Texas-based real estate software company RealPage Inc.

FILE – The Department of Justice seals is seen during a news conference at the DOJ office in Washington, May 16, 2023. The Justice Department 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 numerous markets across the nation, including four in Southern California.

A RealPage spokesperson, Jennifer Bowcock, said the company would “vigorously” defend itself against the suit and that its revenue management software was “purposely built to be legally compliant.” Previously, RealPage called claims against the company “false and misleading,” and argued its software actually “contributes to a healthier and more efficient rental housing ecosystem.” RealPage said landlords decide their own rent prices and are free to reject the recommendations provided by its software.

“The rent is too damn high, and this is one of the reasons why,” Garland told reporters during a press conference on Friday.

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