US sues RealPage over rent-setting software that allegedly drove up prices

The Justice Department is suing the company down a wide utilized bundle that helps landlords acceptable rental prices. It alleges that RealPage’s rent proposal algorithm drives up prices and “deprives renters of the benefits of contention connected flat leasing terms.”

In the complaint, the DOJ, on with 8 states, assertion that RealPage obtains nonpublic rental terms accusation from competing landlords who usage the software. RealPage past allegedly feeds this accusation into its algorithmic pricing software, which landlords tin usage to get suggestions astir their rent rates.

As alleged successful the lawsuit, “these are much than conscionable ‘recommendations,’” arsenic RealPage besides “reviews and weighs successful connected landlords’ different policies,” successful which it attempts to extremity concessions and discounts for renters. Landlords tin besides “effectively hold to outsource their pricing function” to RealPage with an “auto accept” enactment that automatically adjusts their rents based connected its algorithm.

“In a competitory marketplace, each landlord whitethorn independently determine to connection concessions truthful that it tin amended vie successful enticing lessors,” the ailment alleges. “But, again, RealPage seeks to regenerate afloat independent, competitory decision-making with corporate enactment by ending concessions.”

Additionally, the DOJ claims RealPage maintains a monopoly successful commercialized gross absorption bundle for multi-family dwellings, making up astir 80 percent of marketplace share. RealPage’s “unlawful agreements” with landlords and the delicate information it receives from them springiness the institution a competitory advantage, the suit alleges. The Verge reached retired to RealPage with a petition for remark but didn’t instantly perceive back.

RealPage has been successful the DOJ’s sights for rather immoderate clip now. Rumors astir a imaginable lawsuit archetypal surfaced aft a 2022 ProPublica report revealed however RealPage’s algorithm whitethorn person contributed to expanding rent rates crossed the country.