Federal Lawsuit Claims Richardson-Based Company Is Driving Up Rent Prices

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Renters have filed a federal lawsuit against the Richardson-based software company RealPage, alleging its services have artificially increased rent prices.

The federal lawsuit against RealPage likens companies that use its services to members of a cartel.

The lawsuit explains that until 2016, the largest landlords in the U.S. would price their units to be competitive with others in the area and to keep apartments full. Then, many agreed to use RealPage’s services to do the task and use its price recommendations, with the expectation that competitors would do the same.

RealPage’s services also permit landlords to coordinate supply levels to avoid competition on pricing, according to the lawsuit. When housing supply exceeds demand in competitive markets, prices in that market can fall as landlords compete to attract renters. To avoid this, the lawsuit claims, RealPage provides landlords with information that allows them to stagger lease renewals to avoid oversupply.

The article included references from RealPage's own promotional material and statements that seem to suggest it knows it has an effect on rent prices and what that effect is. In one video, RealPage Vice President Jay Parsons noted that rents had shot up by some 14.5%, asking another RealPage executive how the company's services may have contributed to the increase.

 

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