United States sues RealPage, alleging the company allows landlords to coordinate in hiking rents

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On Friday, the U.S. Department of Justice sued real estate software company RealPage. Authorities alleged the company's software is anti-competitive and enables landlords across the country to hike rent higher than they otherwise could.

The U.S. Department of Justice on Friday sued a major real estate firm, alleging the company's algorithmic software enables landlords across the country to set rent at artificially high rates. The lawsuit, joined by several states including California, focuses on software from Texas-based company RealPage. The software is used by many landlords to set rent prices for both vacant units and renewal rates for existing tenants.

But in its complaint, the Justice Department pointed to instances where RealPage described its software as a tool for maximizing rent and outperforming the market. Authorities also alleged the company made it more difficult for landlords to reject its recommendations than accept them.

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DOJ Sues Landlord Software Company RealPage for Inflating Americans’ RentsThe lawsuit alleges that the Texas company intentionally fed competing landlords' nonpublic information about rental rates into its rent suggestion algorithms, resulting in anti-competitive recommendations that raised rents across markets.
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