The US Justice Department and attorneys general from eight states have filed a lawsuit against RealPage Inc., a popular property management software system, for alleged antitrust violations. The complaint accuses RealPage of violating the Sherman Act and harming consumers by decreasing competition among landlords in apartment pricing. The software system is accused of using data to maintain a monopoly in the market for commercial revenue management software.
A ProPublica investigation found that rents in buildings using RealPage’s software rose dramatically in certain markets nationwide. The Lease Rent Option feature collects rental data from landlords, analyzes it, and suggests new rents to clients, leading to significant rent increases for tenants. More than 30 cases against RealPage alleging antitrust violations have been consolidated in federal court.
RealPage has responded to the allegations, stating that its software offers more options and flexibility to housing providers and does not use personal data to generate rent price recommendations. Various property management companies named in the lawsuits, including WinnResidential Manager Corp. and Equity Residential, have denied the allegations.
Tenants in Massachusetts have no way of knowing if their landlords use RealPage’s software, leading to some filing lawsuits against the company. Housing experts note that tenants are at a disadvantage in the current market, as the market favors landlords. Legal experts suggest negotiating rent caps or moving to another property if faced with significant rent increases.
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