The DOJ Provides 6 Main Landlords to Lawsuit In opposition to RealPage


After suing actual property software program firm RealPage in late August, the U.S. Division of Justice (DOJ) expanded its lawsuit on Wednesday to incorporate six main landlords. In accordance with the DOJ, the landlords labored with RealPage to maintain hire costs excessive by sharing delicate data.

The businesses now named within the swimsuit are Greystar Actual Property Companions LLC Blackstone’s LivCor LLC; Camden Property Belief; Willow Bridge Property Firm; Cortland Administration LLC; and Cushman & Wakefield Inc. and Pinnacle Property Administration Companies LLC. The DOJ states that they collectively personal greater than 1.3 million rental properties in 43 states.

Unique story revealed August 23:

The U.S. Division of Justice (DOJ) sued RealPage on August 23 after a two-year investigation that included an unannounced FBI raid of a nationwide company landlord. The DOJ alleged that Richardson, Texas-based RealPage, which sells actual property software program, decreased competitors amongst landlords and artificially inflated rents for thousands and thousands of tenants throughout the nation.

“We allege that RealPage’s pricing algorithm permits landlords to share confidential, competitively delicate data and align their rents,” legal professional normal Merrick B. Garland said in a press launch.

The DOJ filed the 115-page criticism within the U.S. District Courtroom for the Center District of North Carolina on Friday. The antitrust lawsuit particulars how RealPage signed contracts with landlords who would in any other case be opponents and picked up delicate, detailed details about hire costs, lease phrases, facilities and occupancy charges.

RealPage then allegedly fed the data to its AI-driven algorithm, which gave landlords suggestions on the way to value leases and set phrases for rental agreements. The DOJ additionally accused the corporate of making certain landlords accepted its suggestions by sending out pricing advisors to fulfill with them for “accountability conversations” and including an “auto settle for” function so landlords would mechanically approve value will increase.

In 2020, RealPage mentioned its software program collected information on 16 million rental items of the 22 million investment-grade condo items within the U.S., indicating its broad attain.

U.S. Lawyer Common Merrick Garland (C), U.S. Deputy Lawyer Common Lisa Monaco (L) and U.S. Performing Affiliate Lawyer Common Benjamin Mizer (R). Picture Credit score: Anna Moneymaker/Getty Pictures

“As Individuals wrestle to afford housing, RealPage is making it simpler for landlords to coordinate to extend rents,” assistant legal professional normal Jonathan Kanter of the Justice Division’s Antitrust Division said, including that “competitors – not RealPage – ought to decide what Individuals pay to hire their properties.”

The DOJ filed the lawsuit with the attorneys normal of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee and Washington. State attorneys normal for Arizona and Washington, D.C., have already taken authorized motion in opposition to RealPage this 12 months.

Associated: State Attorneys Common Sue RealPage, Landlords Over ‘Astronomical’ Lease Hikes: ‘This Was Not A Truthful Market At Work’

In a assertion, RealPage mentioned the DOJ’s claims have been “devoid of benefit” and “will do nothing to make housing extra inexpensive.” The lawsuit “seeks to scapegoat pro-competitive know-how,” the corporate claimed.

The non-partisan nonprofit American Financial Liberties Mission (AELP) took a special stance. In an emailed assertion to Entrepreneur, AELP senior authorized counsel Lee Hepner pointed to RealPage’s personal advertising and marketing, highlighted by the DOJ, which said that the corporate took “each doable alternative” to lift costs.

“Working individuals have sufficient issues affording each day requirements with out RealPage bragging that it seizes ‘each doable alternative’ to extend rents,” Hepner said.

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