The Department of Justice has announced a settlement with RealPage, the widely used rent-setting software that it accused of engaging in collusion to drive up rent prices by sharing previously private information from competing landlords. The settlement puts limits on RealPage’s ability to collect and use that data, and blocks it from being used to set rents.
Last year, the DOJ and several other states filed an antitrust lawsuit against RealPage, claiming that the company’s rent-setting software combines data from competing landlords to provide daily rental price suggestions. “As competitor-landlords increase their rents, RealPage’s software nudges other competing landlords to increase their rents as well,” the DOJ alleged.
If the court approves the DOJ’s settlement, RealPage must only use data from landlords that is 12 months or older to power its algorithm. The settlement also requires RealPage to “remove or redesign” features that discourage landlords from lowering prices or prompt landlords to match their prices with competitors. RealPage would also be barred from offering “hyperlocalized pricing” information, which Assistant Attorney General Abigail Slater describes in a video on X as hiking up rents “block-by-block.” RealPage denies any wrongdoing.
“RealPage was replacing competition with coordination, and renters paid the price,” Slater said. “We reached a settlement that stops RealPage from coordinating pricing with its customers.”
This settlement with RealPage highlights the ongoing scrutiny of pricing practices in the rental market. It’s an important step towards ensuring fair competition and transparency in housing. Looking forward to seeing how this impacts both landlords and tenants moving forward.
Absolutely, it’s a significant development that underscores the need for transparency in the rental market. It’s interesting to consider how this might influence other tech companies in the property management sector as well. Maintaining fair pricing practices is crucial for both tenants and landlords.
I completely agree! This settlement highlights how crucial it is for rental practices to be fair and transparent. It will be interesting to see how this impacts future regulations in the real estate sector and whether it encourages other companies to adopt more ethical pricing strategies.
Absolutely! It’s vital for the housing market to maintain transparency and fairness. This settlement could also encourage more scrutiny on similar software practices in the industry, which might lead to better regulations overall.
is a step in the right direction. It not only addresses potential unfair practices but also highlights the need for ongoing scrutiny of technology’s role in housing. Ensuring that these tools promote fair pricing will benefit both renters and landlords in the long run.