RealPage Faces Lawsuit for Driving Up Rents
The United States Department of Justice and eight states have sued RealPage. RealPage develops software for managing rental properties. They claim RealPage helped landlords in breaking the law and raising apartment rents.
What is the Problem?
RealPage’s software allows landlords to share pricing information. The software then uses this data to suggest how much rent should be. The lawsuit claims this practice makes it hard for landlords to lower rents or offer deals. This means higher costs for renters.
Why Is This Important?
This lawsuit is important because it represents the first time the Justice Department has gone after companies for using algorithms to cooperate. Cooperation occurs when businesses work together to set prices or reduce competition. In this case technology is used to accomplish this.
What Does RealPage Say?
RealPage denies these claims. According to the company its software has been designed to help landlords with handling their properties and following regulations.
What Does This Mean for Renters?
If the lawsuit wins it could lead to fair rental prices in the future. It also shows that regulators are paying more attention to how technology affects competition and pricing.
What Happens Next?
The case will go through the legal process to determine if RealPage’s practices were illegal. The outcome could impact how property management software is used in the future.
