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Renters filed a lawsuit this week alleging that an organization that makes price-setting software program for flats and 9 of the nation’s greatest property managers shaped a cartel to artificially inflate rents in violation of federal regulation.
The lawsuit was filed days after ProPublica published an investigation elevating issues that the software program, offered by Texas-based RealPage, is probably pushing lease costs above aggressive ranges, facilitating price-fixing, or each.
The proposed class-action lawsuit was filed in US District Court docket in San Diego.
In an e mail, a RealPage consultant stated that the corporate “strongly denies the allegations and can vigorously defend in opposition to the lawsuit.” She declined to remark additional, saying the corporate doesn’t touch upon pending litigation.
The 9 property managers named within the lawsuit didn’t reply instantly to a request for remark.
They included a number of the nation’s largest landlords, corresponding to Greystar, Lincoln Property Firm, Fairness Residential, Mid-America Condo Communities, and FPI Administration—which collectively handle tons of of 1000’s of flats.
4 of the 5 renters named within the go well with have been Greystar tenants. A fifth rented from Safety Properties. Their flats have been situated in San Diego, San Francisco, and two Washington state cities, Redmond and Everett.
The lawsuit accused the property managers and RealPage of forming “a cartel to artificially inflate the worth of and artificially lower the provision and output of multifamily residential actual property leases from aggressive ranges.”
RealPage’s software program makes use of an algorithm to churn by means of a trove of knowledge every night time to recommend each day costs for accessible rental models. The software program makes use of not solely details about the residence being priced and the property the place it’s situated, but additionally personal knowledge on what close by opponents are charging in rents. The software program considers precise rents paid to these rivals—not simply what they’re promoting, the corporate informed ProPublica.
