Justice Department Sues RealPage for Allegedly Aiding Landlords in Rent Hikes

The U.S. Department of Justice (DOJ) has launched a significant lawsuit against RealPage, a Texas-based property management software company, accusing it of facilitating anti-competitive practices that have contributed to rent increases across the United States. According to the DOJ, RealPage's software allowed landlords and property managers to share sensitive pricing information and coordinate rental rates, effectively colluding to drive up rents in certain markets.

The lawsuit alleges that RealPage's software enabled landlords to engage in practices that would have been impossible without such a platform, leading to artificially high rental prices that have burdened tenants. The DOJ contends that these practices violate federal antitrust laws, which are designed to promote competition and protect consumers from price-fixing schemes.

RealPage's platform, widely used across the U.S., provides landlords with data analytics and pricing recommendations based on market trends. However, the DOJ argues that the system's design encourages landlords to set rental rates above competitive levels, reducing the natural competition that would otherwise keep prices in check.