RealPage Reaches Settlement with Department of Justice Over Rent-Setting Software
RealPage, a provider of property management software, has reached a settlement with the Department of Justice (DOJ) regarding its revenue management tools. The agreement aims to clarify the legal boundaries for the operation of such software and follows scrutiny stemming from a 2022 ProPublica investigation and subsequent legal challenges.
According to a statement on its website, RealPage views the settlement as providing “greater certainty for housing providers and technology innovators” regarding compliance with federal antitrust enforcers. Dirk Wakeham, RealPage’s president and CEO, expressed satisfaction with the agreement, stating it brings “clarity and stability” and allows the company to continue focusing on innovation and improving outcomes for both landlords and renters.
The settlement does not include any admission of wrongdoing from RealPage, nor does it involve financial penalties. The company asserts that the agreement will formalize software modifications already implemented or planned, and that all its solutions will remain fully available, compliant, and adaptable to changing legal requirements. Stephen Weissman, an attorney representing RealPage, maintains that the company’s data utilization has resulted in “lower rents, less vacancies, and more procompetitive effects.” RealPage declined to offer further comment on the details of the settlement.
The DOJ’s action originated after ProPublica’s 2022 investigation into RealPage’s practices. Following the report, numerous tenants filed lawsuits against the company. In 2024, the DOJ filed an antitrust complaint against RealPage and, separately, sued six major landlords, including Greystar, alleging improper collaboration to increase rents. Prosecutors cited instances where landlords reported rent increases within weeks of adopting RealPage’s software, with some raising rents by over 25% within eleven months.
The legal proceedings have involved a broad coalition, including at least ten state attorneys general, notably California’s, representing a significant renter population. Legislative efforts have also been undertaken at the federal level, with senators introducing bills to ban the use of rent algorithms. Several cities, including San Francisco, Philadelphia, and Minneapolis, have moved to restrict landlords’ use of similar algorithms for rent setting.
The DOJ’s pursuit of the case against RealPage and its clients is considered a significant step, signaling a willingness to address antitrust concerns in the evolving landscape of algorithmic pricing. Federal prosecutors have described algorithms as “the new frontier” of collusion,contrasting them with customary,overt agreements.
The case was pursued under both the Trump and Biden administrations, demonstrating continued concern over the potential for anti-competitive practices. This proposed agreement builds on a previous settlement reached in August with Greystar, the nation’s largest landlord, which also did not involve an admission of wrongdoing and aimed to clarify the government’s interpretation of the law. Greystar stated its acceptance of the deal was intended to “ensure we continue to do things the right way.”
