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Landlords Raise Rents Based on RealPage Software, Suits Say

Antitrust cases contend that use of RealPage’s algorithm, which lets property owners share private data, amounts to collusion.The New York Times reports that a series of lawsuits have been filed across the country, alleging that RealPage’s algorithm, which allows property owners to share private data, is being used to collude and raise rents. This system, known as YieldStar, gathers rental pricing and occupancy data from landlords and uses algorithms to suggest higher rent prices. The plaintiffs argue that this results in landlords adopting the suggested prices and passing the costs onto tenants, leading to higher rents. RealPage, owned by Thoma Bravo, denies these allegations and claims that their software can also recommend rent reductions. However, the lawsuits assert that the company’s software is being used to facilitate collusion among landlords, resulting in higher rents for tenants. RealPage has defended itself by stating that rent increases are due to various economic and political factors, such as a shortage of rental housing units. The company also claims that the lawsuits are based on a misunderstanding of how their software works. 

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