DoJ reaches settlement with RealPage over rent collusion case

DoJ Agrees to Settle with RealPage in Rent Collusion Software Case

Last year, the Department of Justice (DoJ) filed an antitrust suit against RealPage, a prominent software company in the rental housing sector, accusing it of engaging in practices that manipulated the rental housing market and increased prices for consumers. In a recent development, the DoJ announced a proposed settlement aimed at curbing RealPage’s ability to collect and use competitively sensitive information from landlords. However, it should be noted that RealPage will not be paying any damages nor admitting to any wrongdoing.

RealPage, based in Texas, is said to manage over 24 million rental units worldwide. The original complaint from the DoJ alleged that RealPage collaborated with landlords to share nonpublic and sensitive information concerning rental rates and lease terms. This data was reportedly utilized to refine algorithms for its YieldStar software, which generates pricing recommendations based on the company’s and its competitors’ sensitive data.

If the court approves this settlement, RealPage will be required to use landlord data that is at least 12 months old in its algorithms. Additionally, the company will need to remove or redesign any software features that discourage landlords from lowering their rental prices or compel them to match their competitors’ prices. Notably, its software will be prohibited from offering hyperlocalized pricing information that could manipulate rental costs at a neighborhood level.

“Competing companies must make independent pricing decisions,” stated Abigail Slater, the DoJ’s assistant attorney general. The agency remains committed to vigorous antitrust enforcement, especially amid the growing use of algorithmic and artificial intelligence tools.

As the real estate site Propmodo remarked, this outcome appears to be more of a reset than a punishment, with enforcement likely shifting to focus on algorithms that drive collective behavior. While pricing strategies may still be influenced by algorithms, clearer boundaries will now be in place.

What are your thoughts on this settlement? Do you believe it will impact rental pricing strategies? Share your views in the comments!