Maryland Sues RealPage, Major Landlords Over Alleged Rent-Fixing Scheme
Maryland Attorney General Anthony G. Brown sued property technology firm RealPage Inc and six major landlords on Wednesday, alleging they colluded to artificially inflate apartment rents across the state using pricing software.
The lawsuit, filed in Prince George’s County Circuit Court, claims RealPage’s “revenue management” software was used to coordinate pricing for over 100,000 Maryland apartments through sharing of non-public data and centralized price-setting algorithms.
Named defendants include Morgan Properties Management, Bozzuto Management, Greystar Management Services, AvalonBay Communities, UDR Inc, and Highmark Residential. The suit alleges they delegated rent-setting authority to RealPage’s software while sharing competitively sensitive data.
“RealPage and the named landlords worked together to raise the cost of their apartments, making it hard for Maryland renters to put a roof over their heads,” Brown said in a statement.
The complaint alleges RealPage’s software is “anticompetitive by design,” programmed to push rents higher and minimize decreases. The company advertises revenue increases of 2-7% for properties using its products.
Maryland officials said landlords who use RealPage’s software control a “substantial majority” of large apartment complexes in key markets like the Washington-Arlington-Alexandria area. The state claims this has forced residents to pay millions in inflated rents.
The lawsuit seeks to halt the alleged price-fixing practices, secure refunds for overcharged renters, and appoint a monitor to oversee compliance. RealPage is also facing similar actions from the US Department of Justice and other agencies.
RealPage recently announced it would allow clients to opt out of using competitors’ non-public data following a Justice Department lawsuit filed in August.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
