Rent Fixing Lawsuit Filed Against RealPage and Landlords Over Property Management Software

Kentucky alleges that RealPage and several major landlords engaged in a decade-long scheme to fix rental prices through coordinated efforts.

A new lawsuit filed by the Commonwealth of Kentucky claims that the software company RealPage has engaged in a rent-fixing scheme with local and national landlords since at least 2016.

The complaint (PDF) was brought by Kentucky Attorney General Russell Coleman in the U.S. District Court for the Eastern District of Kentucky on July 2, naming RealPage Inc. and a number of landlords operating in the state as defendants

RealPage is a property technology company that offers software for tenant screening, rent pricing, utility management and other functions. Its platform is widely used by landlords across the U.S., including those operating thousands of multifamily units in Louisville and Lexington.

However, concerns have emerged in recent years that RealPage may be using an algorithm to help landlords coordinate rent increases, potentially violating antitrust laws. Earlier this year, attorneys general from nine states, including North Carolina, California, Illinois and Oregon, joined the U.S. Department of Justice in filing a RealPage antitrust lawsuit.

Washington state later withdrew from the joint case to pursue its own, individual antitrust claim against the software company.

In addition to the government lawsuits, individual renters across the country have also filed complaints, accusing RealPage of using flawed or biased algorithms that artificially inflate rent prices in competitive housing markets.

In this new lawsuit, the Commonwealth of Kentucky alleges that RealPage facilitated a price-fixing cartel by sharing sensitive rental data among competing property owners and managers, allowing them to coordinate pricing decisions rather than competing in a free market.

The lawsuit claims RealPage used private data from landlords to set rent recommendations that were often followed without question, helping keep prices higher than they would be in a competitive market. Kentucky says this violated antitrust laws and hit renters hardest in cities like Louisville and Lexington, where many apartments were managed by RealPage clients.

Rather than just collecting data, the software acted like a central control system, sending daily pricing suggestions based on competitors’ private information. It also tracked which landlords followed the guidance, rewarding compliance and flagging those who didn’t.

The complaint also highlights a structure where RealPage notified landlords if they or competitors fell out of alignment with recommended prices. Kentucky argues that this system ensured ongoing cooperation and minimized deviation from the coordinated pricing plan.

“Based on this process and algorithm, RealPage provides daily, near real-time pricing ‘recommendations’ back to competing landlords. These recommendations are based on the non-public, business sensitive information of their rivals. But these are more than just ‘recommendations.’ Because, in its own words, a ‘rising tide raises all ships,’ RealPage monitors compliance by landlords with its recommendations.”

–The Commonwealth of Kentucky v. RealPage Inc. et al

Kentucky raises allegations of anticompetitive conduct, arguing that the defendants’ actions suppressed competition, inflated rental costs, and violated the state’s antitrust and consumer protection laws.

It is seeking injunctive relief to halt the alleged anticompetitive conduct, along with civil penalties and damages for impacted renters.

Renter Lawsuits Against RealPage

In addition to the lawsuits filed by federal and state officials, RealPage also faces growing legal challenges from individual renters who claim the company’s software is flawed and contributes to unfair housing decisions.

One such case, filed late last year in the U.S. District Court for the Middle District of Florida, involves a disabled military veteran who says she was repeatedly denied housing due to a mistake in RealPage’s screening algorithm. According to the complaint (PDF), the software confused her with her twin sister, who has a criminal record, despite the plaintiff having no such history.

The complaint accuses RealPage of violating the Fair Credit Reporting Act, arguing that the faulty screening report caused ongoing housing instability and financial harm.

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