RealPage software allegedly conspired with landlords to inflate rent prices, WA AG claims

Washington State Attorney General Nick Brown filed a lawsuit against software company RealPage and nine local landlords, alleging they led a conspiracy of unfair competition that resulted in rapidly rising rent prices for their tenants.

RealPage is a major player in the rental market and serves more than 24 million units worldwide from offices in North America, Europe, and Asia. According to their website, RealPage’s technology platform allows real estate owners and managers to “gain transparency into asset performance,” as well as “leverage data insights and monetize space to create incremental yields.”

Brown’s lawsuit claimed RealPage’s pricing software facilitated shared pricing strategies that reduce competition among landlords. The lawsuit also claimed the software uses algorithms to recommend rental prices based on nonpublic data shared by landlords, favoring price hikes that maximize profits.

The lawsuit claimed RealPage developed and provided software to landlords that increased rental prices beyond what landlords could have otherwise achieved, while reducing the risk that other landlords will undercut them with more competitive rates.

The Office of the Attorney General investigated properties that used RealPage’s software, finding its pricing was typically higher and occupancy was lower for properties managed by landlords who use RealPage.

“RealPage’s unfair practices are cheating renters and pricing families out of stable housing,” Brown said. “Washington is facing a housing crisis, and we must respond with every available tool.”

Approximately 800,000 leases in Washington were priced using RealPage software between 2017 and 2024, the Office of the Attorney General found.

“The Washington Legislature has passed dozens of bills over the last three years focused on addressing housing affordability,” House Speaker Laurie Jinkins, D-Tacoma, stated in a press release. “I welcome AG Brown’s entry into this work and his willingness to fight against giant corporations using unfair algorithms across the State of Washington to jack up housing costs.”

What the Attorney General’s investigation found

According to the investigation, landlords fed RealPage “nonpublic, competitively sensitive data,” and the algorithm, combining the data from all the landlords using the tool, would generate and recommend rent prices that were higher than originally listed, but strategic enough that other landlords could not undercut their rates.

RealPage has organized user groups, where landlords meet to discuss strategies, share sensitive pricing information, and collectively influence pricing models. Brown noted that these meetings further encouraged coordination among landlords, consolidating their power over pricing decisions. According to Brown, those practices violate the state’s Consumer Protection Act, and he wants his suit to send a stern warning.

“I hope it helps put landlords in Washington on notice that they have to treat renters fairly,” Brown said during a news conference on Thursday. “RealPage’s practices are drowning renters and pricing more and more families out of stable housing in Washington.”

‘There had to be a mistake’

One of those renters, Chris Vialpondo, said during the press conference that his landlord used RealPage to artificially adjust his rent in 2022. At the time, Vialpondo said he was working two jobs and struggling to make ends meet. He said his higher rent gave him a smaller personal budget and forced him to scrape together money each time his rent was due.

“My initial response to this absurdity was that there had to be a mistake, so I reached out to my property manager, who, of course, was absolutely no help since they facilitated the increase,” said Vialpondo. “The most painful and revolting part about all of it is that all of the money I spent unnecessarily is now in the pockets of those who need it the least.”

About 36% of Washington’s population, or more than one million households, are renters. On average, residents spend more on housing than on any other expense – over a third of their monthly income. For many families, including working families and individuals, they collectively spend nearly $1 billion annually on rental housing.

“I am proud that our state is working to protect renters from this kind of collusion and conspiracy,” Sen. Yasmin Trudeau, D-Tacoma, said in a statement. “Renters deserve to have protections against unfair price-fixing, and I thank Attorney General Brown for his swift action on this issue. It is imperative that we prevent any company from taking advantage of Washington renters and that we do anything to prevent unnecessary and increased costs for people just trying to pay their rent and stay in their homes.”

According to the lawsuit, in recent years, rental prices in Washington have surged. In 2024, nearly half of renter households experienced rent increases of more than $100 per month, with 15% facing hikes of more than $250 a month.

Who is named in the lawsuit?

In addition to RealPage, the landlords and property management companies named as defendants in the lawsuit included:

Greystar Real Estate Partners, Pinnacle Property Management Services, Cushman and Wakefield Inc., Livcor, UDR Inc., Prime Administration/Prime Group, Quarterra Multifamily Communities, LsSalle Properties, MG Properties, and Sares Regis Management Company.

While none of those companies responded to KIRO Newsradio at the time of publishing, RealPage Senior Vice President, Jennifer Bowcock, did write:

 

“Washington State AG Nick Brown decided to recycle misleading and inaccurate allegations from predecessor cases, despite our efforts to constructively engage with his office to help resolve their misunderstandings. RealPage’s revenue management software is purposely designed and built to be legally compliant and has always used data legally and responsibly, and we have a long history of working constructively to show that. RealPage’s revenue management software uses data responsibly, aids compliance with Fair Housing laws, rent control laws, and state of emergency price gouging laws, and does not use any personal or demographic data to generate rent price recommendations. We believe the claims brought by Washington State AG Nick Brown are devoid of merit and will do nothing to make housing more affordable. Washington State should stop scapegoating pro-competitive technology, and we encourage Washington State’s public leaders to focus on meeting the greater demand for housing with more supply. Washington State’s residents deserve real solutions to increase access to affordable housing.”

 

The lawsuit in its entirety can be read here.

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