The US Justice Department has added six corporate landlords to a lawsuit against RealPage, a company accused of using its property management software to maximize rent prices. The landlords include Greystar Real Estate Partners, Blackstone’s LivCor, Camden Property Trust, Cushman & Wakefield, Pinnacle Property Management Services, and Willow Bridge Property Company.
The Justice Department claims that corporate landlords are illegally scheming with software providers like RealPage to crush competition and drive up rent prices for tenants. The company’s software tools contain private data and are unaffordable to smaller landlords, making it difficult for them to compete.
San Jose Councilmembers Peter Ortiz and David Cohen have proposed banning the use of algorithmic tools to set rent prices in the city, citing concerns about unfair competition and high costs for tenants. RealPage’s website claims that its software provides “data-driven AI machine learning insights” to optimize performance, but federal officials argue that this practice amounts to a monopoly.
The lawsuit targets companies with significant presence in San Jose, including Greystar, which runs over 700,000 homes for rent in the US. The company’s spokesperson has denied any anti-competitive practices and vowed to defend itself vigorously.
City officials have also expressed concerns about the use of algorithms in rent pricing. SV@Home Policy Director Alison Cingolani hopes that the expanded lawsuit provides accountability for landlords using these tools to drive up prices, particularly affecting low-income and vulnerable residents.
San Jose City Council officials had previously proposed a ban on algorithmic tools for rent setting but decided to shelve it in favor of a study. However, with the amended federal lawsuit, there is renewed momentum for action to protect residents from unfair pricing practices.
Source: https://sanjosespotlight.com/feds-expand-lawsuit-against-corporate-san-jose-landlords