CPM Investigating RealPage for Driving Rent Up Nationwide with Software Algorithm
Cotchett, Pitre, & McCarthy, LLP is investigating Texas-based RealPage, a corporation that provides property management software for the rental housing industry. RealPage’s clients include some of the largest property managers in the country (e.g., Greystar Real Estate Partners, Lincoln Property Co., Mid-America Apartment Communities, Avenue5 Residential, Equity Residential, Essex Property Trust, Thrive Communities Management, Security Properties), which use RealPage’s software to manage almost 20 million rental units.
RealPage’s software algorithm helps landlords push the highest possible rents on tenants by using data analytics to suggest daily prices for open units and has even recommended that landlords in some cases accept a lower occupancy rate to raise rents and profits. Landlords across the United States have confirmed that RealPage’s software algorithm boosts their profits. At a minimum, RealPage’s software algorithm may be artificially inflating rents and stifling competition.