- Maryland Attorney General Anthony Brown filed a lawsuit against RealPage and eight major landlords, claiming they colluded to raise rents illegally.
- The lawsuit alleges that RealPage’s pricing algorithms were used to artificially inflate rent rates, harming Maryland residents financially.
- This lawsuit comes shortly after the US Department of Justice filed a similar suit against several apartment companies.
Maryland Attorney General Anthony Brown launched a lawsuit accusing RealPage and eight of the state’s largest residential landlords of colluding to drive up rent prices for thousands of tenants.
The lawsuit claims that these companies coordinated rent hikes that harmed renters across Maryland through the use of a centralized pricing algorithm, according to ABC News.
The Allegations
According to court documents, RealPage provided its revenue management technology to a group of landlords, including major companies like Morgan Properties, Bozzuto, and Greystar.
Specifically, the tech allegedly allowed landlords to collaboratively set rents, bypassing fair market forces and artificially inflating prices. As a result, renters paid millions more than they would have under typical market conditions.
The lawsuit focuses on this “price-fixing” environment, in which rent prices were no longer determined by supply and demand but rather by a centralized algorithm designed to maximize property owner profits.
The Maryland lawsuit also seeks several remedies, including:
- An injunction to stop RealPage and the landlords from continuing their anticompetitive practices.
- The appointment of a corporate monitor to ensure that the companies comply with antitrust laws moving forward.
- Refunds for Maryland tenants who were overcharged due to inflated rent prices, as well as compensation for the state.
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Dropping Names
Among the landlords implicated are some of the largest property management companies in the region, including:
- Morgan Properties Management Company, LLC
- Bozzuto Management Company
- Greystar Management Services, LLC
- AvalonBay Communities, Inc.
- UDR, Inc.
- Highmark Residential, LLC
Attorney General’s Response
Attorney General Brown emphasized the negative impact this alleged collusion had on renters in Maryland, particularly those struggling to afford rising rent costs.
“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,” said Brown. “Our Office is committed to holding landlords accountable so Marylanders can afford their rent.”
Zooming Out
The Maryland lawsuit comes after a similar action filed by the US Department of Justice, which also accused the same apartment companies of using pricing algorithms to share sensitive information and inflate rents.
The federal government’s lawsuit targeted several of the same companies named in Maryland’s case, suggesting a widespread issue in the rental market.
What’s Next
As the legal proceedings unfold, the case will likely have serious implications for the real estate and proptech sectors. If the lawsuit is successful, it could set a precedent for future regulatory actions against companies that engage in similar practices, potentially leading to broader changes.
This case also highlights growing concerns over the role of technology in the housing market and its potential to disrupt traditional pricing models.
