Changes could be coming for landlords and renters after DOJ settlement

HOUSTON, Texas (KTRK) — Changes could be coming soon in how landlords set prices for rental properties they own. That’s after the Department of Justice reports the settlement of a lawsuit with a Texas-based company called RealPage. Federal prosecutors say landlords across the country have been using an algorithm to track confidential rent data and raise rents. “RealPage probably impacts about 40% of the multifamily market,” real estate developer Laolu Davies-Yemitan said. “That’s a huge number.” In Houston, 60% of households rent instead of own, according to Rice University’s Kinder Institute. The institute reports that the median rent cost has increased by 9% in just one year. RealPage’s software, according to experts, enabled landlords to share their rental data in real time rather than compete with each other. “You have Priceline for airlines, you have Hotels. com for hotels, and Airbnb as well. All of these software companies gather information about pricing, but not proprietary information about what revenue hotels, etc., generate,” Davies-Yemitan said. “With RealPage, it was instantaneous because they have real-time data. Most reports and market research are facing issues because there was a lag time.” As part of the settlement, RealPage doesn’t have to pay any fees or admit wrongdoing, but the company does have to stop using real-time data to provide pricing recommendations. For renters, Davies-Yemitan said, the settlement could mean more stability in rent prices. “Anything that promotes transparency and kind of keeps the markets honest, it’s a win for consumers,” he explained. The settlement still has to be approved by a judge before it can move forward. The DOJ has also announced lawsuits against six of the biggest landlords in the country for allegedly using RealPage data. Greystar, the country’s largest landlord, has agreed to a DOJ settlement to stop using this type of software. Camden, based in Houston, has released a statement saying it disagrees with the allegations and will fight for dismissal.
https://abc13.com/post/changes-could-coming-landlords-renters-doj-settlement/18215124/