Residential Landlords: Rent Price-Fixing Investigation
The Department of Justice (DOJ) opened a criminal probe into rent price-fixing allegations among large residential property owners and management firms. The FBI recently raided a corporate landlord as part of the DOJ investigation into RealPage, a leading property pricing software developer. This move marks a significant escalation from the ongoing civil antitrust investigation and highlights the Biden administration’s commitment to tackling anti-competitive practices in the housing market, and closer to home, an increased pressure for more affordable housing.
RealPage’s software YieldStar is under scrutiny. RealPage provides rental pricing recommendations to landlords which, when widely adopted, increase rental prices despite increased vacancy rates or other market factors which would otherwise likely reduce rents.
Property owners and managers using RealPage or similar software should stay informed and be aware of potential legal risks and heightened regulatory scrutiny.
For questions, contact your Bernkopf attorney or the author of this client alert, Lydia Chesnick. Lydia can be reached by email at lchesnick@bernkopflegal.com or by phone at 617.790.3425.
