DOJ settles with rentals company in RealPage software case
Greystar, a major property management firm, will cooperate with the agency’s ongoing case against the proptech over rental pricing algorithms.
A major U.S. rental management company will no longer use pricing software from RealPage under a proposed settlement agreement with the U.S. Department of Justice.
The DOJ announced on Aug. 8 that it has reached a settlement with Greystar, one of the largest residential rental companies in the U.S. with nearly 950,000 units under management. The deal still needs to be approved by the U.S. District Court for the Middle District of North Carolina.
What the case is about: Greystar and five other rental management companies — LivCor, Camden, Cushman, Willow Bridge and Cortland — were named alongside RealPage in an amended antitrust complaint filed by the DOJ in January and joined by several state attorneys general.
They alleged RealPage and the rental companies "shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high," Doha Mekki, acting assistant attorney general of the DOJ's antitrust division, said at the time.
The official now holding that role, Abigail Slater, noted last week that "Whether in a smoke-filled room or through an algorithm, competitors cannot share competitively sensitive information or align prices to the detriment of American consumers."
A year and counting: The case was first filed in Aug. 2024 with RealPage as the only defendant. Just a month before the DOJ filed its amended complaint, the company indicated that the agency's investigation had come to an end.
In an email, a RealPage spokesperson said the company is not commenting on the DOJ-Greystar settlement.
What Greystar had to say: In a news release, Greystar said it believes that its use of RealPage's software complies with all applicable laws, and the company "remains committed to being at the forefront of innovation in service of its clients and residents, all within the bounds of the law."
"The settlements provide clarity for Greystar and the industry at large. They acknowledge the shifting regulatory landscape while reinforcing our ability to deliver bespoke advice and leverage technology and innovation across the wide range of services we provide," the company stated.
Per the terms of the settlement, Greystar will no longer use the algorithm in question or share information with competitors, and the company has agreed to cooperate with the DOJ in its ongoing case against RealPage. No monetary damages were disclosed in the filing.
The other defendants: Real Estate News has reached out to the Justice Department for an update on negotiations with the other rental companies named in the lawsuit. According to court documents, the DOJ reached a settlement agreement with Cortland earlier this year that is pending approval.