Attorney General Bonta Files Amended Complaint in RealPage Lawsuit, Seeks to Hold Landlords Accountable for Artificially High Rent Prices

OAKLAND — California Attorney General Rob Bonta today, alongside the U.S. Department of Justice and a bipartisan coalition of 10 bipartisan attorneys general, filed an amended complaint against RealPage and the nation’s largest property management companies for maintaining an unlawful pricing alignment scheme that artificially raised rents and increased rent revenue across the board. Today’s amended complaint names five of the previously unnamed property management companies as defendants — including Camden, Cushman & Wakefield/Pinnacle, LivCor, Willow Bridge and Greystar — and seeks claims under California’s Unfair Competition Law against all defendants. Last August, the Attorney General filed a lawsuit against RealPage, alleging that its unlawful pricing alignment scheme and illegal sharing of confidential pricing and supply information harmed consumers by decreasing competition among landlords, limiting price negotiation, and increasing prices in the rental housing industry. This price alignment scheme affected rental housing throughout the country including in California —especially in multifamily buildings in Southern California including in Orange County, Anaheim, Santa Ana, Irvine, Los Angeles, Long Beach, Glendale, Riverside, San Bernardino, Ontario, Corona, Rancho Cucamonga, Upland, Temecula, Murrieta, San Diego, Coronado, and Carlsbad.

“When it comes reducing the cost of living for Californians, the California Department of Justice is all in. Today’s amended complaint against RealPage and some of the largest property management companies in the country, alleges that the companies artificially inflated rent prices and illegally maintained a minimum pricing floor against market trends, and that not only RealPage, but the landlords that profited from this scheme must be held accountable,” said Attorney General Bonta. “If you are in the renting business you are responsible for knowing and abiding by California laws. The housing affordability crisis hurts renters and those with the lowest incomes the hardest; the profits from these illegal schemes come out of the pockets of the people that can least afford it. California is stronger when we protect tenants and a competitive economy."

RealPage is in the business of generating rent increases and growing revenue for landlords by using algorithmic models to recommend price increases to subscribers. It does so by amassing competitively sensitive data from competing landlords through its pricing algorithms and sharing this data among subscribers. Landlords understand that their nonpublic data will be used to recommend prices not just for their own units, but also for competitors who use the programs, and agree to provide this information because they understand they will benefit from the information of their rivals. In other words, RealPage knows what competing landlords are charging and can increase profits for landlords by using that information to recommend landlords set or raise their prices uniformly, thereby eliminating competition, and leaving renters no choice but to pay artificially high prices.

Over the last four decades, housing needs have significantly outpaced housing production in California. Housing costs have skyrocketed, making it harder for Californians to keep a roof over their heads. California's 17 million renters spend a significant portion of their paychecks on rent, with an estimated 700,000 Californians at risk of eviction.    

The amended lawsuit filed today alleges that RealPage, Camden, Cushman & Wakefield/Pinnacle, LivCor, Willow Bridge and Greystar’s conduct violates both federal antitrust laws and California’s Unfair Competition Law. 

In filing the amended lawsuit, Attorney General Bonta joins the U.S. Department of Justice and the attorneys general of Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee, and Washington.

The amended complaint can be found here.