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Renters filed a lawsuit this week alleging that an organization that makes price-setting tool for residences and 9 of the country’s greatest belongings managers shaped a cartel to artificially inflate rents in violation of federal legislation.
The lawsuit used to be filed days after ProPublica printed an investigation elevating considerations that the tool, bought via Texas-based RealPage, is probably pushing lease costs above aggressive ranges, facilitating price-fixing, or each.
The proposed class-action lawsuit used to be filed in US District Courtroom in San Diego.
In an electronic mail, a RealPage consultant stated that the corporate “strongly denies the allegations and can vigorously protect towards the lawsuit.” She declined to remark additional, announcing the corporate does now not touch upon pending litigation.
The 9 belongings managers named within the lawsuit didn’t reply straight away to a request for remark.
They integrated one of the country’s greatest landlords, similar to Greystar, Lincoln Belongings Corporate, Fairness Residential, Mid-The us Rental Communities, and FPI Control—which in combination organize loads of 1000’s of residences.
4 of the 5 renters named within the go well with have been Greystar tenants. A 5th rented from Safety Homes. Their residences have been positioned in San Diego, San Francisco, and two Washington state towns, Redmond and Everett.
The lawsuit accused the valuables managers and RealPage of forming “a cartel to artificially inflate the cost of and artificially lower the availability and output of multifamily residential actual property rentals from aggressive ranges.”
RealPage’s tool makes use of an set of rules to churn via a trove of information each and every night time to signify day-to-day costs for to be had condominium devices. The tool makes use of now not most effective details about the rental being priced and the valuables the place it’s positioned, but in addition personal knowledge on what within reach competition are charging in rents. The tool considers precise rents paid to these opponents—now not simply what they’re promoting, the corporate instructed ProPublica.