Arizona Attorney General, Kris Mayes, has launched a lawsuit against nine property owners and software company, RealPage, Inc. She alleges a conspiracy to raise rental prices in Arizona’s most densely populated areas. There are claims that the accused manipulated software algorithms to artificially inflate rental prices, thus having severe implications on the affordability of housing in Arizona, particularly in cities like Phoenix, Tucson, and Mesa.
RealPage, Inc. is believed to partner with landlords to gather rental market data and set rates. The Attorney General’s office argues this led to inflated rents at a time of growing inflation and the scarcity of affordable housing. RealPage is also accused of collecting private data from other rental companies then advising on property leasing, which reportedly drives availability and rental costs. This, reportedly, results in increased profits borne by the tenants.
The lawsuit suggests that these actions are breaches of the Arizona Uniform State Antitrust Act and the Arizona Consumer Fraud Act, which bans deceptive sales practices. The implicated parties include Apartment Management Consultants, Avenue5 Residential, BH Management Services, Camden Property Trust, Crow Holdings, Greystar Management Services, HSL Properties, RPM Living, and Weidner Property Management. The individuals named in the lawsuit are accused of having illegal interactions, leading to inflated rental prices.
RealPage’s operations, often referred to as ‘Revenue Management’ or ‘RM,’ have been criticized by authorities and antitrust professionals as price-fixing. The lawsuit alleges that RealPage’s algorithm led to a 12% rent increase in Phoenix and 13% in Tucson.
The legal action seeks to end this alleged practice, portray a monitor to uphold court orders, review state-law civil penalties, and evaluate possible financial compensation for the affected tenants. Apartment Management Consultants, one of the accused, denies the allegations, maintaining that property owners interact directly with RealPage’s sales team and do not tamper with the software.
