On Tuesday, January 7, 2025, the Department of Justice amended an existing anti-trust complaint against RealPage to add 6 landlords alleging the sharing of nonpublic information to feed algorithms to set rent prices between competitors. These landlords combined operate 1.3 million units across 43 states and the District of Columbia. The complaint is joined by 10 attorney generals from various states; however, Virginia is not one of them.  

As a general note, in both the complaint and this article, the word “landlord” is used to mean both landlords and property managers. The general allegations in the complaint are as follows: 

Landlords shared nonpublic information with RealPage, knowing competitors would also receive this nonpublic information. The nonpublic information along with public information was used to feed a RealPage algorithm alleged to set rents for the landlord and keep them as high as possible.  

Examples of nonpublic information are: 

• Lease terms, e.g. length of tenancy.
• Renewals and current occupancy.  
• Information on tenant demand, including detailed information on inquiries and applications by potential future tenants.  

Landlords who use RealPage products know others are using the same software. Landlords have been keeping track of which revenue management software their competitors use and have even contacted competing companies directly and exchanged nonpublic information. In addition, prospective RealPage users inquire whether there are any other current users in the area before they purchase a license from RealPage. 

RealPage also has an additional product called Market Analytics. Market Analytics complies data from over 50,000 monthly phone calls that RealPage makes to landlords across the country. In these phone calls RealPage collects nonpublic information to feed their algorithm.   

If you would like to read the complaint and additional information, please visit the DOJ’s website. 

What does this mean to you? 

If you are using any management or revenue software that shares nonpublic data with competitors for the purpose of setting a price, you need to revoke any consent to share and do so in writing immediately. Sharing nonpublic data with competitors to set a price is classic price fixing. In other words, Anti-Trust. 

How would you know? 

You need to check your licensing agreements and Terms of Use. Please note, it is irrelevant if the data is anonymized before it is shared with competitors. If you have agreed to share nonpublic information with competitors to set a price you need to revoke this consent in writing. 

What can you do? 

You can use your own nonpublic data for feeding your algorithm. Your nonpublic data can also be supplemented with public data for your algorithm. To be clear, using public information in an algorithm which displays something similar to a market value analysis is not an issue. 

If you have any questions, please remember the Virginia REALTORS® Legal Hotline is open to all members.