- RealPage will change how its rent-pricing software operates following DOJ claims it facilitated rent coordination among landlords. The company did not admit wrongdoing.
- Under the proposed deal, RealPage will stop using nonpublic competitor data in real-time pricing, limit geographic targeting, and remove auto-accept rent features unless users opt in manually.
- The settlement does not end ongoing lawsuits from state attorneys general and a separate class-action case in Tennessee.
- RealPage must now allow independent rent-setting decisions, comply with a court monitor, and limit certain AI training data to information at least one year old.
The Background
Texas-based RealPage reached a landmark settlement with the US Department of Justice over its rent-pricing software practices, reports Bisnow. The DOJ alleged that RealPage’s AI Revenue Management software, formerly Yieldstar, enabled rent coordination among competing landlords. The software used nonpublic data, raising antitrust concerns.
The Terms
While RealPage avoids monetary penalties or an admission of liability, the company must make several operational changes:
- Eliminate the use of competitively sensitive, nonpublic data from other landlords in daily rent-setting.
- Prohibit features that automatically accept AI-generated rent recommendations unless manually configured.
- Ban use of pricing models based on geographic zones smaller than state level.
- Discontinue internal rent surveys and the collection of data that could influence rent-setting decisions.
A court-appointed monitor will oversee RealPage’s compliance for a minimum of four years, with oversight potentially extending to seven years.
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Timing And Context
The deal follows the unexpected exit of former CEO Dana Jones earlier this month. Dirk Wakeham, who assumed the role on Nov. 12, framed the settlement as a necessary step to move forward.
The company continues to face litigation in North Carolina and Tennessee. Public scrutiny intensified after a 2022 ProPublica report alleged RealPage’s software enabled landlords to form rent-setting cartels.
What’s Next
RealPage emphasized that many of the mandated changes align with existing practices and said its AI models already use aged data for training. The firm retains the ability to use customer data that’s at least a year old for future model development.
If approved by a judge, the settlement could signal how federal regulators plan to approach the intersection of AI, big data, and antitrust enforcement in housing and other sectors.
