RealPage Accused of Fueling Rent Hikes: New Jersey Takes Legal Action

New Jersey has filed a lawsuit against RealPage, alleging that the company conspired with large landlords to inflate rents using its software. The state accuses RealPage of violating antitrust and consumer fraud laws by setting rents and exchanging sensitive information. Similar accusations have been made by the DOJ and other states.

The state of New Jersey has initiated legal proceedings against RealPage, a property management software company, accusing it of colluding with major landlords to artificially increase residential rents. According to the complaint filed in federal court in Newark, RealPage and ten landlords allegedly violated federal antitrust and New Jersey consumer fraud laws by utilizing technology to set rents and sharing competitive information.

State authorities claim this collusion has negatively impacted rent prices for hundreds of thousands of New Jersey residents. The state has now joined prior efforts by the U.S. Department of Justice and several states, which have accused RealPage of employing pricing algorithms to unfairly raise apartment rents.

In response, earlier this year, RealPage sued the city of Berkeley, California, asserting that an ordinance prohibiting the use of algorithms to determine rents infringed on First Amendment rights. However, RealPage has yet to comment on the latest charges filed by New Jersey.

(With inputs from agencies.)