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Important information

• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  STATE OF ARIZONA, ex rel. KRISTIN K. MAYES, Attorney General, Plaintiff, v. REALPAGE, INC.; APARTMENT MANAGEMENT CONSULTANTS, LLC; AVENUE5 RESIDENTIAL, LLC; BH MANAGEMENT SERVICES, LLC; CAMDEN PROPERTY TRUST; CROW HOLDINGS, LP; TRAMMELL CROW RESIDENTIAL COMPANY; GREYSTAR MANAGEMENT SERVICES, L.P.; HSL PROPERTIES, INC.; HSL ASSET MANAGEMENT, LLC; RPM LIVING, LLC; WEIDNER PROPERTY MANAGEMENT LLC Defendants.
  

  On February
  28, 2024, the Arizona Attorney General announced a lawsuit against RealPage,
  Inc. and nine major residential apartment landlords operating in Arizona for
  conspiring to illegally raise rents for hundreds of thousands of Arizona renters
  in the Phoenix and Tucson metro area.

  
  

  The State’s
  lawsuit alleges RealPage’s revenue management software works by compiling
  competitively sensitive data on pricing and occupancy from competitors in the
  market for multifamily apartment leases and then directing the competitors who
  have entered the conspiracy on which units to rent and at what price.

  
  

  The Attorney
  General’s lawsuit specifically alleges that:

  
  

  
  
  • The defendant landlords
    illegally colluded with RealPage to artificially raise rents and concealed
    their conspiracy from the public. By providing highly detailed, sensitive,
    non-public leasing data with RealPage, the defendant landlords departed
    from normal competitive behavior and engaged in a price-fixing conspiracy.
    RealPage then used its revenue management algorithm to illegally set
    prices for all participants.
  
  
  • RealPage’s conspiracy with the
    landlord co-defendants violate both the Arizona Uniform State Antitrust
    Act and the Arizona Consumer Fraud Act. Arizona’s antitrust law prohibits
    conspiracies in restraint of trade and attempts to establish monopolies to
    control or fix prices. The State’s consumer fraud statute makes it
    unlawful for companies to engage in deceptive or unfair acts or practices
    or to conceal or suppress material facts in connection with a sale, in
    this case apartment leases.
  
  
  • The illegal practices of the
    defendants led to artificially inflated rental prices and caused Phoenix
    and Tucson-area residents to pay millions of dollars more in rent.  Defendants conspired
    to enrich themselves during a period when inflation was at historic highs
    and Arizona renters struggled to keep up with massive rent increases.
  
  

  
  

  The matter
  is pending. To view the Press Release go to: https://www.azag.gov/press-release/attorney-general-mayes-sues-realpage-and-residential-landlords-illegal-price-fixing
  

  Click here for details