Thoma Bravo’s RealPage sued by the US in case of rent fixing (1)

The US sued Thoma Bravo LLC‘S RealPage Inc. for allegedly violating antitrust laws by aiding and abetting collusion by property managers to increase rents on millions of apartments across the country.

In a complaint by the Ministry of Justice On Friday, antitrust regulators said RealPage’s software, which helps landlords set rent prices, illegally raised prices for tenants. RealPage is a leading software provider for the multifamily rental industry.

“RealPage has built a business based on thwarting the natural forces of competition,” the lawsuit says. “A rising tide lifts all ships” is more than a marketing mantra, the government said.

The lawsuit comes as housing prices and rents in the U.S. have risen sharply since the start of the Covid-19 pandemic, fueling an affordability crisis that has become a central issue in the presidential campaign. The Democratic candidate Kamala Harris demanded a Rent cap for company owners And Assistance with the down payment for first-time home buyers, many of whom have been excluded from the real estate market because higher interest rates have made purchasing a home unaffordable for them.

According to a Zillow index, average rent in the U.S. has skyrocketed 33% since the pandemic began.

RealPage stated that the company complies with the law and has worked with the Department of Justice to ensure compliance.

“RealPage’s revenue management software is deliberately designed to comply with regulatory requirements, and we have worked constructively with the Department of Justice in the past to demonstrate this,” the company said in a statement.

“In fact, in 2017, when the Department of Justice granted our antitrust clearance to acquire LRO, it also analyzed extensive information about our revenue management products without raising any objection,” RealPage added, referring to its biggest competitor, Lease Rent Options, which it acquired in 2017.

The company, which was acquired by private equity firm Thoma Bravo in 2021, said its revenue management products functioned essentially the same as they did at the time of this review.

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–With support from Patrick Clark, Chris Strohm And John Tozzi.

How to reach the reporters of this story:
Leah Nylen in Washington at [email protected];
Sabrina Willmer in Washington at [email protected]

How to contact the editors responsible for this article:
Sarah Ford at [email protected]

Peter Jeffrey

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