The Washington state attorney general’s office has filed a lawsuit against Richardson, Texas-based RealPage and nine other multifamily companies, alleging that their use of RealPage’s revenue management software products led to rapidly rising rents for their tenants in Washington.

The AGO argues in its news release that RealPage’s software tools push rents higher than landlords could otherwise achieve, all while ensuring competitors will not undercut them, and alleges that the company encourages its users to build anticompetitive strategies into the use of its software. The office notes that, in 2024, 47% of renter households in Washington saw their rent increase by over $100 per month, and 15% by over $250 per month. 

The lawsuit alleges that the software is more inclined to raise rents than not, discourages concessions and price negotiations and discourages its users from rejecting its recommendations. 

Furthermore, in an analysis of Washington markets, the AGO found that properties managed by landlords who use RealPage’s products have higher rents and lower occupancy rates than those without, according to the release. The office claims that the software advises its users to keep prices high even when occupancy is down, and adjusts lease timeframes to keep supply low.

“The lawsuit seeks to end RealPage’s and landlords’ illegal practices and force them to stop colluding, coordinating pricing and occupancy, sharing a pricing algorithm and exchanging competitively sensitive nonpublic information,” the release reads. 

Apart from RealPage, the multifamily companies named in the lawsuit include:

• Charleston, South Carolina-based Greystar.
• Chicago-based Cushman & Wakefield and its wholly-owned subsidiary, Dallas-based Pinnacle Property Management Services.
• Chicago-based Livcor.
• Highlands Ranch, Colorado-based REIT UDR.
• San Francisco-based Prime Group.
• Miami-based Quarterra Multifamily.
• Chicago-based LaSalle Properties.
• San Diego-based MG Properties.
• Newport Beach, California-based Sares Regis Group.

All of these companies have business dealings in Washington, including properties owned or operated, and all of them make use of RealPage’s revenue management software in the state, according to the release.

The complaint alleges six violations of the Consumer Protection Act, and seeks restitution for approximately 800,000 active leases between 2017 and 2024, according to the release.

RealPage Senior Vice President of Communications and Creative Jennifer Bowcock told Multifamily Dive that the company’s revenue management software uses data responsibly; aids compliance with fair housing laws, rent control laws and state of emergency price gouging laws; and does not use any personal or demographic data to generate its recommendations. 

“RealPage’s revenue management software is purposely designed and built to be legally compliant and has always used data legally and responsibly, and we have a long history of working constructively to show that,” Bowcock said. “We believe the claims brought by Washington State AG Nick Brown are devoid of merit and will do nothing to make housing more affordable.”

Greystar declined to comment on the case. The other companies did not respond to requests for comment from Multifamily Dive. 

The next step

This complaint is one of many filed against revenue management software providers, including RealPage and Santa Barbara, California-based Yardi, following a ProPublica report on the software in late 2022.

The Washington attorney general had previously participated in a multi-state class action lawsuit against RealPage led by the U.S. Department of Justice, but withdrew in order to pursue a more state-focused case, according to the news release. RealPage has asked the U.S. District Court for the Middle District of North Carolina to dismiss this lawsuit, but no action has yet been taken.

RealPage has also recently sued the city of Berkeley, California, for its ban on revenue management software. The provider claims that the ban is based on inaccurate statements about its software, and that it imposes a “sweeping and unconstitutional ban on lawful speech,” according to its court filing. 

Washington state is also in the midst of considering a bill to limit annual rent increases to 7% for multifamily properties. The bill has passed the state’s House of Representatives and recently passed out of the state Senate Ways and Means Committee with a do-pass recommendation.