An unjust and fabricated increase in rent expenses has allegedly been caused by the creator of an algorithm that determines the best rent to charge for residences.
A complaint against Texas-based RealPage and nine real estate moguls says that the software developer formed a “cartel” with the landlords to raise rent in US locations where housing is in great demand.
Setting rent is a supply and demand balancing act outside of circumstances like rent regulation. If you set it too low, you risk not being able to pay the mortgage, other expenses, and profit (if applicable). If you set it too high, you’ll be priced out of the market. Wouldn’t it be convenient if there was some sort of programme that could swiftly determine a sweet spot for rent for each individual home?
Plaintiffs in the action include Sherry Bason, Lois Winn, Georges Emmanuel Njong Diboki, Julia Sims, and Sophia Woodland.
It was filed in San Diego, California. They are collectively suing the property managers of tens of thousands of apartments, including Greystar, Lincoln Property Co., FPI Management, Mid-America Apartment Communities, Avenue5 Residential, Equity Residential, Essex Property Trust, Thrive Communities Management, and Securities Properties. This lawsuit has the potential to become a class action.
According to the federal district court complaint, “[the] lessors] supplanted their independent pricing and supply decisions with collusion beginning around 2016, and maybe earlier.”
