Greystar, the country’s largest landlord, is under fire for how it helped set rental prices. It has agreed to pay millions to settle lawsuits and change how it does business.
The trouble began with a software company called RealPage. RealPage created a computer system that uses confidential data from many landlords to generate recommendations for rent prices. Prosecutors say the system helped landlords coordinate and raise rents across the board.
In one recent case, Greystar reached a settlement of $7 million with nine states. The states accused Greystar of using algorithm-based software that relied on other landlords’ private data to set higher rents.
As part of the deal, Greystar agreed to stop using software that relies on competitors’ confidential data to set rents.
In a separate class action lawsuit, Greystar and other large property managers were again under fire and agreed to pay $141 million in total. Greystar’s share alone is about $50 million. The agreement also requires them to stop sharing non-public pricing information with RealPage or similar systems.
Greystar itself says it did not admit any wrongdoing under the settlement. The company stated it “firmly believes” its use of the software “complies with all applicable laws.”
Why does this matter for real-estate professionals?
First, this story shows how software and data can cross into risky territory. Setting rents isn’t just an art anymore; it can become a legal issue when it looks like collusion.
Second, regulators are paying attention. The United States Department of Justice (DOJ) and several state attorneys general flagged RealPage’s software as a possible tool for unlawful price coordination.
For real-estate agents, property managers, and investors, this means the tools you choose and how you use them matter far beyond the spreadsheet.
Here are a few take-aways
- Review any pricing tools you use and check whether they push you to share pricing or lease-term data with other landlords.
- Be cautious about any recommendation that seems to come from aggregated competitor data. That area is under scrutiny.
- Understand that even algorithmic tools can trigger antitrust concerns if they reduce competition among landlords.
In short, Greystar’s story is a cautionary tale for anyone involved in rental housing. The use of advanced software may offer powerful insights, but it also carries responsibilities—and legal risks. For agents, instructors, and business owners, staying informed and using tools wisely can protect your reputation and business.
Sources:
Largest US Landlord to Pay $7 million Settlement for Rent Setting
Justice Department Accuses Real Page of A Scheme to Help Landlords Hike Prices
Greystar and other landlords agree to settle a $141 million rent setting lawsuit