Nashville apartment complexes use software companies to set rent prices

NASHVILLE, Tenn. (WSMV) – The U.S. Department of Justice is suing a software company for allegedly colluding with landlords to increase rents.

WSMV4 Investigator Courtney Allen found that many apartment complexes in Nashville use this software.

Tennessee Attorney General Jonathan Skrmetti and attorneys general from seven other states are also involved in the lawsuit. The lawsuit alleges that RealPage Inc. works with otherwise competing landlords in various markets, such as Nashville. These landlords share confidential information, such as the rent they charge. RealPage then combines this data to create rental recommendations for the properties. The Justice Department calls this an illegal scheme that allows landlords to coordinate to raise rent prices across the board.

According to the U.S. Department of Justice, RealPage described its own products as “an opportunity to exploit every possible opportunity to raise prices,” and a RealPage executive reportedly said of landlords, “It’s better for everyone to succeed than for us to try to basically just compete against each other.”

“Landlords, like all other competitors, are not allowed to share confidential, sensitive data that would enable them to coordinate the pricing of their products, in this case apartments,” said US Attorney General Merrick Garland.

Greystar is the largest apartment management company in the country, according to rankings from the National Multifamily Housing Council. Greystar’s website lists several complexes in downtown Nashville, including The Fallyn, Gossett on Church Street, Harlowe, Terra House and more. WSMV4 Investigates has reached out to Greystar and RealPage for comment.

Other lawsuits filed against RealPage list several other property management companies as defendants. Defendants with properties in Middle Tennessee include MAA, Morgan Properties, Camden Property Trust, Bozzuto Management Company, Cortland Management, CWS Apartment Homes, Highmark Residential, Independence Realty Trust, Lincoln Property Company, Mission Rock Residential, RPM Living and Simpson Property Group.

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