In a legal milestone for housing enforcement, the District of Columbia has secured its first settlement in a major rent price-fixing lawsuit involving RealPage Inc. and multiple landlords. William C. Smith & Co., a major property manager in D.C., agreed to pay over $1 million in penalties and tenant relief. The case accuses landlords of using RealPage’s pricing software to illegally coordinate rent hikes across thousands of units, marking a significant step in D.C.’s crackdown on algorithm-driven rent inflation.
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Software Allegedly Used to Inflate Rents
At the heart of the case is RealPage’s revenue management software, which allegedly allowed landlords to share sensitive, non-public pricing data. The city claims this practice led to coordinated rent increases across over 50,000 apartments in D.C. The Attorney General described the system as part of a “housing cartel” that hurt competition and burdened renters.
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W.C. Smith Cited for Anticompetitive Conduct
William C. Smith & Co. manages more than 9,300 units in Washington, D.C. Lawsuit documents showed the company boosted per-unit revenue by nearly 5 percent despite falling occupancy. Officials allege this was possible due to its use of RealPage’s pricing software, which recommended rates based on competitors’ private data.
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Settlement Terms Include Tech Restrictions
As part of the agreement, W.C. Smith must stop using any revenue tools that rely on competitor data and is barred from promoting such software to others. While the company denies any wrongdoing, it agreed to the terms to avoid what it called “unnecessary legal expenses.”
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More Landlords Still Under Investigation
The D.C. lawsuit names 14 landlords accused of coordinating prices using RealPage tools. Defendants include national giant Greystar, the country’s largest apartment owner. None of the other firms have settled, and investigations remain active.
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RealPage Stays Silent Amid Growing Scrutiny
RealPage has not responded to recent requests for comment. The company faces multiple lawsuits nationwide and is part of a parallel case in federal court in Nashville. RealPage and its supporters argue that the technology merely helps landlords optimize rental income and reduce vacancies.
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National Impact and Local Policy Reactions
Following a 2022 ProPublica report that exposed RealPage’s practices, cities like Jersey City have begun banning algorithmic rent-setting software. Meanwhile, D.C.’s legal action could serve as a blueprint for other jurisdictions looking to challenge rent collusion in high-cost housing markets.
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AG Warns of Broader Housing Market Abuse
D.C. Attorney General Brian Schwalb warned that tech-fueled rent-setting has helped drive already-high prices even higher. “This was an illegal attempt to squeeze more money from tenants during a housing crisis,” he said. He commended W.C. Smith for settling and urged other landlords to end similar practices.
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