Meet the Company Behind Your Aggressive Rent Hikes - The Average Joe

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    Meet the Company Behind Your Aggressive Rent Hikes

    Noah Weidner

    June 25, 2024

    For the 52% of Americans who rent, there’s nothing worse than receiving your renewal notice with a rent increase — especially when those hikes exceed inflation rates, a trend that has become more common since the pandemic. The culprit? Allegedly, it’s a piece of software advising your landlord to do so. RealPage, utilized by many of America’s largest landlords to help recommend rent prices, is implicated in driving up rents across the nation.

    • RealPage’s algorithm influences over 16M rental units, reportedly advising landlords to raise rents and accept higher vacancy rates for increased profits.
    • According to The American Prospect, this has led to apartment rents rising “between 50-80% over the past seven years in markets where the software is employed.”

    Where the buck stops: RealPage insists landlords accept less than half of its rent recommendations. However, this hasn’t stopped investigations by attorney generals in 10 states and at least one class action lawsuit alleging the software price-fixes rents. And making matters more colorful, the FBI recently raided one of RealPage’s largest clients, seeking information on the software’s use. We’ll have to see if RealPage lives to hike rents another day.

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