Anti-RealPage ordinances gaining popularity

As PESP has written about, RealPage remains the subject of an ongoing Department of Justice lawsuit, along with over 30 class action lawsuits. RealPage has been accused of price-fixing and additional anti-trust behavior. Recognizing the immense harm that RealPage can cause in terms of housing access and affordability, organizers and housing advocates across the country are working with local politicians to pass legislation to ban the software, along with similar algorithmic softwares. 

In San Francisco in July, housing advocates worked to push the San Francisco Board of Supervisors to pass an ordinance that bans the use of algorithmic rent tools. Any landlord found in violation of the law will be subject to civil penalties such as paying fines up to $1,000 per violation, and paying additional money towards tenant’s damages, restitution, and attorney fees. In July, San Francisco Board of Supervisors President Aaron Peskin directly called out RealPage, stating “Let’s be clear: RealPage has exacerbated our rent crisis and empowered corporate landlords to intentionally keep units vacant.” He saw the ordinance as a way to take “action locally to ensure our working renters can afford to live here.” While this ordinance was the first of its kind, organizers are working to make sure that cities across the country follow suit. 

Last month, the Philadelphia City Council also unanimously passed legislation to ban the use of algorithmic software in price-setting. “Price-fixing through an algorithm is still price-fixing. It’s still illegal and we ain’t gonna allow it in the city of Philadelphia,” At-Large Councilmember Nicolas O’Rourke said during a press conference. Under Philadelphia’s legislation, if found in violation of the law, the city of Philadelphia would file a suit against the landlord, and also give renters the ability to sue their landlord directly. Violators would be forced to pay up to $2,000 a day per violation as long as the violation occurs. 

In San Diego, San Diego City Council President Sean Elo-Rivera has proposed a similar ban. While housing advocates are optimistic about the DOJ lawsuit, Elo-Rivera acknowledges that tenants and the housing market will still be negatively impacted by algorithmic software until the case closes. Inspired by San Francisco, Elo-Rivera stated that “families are unnecessarily being priced out because corporations are replacing compassion with code.” Elo-Rivera believes that RealPage cases are not necessarily about artificial intelligence, but instead about potential anti-trust and price-gouging behavior. “Artificial intelligence? Sure, they may call it that. But let’s call this what it really is: artificial inflation.” The San Diego City Attorney’s Office is in the process of drafting an ordinance that will be brought to city council in the coming months. 

RealPage consistently finds itself to be the subject of negative press as local ordinances against the corporation continue to gain steam. The use of algorithmic software negatively impacts the lives of low income tenants and creates a housing market that is exclusive or discriminatory. With more cities becoming inspired by the San Francisco anti-RealPage ordinance, pension funds should ask Thoma Bravo what it will take for them to permanently ditch the rent-setting component of their software.