RealPage says it isn’t doing anything wrong by suggesting to landlords how much rent they could charge. In a move to reclaim its own narrative, the property management software company published a microsite and a digital booklet it’s calling “The Real Story,” as it faces multiple lawsuits and a reported federal criminal probe related to allegations of rental price fixing.

RealPage’s six-page digital booklet, published on the site in mid-June, addresses what it calls “false and misleading claims about its software”—the myriad of allegations it faces involving price-fixing and rising rents—and contends that the software benefits renters and landlords and increases competition. It also said landlords accept RealPage’s price recommendations for new leases less than 50 percent of the time and that the software recommends competitive prices to help fill units.

“‘The heart of this case’ never had a heartbeat—the data clearly shows that RealPage does not set customers’ prices and customers do what they believe is best for their respective properties to vigorously compete against each other in the market,” the digital booklet says.

But landlords are left without concrete answers, as questions around the legality of this software are ongoing as they continue renting properties. “I don’t think we’re seeing this as a RealPage issue but rather as a revenue management software issue,” says Alexandra Alvarado, the director of marketing and education at the American Apartment Owners Association, the largest association of landlords in the US.

Alvarado says some landlords are taking pause and asking questions before using the tech. Software like RealPage “has made it much easier to understand what is happening in the market,” Alvarado says. “Technology has helped us in so many ways to make all these processes more efficient. In this case, it’s now borderline too efficient.” And members of the AAOA are asking questions about the legality of revenue management, she says. “The first thing landlords typically think is, what is the legal repercussion? Am I going to be in trouble for using this software? If the answer is maybe, it’s usually off the table.”

Dana Jones, president and CEO of RealPage, said in a statement released alongside the booklet that “the time is now to address a number of false claims about RealPage’s revenue management software, and how rental housing providers operate when setting rent prices.” RealPage did not respond to WIRED’s queries asking what prompted the lengthy statement in June. Officials appear to be narrowing in on RealPage, as the Justice Department is allegedly planning to sue the company, according to a report from Politico last week. The company declined a request to comment on the latest in the ongoing Department of Justice probe.

Allegations of price-fixing that may constitute antitrust violations have dogged the software company since late 2022, when ProPublica published an investigation alleging that RealPage’s software was linked to rent rises in some US cities, as the company used private, aggregated data provided by its customers to suggest rental prices. (In response to ProPublica’s reporting, RealPage commented that it “uses aggregated market data from a variety of sources in a legally compliant manner.”)

RealPage’s software is powerful because it anonymizes rental data and can provide landlords and property managers with nonpublic and public data about rentals, which may be different from that advertised publicly on platforms like real estate marketplace Zillow. The company contends that it’s not engaging in price-fixing, as landlords are not forced to accept the rents that RealPage’s algorithm suggests. Sometimes it even recommends landlords lower the rent, RealPage claims. But antitrust enforcers have alleged that even sharing private information via an algorithm and using it for price recommendations can be as conspiratorial as back-room handshake deals, even if landlords don’t end up renting apartments at those rates. The reported antitrust investigation is ongoing.

RealPage’s algorithmic pricing model is among one of the first subject to scrutiny, perhaps due to its involvement in housing, a necessity that has ballooned in price as housing supply languishes. Typical rent in the US is just under $2,000, according to Zillow, up from around $1,500 in early 2020. “Housing affordability is a national problem created by economic and political forces—not by the use of revenue management software,” Realpage says. But renters can’t tell whether their rates are rising because of algorithms or not.

“It’s almost impossible to know if you are just a spectator or a victim,” says Shanti Singh, legislative and communications director with Tenants Together, a California-based coalition of tenants activists. If tenants call a hotline over raised rent or fees, “we’re not necessarily going to be able to see or connect that their landlord is using RealPage.”

The state of Arizona sued RealPage and nine landlords in February, claiming a conspiracy between the company and landlords led renters in Phoenix and Tucson to pay “millions of dollars” more in rent. That followed a similar lawsuit out of Washington, DC. In the capital’s greater metropolitan area, more than 90 percent of rental units in large apartment buildings were priced using RealPage software, according to DC’s attorney general.

The cases against RealPage puts algorithmic pricing to the test; as the technology becomes more common, antitrust law has yet to keep pace. Officials have other concerns around algorithms used for alleged hotel price fixing, as well as e-commerce algorithms. “The concern of regulators that algorithms can be used in ways that harm competition—that idea is here to stay,” says Ed Rogers, a partner at law firm Ballard Spahr who focuses on antitrust cases. “RealPage could end up really being a test case, not just for the real estate rental industry but for this aspect of AI and software and its role in a competitive landscape.”

The impact of algorithmic pricing varies greatly. Amazon has been accused of pushing up prices with a secret algorithm. (Amazon has said the “allegation that we somehow force sellers to use our optional services is simply not true.”) But others operate in plain sight, like dynamic pricing for rideshare costs, and don’t involve multiple companies sharing information. Not all of these algorithms are engaged in activity that may be considered anticompetitive. A Nevada judge in May dismissed a suit brought by hotel guests against several Las Vegas hotel operators, finding there was no agreement among them to fix prices using shared algorithms.

Yardi Systems, another US property management company, is also facing a class action suit regarding antitrust violations for artificially inflating rent prices. The company has said it did “nothing illegal,” as it does not mandate rent prices through its software or make “collusive pricing decisions.”

Typical rental costs in Phoenix have increased by more than about $500 a month from April 2020 to 2024, and by around $400 in Washington, DC, in the same period, according to Zillow.

Renters have also filed numerous class action suits against RealPage and property owners that have been consolidated. Some landlords named in those settled claims earlier this year. The court threw out a lawsuit regarding price fixing for student housing but has said the class action from renters can go forward. Attorneys representing some of the plaintiffs in the class action did not respond to requests to comment.

RealPage laid off about 4 percent of staff in June. “RealPage is hyper-focused on innovation and accelerating its business growth in 2024 and beyond, and as a result has made the decision to eliminate a small number of roles within the company,” Jennifer Bowcock, a spokesperson for the company, says. The layoffs were not connected to the antitrust lawsuit, she says. Thoma Bravo, the owner of RealPage, did not respond to a request for comment for this story.

As of 2020, RealPage said it was collecting data on some 16 million rental units across the US. There are 44 million renter households in the US, and nearly 22 million rental units are owned by for-profit businesses. RealPage grew when it acquired Lease Rent Options (LRO) in 2017, after clearing antitrust scrutiny by the Justice Department. The DOJ did not comment on questions from WIRED about its reported investigation into RealPage or its approval of RealPage’s acquisition of Lease Rent Options in 2017.

When asked about the latest in the probe, RealPage referred to a portion of its recent lengthy statement, which said: “The DOJ extensively reviewed LRO and YieldStar in 2017, without objecting to, much less challenging, any feature of the products.” RealPage also says that its “products are fundamentally the same today” as they were when the acquisition received approval.

In June, The New York Times asked assistant US attorney general Jonathan Kanter, the Justice Department’s top antitrust official, if he would view an AI tool communicating pricing information as the same as humans colluding, with the question referencing the reported RealPage investigation. Kanter replied: “I often say that if your dog bites somebody, you’re responsible for your dog biting somebody. If your AI fixes prices, you’re just as responsible.”

The Justice Department also last year filed a statement of interest in the RealPage combined class action lawsuit, as the case could become a precedent setter in algorithmic pricing. The statement mirrored Kanter’s argument that the method of price setting doesn’t matter, and algorithms are just the latest evolution in information gathering and sharing.

“In-person handshakes gave way to phone and fax, and later to email. Algorithms are the new frontier,” the Justice Department argued in a statement of interest it filed in the class action lawsuit against RealPage and landlords. “And, given the amount of information an algorithm can access and digest, this new frontier poses an even greater anti-competitive threat than the last.”