Lawsuits allege corporate landlords used property management software RealPage to cooperatively raise rents. The impact on the Atlanta rental market appears to be broad enough that the Feds are investigating for potential criminal conspiracy.
zimmytws / For Rent sign
As if there weren’t already enough forces driving unaffordably high rental rates, which have jumped by 30 percent over the last four years, Popular Information reports that the Department of Justice is investigating another potential cause: a “massive criminal conspiracy among large landlords” to “artificially increase rents through collusion.”
According to reporter Judd Legum, the FBI conducted a raid on a major corporate landlord based in Atlanta called Cortland Management, which “appears to be part of a Department of Justice criminal investigation, first reported by Politico in March. “The investigation centers around the use of RealPage, advanced property management software used by many corporate landlords,” which a lawsuit file by the State of Arizona in February claims puts significant pressure on landlords — who are supposed to be competitors — to outsource pricing authority and adopt RealPage’s prices rather than competing with one another. “The system has resulted in large rent increases that were previously unthinkable, according to RealPage's own executives,” Legum reports.
So why is the FBI focusing on Cortland Management in Atlanta? The agency hasn’t said, but a class-action lawsuits revealed “landlords using RealPage account for over 53% of the multifamily rental market in the Atlanta Submarket” and the use of RealPage in Atlanta has coincided with a 56 percent rental increase since 2016, Legum reports. RealPage also controls large market shares in Baltimore, Charlotte, Houston, and Miami.
FULL STORY: Feds raid corporate landlord, escalating nationwide criminal probe of rent increases
Tuesday, June 4, 2024 in Popular Information
Government / Politics Housing Technology United States Georgia Atlanta rent increases Housing Crisis Corporate Landlords Property Management Criminal Justice Investigations Department of Justice FBI View More
You Might Also Like
As more and more cities look to adapt vacant office buildings into homes, a new analysis from Urban Institute says some cities will benefit more than others.
June 7, 2024 - Urban Wire
The city is promoting quick-build, low-cost solutions to stem the homelessness crisis.
October 27, 2023 - Urbanize Atlanta
The rise in investors buying up properties, sometimes before they’re even listed on the open market, is causing sharper spikes in home prices. Atlanta’s mayor wants to end that.
June 20, 2022 - Bloomberg
Most Read
A potentially toxic algal bloom has turned Clear Lake in Northern California bright green, fed by increased runoff from human activity.
June 4, 2024 - Los Angeles Times
The U.S. Corps of Engineers and Redington Shores, Florida are at a standstill: The Corps won’t spend public money to restore private beaches, and homeowners are refusing to grant public access to the beaches behind their home in return for federal assistance.
June 7, 2024 - Grist
Local governments in the Volunteer State can now offer developers incentives like increased density, lower parking requirements, and priority permitting for affordable housing projects.
June 10, 2024 - Nooga Today
Latest News
The new mayor’s reversal of road safety projects, some already underway or completed, is raising eyebrows among developers who say residents want walkable, mixed-use streets.
4 seconds ago - Houston Chronicle
Without additional funding, the agency is ‘barely treading water’ and could be forced to make service cuts in 2026.
1 hour ago - Route Fifty
The opening of the San Gabriel River Park expands access to green spaces for residents in the San Gabriel Valley, especially for Avocado Heights and other park-poor communities in the area.
June 12 - San Gabriel Valley Tribune
Advertise with us
Jobs
Asst. Community and Economic Development Director
City of San Rafael
LDR Coordinator
Caltrans
Regional Planner
Caltrans
Advertise with us
Events
Chaddick Institute at DePaul University
Innovative Housing Showcase Educational Sessions
HUD's Office of Policy Development and Research
News from HUD User
HUD's Office of Policy Development and Research
RFPs and RFQs
Request for Qualifications (RFQ) No. P24-10074L - Drachman Properties Development and Lease Project
Pima County Community College District
RFP - Objective Design Standards for 1-to-4-Unit Residential Development
City of Piedmont, CA
RFP 24-087-1 Southern Nevada Strong Regional Plan Update
Regional Transportation Commission of Southern Nevada
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
View More
