Algorithmic Pricing in the Residential Rental Market: Regulatory Update, Antitrust Litigation, Lessons to be Learned

This CLE webinar will examine the current state of legislation and litigation aimed at the use of algorithms to set residential rental prices. The panel will discuss what antitrust action has been taken by federal agencies and discuss lessons to be learned. The panel will examine recently enacted state and local legislation, such as that in New York and California, that will impact the use of algorithmic residential rate setting by landlords and property managers. The panel will also address when and under what circumstances the use of algorithms may be allowed and offer best practices to mitigate the risk of litigation.

Antitrust regulators at the federal, state, and local level, as well as private plaintiffs, have been heavily scrutinizing the use of algorithmic pricing tools, including those purportedly used to set residential rental prices, to address alleged anticompetitive conduct stemming from the use of such tools. This has resulted in increased litigation and legislation, including laws that have zeroed in on the residential rental market.

For example, New York recently became the first state to prohibit the use of algorithmic pricing tools in setting residential rental rates. The law also applies to lease renewal terms, occupancy levels, and other lease terms and conditions. As a result, residential landlords, property managers, and technology providers involved in rental pricing face potential antitrust exposure. California has also recently enacted more stringent antitrust regulations that will impact residential rental rate setting. And even local governments such as San Francisco, Philadelphia, and Minneapolis have enacted bans on using algorithms that rely on nonpublic data to set residential rental prices.

On the federal side, the DOJ along with state attorneys general have filed antitrust lawsuits against companies purportedly using algorithms to set residential rental prices such as the notable case against RealPage Inc. for allegedly scheming to decrease competition among landlords in apartment pricing and to monopolize the market for commercial revenue management software that landlords use to price apartments. One of the landlords in the RealPage case, Greystar Management Services L.L.C., recently reached a $7 million settlement that includes stopping the use of software offered by any company, including RealPage, that uses competitively sensitive data to align rent prices and to cooperate in the ongoing prosecution of RealPage.

Listen as our expert panel examines the current state of legislation and litigation related to algorithmic price setting for residential leases. The panel will discuss notable cases and lessons to be learned and offer best practices for landlord/property management clients to mitigate the risk of litigation and enforcement action.