Tennessee Protects Renters from Price Manipulation by Nation’s Largest Property Manager
NASHVILLE, TN – Attorney General Jonathan Skrmetti announced today that Tennessee has joined a multistate settlement with Greystar Management Services, LLC, the nation's largest property management company, to resolve allegations of anticompetitive practices that resulted in artificially-increased rents for Tennesseans. Greystar reached a non-monetary settlement with the United States Department of Justice this August.
A bipartisan coalition investigated Greystar’s participation in an algorithmic pricing scheme in which property management companies shared supply and pricing data with their competitors through RealPage’s revenue management software. The States alleged that by sharing sensitive rental data, competitors artificially inflated and aligned rental prices and reduced competition in the multi-family housing market. Greystar manages nearly 950,000 rental units nationwide, including more than 6,000 in Tennessee. This settlement represents one step in broader enforcement efforts, with litigation continuing against RealPage and four other property management companies.
“Tennessee renters were stuck paying too much because property management companies shared information through the RealPage software to artificially inflate prices,” said Attorney General Jonathan Skrmetti. “It’s not fair, it’s not right, and we are putting a stop to it by holding these companies accountable.”
The proposed consent decree, if approved by the Court, would require Greystar to:
- Refrain from using any anticompetitive algorithm that generates pricing recommendations using its competitors’ competitively sensitive data or that incorporates certain anticompetitive features;
- Refrain from sharing competitively sensitive information with competitors;
- Accept a court-appointed monitor if it uses a third-party pricing algorithm that is not certified pursuant to the terms of the consent decree;
- Refrain from attending or participating in RealPage-hosted meetings of competing landlords; and
- Cooperate with the coalition’s claims against RealPage.
Tennessee joined California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, and Oregon in securing this settlement.
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