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Charlotte, North Carolina, uptown skyline at twilight. Sean Pavone / Shutterstock

'Play by the rules': Corporate landlords accused of collusion and using software to scam North Carolina renters — here's how the alleged scheme worked

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“North Carolinians are struggling to afford their rent as it is — we won’t stand for landlords and real estate companies making the problem worse to line their own pockets,” Jackson said in a news release. “I’m suing these landlords to make sure they play by the rules so North Carolinians can get fair prices for rent.”

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The landlords named in the suit are Greystar Real Estate Partners LLC, Blackstone’s LivCor LLC, Camden Property Trust, Cushman & Wakefield Inc and Pinnacle Property Management Services LLC, Willow Bridge Property Company LLC and Cortland Management LLC. The software company is RealPage.

It’s alleged landlords used a RealPage algorithm to set rents for approximately a third of one-bedroom and two-bedroom apartments in the Raleigh, Durham/Chapel Hill and Charlotte metro areas.

The lawsuit

The lawsuit accuses the landlords of communicating with one another and RealPage to share sensitive, nonpublic data about rent prices and occupancy. The sharing of this information allegedly allowed landlords to set higher-than-expected rents.

Such behavior would be considered illegal and anticompetitive.

“Renters are entitled to the benefits of vigorous competition among landlords. In prosperous times, that competition should limit rent hikes; in harder times, competition should bring down rent, making housing more affordable,” the lawsuit reads.

The suit is part of an ongoing case against RealPage and involves the Department of Justice.

Greystar released a statement addressing the lawsuit: “We are disappointed that the DOJ added us and other operators to their lawsuit against RealPage. Greystar has and will conduct its business with the utmost integrity. At no time did Greystar engage in any anticompetitive practices. We will vigorously defend ourselves in this lawsuit.”

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What can renters do?

There are several steps renters can take to help protect themselves from bad actors.

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Before moving into a unit, research the reputation of the landlord or property manager associated with it. Keep an eye out for things like residents complaining about frequent rent hikes or unaddressed repairs.

It’s important to know your state's laws on rent increases. Most states, including North Carolina, don’t have rent control laws, so landlords can set rent prices as they wish. They’re also not limited when setting rent increases between leases, but typically must provide written notice. Some places do limit price increases, though, and it’s important for you to be familiar with local laws to ensure compliance.

You might want to keep tabs on current market rates. If a comparable property is renting for less than what you’re paying, you may decide to move. Just be sure moving expenses don’t outweigh your savings.

Finally, negotiate with landlords if possible. A landlord might be willing to make compromises if you’re a long-term tenant with a good track record — especially if they’re an individual and not a corporation.

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Christy Bieber Freelance Writer

Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.

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