Real estate owners and managers in the multi-family space should be cautious about using rental data software that either provides non-public rental information to third parties or receives non-public rental information from third parties. 

The software company, RealPage and others, have been at the center of recent lawsuits accusing property managers and landlords of illegal price-fixing activities due to their use of rental sharing software.  Large property management companies and landlords have found themselves enmeshed in lawsuits due to their use of rental data software, which plaintiffs claim enables landlords to illegally collude to increase rental rates.

Real estate companies should reconsider their use of rental data software while these lawsuits work their way through the courts. The lawsuits generally seem to be targeting only the largest real estate companies, but it is conceivable that mid-size and regional managers and landlords may be next. Increasing rental rates have been a significant contributor to higher inflation, which has increased the attention given to the role played by rental data software. Real estate companies who use rental data software should be aware of the risks involved. Counsel for real estate companies should find ways to address the use of rental data software in property management agreements and other real estate contracts.