Lawsuits are starting to pile up against real estate software company, RealPage. Class action lawsuits and other legal cases have been brought forth against the Richardson-Texas-based company and its rental-pricing algorithm.

RealPage’s methods came under question during an investigative report by ProPublica in the fall of 2022 that focused on its rental-pricing algorithm. The lawsuits accuse RealPage of colluding with landlords to artificially inflate the costs of rents and limit the supply of housing.

The U.S. Department of Justice is investigating the allegations.

Keep reading to learn more about the specifics of the accusations against RealPage and whether you might consider taking legal action against the company.

What Is RealPage?

RealPage was founded in 1998 and went public in 2010. Since then, it has steadily grown into one of the nation’s largest real estate technology partners.

According to its website, RealPage provides data analytics, property management software, and services to manage rental properties and real estate efficiently. The software and data analytics are designed to help landlords, property managers and tenants make more informed decisions to better manage their rental properties.

RealPage’s resident screening services, property management software, rent payment processing, and data analytics tools are used by thousands of real estate professionals across the world.

RealPage provides price-setting software for apartments and nine of the biggest property managers in the country.

Why Is RealPage Being Sued?

Shortly after the ProPublica article appeared in October 2022, lawsuits against RealPage were filed.

According to the class-action lawsuit that was filed in the U.S. District Court in San Diego, RealPage is accused of forming “a cartel to artificially inflate the price of and artificially decrease the supply and output of multifamily residential real estate leases from competitive levels.”

ProPublica’s investigation and subsequent article raised questions about whether RealPage was helping the country’s biggest landlords coordinate pricing for rentals, potentially in violation of federal law.

The Department of Justice is investigating if RealPage’s software is enabling landlords to coordinate pricing by pushing rents above competitive levels, in violation of federal antitrust laws.

RealPage representatives have strongly denied the allegations and will vigorously defend against them, according to reports.

Other Reasons to Consider Suing RealPage

Although allegations against RealPage about colluding with landlords to inflate the price of rental properties are at the heart of recent lawsuits, you could also consider filing a lawsuit against RealPage for the following reasons:

  1. Breach of contract: RealPage may be sued if they fail to uphold the terms of a contract they have entered into with a customer. This could include failing to provide promised services or not meeting agreed-upon timelines.
  2. Negligence: If RealPage acts negligently and causes harm to a customer, the customer may choose to sue the company. For example, if RealPage’s software causes a customer to lose important data, the customer may seek compensation for damages.
  3. False advertising: If RealPage makes false or misleading claims in its advertising, it may be sued for false advertising.
  4. Discrimination: RealPage may be sued if it engages in discriminatory practices or violates fair housing laws.
  5. Privacy violations: If RealPage mishandles sensitive customer data or violates privacy laws, it may be sued for damages.

You should know that the process of filing a lawsuit against a company can be complicated and time-consuming. Consider consulting with a lawyer who is experienced in these types to cases. Your lawyer can help determine if you have a strong case and make sure your rights are protected.

If the situation seems to be a bit smaller than hiring an attorney and filing a civil suit, you can consider small claims court. The benefit of small claims court is that lawyers aren’t required. This makes small claims less intimidating and more affordable for most Americans

With Dispute software, you can start your small claims case by generating, signing, and mailing a demand letter and small claims filing in minutes from your phone or computer. Keep reading below for more info on how to move forward.

Write a Demand Letter

demand letter is a formal letter asking for payment. Strongly worded demand letters on professional letterhead have a better chance of reaching a settlement out of court than regular letters. At Dispute, you can generate a demand letter in minutes.

  1. On the top, in the address block, put in the company name and address. You can find the registered agent at the bottom of this page.
  2. Next, put the subject line as 'Re: Demand for Payment'
  3. In one sentence, tell them how much the other party owes you which you will claim in your small claims lawsuit.
  4. Then, in two to three sentences describe your issue.
  5. Finally, state in plain language that you will go to small claims court if necessary. Don't say that you will do anything else, such as speaking poorly about them.
  6. On the bottom, include your name and address

How to Send a Demand Letter

After you write the demand letter, you’ll want to send it to their registered agent so that it’s guaranteed to go to the legal department. Make sure that you get a tracking number for the mail you send them. It can become important evidence in your case.

Demand letters are often mailed. But if you don’t have time to find a printer, buy an envelope, and visit a post office, we can mail it for you. Send your demand letter with just a click from the comfort of your home with Dispute.

Start your Small Claims Forms

If the dealership does not pay you after receiving the demand letter, you can file a small claim to win your money back. Although this may sound complicated, small claims is actually less complicated than regular court. There are some county guidelines you’ll have to follow, but filing with Dispute can make it easier on you.

You’ll need to find and prepare your small claims form based on where you decide to sue. Usually, people sue where the defendant lives or does business.

Then, wherever you decide to sue, look up the county's small claims system. They’ll provide details on their website about what small claims forms are necessary. You can read more about the small claims process here.

Serve your Small Claims Paperwork

One of the last steps before your trial will be to physically give the small claims paperwork to the defendant. This is called “serving” the defendant. You can’t serve the defendant yourself, but you can find someone else to do it. Many people hire professional process servers. There are legal guidelines that you must follow so that your case can go to court.

Defendants may sometimes avoid service. In order to keep your court date, you should hire a professional process server so that you can be sure all legal guidelines are appropriately followed.

Attend your Small Claims Trial

On the date of your small claims trial, be sure to arrive early and well prepared. Bring at least three copies of all evidence you intend to present, and if your hearing is remote be sure to have provided copies in advance to the other party and to the court. Failure to follow the strict local guidelines can result in your case being dismissed, but if you’ve followed the rules then you can often win by default when the other party doesn’t show up.

How Much it Costs

So how much will you spend by suing in small claims court?

  • Court Filing Fees: The amount you will pay to file a small claims lawsuit depends on how much you are suing for and where you are suing. You can expect to pay between $30 to $400 to file the lawsuit. If you cannot afford to pay court fees, you can ask the court to waive the fees.  ‍
  • Serving Costs: Once the lawsuit is filed, you must notify the defendant that you have sued them. This is called "serving." Serving Costs can range from $20-100 depending upon the local area.

‍Remember, if you win, you can request that the other party pay for your court fees and serving costs.‍

The Benefits of Small Claims Court

  1. Court filing fees are cheaper in small claims than in other courts.
  2. The process is faster in small claims than in other courts, as your hearing will usually be scheduled 30-70 days after you file the lawsuit.
  3. Lawyers are generally not allowed in small claims, which helps keep the costs of suing low.  

Taking the First Step in Your Lawsuit

If all of this work seems complicated or daunting, rest assured that it's easier than it initially seems. 2.7 million small claims court cases are filed annually in the US, which is only growing as more people realize how easy it is to enforce their legal rights in court.

Suing can be a complex and challenging process. It's essential to gather evidence and understand the legal process. If you believe that you have been the victim of this crime, don't hesitate to seek legal advice. By taking action, you can hold the company accountable for its actions and receive the compensation you deserve.