A group of Democratic senators is investigating the actions of RealPage, a software company under scrutiny for allegedly conspiring with landlords to inflate rental prices. In a correspondence addressed to RealPage’s CEO Dana Jones, Senators Elizabeth Warren (D-MA), Bernie Sanders (D-VT), Amy Klobuchar (D-MN), Cory Booker (D-NJ), and Tina Smith (D-MN) are seeking clarity regarding the company’s influence on a provision included in a Republican budget reconciliation bill, which prohibits states from regulating artificial intelligence for a duration of ten years.
The senators contend that this particular provision could undermine efforts aimed at limiting RealPage’s access to sensitive data from landlord groups, potentially allowing it to utilize such information to suggest non-competitive rental rates.
In a 2022 report from ProPublica, connections were drawn between RealPage’s algorithms and the increasing rent prices across the United States. This report claimed that the company’s software enables landlords to coordinate their pricing strategies. Legal actions initiated last year by the Department of Justice, along with eight states, allege that RealPage’s practices deprive renters of competitive leasing options. In response, cities such as Minneapolis, Jersey City, Philadelphia, and San Francisco have enacted laws aimed at prohibiting rent-setting software, while several states like Connecticut, New York, Massachusetts, and Washington are also in the process of developing related legislation.
“Republicans are trying to give a green light to RealPage’s rent-hiking algorithm.”
The senators contend that the current Republican budget reconciliation bill would impede legislative efforts to regulate RealPage’s rent-setting practices. The bill outlines restrictions that would limit state governments from implementing “any law or regulation” related to a wide range of automated systems, which would encompass the algorithms developed by RealPage.
Despite the high-profile support for the proposed moratorium coming from prominent firms like OpenAI, lawmakers suspect that RealPage may have also invested substantial resources to advocate for the measure. “Given this context, we seek information on RealPage’s lobbying activities and how the Republican reconciliation provision may serve the interests of RealPage and other corporations at the expense of consumers,” the letter outlines.
The senators note that RealPage has intensified its lobbying efforts in light of local legislative actions that could impact its operations. They reference a report from The Lever indicating that the National Multifamily Housing Council, which represents RealPage, increased its lobbying expenditures from $4.8 million in 2020 to $9 million anticipated for 2024. Furthermore, the report mentions that the trade group disclosed lobbying related to “issues concerning the risks and opportunities posed by artificial intelligence,” alongside “federal policy on data usage, artificial intelligence, software,” and technology used in real estate.
“RealPage significantly boosted its lobbying budget in Congress, and consequently, Republicans introduced provisions that hinder state-level protections for renters,” stated Senator Warren in an interview. “As Americans grapple with soaring rents, Republicans are prioritizing the interests of RealPage’s pricing algorithms over the needs of everyday citizens.”
The senators have requested detailed information from RealPage regarding its Congressional lobbying expenditures since 2020, including the names of firms and individuals it has hired or contracted during that period. They are also interested in the amount spent specifically on lobbying concerning AI legislation and how the budget reconciliation bill could impact RealPage in states where related laws are being considered. A response from RealPage is requested by June 10, 2025.
