Laws

Corporate landlords face legal scrutiny

The courts are testing whether wall street-backed corporate landlords—and the proptech systems they rely on—must obey the basic laws of fairness, competition, and due process..

Wall Street-backed corporate real estate companies employ sophisticated strategies and advanced technology to dominate residential housing markets. Their operations increase and improve the housing supply, but have systemic impacts on affordability, individual homeownership, and community dynamics.

Across the U.S., tenants, state attorneys general, and federal agencies are pursuing major cases against corporate landlords and property-tech companies for practices that include price-fixing, junk fees, and violations of tenant rights. These cases are reshaping how the courts view housing as a consumer-protection issue.

1. Antitrust and Price-Fixing Cases

DOJ v. RealPage and Major Landlords
The U.S. Department of Justice, joined by several state attorneys general, has sued RealPage, Inc. and six of the nation’s largest landlords, alleging that RealPage’s rent-pricing software was used to coordinate rent increases across competing properties.

The government claims this algorithmic coordination reduced competition and inflated rents for millions of tenants.

This case, U.S. and Plaintiff States v. RealPage is one of the most significant antitrust actions in housing since the Sherman Act was enacted.

Private Tenant Class Actions
Hundreds of tenants have filed parallel class-action suits consolidated into a federal multidistrict litigation (MDL).

The tenants allege that the same RealPage algorithm unlawfully fixed rent prices.

Twenty-six property-management firms (aka wall street landlords) agreed to a collective $141 million settlement – the first large-scale recoveries for renters in U.S. history. These companies conspired with software provider RealPage to artificially inflate apartment rental prices using rent-setting algorithms. They include:
- Greystar ($50 million, the largest individual settlement)
- BH Management ($15 million)
- Brookfield Properties ($5.3 million)

2. Constitutional Challenges to Tenant Protections

Landlord associations are testing whether pandemic-era tenant protections violate constitutional property rights.

Eviction-Moratorium “Takings” Claims
A federal appeals panel held that the government may owe compensation to landlords for losses during the COVID-19 eviction moratorium, treating it as a possible physical taking under the Fifth Amendment. The decision opens the door to billions in potential claims and could reach the Supreme Court.
Rent-Control and “Just-Cause” Eviction Challenges
In GHP Management Corp. v. City of Los Angeles, California landlords have asked the Supreme Court to strike down local rent-stabilization and eviction-protection laws as unconstitutional. A ruling in their favor could reshape landlord-tenant law nationwide by expanding Fifth-Amendment property-rights claims.

3. Federal Enforcement and Consumer Protection

FTC v. Invitation Homes
The Federal Trade Commission secured a $48 million settlement with Invitation Homes—the nation’s largest single-family landlord—for charging illegal “junk fees,” failing to perform inspections, and wrongfully withholding deposits.

Fair Housing and Servicemember Protections
The Department of Justice has brought multiple suits enforcing:

Fair Housing Act (FHA) rules against discrimination by source of income, family status, or disability.
Servicemembers Civil Relief Act (SCRA) violations against landlords charging fees to deployed service members.

4. Individual and Local Tenant Lawsuits

While national cases dominate headlines, tenants also win smaller civil actions for habitability violations and wrongful eviction.

5. Major Federal Cases in Texas

Texas is a focal point because RealPage, Inc. is headquartered in Richardson and several defendants—such as Camden Property Trust (Houston) and Willow Bridge Property Co. (Dallas)—operate statewide.

6. Brookfield Properties in Dallas

The case Stuart v. Brookfield Properties illustrates how national issues reach individual tenants. Filed in the 101st Judicial District Court, the lawsuit alleges: fraudulent ledger manipulation, overbilling a tenant in violation of a HAP contract, and attempted unauthorized electronic withdrawals.

7. Broader Context

Our Courts are increasingly recognizing that algorithmic rent-setting and automated billing systems—like those deployed by RealPage, BILT, and Brookfield—introduce entirely new legal questions. What once appeared to be routine lease disagreements now raise issues in antitrust, consumer protection, fair housing, and due process.

Collectively, these lawsuits mark a turning point in housing enforcement:

Tenants are organizing through class actions, unions, and coordinated legal strategies.
Federal agencies are reframing landlord misconduct as potential price-fixing, unfair trade practices, and systemic fraud—not mere “billing errors.”