Big landlord settles rent-fixing case

Officials say software let Greystar and rivals share data and drive up rates in tandem.

- ROGER VINCENT

APARTMENTS in the San Fernando Building in L.A. are managed by Greystar. It will pay $7 million to nine states, including California.

STEPHEN OSMAN Los Angeles Times

Greystar, which manages dozens of apartment complexes in Southern California, settled a lawsuit that alleges the property giant and other landlords colluded to keep rents artificially high.

The unusual action is aimed at limiting rent increases in Southern California, where rents already are among the highest in the country.

The national apartment landlord and manager was a defendant in a lawsuit filed in January by the Department of Justice that focuses on software from RealPage that is used by many apartment operators to set rent prices for vacant units and renewal rates for existing tenants.

The lawsuit alleges Greystar and other landlords were illegally using RealPage to share proprietary data so they could align their prices and drive up rents.

Greystar manages nearly 1 million apartments in the U.S., according to real estate data provider CoStar. It is one of the country's largest apartment managers.

Last week Greystar agreed to stop using software offered by any company, including RealPage, that uses competitively sensitive information to align rent prices, California Atty. Gen. Rob Bonta said.

Greystar also agreed to cooperate in the ongoing prosecution of RealPage and other defendant landlords.