Several landlords accused of using AI to swindle millions out of renters in NC – WSOC TV

CHARLOTTE — On Tuesday, the Attorney General’s Office announced it will be suing six landlords for illegally working together and with the software company RealPage to raise North Carolinians’ rents.

Those six landlords include Greystar Real Estate Partners LLC, Blackstone’s LivCor LLC, Cushman & Wakefield Inc., Pinnacle Property Management Services LLC, Willow Bridge Property Company LLC, and Cortland Management LLC.

Channel 9 learned Greystar Real Estate Partners LLC owns a handful of complexes in NoDa. They and the other landlords are accused of using artificial intelligence to align their prices, swindling renters out of millions.

Together, these landlords own or manage more than 70,000 units throughout the state, including cities like Charlotte.

Renter Dante Brodie told Channel 9 that he lived at a Cortland Management Property for two years.

“I didn’t take it as too harsh when they were raising the rent, because I just figured that’s how Charlotte is,” Brodie said.

He said when he moved in, his rent was around $1,500, but by the end of his lease it increased significantly.

“It was all of $1,800. Like, with utilities, I was paying like, over almost $1,900,” said Brodie.

Brodie said he thought a price hike in rent every renewal year was normal if you wanted to live in the Queen City until Channel 9 became aware of why he was dishing out more money.

“It’s very unfair, especially to Charlotte citizens,” Brodie expressed.

The lawsuit claimed that landlords would use Realpage’s algorithm to align rent prices and avoid competition.

It goes on to say the landlords would share sensitive data, including renewal rates, occupancy, and strategies for setting rents.

Brodie said this is a harmful tactic, especially for those who are struggling to pay rent.

“Expensive rent being more than you want is super-inconvenient,” Brodie expressed. “A lot of people can’t stay in Charlotte. A lot of people got to go back home or move away somewhere cheaper just to save money.”

He said he hopes the outcome of the lawsuit will better help tenants who call Charlotte home.

“It would be great to see some justice, and, most of all, some stability in Charlotte, where it’s not just fluctuating everywhere,” Brodie concluded.

Following the announcement, Greystar Real Estate Partners LLC released a statement addressing the lawsuit saying:

“Greystar responded to the amended complaint that was filed today by the Department of Justice (DOJ), which added Greystar and other operators to its lawsuit against RealPage: We are disappointed that the DOJ added us and other operators to their lawsuit against RealPage.

Greystar has and will conduct its business with the utmost integrity. At no time did Greystar engage in any anti-competitive practices.

We will vigorously defend ourselves in this lawsuit.”

You can read the lawsuit in full here.

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