A corporate landlord in Philly broke the law by using rent-setting software, tenant alleges

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A Philadelphia tenant is suing his corporate property manager for allegedly violating a city law that formally bars such companies from price-fixing rental rates, an illegal practice that housing advocates say undermines competition and fairness in the marketplace.

Filed earlier this month in the Court of Common Pleas, the lawsuit is believed to be the first of its kind since the antitrust law took effect in February 2025. The measure, inspired by a San Francisco law, is designed to stop corporate landlords from using revenue management software like RealPage to coordinate monthly rents.

“It is incumbent upon those of us who have been entrusted with the public trust, and with lawmaking and regulation, to do everything that we can do provide as many tools as possible that effectuates a line of defense for human beings to be able to thrive as opposed to corporations and tech to be able to overtake them,” said City Councilmember Nicolas O’Rourke, who introduced the bill in 2024.

Testing Philadelphia’s new antitrust law

The lawsuit targets Willow Bridge Property Company and RealPage, whose rent-setting software has come under fire for using nonpublic data from landlords to recommend monthly payments. Opponents maintain that the software’s pricing algorithm effectively enables landlords to illegally coordinate with one another, pushing rents higher than they would be in a competitive market.

Advocates say algorithmic price-setting can ripple across the rental market, making housing less affordable, particularly for low-income renters.

The complaint alleges that Willow Bridge, one of the country’s largest apartment managers, broke the law when it subscribed to and used RealPage to “set, recommend or influence” rents at its two market-rate buildings in Philadelphia. The Delaware-based company manages Vue 32 in University City and Rittenhouse Row in Center City.

Under the measure, renters have the right to directly sue their landlord or property manager. A private plaintiff is entitled to three times the value of the actual damages, or $2,000 per violation.

Willow Bridge did not respond to a request for comment.

A RealPage spokesperson said the company does not comment on pending litigation.

DOJ settlement stops short of penalties

The lawsuit comes roughly two months after a judge approved a settlement agreement between RealPage and the U.S. Department of Justice over its pricing algorithm. According to the DOJ, the deal is part of its “ongoing enforcement against algorithmic coordination, information sharing, and other anticompetitive practices in rental housing markets across the country.”

Under the agreement, RealPage is required to adhere to eight provisions, including that its software stop using “competitors’ nonpublic, competitively sensitive information to determine rental prices in runtime operation.”

The settlement includes no admission of wrongdoing and does not propose any financial penalties or damages.

In an online statement, RealPage CEO Dirk Wakeham called the settlement “a milestone” for the company, its customers and the apartment building industry.

“We are convinced that RealPage is part of the solution to addressing the cost of housing, helping operators make informed, independent decisions in a complex housing market,” Wakeham said.

“We are pleased to have reached this agreement with the DOJ, which brings the clarity and stability we have long sought and allows us to move forward with a continued focus on innovation and the shared goal of better outcomes for both housing providers and renters.”

Editor’s note: This story has been updated to correct the gender of the plaintiff.