Property management software giant RealPage sued New York’s attorney general Wednesday, claiming a newly enacted state law aimed at preventing landlords from using software to collude on rents is unconstitutional and unnecessary. Filed in federal court, the lawsuit argues the statute—set to take effect Dec. 15—tramples on the company’s First Amendment rights by restricting its ability to provide data-driven analysis and advice to residential building owners.
RealPage asserts the law violates not only its own freedom of speech, but also that of its clients, by outlawing software tools that help owners make informed decisions based on lawful information.
Dirk Wakeham, RealPage’s president and CEO, said the law deprives property owners of tools essential for operating effectively. “The multifamily industry deserves tools that support responsible operations, informed decisions, and better outcomes for residents,” he stated.
State Senator Fires Back: ‘RealPage Has No First Amendment Right to Raise Rents’
The law’s sponsor, Democratic state Sen. Brad Hoylman-Sigal of Greenwich Village, pushed back forcefully, saying RealPage cannot hide behind constitutional claims to justify inflated rents.
“Rent price-fixing via artificial intelligence is against state antitrust law,” he said. Declaring confidence in the law’s legality, Hoylman-Sigal argued RealPage’s lawsuit merely exposes what he called the company’s “cartel-like behavior.”
The senator added he expects the court to dismiss what he described as a “desperate and frivolous effort” to strike down a statute narrowly tailored to prevent illegal collusion.
