D.C. Landlord W.C. Smith Pays $1M Settlement Over RealPage Rent Inflation Scheme

William C. Smith & Co., Inc. (W.C. Smith), one of Washington D.C.'s largest landlords, has agreed to pay $1.05 million and reform its rent-setting practices following allegations from D.C. Attorney General Brian L. Schwalb that the company conspired with other landlords to inflate rents using RealPage, Inc.'s pricing software. The lawsuit, filed in November 2023, accuses landlords of sharing confidential rental data and relying on RealPage's revenue management algorithms to artificially raise rents across more than 50,000 apartment units, with W.C. Smith owning over 9,000 of those units. RealPage’s software, used in about 60% of units in large multifamily buildings in D.C., is alleged to eliminate competition by using private data to set rents higher, leading to a housing affordability crisis. W.C. Smith denies any wrongdoing but settled to avoid legal expenses while committing to overhaul its business practices and cease using the software. This settlement marks the first resolution in the ongoing antitrust case against RealPage and multiple landlords, with further litigation ongoing. The agreement includes payments covering penalties, legal costs, and compensation to impacted residents.