WHAT’S THE ISSUE?
Hagens Berman has been retained by Arizona Attorney General Kris Mayes in filing a consumer-protection lawsuit on behalf of the state of Arizona. The lawsuit states that renters in Arizona, especially the Phoenix and Tucson metropolitan areas, have been harmed by a scheme perpetrated by some of the largest residential real estate companies — Greystar, Avenue5, Trammell Crow Residential and other large property management groups. The lawsuit states these leasing companies colluded to artificially increase the price of rent, basing leases above competitive levels. In this alleged scheme, renters lose, and leases are adjusted to rates beyond what a free market would bear.
HOW HAVE ARIZONA RENTERS BEEN AFFECTED?
In the Phoenix metro area, 36% of households are renters, and more than 1.7 million people live in apartments. “Today, these households are spending about 76% more on rent than they paid in 2016,” the lawsuit states. “Over the past few years, the Phoenix metropolitan area has ‘led the nation in rent increases’ with many residents using 50% to 100% of their income to pay rent.”
In Tucson, about 37% of households’ rent, and historic rent increases have occurred in the same period — 30% increase in the past two years, as of time of filing. The lawsuit states that an estimated more than 50% of multifamily apartment units listed in the Tucson metropolitan area are owned, operated or managed by companies that have contracted with RealPage.
WHAT IS AT STAKE?
The lawsuit brought by Hagens Berman and the Arizona Attorney General brings claims under the Arizona Uniform State Antitrust Act and the Arizona Consumer Fraud Act. These laws prohibit businesses from engaging in price fixing. Attorneys allege that the defendant leasing companies’ actions constitute violations against these laws amounting to unfair acts or practices and concealment or misrepresentation of material facts.
The lawsuit seeks to recover restitution, civil penalties and other important relief to remedy the harms RealPage and the leasing companies have allegedly caused in Arizona, according to the filed lawsuit.
RENTAL PRICE SCHEME EXPLAINED
Our legal team believes that beginning in 2016, these leasing giants began to work together to increase lease prices for Arizona renters. Instead of using an independent pricing metric and supply decisions, they agreed to use a third-party pricing and data collection service, RealPage, to make unit-specific lease adjustments. RealPage also allows participating lessors to coordinate supply levels to avoid price competition. They made these changes in lockstep, forcing leases higher in a scheme designed to imprison renters.
TOP ARIZONA LAW FIRM
Hagens Berman is home to some of the most well-respected and successful lawyers representing plaintiffs, and the firm has achieved total settlements valued at more than $320 billion since its founding in 1993 in Seattle. The firm has taken on major institutions for fraudulent billing and predatory behavior, including in the mortgage market, in Big Tech, and against utility companies, product manufacturers and other negligent parties. Your claim will be handled by attorneys experienced in this area of law.
