Senate Democrats Demand Answers About RealPage Lobbying Activity
RealPage, the company behind a controversial artificial intelligence-based rent-setting algorithm, is being scrutinized by some of the nation’s most powerful politicians for its lobbying practices.
Five Democratic U.S. Senators want to know whether the firm lobbied for a 10-year ban on state-level AI regulation included in a Republican-led budget reconciliation bill, according to a letter they sent to RealPage CEO Dana Jones last month.
The ban, buried in “The One, Big Beautiful Bill” now being debated in the U.S. Senate, includes language preventing states or “political subdivisions” from enforcing “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period.”
The AI-friendly language was added to the proposed legislation after intense lobbying from trade groups like the National Multifamily Housing Council, which investigative website The Lever said came at the behest of RealPage. NMHC upped its lobbying spending from $4.8M in 2020 to $9M in 2024.
Given RealPage’s potential involvement in the bill, Sens. Elizabeth Warren, Bernie Sanders, Amy Klobuchar, Cory Booker and Tina Smith gave the company until June 10 to answer questions about its lobbying activities since 2020.
The lawmakers believe the provision could quash attempts to keep RealPage and similar companies from helping landlords set rents at noncompetitive levels.
“Left unchecked, algorithmic and AI-driven pricing can cause tremendous harm to consumers,” the senators said in the letter.
“The net result will be that Americans will lose important protections against the misuse of AI tools.”
In a statement to Bisnow, RealPage denied directly lobbying for the bill, although it does back the AI provision.
“RealPage was not involved in the AI moratorium provision in the budget reconciliation bill, but we do support a thoughtful, well-grounded, and consistent regulatory approach to AI, rather than a patchwork of state and local legislation,” a spokesperson said. “As for the letter, the Senators’ letter grossly misstated our lobbying efforts.”
The company’s algorithm was the subject of a 2022 ProPublica investigation tying it to elevated rent prices across the country. This was followed by a Biden-era U.S. Department of Justice lawsuit alleging the software allows landlords that would otherwise be competitors to collude to inflate rental prices in a region.
Colorado became the first state to outlaw RealPage’s program and similar algorithms in April, although Gov. Jared Polis vetoed the legislation late last month. Polis said he supported the goal of curbing “egregious” rent collusion, but worried a ban could have unintended consequences, including driving housing providers out of the state.
Several cities, including San Francisco and Philadelphia, implemented similar bans last year.
San Diego Council Member Sean Elo-Rivera, who introduced a successful ordinance in his city last month, railed against the AI measure in the proposed reconciliation bill.
“Any proposal to block states and cities from protecting communities from this unethical practice is a clear example of prioritizing corporate profit over people,” he said.
But industry advocates argue that a hodgepodge of local legislation is bad for consumers.
“As policymakers consider the role of AI in the economy, it's critical they recognize how tech-driven solutions are already delivering pro-consumer and pro-housing outcomes and avoid regulation that could stifle innovation,” NMHC's Real Estate Technology & Transformation Center Executive Director and Chief Advocacy Officer Kevin Donnelly said in an email.
