Democratic senators are investigating whether RealPage, a software firm accused of collaborating with landlords to increase rental prices, sought to influence a proposed decade-long ban on state regulations of AI. In a letter addressed to RealPage CEO Dana Jones, Senators Elizabeth Warren (D-MA), Bernie Sanders (D-VT), Amy Klobuchar (D-MN), Cory Booker (D-NJ), and Tina Smith (D-MN) are requesting more information regarding the company’s possible involvement in a provision within the Republicans’ budget reconciliation bill. This provision would prevent states from enacting laws influencing AI or “automated decision-making” systems for ten years.
The senators contend that this provision may hinder efforts to prevent RealPage from using sensitive information from landlord groups to feed algorithms that suggest non-competitive rental prices.
A 2022 report from ProPublica linked RealPage to escalating rent prices across the United States, claiming that its algorithm enables landlords to coordinate rent pricing. Last year, the Department of Justice and eight states filed a lawsuit against the company, asserting that it undermines competition in apartment leasing. Cities like Minneapolis, Jersey City, Philadelphia, and San Francisco have enacted laws prohibiting the use of rent-setting software, while states such as Connecticut, New York, Massachusetts, and Washington are working on similar legislation.
The senators argue that the current Republican budget reconciliation bill would obstruct legislative efforts and stop states from imposing regulations that limit RealPage’s rent-setting algorithms. The bill suggests barring states from enforcing any law or regulation that broadly affects automated systems, likely impacting RealPage’s algorithms.
Despite prominent proponents of the moratorium being major players like OpenAI, lawmakers suspect RealPage may have invested millions to advocate for it as well. The letter indicates, “In light of this, we seek information on RealPage’s lobbying activities and how the Republicans’ reconciliation provision would financially benefit RealPage and other large corporations at the expense of consumers.”
According to the senators, RealPage has increased its lobbying in Congress in response to local regulations affecting its operations. They reference a report from The Lever, highlighting that the National Multifamily Housing Council, which represents RealPage, tripled its lobbying budget from $4.8 million in 2020 to $9 million in 2024. The report also noted that the group has lobbied on “issues surrounding the risks and opportunities posed by artificial intelligence,” in addition to federal policies affecting data usage and technology in real estate.
“RealPage intensified its lobbying efforts in Congress, and consequently, Republicans passed a provision that obstructs states from safeguarding renters,” Senator Warren told The Verge. “While Americans grapple with rising rents, Republicans are trying to facilitate RealPage’s rent-increasing strategies instead of providing assistance.”
The senators have requested detailed information from RealPage regarding its lobbying expenditures in Congress since 2020, including the firms and individuals it has engaged with during this time. They specifically want to know how much was spent on lobbying related to AI legislation and how the budget reconciliation bill might affect RealPage in states with pending rent-setting software legislation. They expect a response from RealPage by June 10, 2025.
If the bill is passed, it could have far-reaching consequences beyond just RealPage. In addition to restricting state regulations on AI chatbots, it may also impact laws related to deepfakes, automated hiring systems, facial recognition, sentencing algorithms, and more.
