WASHINGTON, D.C. — A major D.C. landlord has agreed to pay more than $1 million following accusations that it took part in a scheme to inflate rents for tens of thousands of apartments across the District. The legal settlement, announced Monday by D.C. Attorney General Brian L. Schwalb, marks the first resolution in a sweeping lawsuit targeting rent-setting practices involving 14 property management firms.
The Allegations
At the heart of the lawsuit is William C. Smith & Co., Inc. — commonly known as W.C. Smith — which owns about 9,000 apartment units in Washington, D.C. According to the Attorney General’s Office, W.C. Smith and other landlords allegedly conspired to artificially inflate rents using a third-party pricing software called RealPage, Inc.
The lawsuit, originally filed in November 2023, claims that RealPage’s centralized pricing algorithm relied on confidential rental data shared among competitors to set inflated rental prices. This practice, Schwalb argues, deprived renters of fair market options and caused financial strain across the District’s housing market.
“More than 50,000 apartments were affected by this manipulation,” said Schwalb. “In a city already struggling with affordable housing, these practices forced many D.C. residents to pay inflated rent prices with little to no choice.”
RealPage’s Role
RealPage, Inc., a Texas-based technology firm, offers pricing optimization software that recommends rental rates to landlords based on a variety of inputs. However, the Attorney General’s Office says the platform’s use of non-public data from multiple landlords may violate antitrust laws, as it effectively eliminates true competition in rent pricing.
According to the lawsuit, over 30% of apartments in multi-family buildings—and as much as 60% of units in larger buildings—were priced using RealPage’s system, creating a widespread ripple effect on rental costs across D.C.
Terms of the Settlement
W.C. Smith is the first of the 14 landlords named in the lawsuit to reach a settlement with the city. As part of the agreement, the company will pay a total of $1,050,000. The payout will be distributed as follows:
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Civil penalties to the District of Columbia
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Restitution funds for impacted tenants
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Coverage of legal fees related to the case
In addition to the financial settlement, W.C. Smith must make significant changes to how it sets rent:
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Ban on Revenue Management Software: The company must stop using any rent-setting tools that rely on confidential or non-public data from other landlords.
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Prohibition on Promoting Algorithm-Based Pricing: W.C. Smith is forbidden from encouraging other landlords to use such software or recommending rent prices based on the algorithms.
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Business Practice Reforms: The company is required to update internal protocols to ensure transparency and competition in future rent-setting decisions.
Other Landlords Still Under Scrutiny
While W.C. Smith is the first to settle, 13 other landlords remain involved in the lawsuit. These include:
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Avenue5 Residential, LLC
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AvalonBay Communities, Inc.
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Bell Partners, Inc.
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Bozzuto Management Company
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Camden Summit Partnership L.P.
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Equity Residential Management, LLC
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Gables Residential Services, Inc.
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GREP Atlantic, LLC
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Highmark Residential, LLC
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JBG Smith Properties, LP
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Mid-America Apartments, LP
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Paradigm Management II, LP
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UDR, Inc.
As of Monday’s announcement, Schwalb declined to provide specific updates regarding the remaining defendants or potential additional settlements. However, he emphasized that his office remains committed to holding companies accountable for anti-competitive behavior that harms D.C. residents.
A Step Toward Fair Housing?
The settlement is being hailed as a major step toward promoting fair housing practices and curbing algorithmic manipulation in real estate pricing. Housing advocates argue that rent-setting tools like RealPage are increasingly shaping the housing market behind the scenes, often without public scrutiny.
“This is a wake-up call,” said a local housing policy expert. “When landlords rely on shared data and pricing algorithms, they undermine free-market principles. This case sends a clear message that such practices won’t be tolerated in the District.”
What This Means for Renters
For renters in Washington, D.C., the settlement may mark the beginning of broader reforms in rental pricing. Tenants who lived in affected buildings could be eligible for restitution payments once the full terms are processed. Additionally, the spotlight on RealPage and similar technologies may lead to more transparency in how rent prices are determined in the future.
While this case focuses on D.C., it reflects a growing national concern about the role of algorithm-driven decisions in housing affordability. Other cities and states may soon follow D.C.’s lead in investigating whether technology is being misused to suppress competition in the rental market.
Conclusion
The $1 million settlement with W.C. Smith is more than just a legal milestone—it’s a warning shot to landlords relying on secretive, algorithm-based pricing models. As housing costs continue to rise, city leaders and consumers alike are demanding accountability and fairness. For now, D.C. is leading that charge.
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