News Summary
Cortland Management has reached a settlement with North Carolina’s Attorney General over allegations of using software to inflate rent prices. The company will cease using RealPage’s software and contribute $100,000 towards consumer education, although it did not admit wrongdoing. Renters express concern over rising prices as the rental market becomes increasingly competitive, exacerbating affordability issues for many. This case may lead to more significant regulatory changes to protect tenants in the future.
Settlement Reached in North Carolina’s Rental Pricing Controversy
Charlotte, NC – Cortland Management, North Carolina’s second-largest landlord, is making headlines after agreeing to a settlement with the state’s Attorney General over controversial rent inflation practices. This comes after claims that the company used RealPage software, which has been accused of improperly utilizing private data to artificially inflate rent prices.
Implications of the Settlement
As part of this settlement, Cortland will discontinue its use of the RealPage software to determine rent prices. While they will pay $100,000 towards attorney fees and consumer education efforts, the company did not admit to any wrongdoing in the matter. The emphasis here is not just on the financial agreement but also on consumer awareness.
RealPage’s Role in Rising Costs
The Attorney General’s office alleges that RealPage’s software employs artificial intelligence which suggests inflated rent prices, contributing to the overall rise in housing costs across North Carolina. This situation has raised eyebrows and concerns among renters who are already feeling the pinch when it comes to housing affordability.
Landscape of the Rental Market
Cortland Management holds ownership over at least eight properties in the Charlotte area and stands as the first among six landlords entangled in a larger lawsuit initiated by former Attorney General Josh Stein and currently expanded under the leadership of Attorney General Jeff Jackson. Collectively, these landlords manage roughly 70,000 housing units statewide, a significant number of which are one- and two-bedroom apartments.
Renters Express Concerns
Many renters find themselves grappling with increasing prices, voicing frustrations about the lack of fairness in rental practices. For countless individuals and families, rent has become a significant portion of their income over the years, making it increasingly difficult to make ends meet. The overwhelming consensus is that stronger regulations are needed to prevent excessive price hikes.
Effects on Financial Stability
With rent consuming such a hefty slice of monthly budgets, many tenants are left with little choice but to keep renting. This becomes even more pressing as potential new homeowners face significant upfront costs, leaving renting as the only feasible option for living arrangements. The settlement comes as some relief, yet many believe it is only a small step towards addressing the broader issues at play.
Continued Investigation and Broader Implications
This lawsuit against Cortland is part of a wider investigation involving other landlords accused of colluding to manipulate the rental market in North Carolina. Such practices are seen as anti-competitive, harming not only tenants but also those landlords who strive to offer fair prices in an increasingly challenging market.
RealPage’s History of Controversies
It’s also worth noting that RealPage has faced similar allegations in various states, maintaining that its practices do not constitute a price-fixing conspiracy. Nevertheless, concerns about the impact of their software on rental prices continue to linger.
Looking Ahead
As this case unfolds, renters across North Carolina are hopeful for substantial changes that could lead to more fair and feasible housing options. For those feeling the weight of rising rents, this development may spark greater discussions about regulations needed to protect tenants and bring clarity to a market that has felt increasingly unwieldy.
Deeper Dive: News & Info About This Topic
HERE Resources
Charlotte City Council Approves New Apartment Development Amid Noise Issues
Additional Resources
- WCCB Charlotte: Settlement Reached
- WRAL: Attorney General’s Lawsuit
- Duke Chronicle: Allegations Against Landlords
- WSOC TV: Rent Price Collusion Inquiry
- Google Search: North Carolina Rental Market Settlement
Author: HERE Charlotte
The CHARLOTTE STAFF WRITER represents the experienced team at HERECharlotte.com, your go-to source for actionable local news and information in Charlotte, Mecklenburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Lovin' Life Music Festival, Charlotte Pride festival, and major sporting tournaments at Bank of America Stadium. Our coverage extends to key organizations like the Charlotte Regional Business Alliance and Foundation for the Carolinas, plus leading businesses in finance and entertainment that power the local economy such as Bank of America and NASCAR. As part of the broader HERE network, including HEREAsheville.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
