CHARLOTTE — Renters in Charlotte are reacting to the news that six landlords have been accused of using artificial intelligence to raise rent prices throughout North Carolina.
Damon Roschke told Channel 9 that he was watching Channel 9 when he learned his former landlord is involved in a state and federal lawsuit.
“It was on the news, and I said to myself, ‘Oh, it’s Greystar. That’s where I lived,” Roschke said. “It’s insane.”
Roschke said he used to live at Atla Croft in north Charlotte, which is owned by Greystar Real Estate Partners LLC.
Greystar, along with Blackstone’s LivCor LLC, Cushman & Wakefield Inc., Pinnacle Property Management Services LLC, Willow Bridge Property Company LLC, and Cortland Management LLC, were named in a lawsuit on Tuesday.
According to the Attorney General’s Office, those landlords were illegally working together with AI software company Realpage to raise tenants’ rent.
“That makes a lot of sense as to why my rent almost jumped $500 in less than three years,” said Roschke.
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Roschke explained that when he first moved into the property, the price to stay was reasonable.
“Went from roughly $1,100 my first year there, and it escalated to $1,749. I decided I had to leave, and that was just a one-bedroom,” Roschke elaborated.
And he’s not alone. Johanna Machmer said she used to live at a Greystar property in Steele Creek, and after one year she left due to the increase in rent.
“It started out like 2050 a month. And then it was by the time we were leaving, it was up to like 2300,” said Machmer.
The lawsuit claims the landlords would use Realpage’s algorithm to align rent prices and avoid competition. The suit states sensitive information was shared, including renewal rates, occupancy, and strategies for setting rents.
“Rent is extremely high. And now, knowing that stuff like this is happening, I think it’s making it worse for people to find a place to stay,” Machmer continued.
Channel 9 reached out to Greystar Real Estate Partners LLC about the lawsuit. The company stated they were disappointed that they were named and denied engaging in any anti-competitive practices.
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