Arizona AG Targets Rental Price Fixing in Landmark Lawsuit Settlement

Arizona’s Housing Market Faces Legal Shake-Up with Major Settlement

In a significant legal development, Arizona’s housing landscape is undergoing scrutiny as Weidner Property Management agrees to a settlement to address allegations of rental price fixing. This settlement marks a pivotal move by Arizona Attorney General Kris Mayes, aimed at restructuring the rental market in favor of tenants.

As part of the settlement, Weidner Property Management will contribute close to $1 million to a rental nonprofit. This fund is designated to reimburse some tenants with up to two months of rent, offering a financial reprieve in a challenging housing market.

Attorney General Mayes is spearheading a broader initiative to transform Arizona’s housing market dynamics. Her vision is to create an environment where landlords actively compete for tenants rather than collaborating to maximize profits at the expense of renters. “I’d sue them again in a heartbeat for doing this,” Mayes emphasized, underlining her commitment to this cause.

Looking ahead, Mayes has signaled her intention to pursue legal action against at least seven more landlord companies, as well as RealPage, a property management software company. RealPage has been embroiled in anti-trust lawsuits over its pricing algorithm, which opponents argue inflates rental prices by leveraging confidential market data, according to the Associated Press.

The settlement mandates that Weidner Property Management sever ties with RealPage for a minimum of five years. This decision underscores the state’s resolve to curb potential anti-competitive practices and safeguard tenant interests.

Amidst these legal proceedings, Arizona remains a state with pressing housing challenges. While the cost of aging in Arizona is below the national median, with expenses averaging $4,800 monthly for assisted living and $5,400 for memory care, the broader housing shortage looms large. Efforts to address this shortage are critical, as Arizona needs approximately 50,000 more housing units, particularly affordable options.