In a significant crackdown on rental monopolies, the FBI has intensified its actions against corporate landlords suspected of fixing rental prices in Arizona, with Cortland Management’s corporate offices becoming the latest target in a series of raids. This move is part of a broader effort by the Biden administration to enforce consumer protection laws and address the rising cost of living.
Unveiling the Scheme: Corporate Landlords and Software Collusion
Cortland, an Atlanta-based property management company, is one of ten real estate giants now under the FBI’s scrutiny. This group allegedly utilized software provided by RealPages, a consulting firm, to artificially inflate rental prices across Arizona, a state already grappling with an affordable housing crisis. According to Arizona Attorney General Kris Mayes, this collusion has led to a staggering 30% increase in rents since 2022.
“The conspiracy allegedly engaged in by RealPage and these landlords has directly contributed to Arizona’s affordable housing crisis,” Mayes stated. This collaboration not only stifled fair competition but also established a rental monopoly, particularly in Arizona’s largest metro areas.
From Civil Inquiry to Criminal Investigation
Originally initiated as a civil inquiry in 2022, the investigation escalated to a criminal level in March 2024 following announcements of state-level investigations in Washington, DC, Arizona, and five other states. Although Cortland is not currently part of the state-level investigation in Arizona, the scope of the federal probe includes multiple landlords across the country, indicating a widespread issue.
The crackdown is part of wider governmental efforts to alleviate financial pressures on middle-class families. These efforts include caps on medical costs, expanded healthcare subsidies, and reductions in various administrative fees.
The Impact: Over 400 Apartment Complexes Under Scrutiny
The Attorney General’s ongoing investigation in Arizona now implicates nine landlord companies that oversee more than 400 apartment complexes, affecting roughly 100,000 rental units. With the inclusion of the federal investigation into Cortland, the number of scrutinized properties has risen, marking a significant moment in the fight against unfair rental practices.
Empowering Tenants: Building a Coalition for Change
Amid these revelations, tenant advocacy groups are mobilizing. Dominique Medina, co-executive director of Fuerte Arts Movement, emphasized the importance of utilizing existing laws to challenge unfair rental practices. “It’s literally illegal,” Medina highlighted, expressing optimism about using legal avenues to address the housing issues.
Fuerte Arts Movement is actively gathering stories from affected renters and building a coalition to demand greater tenant protections. Their efforts are part of the broader “Rent is Too High” campaign, which includes public events where tenants can share their experiences and engage with policymakers.
The next event is scheduled for June 25 at Olla Volla Crepes in Phoenix, promising to be a pivotal gathering for tenants and state lawmakers to discuss solutions to the housing affordability crisis.
What Can Tenants Do?
For those concerned about their rental situations, resources are available. Tenants can check if their landlord is implicated in the price-fixing scheme through a dedicated map and file complaints with the Attorney General’s Office. These tools not only provide immediate assistance but also strengthen the collective bargaining power of tenants fighting against these monopolistic practices.
In conclusion, the unfolding investigations into rental price fixing in Arizona reveal a troubling landscape of corporate overreach into the basic need for affordable housing. As the legal and civic responses continue to develop, they offer a beacon of hope for many struggling to cope with unjust rental hikes.
