Attorney General Bonta Secures $625,000 Settlements with RealPage and Holland for Violating Tenant Protections

OAKLAND - California Attorney General Rob Bonta today announced settlements with tenant screening company, RealPage, and property developer and manager, Holland (formally known as Holland Residential (California)), for violations of the COVID-19 Tenant Relief Act (Tenant Relief Act). The complaints allege that RealPage provided screening reports to housing providers, including Holland, which identified rental debt accrued due to the COVID-19 pandemic as a negative factor in violation of the Tenant Relief Act, and that many applicants were denied housing as a result. As part of the proposed settlements, RealPage must pay $625,000 in penalties and restitution, and both RealPage and Holland must comply with strong injunctive terms.

"As California navigates an unprecedented housing crisis, it's critical that those most at risk of losing their homes are afforded the rental protections they deserve. COVID-19 rental debt cannot be used against tenants when they apply for housing," said Attorney General Bonta. "Our settlements against RealPage and Holland underscore the responsibility that screening agencies and landlords hold in making sure they fully comply with California law. As the People's Attorney, I am committed to using the full force of my office to ensure more Californians have access to safe and secure housing."

In response to the pandemic, California enacted a series of emergency bills, collectively known as the COVID-19 Tenant Relief Act, to stabilize the housing market. These provided significant eviction protections to tenants, including creating restrictions on credit reporting and use of COVID-19 rental debt in rental screening. The Tenant Relief Act prohibits any housing provider, tenant screening company, or other entity that evaluates tenants on behalf of a housing provider from using COVID-19 rental debt as a negative factor in assessing a residential tenant application.

RealPage violated the Tenant Relief Act by considering COVID-19 rental debt as a negative factor when screening over 2,500 tenant applicants in California, including several that were performed for Holland. As a result of the investigation by the California Department of Justice, RealPage and Holland have now modified their screening processes to ensure that they filter out COVID-19 rental debt.

Under the settlements today, RealPage must pay $625,000 in penalties and restitution, and both RealPage and Holland must comply with strong injunctive terms, including, but not limited, to:

• Regularly confirming the existence of proper filters for COVID-19 rental data with their data sources or filtering the data themselves, before using it in any tenant screening process.
• Tracking consumer disputes and reporting systemic issues to the Office of the Attorney General.
• Taking steps to investigate claims that a screening report may have contained COVID-19 rental debt and to ensure eligible tenants are not denied housing.
• Providing annual training to their employees regarding requirements under the Tenant Relief Act and related consumer reporting laws.
• Complying with the provisions of the Tenant Relief Act.

Attorney General Bonta is committed to ensuring tenants are treated fairly in accordance with the law and understand their rights. In October 2024, Attorney General Bonta issued consumer alerts regarding the maximum annual rent increase permitted under state law and summarizing several local rent control or rent stabilization laws throughout California. Alerts are available in various languages and can be found here.

In August 2024, Attorney General Bonta, alongside the U.S. Department of Justice, filed a lawsuit against RealPage, alleging the company enabled landlords to artificially raise rents by participating in a pricing alignment scheme that increased prices in the rental housing industry. This lawsuit is ongoing and is unrelated to today's settlement.

In February 2024, Attorney General Bonta announced a settlement with two separate local Bakersfield landlords and their property management company, Clemmer & Company, for multiple violations of the Tenant Protection Act and for violation of the Fair Employment and Housing Act. Also in February 2024, Attorney General Bonta issued five consumer alerts advising California tenants of their rights and protections under state law and alerting property managers and landlords of their obligations to tenants. In January 2024, Attorney General Bonta announced a settlement with Invitation Homes resolving its alleged violations of the Tenant Protection Act and California's anti-price gouging law, affecting approximately 1,900 households.

A copy of the complaints and proposed judgments against RealPage and Holland Residential (California) can be found here, here, here, and here, respectively.