California Attorney General Rob Bonta has announced settlements with RealPage, a tenant screening company, and Holland Residential for violating the COVID-19 Tenant Relief Act. The allegations claim that RealPage provided reports identifying rental debt accrued during the pandemic as a negative factor, resulting in housing denials for applicants. As part of the settlement, RealPage will pay $625,000 in penalties and restitution.
Attorney General Bonta stated, "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." He emphasized the responsibility of screening agencies and landlords to comply with state laws.
The COVID-19 Tenant Relief Act was enacted to provide eviction protections and restrict credit reporting related to pandemic-induced rental debt. It prohibits using such debt negatively in tenant assessments.
RealPage reportedly screened over 2,500 tenant applications considering COVID-19 rental debt as a negative factor. Following an investigation by the California Department of Justice, both RealPage and Holland have adjusted their processes to exclude this type of debt from screenings.
Under the settlements, both companies must adhere to several injunctive terms. These include verifying data filters for COVID-19 rental information, tracking consumer disputes, investigating claims related to screening reports containing such debts, providing annual employee training on relevant laws, and complying with the Tenant Relief Act provisions.
Attorney General Bonta remains dedicated to ensuring fair treatment of tenants under the law. Earlier actions in 2024 included issuing consumer alerts about rent increases and settling with other landlords over violations of tenant protection laws.
In August 2024, Bonta filed a separate lawsuit against RealPage concerning alleged rent pricing schemes unrelated to this settlement. Other recent actions include settlements with Bakersfield landlords for various legal violations affecting tenants' rights.
Copies of complaints and proposed judgments against RealPage and Holland Residential are available through official channels.