U.S. Accuses Software Maker RealPage of Enabling Collusion on Rents
www.nytimes.com
The Justice Department filed an antitrust suit against the real estate software company, accusing it of creating an illegal pricing scheme to charge tenants more.

RealPage, maker of YieldStar, is almost singlehandedly the ones causing rent to skyrocket across much of the United States.

One of the algorithm’s developers told ProPublica that leasing agents had “too much empathy” compared to computer generated pricing.

You can learn more about them here and why this antitrust case is so important:

https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent

  • kibiz0r@midwest.socialEnglish
    10·
    3 months ago

    In one news release, Realpage offered its property management clients the ability to outsource daily rent-setting and revenue oversight. “We believe in overseeing properties as though we own them ourselves,” the company said in a presentation that plaintiffs’ lawyers referenced in the lawsuit.

    A leasing manager at a RealPage client said, “I knew [RealPage’s prices] were way too high, but [RealPage] barely budged” when the manager asked to deviate from the suggested rent.

    An update to the software tracked not only clients’ acceptance rate, but also the identity of the landlords’ staff members who had requested a deviation from RealPage’s price, the lawsuit said. Compensation for some property management personnel was even tied to compliance with the company’s recommendations, it said.

    The Washington lawsuit alleged that the system was designed to police compliance of the cartel. It cited RealPage training documents that urged clients to have the “discipline” to enact the software’s pricing suggestions 90% of the time or more. Training documents encouraged regional rental managers to beware of “‘rogue’ leasing agents who too frequently override” the software’s recommended prices. Rejections would also often trigger outreach from a RealPage pricing advisor, the suit said.