Does RealPage make illegal voting between real estate brokers possible?

Does RealPage make illegal voting between real estate brokers possible?

29. November 2022 0 By Horst Buchwald

Does RealPage make illegal voting between real estate brokers possible?

Washington, 11/29/2022

Real estate company RealPage’s algorithm-based software is under investigation by the Justice Department’s Antitrust Division.

The investigation follows a report by ProPublica that found the software could potentially lead to collusion between property managers that set rental rates, driving up rents for tenants.

The software, called YieldStar, relies on private rental rates provided by its clients, landlords and property managers. YieldStar then applies an algorithm to this data to recommend daily prices for open rental properties.

The information is aggregated and anonymized, and RealPage claims that the software favors supply and demand over competitor prices. Opponents, however, argue that the software allows property managers to illegally collude and drive up their rental prices, in violation of federal antitrust laws.

Earlier this month, three Democratic U.S. senators wrote to the Justice Department urging the agency to investigate the price-fixing software.

According to an analysis by Rent.com, rents across the U.S. rose 7.8% in October from a year earlier.

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