RealPage denies alleged price fixing in federal lawsuit

RealPage denies alleged price fixing in federal lawsuit

RealPage has firmly denied that its income administration platform proptech has enabled a number of the largest property administration corporations to illegally share knowledge and act as a “cartel” that artificially inflate rents in violation of federal legislation.

The shocking accusation — primarily based on an investigation printed final month by the nonprofit ProPublica — is the central cost in an antitrust class motion that was filed in US District Courtroom in San Diego on October 18.

The federal class motion, filed on behalf of renters in California and Washington, identifies 9 property administration corporations and accuses them of utilizing RealPage’s platform to unlawfully share “competitively delicate data” with one another.

The 9 actual property gamers – Greystar Actual Property Companions, Lincoln Property, FPI Administration, Mid-America Residence Communities, Avenue 5 Residential, Fairness Residential, Essex Residential, Essex Property Belief and Thrive Communities Administration didn’t reply. and Safety Properties – Requests for Remark.

“The ProPublica article comprises inaccurate and deceptive data. RealPage mentioned in a press release supplied to GlobeSt.

“We vehemently deny the allegations and can vigorously defend the lawsuit,” proptech mentioned.

In response to the corporate’s web site, Texas-based RealPage’s YieldStar software program collects rental transaction knowledge from greater than 13.5 million models and makes use of AI-based algorithms to “unlock a whole bunch of base factors for hidden yield via value optimization.”

The corporate claims that its algorithms allow new customers to attain “as much as 400% in first-year ROI” for house owners, operators and buyers.

The ProPublica article quotes RealPage execs boasting finally 12 months’s CRE convention that the corporate’s knowledge analytics instrument, used to counsel each day costs for open-plan condominiums, drove double-digit rents throughout the nation.

ProPublica mentioned RealPage’s 2017 acquisition of the Rainmaker Group’s Lease Hire Possibility enterprise gave the Texas firm a de facto monopoly on the predictive analytics used to find out rental charges, increasing RealPage’s buyer base to 31,700 clients.

In a neighborhood in Seattle, ProPublica discovered that 70% of residences are managed by 10 actual property managers, all utilizing RealPage pricing software program. Property managers can flip down the charges this system recommends, however they hardly ever do, ProPublica reported.

In response to the nonprofit, RealPage discourages bargaining with tenants as a result of rental brokers have “an excessive amount of sympathy” in comparison with computer-generated charges. ProPublica mentioned RealPage inspired landlords to simply accept decrease occupancy charges so as to improve rents.

“Rental charges are decided by numerous elements, together with provide and demand in addition to the particular circumstances of every property proprietor.

There’s a scarcity of housing and this alone is driving up costs. Occupancy was at an all-time excessive,” RealPage replied.

“The ProPublica article repeats taking data out of context and ignoring key information to color a distorted image of how income administration software program works,” RealPage instructed GlobeSt.

“The article prominently states that ‘RealPage discourages bargaining with tenants’ whereas ignoring the large cause why many housing suppliers choose ultimate pricing,” RealPage mentioned.

“Rental negotiation opens up the potential for offering completely different tenants with completely different charges for a similar housing unit, which may straight put housing suppliers in violation of federal honest housing legal guidelines. Truthful housing compliance is one cause for the existence of Income Administration applications,” proptech mentioned.

“RealPage income administration software program is deliberately designed to be compliant with the legislation,” the corporate’s assertion mentioned. “It focuses on the inner provide and demand dynamics of a selected property and doesn’t take note of or have any view of availability (provide) in competing properties.”

RealPage’s assertion famous that “income administration is usually utilized in many industries, and improvements on this space have been to the mutual good thing about each customers and sellers.”

“RealPage is only one of quite a few such instruments accessible in the marketplace for actual property operators throughout america,” the corporate mentioned.

#RealPage #denies #alleged #value #fixing #federal #lawsuit

Leave a Reply

Your email address will not be published.