No, that’s normal and how it should operate. The problem arises when everyone is using the same software suite so everyone has immediate access to current prices, and the software essentially tells you what you should price your units at to maximize your income.
Maybe cartel was the wrong word as it wasn’t an intentional agreement between companies, just an outcome of the system and accelerated by instant access to information. A runaway feedback loop may be more appropriate.
Of note, RealPage also advised on leaving units vacant to artificially reduce supply. It did this across entire metro areas. This is very much illegal collusion.
There isn’t a vacancy law in the US yet afaik. But businesses talking to each other specifically to manipulate the market is very illegal. And that’s what RealPage’s entire business model is, pay to share information with your competition and everyone gets to raise rent together.
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No, that’s normal and how it should operate. The problem arises when everyone is using the same software suite so everyone has immediate access to current prices, and the software essentially tells you what you should price your units at to maximize your income.
Maybe cartel was the wrong word as it wasn’t an intentional agreement between companies, just an outcome of the system and accelerated by instant access to information. A runaway feedback loop may be more appropriate.
Removed by mod
Of note, RealPage also advised on leaving units vacant to artificially reduce supply. It did this across entire metro areas. This is very much illegal collusion.
Removed by mod
There isn’t a vacancy law in the US yet afaik. But businesses talking to each other specifically to manipulate the market is very illegal. And that’s what RealPage’s entire business model is, pay to share information with your competition and everyone gets to raise rent together.
Removed by mod
They have. That’s the entire thing is about.
Removed by mod