Rent Going Up? One Company's Algorithm Could Be Why.
On a summer day last year, a group of real estate tech executives gathered at a conference hall in Nashville to boast about one of their companys signature products: software that uses a mysterious algorithm to help landlords push the highest possible rents on tenants.
Never before have we seen these numbers, said Jay Parsons, a vice president of RealPage, as conventiongoers wandered by. Apartment rents had recently shot up by as much as 14.5%, he said in a video touting the companys services. Turning to his colleague, Parsons asked: What role had the software played?
I think its driving it, quite honestly, answered Andrew Bowen, another RealPage executive. As a property manager, very few of us would be willing to actually raise rents double digits within a single month by doing it manually.
The celebratory remarks were more than swagger. For years, RealPage has sold software that uses data analytics to suggest daily prices for open units. Property managers across the United States have gushed about how the companys algorithm boosts profits.
I think its driving it, quite honestly, answered Andrew Bowen, another RealPage executive. As a property manager, very few of us would be willing to actually raise rents double digits within a single month by doing it manually.
The celebratory remarks were more than swagger. For years, RealPage has sold software that uses data analytics to suggest daily prices for open units. Property managers across the United States have gushed about how the companys algorithm boosts profits.
https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
RussBLib
(9,019 posts)....that some of the pernicious inflation results in part from rent increases spurred by a technological innovation that allows large profits to those "landlord" company owners that use it.
Ah, capitalism.
And so the GOP clubs Biden over the escalating rents. Naturally.
Ford_Prefect
(7,901 posts)set by recent COVID escapees and Global Warming refugees it's only a matter of time before everywhere is pricing like San Francisco.