California and federal prosecutors have accused software company RealPage of enriching itself ”at the expense of renters who pay inflated prices.”
San Francisco has approved a ban on the use of algorithmic rent-pricing software of the sort made by market leader RealPage. San Diego and San Jose are considering similar laws.If you're enjoying this article, you'll love our daily newsletter, The LA Report. Each weekday, catch up on the 5 most pressing stories to start your morning in 3 minutes or less.
RealPage has been a major impetus for all of the actions. The company counts as its customers landlords with thousands of apartment units across California. Some officials accuse the company of thwarting competition that would otherwise drive rents down, exacerbating the state’s housing shortage and driving up rents in the process.
The company’s challenges will only grow if pricing software becomes another instance in which California lawmakers lead the nation. Following San Francisco’s ban, the Philadelphia City CouncilAccording to federal prosecutors, RealPage controls 80% of the market for commercial revenue management software. Its product is called YieldStar, and its successor is AI Revenue Management, which uses much of the same codebase as YieldStar, but has more precise forecasting.
The California Justice Department contends RealPage artificially inflated prices to keep them above a certain minimum level, said department spokesperson Elissa Perez. This was particularly harmful given the high cost of housing in the state, she added. “The illegally maintained profits that result from these price alignment schemes come out of the pockets of the people that can least afford it.”in California than in the rest of the country — 44% here compared to 35% nationwide.
In San Diego, the Pickenses, who are expecting their first child, have given up their gym memberships and downsized their cars to remain in the area. They’ve considered moving to Denver. A judge ordered the school, along with other tenants on the West L.A. Veterans’ Affairs campus, to increase its commitments to supporting veterans or face eviction.The $1M house at heart of Orange County civil fraud allegations says a ton about SoCal real estate
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