AI Is Setting Your Rent

By: Anneken Tappe · October 25, 2023 · Reading Time: 2 minutes

RealPage & Yardi Systems

When you think rent, you don’t think AI — or do you?

Many major landlords rely on just two software providers to help determine rent prices — RealPage and Yardi Systems. These firms collect renter data and communicate with landlords to help them set prices for tenants.

But according to two lawsuits, the two platforms have allegedly shared confidential pricing information to collude on setting rents.

Modern Rental Pricing

The software providers analyze market rental data and use algorithms that tell landlords how much to charge for rent, when to increase prices, and more.

However, these algorithmic pricing models often encourage landlords to keep rents high in order to boost profits, even if it means losing tenants. The models also typically discourage landlords from cutting rent prices during tough times.

Read more reporting here .

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender