This is such an odd circumstance. The OAG is not saying each of the management firms is actively colluding, but is accidentally colluding by agreeing to use RealPage pricing. In practice, this looks like RealPage is simply collecting rent data to determine what pricing looks like in the market.
Yes, these RealPage estimates seem to be used, but if these estimates were wrong, the large landlords would simply fill up their competitor's units and would create an incentive to create more competitor units.
Perhaps the DC governemnt would do better to simply build it's own brand of low-cost housing.
> In practice, this looks like RealPage is simply collecting rent data to determine what pricing looks like in the market.
Not really. RealPage "recommends" what you should set rent rates at, and even tells you that they "discourage" you from deviating from that recommendation, as it is based on an assumption of other landlords in the area (including those using RealPage) will be doing.
It's plausible deniability for landlords, at most.
> RealPage "recommends" what you should set rent rates at, and even tells you that they "discourage" you from deviating from that recommendation, as it is based on an assumption of other landlords in the area (including those using RealPage) will be doing.
Worse than that. They require you to agree to their pricing at least 80% of the time.
I think that 80% thing brings it from price discovery system to criminal conspiracy to restrict trade. If the government were serious we would have filed criminal charges against everyone involved
> would create an incentive to create more competitor units.
if only there were a way that landlords could actually prevent the creation of more competitive units... you'd probably want to preclude development in certain zones of the city... maybe could call it "zoning" or something.
Yes, these RealPage estimates seem to be used, but if these estimates were wrong, the large landlords would simply fill up their competitor's units and would create an incentive to create more competitor units.
Perhaps the DC governemnt would do better to simply build it's own brand of low-cost housing.