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Most landlords use property managers. In some markets most property managers are using YieldStar. They don't have market power across the entire US, but in some
by ryan_lane 3y ago
Most landlords use property managers. In some markets most property managers are using YieldStar. They don't have market power across the entire US, but in some cities they have enough of the market to have pricing power.
- AnthonyMouse 3y agoOnly about half of landlords use property managers and less than all of those use YieldStar. If it's suggesting above-market rents that leave more units vacant then anyone who did would be at a competitive disadvantage against anyone who didn't, and then who would use them? This doesn't imply that no one uses them, it implies that it's not an effective mechanism for price fixing. Because it has no enforcement mechanism; nothing to stop any individual landlord from charging a lower price to fill their unit faster to their own private advantage. It's just a computer doing the things landlords have always done -- looking at the existing state of the market to figure out how much to ask.
- deleted 3y ago[deleted]
- ryan_lane 3y agoWhen the occupancy rate is high across the market, purposely withholding units by using higher than market-rate prices across a large enough percentage of the market artificially inflates the prices. "Large enough" doesn't need to be anywhere near a majority of the market to impact the entire market. There's no competitive advantage to using a lower rate, because the unit is likely to get rented either way. You cannot look at the entire US. You have to look market by market. It's not price fixing across the entire US, but it's absolutely price fixing in particular markets.