4 ms·

> If a bunch of firms use the same software to set prices but do so independently and without any attempt to coordinate with each other… that’s a pretty decent

by chank 3y ago

> If a bunch of firms use the same software to set prices but do so independently and without any attempt to coordinate with each other… that’s a pretty decent defense? The software enabled coordination without rental management companies/owners needing to put in effort to do so. In the end all they cared about was maxamizing profits which in itself isn't illegal no matter how unethical it might be. The key here is proving that they knew what was going on. I'm sure they did all things considered. It's been going on for years.

junofan 3y ago
If prices went up and occupancy went down, it would be difficult to claim otherwise. Why let units sit empty?
- _AzMoo 3y ago
  The argument here (not saying I agree with it) is that it's common to let units sit empty over particular periods, based on other business decisions and an understanding of the market. eg, If you have a lease that ends in September, the make ready process takes 2-4 weeks, so the unit will be available for lease again in October. There's not a high churn of residents in October-December due to holiday periods, etc. and demand doesn't pick up again until January. Therefore, it's better for you to let that unit sit empty now, because demand is so much lower for the next 2-3 months you won't be able to get the same increase in lease price as you will when demand skyrockets in January. Another example is an understanding that some kind of amenity will change over a period. eg, a new public transport route is going in, or the property next door is being rezoned and demolished, from an industrial site to a commercial precinct, and so waiting for that to happen means that you can get a higher price on your lease once that happens, to the extent that it will offset the loss from leaving the unit vacant. The defendants will argue that the analysis provided by the plaintiff doesn't consider these kinds of business decisions and that this part of the argument should be considered flawed.
- HDThoreaun 3y ago
  Vacancy rates nationwide are near all time lows. I’d need more evidence to accept that occupancy went down or landlords left units empty.

by chank 3y ago

junofan 3y ago

If prices went up and occupancy went down, it would be difficult to claim otherwise. Why let units sit empty?

_AzMoo 3y ago
The argument here (not saying I agree with it) is that it's common to let units sit empty over particular periods, based on other business decisions and an understanding of the market. eg, If you have a lease that ends in September, the make ready process takes 2-4 weeks, so the unit will be available for lease again in October. There's not a high churn of residents in October-December due to holiday periods, etc. and demand doesn't pick up again until January. Therefore, it's better for you to let that unit sit empty now, because demand is so much lower for the next 2-3 months you won't be able to get the same increase in lease price as you will when demand skyrockets in January. Another example is an understanding that some kind of amenity will change over a period. eg, a new public transport route is going in, or the property next door is being rezoned and demolished, from an industrial site to a commercial precinct, and so waiting for that to happen means that you can get a higher price on your lease once that happens, to the extent that it will offset the loss from leaving the unit vacant. The defendants will argue that the analysis provided by the plaintiff doesn't consider these kinds of business decisions and that this part of the argument should be considered flawed.
HDThoreaun 3y ago
Vacancy rates nationwide are near all time lows. I’d need more evidence to accept that occupancy went down or landlords left units empty.