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The model would be, this company RealPage, controls a significant fraction of the ready to rent housing stock in some portion of the market. "Control" because t
by mcint 2y ago
The model would be, this company RealPage, controls a significant fraction of the ready to rent housing stock in some portion of the market. "Control" because their contracts with landlords include provisions that say landlords will use the prices dictated by RealPage, and RealPage will exclude or ban the landlord from its services if they rent below the rate set by RealPage. A cartel by contract.
It increases revenue with fewer units rented, the claim is not "maximize" revenue, but, for a property manager, that they "increase" revenue, in step with a sizable portion of that local market. It's a marketing claim to property owners, not a global/overview claim to the public.
Holding housing stock level constant, they can set prices that a renters moving in, in the coming years, can't improve on.