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An anti-special interest organization has intensified scrutiny on public REITs involved in the RealPage lawsuits by releasing a new report. This report reveals the growing profits of the largest REITs using RealPage, shedding more light on the financial gains of major industry players. As we discuss in today's email, the slanted findings are fueling the growing backlash against the industry's pricing practices.

Walmart's new headquarters in Bentonville, Arkansas, marks a bold leap forward with a sprawling 350-acre campus for 15,000 employees. Inspired by modern HQs like Microsoft’s in Seattle, it features 12 office buildings, sustainable materials, a massive childcare center, and hiking and biking trails. As detailed in our new article, this innovative campus is designed to boost recruitment and retention, showcasing Walmart's strategy to stay ahead as the world’s largest retailer while redefining the corporate workspace.

Join us for a Propmodo Live webinar on July 9th to explore multifamily strategies for H2 2024. As residents' needs and preferences evolve, property owners and managers must innovate to stay competitive. Experts from JLL, Defigo, Veritas, and Propmodo will share insights on innovative management, effective lease negotiations, and future market trends. Discover how to attract and retain residents and enhance property value in the changing multifamily landscape.

This week in Propmodo Technology, we delve into the challenges of site selection. Undetected soil contamination can turn assets into liabilities. New technologies are improving identification and remediation, offering faster and cost-effective solutions. But, regulatory challenges persist, making ongoing education and technological adoption crucial for safer, more sustainable property development.

Now, let's dig in!

New Inflammatory Report Uses Success of RealPage’s Clients Against Them

RealPage has faced public and regulatory scrutiny since ProPublica accused the software company of contributing to housing affordability issues in many cities. It's not just RealPage that has been dragged into multiple lawsuits; its largest clients are also named as defendants for their alleged role in the collusion. One such client, Cortland, was even raided by the FBI, potentially signaling the start of a criminal case for antitrust fraud.

Landlords have never been particularly well-liked, but this case has become a lightning rod for those blaming property owners for housing scarcity. The anti-landlord movement extends beyond social media and online forums. Individuals and organizations are dedicated to holding software and real estate companies accountable for what they perceive as unfair practices.

We previously wrote about James Nelson, a researcher who collected data on the effects of high RealPage usage on rent prices, which was later used in multiple lawsuits. He now works with UC Santa Cruz’s Center for Applied Values and Ethics in Advancing Technologies, continuing to study the influence of pricing software on rent. Another organization, Accountable.us, has also taken up the fight against algorithmic pricing. Last year, they sent letters to nine Attorneys General, providing documentation on rental prices and landlord profits. The letter stated: “As we have documented, these companies have shown their recent rent hikes were based on greed, not need, after reporting massive increased profits over the previous year while generously rewarding their executives.” It urged state prosecutors to investigate any evidence of “rent fixing” in their states, questioning whether Colorado tenants might also be victims of illegal practices driving up housing costs.

Accountable.us has now turned up the heat on the public REITs involved in the lawsuits and investigations. They released a new report highlighting the growing profits of the largest REITs using RealPage. It includes financial information from Mid-America Apartments, AvalonBay Communities, Equity Residential, Essex Property Trust, UDR, and Camden Property Trust, with excerpts such as: “In Q1 2024, Equity Residential—the 3rd largest publicly-traded apartment owner with 80,191 units—saw its net income increase 39 percent to $305 million thanks to rent increases, allowing the company to spend $38.5 million on stock buybacks.”

While the report’s facts are accurate, its tone reveals the author’s agenda. There are many reasons these companies might have increased profits that are unrelated to rent hikes. Additionally, one cited landlord, AvalonBay, has been dropped from the lawsuits, including the one brought by the AG of Washington, D.C.

No matter your stance on these lawsuits, the growing public backlash against corporate landlords should give you pause. Whether RealPage and its clients can defend themselves or not, public opinion has soured. Although defendants are likely cautious about making public statements during ongoing court cases, eventually, the industry will need to join the conversation about pricing practices that the public is already having without them.

Groundbreaking

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Propmodo Technology: Site Selection

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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