Ky. Off. of the Att'y Gen., Complaint, Commonwealth v. RealPage, Inc. (filed July 2, 2025)

Citation: Ky. Off. of the Att'y Gen., Complaint, Commonwealth v. RealPage, Inc. (filed July 2, 2025)
Jurisdiction: Kentucky (state)
Source: Official source
Original Source: https://www.ag.ky.gov/Press%20Release%20Attachments/2025.07.02%20Realpage%20C... ↗

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76. In the second stage, AIRM or YieldStar provides a price recommendation for

every floor plan of a given property. A floor plan is a grouping of units that share similar

characteristics, such as the number of bedrooms and bathrooms and square footage. Landlords

define the floor plans in their buildings—for example, a large apartment building might have

separate sets of floor plans for studios, one-bedroom, and two-bedroom apartments. As discussed

below, AIRM and YieldStar use competitors’ nonpublic, transactional data in nearly every step

of setting a recommended floor plan price, including identifying peer properties, forecasting

occupancy and leasing, increasing rents to match competitors’ changes, and determining the

magnitude of price changes.

77. Identifying Peers. First, AIRM and YieldStar use confidential transaction data to

identify a property’s peer properties, which includes those of close competitors. In selecting peer

properties, RealPage’s algorithm generally looks for properties with similar floor plans, within

close geographic proximity, and with similar effective rents over time. AIRM or YieldStar

clients may review the list of peer properties and request that RealPage add or remove specific

properties.

78. AIRM or YieldStar then uses the nonpublic data from competitors’ executed

leases to generate a market range chart for each floor plan. This chart identifies a “smoothed”

market minimum effective rent and market maximum effective rent. The market minimum is a

hard floor. AIRM and YieldStar will not recommend a rent below the market minimum. On the

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other hand, the market maximum is a “soft ceiling,” and the programs will recommend prices

above the ceiling.