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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7. AIRM and YieldStar Use Competitors’ Nonpublic Data— Including
Data on Future Occupancy—to Determine Unit-level Prices.

87. A property manager at the landlord reviews each floor plan recommendation daily

and enters the floor plan price. AIRM and YieldStar then use the floor plan price to generate

prices for every unit within the floor plan. The unit price is shown in a pricing matrix, which

provides the price for each combination of start date and lease term. To generate the price for an

individual unit, the floor plan price is adjusted to account for unit-specific factors such as

amenities (e.g., a desirable view, the floor level, or an in-unit washer and dryer), staleness (i.e.,

how long that specific unit has been vacant), and the timing of lease expirations. AIRM and

YieldStar again use competitors’ nonpublic data during this step in at least two ways.

88. First, AIRM and YieldStar use data on competitors’ supply of multifamily

housing to adjust recommendations to limit “exposure” with a feature called lease expiration

management. Exposure refers to the number of units that are available for lease. Managing lease

expirations is an important element of revenue management software. If too many leases expire

and the corresponding units become available at the same time, supply increases and rents for

those units will tend to drop. This process will also tend to repeat itself as the same units will

become available at the same time a year later for leases with a standard twelve-month term.

89. The objective of expiration management is to smooth out this exposure so that

landlords, as explained by one RealPage employee, “remain in a position of pricing power.” For