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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predicts, using competitors’ data, the client will not get.

122. Revenue protection mode interrupts AIRM’s and YieldStar’s normal revenue

maximization process. As a RealPage data scientist explained, “the model really wants to reduce

rent but is prevented from doing so by the revenue protection restriction.” Revenue protection

leads to higher prices and lower occupancy.

123. Sold-Out Mode. Once a landlord reaches its targeted capacity for a particular

floor plan, the model considers that floor plan “sold out” even though units may still be

physically available. In that situation, AIRM and YieldStar recommends the maximum rent

charged by a property’s competitors, even if the floor plan’s previous price was far lower.

124. RealPage intentionally designed sold-out mode to use competitively sensitive data

to lift rents. In an earlier version of the software, sold-out mode pushed rents to 95% of that floor

plan’s highest recently achieved rent. But RealPage modified the algorithm in 2022 to go

“straight to 100% of comps,” deliberately aligning rents with competitors’ highest rents, rather

than the property’s own historical performance.

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125. The Governor. AIRM and YieldStar favor recommended price increases over

price decreases. When the model calculates that the current day’s “optimal” price will result in

greater revenue than the previous day, a feature called the “governor” causes the model to

recommend the current day’s optimal price. But when AIRM or YieldStar calculates that the

current day’s optimal price will result in less revenue than the previous day, the governor

recommends the recent average price even though it is not optimal for the current day. In other