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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words, when market conditions weaken and the model calculates that a price decrease is

warranted, this guardrail kicks in and recommends keeping the recent rent even though it is

suboptimal. This asymmetry favors price increases over price decreases.

126. The effect of these guardrails is intentionally asymmetric. AIRM and YieldStar

recommend price increases generated by the model. But the guardrails reduce or eliminate

certain proposed price decreases even though the model has determined such deviations may

contravene the landlord’s individual economic interest.

3. AIRM and YieldStar Harm the Competitive Process by Discouraging
the Use of Discounts and Price Negotiations

127. RealPage discourages landlords using AIRM and YieldStar from discounting

rents. In the multifamily property industry, discounts typically consist of “concessions,” which

are financial allowances (such as a free month’s rent or waived fees) offered to incentivize

renters. Concessions may be offered generally or negotiated individually with a potential tenant.

128. In a competitive marketplace, each landlord may independently decide to offer

concessions so that it can better compete in enticing lessors. But, again, RealPage seeks to

replace fully independent, competitive decision-making with collective action by ending

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concessions. AIRM and YieldStar do not work as well when landlords use one-off concessions.

In its “best practices” for revenue management to landlords, RealPage’s guidance is simple:

“Eliminate concessions.” Detailed “best practices” documents for both YieldStar and AIRM

users explain that “concessions will no longer be used in conjunction with” YieldStar and AIRM.

129. When onboarding a new property, RealPage emphasizes the importance of