It appears Mistress Maddie hit the nail on the head in his response to my questioning why management would continue to raise rent, resulting in more empty units when he commented "Maybe they figure they can turn and burn you. In other words, we won't do any extras, increase the rents so people leave, and have a new people come in, they can ask for absorbent rent" because, according to today’s FBI Raid on Cortland Management over algorithmic price-fixing collusion to raise rents across the country and keep apartments empty is exactly what’s been going on.
My understanding of the way it’s been working is that say there are 10 people interested in renting 10 units. If the price is set to 1,000 a month, all 10 would rent, netting management 10,000 a month. But if the price is set at 3,500 a month, only 3 people can afford to still pay that, and management profits slightly more.
Despite filling only 3/10 units, it's better for greedy management to price units at 3,500 since instead of making 10,000 from 10 people, they make 10,500 from 3.
According to what I’ve been reading about the raid on Cortland, though that particular management company is based in Atlanta and Arizona, the criminal probe of rent increases is going nationwide as the price-fixing is being facilitated through a program called RealPage, a software and consulting firm that allegedly has been orchestrating price-fixing among property management groups nationwide, resulting in high rents, housing shortages, homelessness.
Naturally, I tried to find out if our Corporate Office/Management Team is involved with RealPage, and soon to also be investigated by the FBI.
No way to know for sure until I see the actual list of all management companies being investigated, but I did learn RealPage has offices a hop skip away, in Irvine, California. So, I’m thinking probably yes.
Will be interesting to see how this impacts what's been going on around here with empty units and rent increases.
Appalling. I wonder if RealPage is affiliated with The Irvine Company. We rented a luxury apartment from them (they own just about everything in Irvine) and although. it WAS luxury, the rent was still astronomical. Fascinating.
ReplyDeleteFrom what I'm reading, it's more likely than not that, if the management corporation is large, they too are involved in this RealPage scandal. Would be lovely if punishment involves rolling back rent increases.
DeleteWhat a shame. I sure hope you company management isn't too involved. But that did happen to friends in an apartment building in Philly. He moved. Not only did they do away with the rents but you had to buy your unit. The monthly mortgage was thought the roof and for what? 900 sq ft???? What if you didn't want to own? When rent hikes up constantly something is going on usually. Beware.
ReplyDeleteI've thought that, once or twice in the past, that management might one day come up with a buy your unit thing, but this property is too old. Only a fool would buy. They own a lot of properties, however, some new. So would turn those over before bothering with us.
DeleteSeems like criminals are taking over everywhere.
ReplyDeleteMore and more, every day, words from the late great Tupac Shakur come to mind, "Trust no one".
DeleteAn interesting concept.
ReplyDeleteGreed finds a way.
DeleteHousing is becoming a nightmare for so many people. Especially renters. More and more of my friends and family who rent are unable to find affordable housing anywhere. I am so afraid for the future of my kids and grandkids....Roberta
ReplyDeleteThe FBI cracking down on this collusion might help future renters.
DeleteI had NO idea that such things were going on. Please keep us up to date on what you learn. You are a wealth of vital information.
ReplyDeleteYou can bet on my keeping track of this one 🕵️
DeleteTrust no one....indeed. I'm starting to have cervical problems I'm looking over my shoulder so much anymore. A scary way to live...but...here we are. Keep us posted.
ReplyDeleteParanormal John
Sorry to hear you're having medical issues John. Take care of yourself.
DeleteWow! Less renters paying more would not only bring them more money but it would cut down on maintenance and wear and tear on units. Jesus! Will the scams never end?
ReplyDeleteMore money indeed, especially when they manage several properties with hundreds of units, like this one.
DeleteI hadn't heard of this but what a scam that it. It really hurts renters which in an already high rental market is not good.
ReplyDeleteGreed doesn't care who gets hurts.
DeleteI guess my head was in the sand again. I have had heard about this price fixing. Disgusting. I'm going to do a search for companies around here.
ReplyDeleteIt's looking like we'd be hard pressed to find a company that isn't involved.
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