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.







