Josef Lapko’s Post

Matt Stoller pens an interesting article,........ The FBI this week conducted a dawn raid of corporate landlord giant Cortland Management over what’s called algorithmic price-fixing. This corporate real estate management firm, based in Atlanta, rents out 85,000 units across thirteen states. But Cortland is allegedly part of a much bigger conspiracy orchestrated by a software and consulting firm named RealPage to increase rents nationwide by coordinating landlord pricing decisions and holding apartments off the market. How much bigger? Well, there’s a civil antitrust action in Tennessee that’s been going on since 2023, where the argument is that RealPage has been working with at least 21 large landlords and institutional investors, encompassing 70% of multi-family apartment buildings and 16 million units nationwide, to systematically push up rents. And RealPage isn’t just some software company distorting rental markets, it’s also owned by Thoma Bravo, one of the biggest private equity firms in the U.S. So yeah, this scandal matters. (RealPage is also lobbying up, which politically connected firms do…) How does the cartel allegedly work? Well large corporate landlords, who would normally compete with one another for tenants via price or quality, have since 2016 stopped doing so. Instead, they all share “detailed real-time data regarding pricing, inventory, occupancy rates, and unit types that are or will be coming available to rent” every day with one another through RealPage’s revenue management system, which in turn sends back recommendations on pricing. https://lnkd.in/eKzf9pft

Recently I’ve been contacted by nearly all major media outlets about the ongoing debate around broker fees in Boston. Among them, I had the pleasure of speaking with Sharman Sacchetti from WCVB Channel 5. Interestingly, close to 30% of landlords already cover some or all of the rental broker's fee. However, mandating all landlords to pay these fees could have significant unintended consequences, particularly for smaller landlords. Most property owners would be forced to raise rents to offset the added transactional leasing fees. Landlords are already grappling with rising prices across: utilities, insurance, taxes, labor, property management and material costs. While trying to make the landlord pay the brokers commission may seem like a simple solution, it doesn’t address the root of the problem: a severe lack of housing supply. Without meaningful and concerted action to increase supply—through zoning reform and streamlined permitting processes—we’re only exacerbating the affordability crisis. Shifting costs to landlords simply fails to tackle the major issue of supply and would likely drive rents even higher, making the rental market less affordable for everyone. Let’s focus on long-term solutions that benefit both tenants and landlords by addressing the real challenge: increasing the supply of available housing. Please let me know your thoughts in the comments. #BostonApartments #BostonRealEstate #BostonBrokerFees #NYCBrokerFees #BostonLandlords #BostonRenters #Landlord #PropertyOwners #Renters #SupplyandDemand #ZoningReform #MostListings #MostApartments #MostKeys #MostLandlords #MostData #MostLeads #MostDeals #MostTrusted #BostonPads

Great article today in the WSJ https://lnkd.in/er4Ci_xC Happy Holidays to all our multifamily clients and friends. We are working on our next Multifamily Alert, but in the interim we wanted to make you aware of this article that appeared today in the Wall Street Journal. Thanks to many clients and stakeholders who provided context and data that we were able to send to Rebecca Picciotto…as you can see, that information was critically important to her article. Here is a comment we posted online today (using the link above, you are welcome to post your own comments too): This is a well-written and well-balanced article. Rent control has had a significant negative impact on the availability of quality affordable housing. There are thousands of apartments in these counties that are now being maintained to minimalist standards because landlords cannot afford to invest in their properties. Prior to rent control, when a unit because vacant, the landlord was provided an opportunity to upgrade the unit and recoup the investment by charging a higher rent to a new tenant who was very willing to pay a reasonable rent commensurate with the upgraded unit. Now tenants no longer have this option. Rather they can relocate and pay a much higher rent for a new apartment that is exempt from rent control, or pay a lower rent for a less desirable unit. As noted in the article, the rent control laws and other existing and potentially new burdens (e.g., evictions take many months and the lost rental income is substantial) have significantly diminished sales of rental properties. Perhaps this will be a wake-up call to our elected officials. Note the quote from the article: "Fani-González added that she is tracking the outcomes of the policy as it gets implemented and will seek to amend it if necessary. For example, if the provision restricting rents on vacant apartments hurts existing housing, she is open to repealing it.” There is abundant evidence that vacancy control hurts existing housing...hopefully she and others on the Council will promptly move forward to repeal this. We are currently planning another rent control forum, similar to the one we did earlier this year with Andrew Friedson…hopefully this will help get these rent control laws amended or repealed. Stay tuned.

When it comes to tenant screening in Utah, landlords need to be well-versed in the legal requirements set forth by the Fair Housing Act, Fair Credit Reporting Act, and HUD guidelines. Read our latest article to learn more: https://lnkd.in/ekiBkaTU

Having spent almost a decade in real estate, I believe the current debate around broker fees deserves a nuanced discussion. While the intention behind shifting broker fees to landlords may seem like a straightforward solution to ease tenant burdens, my experience tells me we need to look deeper. The core challenge lies in Boston's fundamental housing shortage. Let's consider the data: • Boston's housing inventory remains at historic lows • Development timelines are extended by complex permitting processes • Zoning restrictions continue to limit new construction opportunities • Operating costs for property owners have risen significantly across all categories The proposed fee structure change, while well-intentioned, could have unintended consequences: 1. Increased rents as costs are passed through 2. Reduced property maintenance budgets 3. Smaller landlords potentially exiting the market 4. Further constraint on housing supply Instead, I advocate for sustainable solutions that address the root cause: - Modernize zoning regulations - Streamline permitting processes - Create incentives for responsible development - Foster public-private partnerships for affordable housing initiatives What solutions would you propose to increase Boston's housing supply while maintaining market stability? I'm particularly interested in hearing perspectives from both property owners and housing advocates. #BostonRealEstate #HousingPolicy #UrbanDevelopment #RealEstateMarket #PropertyManagement

The RealPage investigation shines a light on how algorithmic price-fixing can distort rental markets, leading to higher costs for renters. By using sophisticated software to coordinate pricing decisions among landlords, RealPage allegedly undermines the competitive market forces that would typically keep rents in check. This practice not only affects renters’ wallets but also exacerbates the broader issue of housing affordability, which is a critical concern for many Americans. https://lnkd.in/d54nvEfa

Landlords - Hold your nerve, watch wait don’t panic. Wait for the detail, still some way to go, before the laws change. It is getting tougher for landlords, but tenant demand remains very strong. Read my latest thoughts on what’s going on on LandlordZONE https://lnkd.in/ev9XVYEj

If you want to stay up to date with the significant recent changes to the Renters Reform Bill proposal, then look no further than our latest blog at Rocket to stay informed. #rentersreformbill

High rents are a major issue in America, with rent costs accounting for more than 30% of the CPI - one of the factors keeping inflation above the Fed's target. In New York, the average cost for a tenant to move into an apartment is roughly $12,000, and the average rent is $3,871 per month. However, on Wednesday, NYC Council passed a bill to ease some of these financial pressures on tenants. Currently, renters in New York pay broker fees of 10–15% of annual rent when moving into an apartment. This new legislation will prevent tenants from being required to pay broker fees to brokers hired by landlords. https://lnkd.in/equ-ucBQ

🌟 Exciting News for San Francisco! 🌟 San Francisco has become the first city in the nation to ban the use of rental pricing software commonly used by large landlords to set rental prices. This unanimous decision by the San Francisco Supervisors targets software that enables property owners to inflate housing costs through algorithmic price setting. Supervisor Aaron Peskin introduced the ordinance and highlighted that this ban aims to combat a modern form of price fixing, lower rents, and increase apartment availability. Companies like RealPage and Yardi Systems, which provide such software, have faced similar lawsuits nationwide. Violating this new law could result in fines of up to $1,000 per violation. This landmark decision is a significant step toward ensuring fair housing practices and affordability in San Francisco. 💪🏡 #SanFrancisco #Housing #RealEstate #PropertyManagement #AffordableHousing #TechRegulation #CommunityFirst Original Link: https://lnkd.in/g5eXCJ3W