Where Does Revenue Management Go From Here?

Last August, the Department of Justice filed a lawsuit against RealPage alleging that the company’s revenue management software facilitates illegal collusion. At the crux of the DOJ’s argument is RealPage’s use of non-public data to set rents, a tech-enabled version of competitors colluding to fix prices and—according to the DOJ—a violation of antitrust laws.

And earlier this year, the DOJ expanded their lawsuit to include several of the nation’s largest landlords including Greystar, LivCor (Blackstone), and Cortland, indicating that owners who use nonpublic information to set rents will also face liability. While it remains to be seen whether these lawsuits survive a changing of the guard at DOJ under the new administration, they have left owners spooked.

As a result, multifamily revenue management has been thrown into tumult, experiencing its greatest shift in decades. As new revenue management players rise, the multifamily industry is facing fundamental questions about what revenue management really is—and should be.

Today’s letter will tackle all that and more, including:

• An overview of the litigation and current state of multifamily revenue management;
• A deeper look at some of the new emerging players including REBA, HelloData, and ApartmentIQ;
• The debate raging on the role of competitive–and non-public–data;
• Brass tacks about the purpose of revenue management.