Renting can be an endless battle. With rent rates rising, it can seem like you will be a renter forever, no matter your goals.
As with many other goods and services, rental rates are going up. However, climbing rent prices are not all driven by the inflation other areas are experiencing.
Here’s what you should know about the other reason rent is rising.
All about the algorithm
In recent years, landlords have begun using a software system called RealPage to receive a report that will give landlords a price range that aligns with current rental prices. According to RealPage marketing, it can help landlords gain a better understanding of what they could be charging for their properties.
Although RealPage also claims that because the algorithm also calculates falls in demand to prevent prices from going too high, there is some skepticism. RealPage includes a user group where clients (landlords) can communicate with each other regarding software improvements. The trouble is that this could lead to and encourage collusion among landlords.
Getting a better rate
While landlords often get labeled cold, they tend to have difficulty resisting the human element of being a landlord. Software companies like RealPage encourage landlords to distance themselves from their tenants so that they can avoid bargaining.
When it is time to negotiate your rent, you should talk to your landlord directly. If you can, have a conversation in person, and ask for a better rate. You may also want to bring data from similar but lower-priced properties to enhance your proposition.
Whether you are looking to renew your lease or you are looking for a new place to call home, it is essential to be aware of tactics like the RealPage software algorithm that can inflate prices.