[RPPTL LandTen] YieldStar

[Jeffrey Mazor]

Does anyone know whether the YieldStar algorithm is trustworthy?


See:
http://www.nytimes.com/2011/11/30/realestate/commercial/landlords-use-computers-to-arrive-at-the-right-rental-fee.html?_r=0
. Also: http://www.charlotteobserver.com/news/business/article9116507.html

CHARLOTTE OBSERVER
"Why you pay more rent than your neighbor"

A two-bedroom apartment in one of north Charlotte’s largest complexes could
cost you about $900 a month. Next
week, it might run you hundreds of dollars more. Apartment shoppers ...are
finding that prices on units they’re interested in can vary dramatically
from day to day, even hundreds of dollars in the span of a week.

... Dynamic pricing, as it’s called, drives what you pay for everything
from hotel rooms to the hottest items on Amazon – anything where supply and
demand can fluctuate quickly. ...

Apartment managers acknowledge they’ve heard some complaints about
different rents for similar units. But
investment companies like the pricing method – also known in the industry
as yield management – because it allows
them to systematically set rates across multibillion-dollar portfolios and
rapidly respond to changing conditions in
specific markets. .....

.... Prices there are set daily, and each of the complex’s 267 units has
its own rate. If a half-dozen units lease over the weekend, she said, the
price can spike....





On Tue, Nov 10, 2015 at 3:46 PM, Leonard Cabral <LensLaw at lenslaw.com> wrote:

> The problem I have is that the lease states that the rent will increase
> $100 a month at the end of the term. Then it mentions the YieldStar.
> Tenants don’t know what it is or that the rent could go more than $100.  I
> think it is misleading.  If there was no mention of the $100 increase in
> the lease I think the YieldStar would be ok.  I don’t think there is a
> meeting of the minds at this point, (the lease does not state subject to
> change).
>
> As far as what is wrong with it,  Probably nothing wrong with the program
> but there will be people that will use it to manipulate the market
> especially if the numbers are calculated using the owners’ own properties
> to calculate the rent.
>
> Leonard P. Cabral
>
> Leonardcabral at lenslaw.com
>
>
>
>
>
> *From:* landten-bounces at lists.flabarrpptl.org [mailto:
> landten-bounces at lists.flabarrpptl.org] *On Behalf Of *Harry Heist
> *Sent:* Tuesday, October 27, 2015 7:40 AM
> *To:* 'RPPTL Landlord Tenant Committee' <landten at lists.flabarrpptl.org>
> *Subject:* Re: [RPPTL LandTen] YieldStar
>
>
>
> It is a company that helps apartment communities determine rents like
> airlines determine fares based on supply/demand etc.
>
>
>
> There is nothing wrong with raising the rent on renewals or month to month.
>
>
>
> Harry
>
>
>
>
>
>
>
>
> *LAW OFFICES OF HEIST, WEISSE & WOLK P.A. PH: 1 800 253 8428 FAX: 1 800
> 367 9038 "Serving the Property Management Professional" Website:  *
> *www.evict.com* <http://www.evict.com/>
> * Email: **harry at evict.com* <harry at evict.com>
>
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> *From:* landten-bounces at lists.flabarrpptl.org [
> mailto:landten-bounces at lists.flabarrpptl.org
> <landten-bounces at lists.flabarrpptl.org>] *On Behalf Of *Leonard Cabral
> *Sent:* Tuesday, October 27, 2015 5:43 AM
> *To:* RPPTL Landlord Tenant Committee
> *Subject:* [RPPTL LandTen] YieldStar
>
>
>
> Has anyone heard of YieldStar?
>
> I have a client who has a lease that renews at the end of the term as a
> month to month with a $100 increase in rent or the YieldStar calculation.
>
>
>
> If the YieldStar calculation for renewal enforceable?
>
> Client has no idea what YieldStar is and was told her rent is going up
> almost $300 because of the YieldStar calculation.
>
> I think there is another company called Goldstar.
>
>
>
> *Leonard P. Cabral, Esq.*
>
> 212 North Park Ave.,
>
> Sanford, FL  32771
>
> Leonardcabral at lenslaw.com
>
> (407)330-4998
>
>
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