Beekin, a developer of next-generation AI platforms for rental housing operators, investors and lenders, today joined the chorus of advocates reminding lawmakers and the public that lease pricing algorithms that leverage publicly available data are distinct from the deceptive and unfair “algorithmic devices” targeted by Colorado HB24-1057.
Colorado HB24-1057 and similar bills would prohibit the use of algorithms trained with non-public competitor data to set rent prices. By compiling non-public data from landlords and property management companies in competition with each other to make lease price recommendations to users, these types of algorithms may be unfair or unlawful. Importantly, the Colorado bill would not apply to algorithmic lease pricing that relies on an aggregate of all publicly available data available.
“If you’re a landlord, you’re always going to be looking at comps to price your rental,” said Beekin CEO Vidur Gupta. “Algorithmic leasing using public data is no different in principle — it simply automates and brings greater accuracy to the process. Renters need options and landlords deserve to charge a fair rate commensurate with the quality of housing they provide. Algorithms democratize the price discovery process for mom-and-pop landlords, who traditionally have had very little access to data, public or private.”
Beekin is working strongly to counter the misperception that all lease pricing algorithms are unfair or illegal. The Colorado bill plainly states that “the intent of this bill is not to prevent the use of products that rely on publicly available information to recommend a price.”
Beekin’s AI-powered LeaseMax platform leverages public data to make pricing and operational recommendations that help keep renters happy and provide differentiated levels of services and amenities in a community. This helps maintain consumer choice, create transparency and affordability in a rental market.
“Singling out algorithms as the cause of our housing affordability crisis fails to capture the whole picture,” Gupta said. “Many other factors, including a shortage of new housing, migration patterns, stimulus spend and rising inflation rates, have contributed to higher rents in parts of the U.S. in 2021-2022. Many landlords who don’t use algorithms to price their rentals raised rents, too. Ultimately, Beekin stands with technology. Efficiency and transparency bring affordability to markets, and increased use of algorithms that rely on public data will contribute to rental market efficiency and help match renters with units they can afford. Lastly, they stand to reduce biases inherent in manual decisions.”
In addition to rental valuation and pricing algorithms, Beekin’s AI platforms help multifamily investors improve resident retention and measure the social impact of their properties. Leveraging data such as affordability, income and resident engagement, Beekin informs and benchmarks social impact and helps pick properties where renters stay longer, influencing investment resilience.
About Beekin
Beekin is a decision intelligence platform designed for institutional investors and lenders in the rental housing sector. Through patented software for rent valuations, revenue optimization and rental indexation, Beekin’s platform is boosting NOI, increasing customer retention, and driving operational efficiencies across underwriting and asset management for some of the top property companies in the United States. For more information, visit Beekin.co.
