Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgage rates…

The 411 on rates… Ok, don’t freak out, but mortgage rates are currently at their lowest since April 2023. That’s right, they’re below 6.5%. And we’ve got one man to thank: Jerome Powell. Last week, he indicated that barring an absolute financial catastrophe, the Central Bank would be lowering its rates in September.

THE LEAD

Keeping it RealPage

"I am shocked." - absolutely no one

It's not exactly surprising to hear that a property management platform is helping landlords coordinate rent prices. The practice is kinda an open secret in real estate.

Which begs the question: just how egregious was RealPage to catch the attention of the Feds?

Last Friday, the DOJ charged the property management platform with “algorithmic collusion”… which sounds like something super sexy but is actually just what landlords have been doing via backroom deals since the dawn of time.

So how does it work?

RealPage collects non-public rent, vacancy, and concession data and shares it among landlords. It does so via “recommending” prices to landlords. The Justice Department claims they helped keep rent prices artificially high by way of their recommendations that just screamed “Hey, your competitors are charging about the same so don’t go any lower, you dummy.”

This collusion allows landlords to push rents higher. The problem is compounded by the fact that RealPage manages 16M rental units nationwide.

RealPage clapped back, claiming that the data is aggregated and there is no way landlords could use it to collude.

Ok, so what does it mean for me?

It probably means you should join RealPage so you can get in on the action. For investors with a handful of doors, there are two ways to look at it:

1. We all owe RealPage for jacking up rents

2. It's a friendly reminder that we will always be at a major disadvantage to big tech and yuge landlords

💭 Mr. Pocket Listing says… In all likelihood, this ends with some sort of deal for RealPage that amounts to a slap on the wrist (a small fine and the promise to be better). But it could open the door to more rent regulation, which, spoiler… will probably be more burdensome to us.

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Pocket List might be compensated if you click on the links above.

WHAT ELSE?

More industry headlines I’m keeping an eye on…

• Home prices hit record high in June on S&P Case-Shiller Index (Read)

• Homebuyers Reveal How Low Mortgage Rates Must Go Before They Buy a House (Read)

• Corporate HQ Relocations Could Signal the Next Real Estate Boomtowns (Read)

• Prices Hold Steady in Single-Family Rental Space (Read)

• There Are More Renters Than Homeowners in Wealthy States—Why? (Read)

• Number of Bathrooms in New Single-Family Homes in 2023 (Read)

• Share of New Homes with Patios Continues to Climb (Read)

• Real estate coach Skye Michiels on why sell-side commissions might rise and new models could emerge (Read)

• Treasury Loosens Final Anti-Money Laundering Rules for Investment Advisers, Real-Estate Agents (Read)

DIY

Let’s get tactical…

• 5 Reasons Commercial Real Estate is Actually the Easiest Asset Class For New Investors (Read)

• Pay Your Rent, Get 2% Cash Back: Landlords Join Craze for Rewards (Read)

• The 4 Pros and 4 Cons of Buying a Condo Instead of a House (Read)

• ‘I Bought a House in Detroit for $1,800’: How a Once-Bankrupt City Has Become an Investor’s Paradise (Read)

• How to tackle growth challenges when you’re building a real estate team (Read)

• We bought a vacation home for $1 million in 2000 and it’s doubled in value. How can we avoid capital-gains tax? (Read)

• How a decaying $3,000 train car became one of America’s most exclusive and profitable stays (Read)

• Rate Cuts Are Coming. 5 Ways to Prepare Your Finances. (Read)

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

PROPERTY TOUR

It’s time to get a pulse on markets around the country…

(1) The 10 Best College Markets for Short-Term Rentals (Read)

(2) Homes are most overvalued in these 5 metro areas. But the housing market is showing ‘early signs of a correction.’ (Read)

(3) America’s 10 Easiest Housing Markets for Homebuyers—and the 10 Hardest (Read)

(4) I’m a Real Estate Investor: Here Are the 5 Beach Towns You Should Consider Investing in Property (Read)

SURVEYING

Here’s today’s question…

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One last thing…