Nov
16

Algorithm Software Creates Wild Fluctuations in Rental Rates

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flow chart diagramMany Lowcountry renters now must let a computer determine what their new or renewed leases will cost them.

And there’s usually no way of telling what the outcome will be.

That’s because many local apartment offices are following an industry trend by switching to algorithm-based leasing software that calculates the price of a unit based on a number of factors — and the rate can unexpectedly peak and valley, particularly in southern Beaufort County.

“Prices change daily,” said Dorna Davani, leasing consultant with Chartwell-owned The Lakes at Myrtle Park in Bluffton. Chartwell also owns The Lakes at Edgewater.

Both apartment complexes recently started using YieldStar, a popular revenue management software by Texas-based RealPage that calculates the rate of an apartment based on a number of factors, most significantly supply and demand in the local market and current and future occupancy rates.

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