The recent lawsuits involving RealPage and several apartment owners are prompting a reevaluation of data-sharing practices across the multifamily industry. As vendors and operators face increasing scrutiny, contract terms are tightening to mitigate liability risks.
Here’s what key experts in the field are saying about the issue…
Remen Okoruwa, co-founder and CEO of Propexo, shared that a major REIT has already implemented new data processing agreements, restricting vendors from aggregating data beyond its specified use. “The contractual statement [from operators] that vendors are going to assure us they’re not aggregating data, and they do not have our permission to aggregate, is one of the easiest ways to shift some of this liability,” Okoruwa explained.
Remen Okoruwa
Co-founder and CEO of Propexo
Vidur Gupta, CEO of Beekin, echoed this sentiment, noting that “contract terms are getting a bit tighter.” He observed that institutional investors, in particular, are becoming cautious, with some waiting to see how the RealPage cases unfold. Gupta also stressed the significance of data-sharing for innovation in the industry, adding, “If you want the whole industry to be efficient, profitable, and self-sustaining, then you need some way to benchmark.”
Vidur Gupta
Founder and CEO of Beekin
Blerim Zeqiri, CEO and co-founder of Radix, pointed out the uncertainty now facing the industry. “In the short term, everyone is going to ask, ‘Hey, do I want to share this?’” he said, emphasizing the cautious approach many operators are adopting.
Blerim Zeqiri
CEO and Co-founder of Radix
Michelle Lowery, an antitrust partner at McDermott Will & Emery, suggested that the RealPage litigation could have a “chilling effect” on data sharing within the industry, especially without clear guidelines on what data is acceptable to share. Lowery argued that shutting down data sharing could hurt the ability to benchmark effectively, stating, “There’s no good way to do true benchmarking without the sharing of data.”
Michelle Lowery
Partner at McDermott Will & Emery
Gupta agreed, noting that even if apartment firms limit private data sharing, they will still need public data to make informed decisions. “Rental housing has a big footprint of public data,” he said, indicating that public information would remain essential for decision-making.
For more insights on this important industry development, read the full article here.
