We were inspired by a post in r/Reno by user u/EmotionalBaby9423 (nice username by the way). The title: “What’s up with the rent situation in town?!”

Unfortunately for Reno and Sparks tenants, the answer is not so simple, so let’s break it down:

Landlords Are Price-Fixing Units and Constraining Housing Supply

The U.S. Department of Justice (DOJ) has filed a civil antitrust lawsuit against RealPage, software that corporate landlords use to coordinate rent increases through a cooperative AI pricing algorithm. According to a 2022 ProPublica investigation titled “Rent Going Up? One Company’s Algorithm Could Be Why,” RealPage’s software helps landlords use personalized data to determine the maximum rents they can extract from renters.

RealPage’s software recommends rent prices based on aggregated data that often lead to higher rents than landlords would set otherwise. The software facilitates price coordination by giving landlords access to competitors’ anonymized pricing strategies, leading to uniform rent increases in local markets. Antitrust experts suggest that this coordination could run afoul of U.S. antitrust laws if it results in landlords collectively suppressing competition through price collusion.

Several property managers interviewed by ProPublica admitted they accepted the software’s recommendations even when it meant keeping units vacant longer, valuing higher rents over higher occupancy. This means landlords are purposefully leaving units empty to drive up rents.

In some cities, RealPage clients controlled a significant share of the rental market. For example, ProPublica found “in one neighborhood in Seattle, ProPublica found, 70% of apartments in large buildings were overseen by just 10 property managers, all of whom used pricing software sold by RealPage.”

The Governor is Ignoring Common Sense Affordable Housing Policies

During the 2023 legislative session, Governor Joe Lombardo vetoed many bills that would have granted rights to renters and made housing more affordable. Here are some examples:

1. SB 426 – Rent Stabilization

SB 426 would have:

• Prevented rent hikes in the first year of a tenant’s lease.
• Limited rent increases to inflation, specifically the cost-of-living adjustment (COLA) set annually by the state Housing Division (based on the Consumer Price Index), capped at 5%.
• Prohibited landlords from charging more rent than was advertised.

2. AB 298 – Fee Transparency

AB 298 would have:

• Prohibited landlords from charging surprise or hidden fees.
• Required landlords to explain all possible fees a tenant could be charged, the purpose of each fee, and whether the fee is variable in the lease agreement.
• Refund rental application fees if an application is denied or ignored.
• Stopped landlords from raising rents more than 10% annually for individuals 62 years old and/or on Social Security.

3. AB 340 – Fairer Eviction Processes

AB 340 would have:

• Ended the unfair “Summary Eviction” process that’s currently legal in Nevada
• Required landlords to file formal complaints with a court before tenants can be evicted.
• Required landlords to serve tenants with a stamped copy of the complaint and summons.
• Given tenants 7 days to file a written response/defense.
• Sealed COVID-specific eviction records.

4. AB 223 – Habitability Standards

AB 223 would have:

• Made it easier for tenants to withhold rent when a unit is uninhabitable.
• Allowed tenants to collect damages up to 3x rent if a landlord unlawfully locks out a tenant, cuts of essential services, or interrupts utilities.
• Expanded habitability standards to include:
  • doors, windows and locks
  • rodent, insect, and vermin control
  • protection from radon, lead, asbestos, toxic mold

The Nevada Independent covered tons of other bills shut down by the Governor. They quoted the statewide policy director for the Nevada Coalition of Legal Service Prividers, who said “I think we are going to have people who have never been homeless before face the real prospect of being homeless for the first time.”

RSTU believes this failure of leadership, which will surely lead to homelessness and undue suffering, is both unconscionable and frustrating.

Landlords Are Not Fixing Habitability Issues

Although media coverage is lacking, we know firsthand that renters in Reno face an uphill battle when leaks, cracks, or mechanical/electrical failures make their unit uninhabitable. Not only do renters go without basic necessities like electricity, heat, running water and sewer, or refrigeration, but landlords often retaliate against renters who seek out repairs.

Instead of protecting tenants from unsafe living conditions, Governor Lombardo teamed up with slumlords to veto AB 223 and depress living conditions across the state. His actions reflect a general disregard for tenants’ wellbeing among legislators and state leadership.

Special Interests Are Lobbying to Use Our Public Lands for Luxury Homes

Real estate professionals, developers, and investors are teaming up to bulldoze our public lands to build luxury single family homes.

Their plan, called the “Lands” bill, would sell over 15,000 acres of public land at massive discounts to developers for housing development. If landlords can charge “market rate” for housing, Nevadans should charge at least “market rate” for the land, too.

The authors claim the bill will set aside over 200,000 acres for conservation, but here’s a thought: If we don’t pass the bill, all of the land will remain conserved in the public trust. It’s tricky rhetoric cooked up by marketers and focus groups aimed to privatize land that belongs to all of us.

Here’s How You Can Make a BIG Difference in Only 5 Minutes

1. Join our mailing list.
2. Email your legislator and tell them you stand with RSTU to support affordable housing and tenants’ rights.
3. Follow and promote our posts on Facebook and Instagram to join the conversation.