Tenants Call for Investigation into Potential Price-Fixing in Canadian Rental Market

A growing number of Canadian tenants are raising concerns over alleged price-fixing practices in the rental market, calling on the Competition Bureau to investigate the use of rent-pricing software they believe is driving rates higher. Toronto resident Cynthia Black, who lives in a Livmore building managed by GWL Realty Advisors, reports facing annual rent hikes as high as 11% in recent years. Black and other tenants suspect that the software YieldStar, developed by RealPage and used by some Canadian landlords, may be artificially inflating rents by using algorithms that set pricing based on local market data.

YieldStar, which has come under investigation in the U.S. for potential price-fixing, enables landlords to share sensitive information, including rent rates and vacancy data. This data is then used by an algorithm to recommend optimal rental pricing. The U.S. Department of Justice recently filed a lawsuit against RealPage, stating that Americans should not be paying higher rents due to software-driven collusion among landlords.

In response to concerns, GWL Realty Advisors stated it has ceased using YieldStar following an internal review but did not provide specific reasons for the decision. Meanwhile, Toronto tenants, including Ketan Khanna of West22, report that rent increases in buildings using YieldStar can feel overwhelming. Rhapsody Living, a property manager affiliated with Dream Unlimited, has also been instructed to discontinue YieldStar use.

Lawyer Dania Majid of the Advocacy Centre for Tenants Ontario warns that YieldStar could lead to anti-competitive practices in the rental market, likening it to the high-profile bread price-fixing scandal in Canada. With housing increasingly treated as a commodity, Majid and other advocates argue that such technology needs stricter oversight.

The Competition Bureau has stated that protecting competition in real estate is a priority but has yet to confirm if it will formally investigate. Black and other tenants are pushing for accountability, fearing that unchecked use of YieldStar may continue to drive rents to unsustainable levels.