Proptech—short for property technology—refers to the integration of digital tools and automation into real estate operations to increase efficiency, transparency, and convenience for all stakeholders. It spans the entire property lifecycle—from construction and leasing to management and investment analytics.
Common proptech applications include:
- Online property management systems (e.g., AppFolio, Yardi)
- AI-powered rent pricing platforms (e.g., RealPage)
- Virtual and augmented reality (VR/AR) for design and tours
- IoT-based smart building systems that automate lighting, climate, and security
For Property Managers: Proptech streamlines routine tasks—rent collection, maintenance, marketing, and analytics. AI dashboards reveal trends in tenant retention, utility usage, and space optimization.
How Proptech Enables Corporate Landlord Abuse
While proptech promises transparency and automation, its unchecked deployment by large corporate landlords can have the opposite effect—creating opaque systems that exploit tenants, undermine housing affordability, and reduce accountability. Key abuses include:
1. Algorithmic Rent Setting and Price Fixing
Platforms like RealPage use algorithmic “revenue management” to suggest optimal rent prices based on market data from competing landlords.
- The DOJ alleges this coordination reduces competition and artificially inflates rents.
- Landlords participating in shared data networks can raise prices in unison and eliminate traditional market dynamics like concessions or discounts.
2. Automated Tenant Screening and Blacklisting
AI-driven screening systems analyze credit, rental history, and even social data. These often rely on non-transparent algorithms that:
- Disqualify applicants based on proxy data or biased variables
- Misidentify individuals through “wildcard” database matches
- Penalize tenants for past evictions or minor infractions—with no human appeal process
3. Digital Surveillance
Smart home devices and facial recognition access controls, marketed as “security enhancements,” can be used to:
- Monitor tenant activity
- Flag occupancy “violations”
- Collect metadata on resident behavior
These tools can facilitate tenant harassment or automated lease enforcement, bypassing human oversight.
4. Data Monetization and Privacy Invasion
Many proptech platforms collect extensive tenant data—from bank accounts to movement patterns inside buildings. This data can be:
- Shared with third-party marketers
- Sold for credit profiling
- Used to automate evictions or target high-value units for rent hikes
5. Automation Without Accountability
Large property owners use automated billing and communication systems that remove human points of contact. When errors occur—such as false charges or duplicate payments—tenants face endless loops of chatbots and emails. The system becomes a bureaucratic shield, protecting landlords from responsibility.
Brookfield Properties and BILT Technologies
In Stuart v. Brookfield Properties (Cause No. DC-25-10952, 101st Judicial District, Dallas County), a disabled U.S. Air Force veteran alleges that Brookfield and its payment vendor BILT used malfunctioning automated billing systems to generate false charges and retaliate against a tenant under a federal housing contract.
This case mirrors the risk critics warn about—automation without accountability, where tenants cannot contest errors because human oversight is replaced by algorithms and centralized billing systems.
DOJ Antitrust Enforcement and Proptech Regulation
The Department of Justice has taken aim at the growing concentration of power among property tech providers for Algorithmic Price-Fixing.
The DOJ’s civil antitrust case against RealPage and several large landlords alleges that: Competitors used a shared algorithm to fix rent prices – and this coordination eliminated market competition and artificially inflated rents nationwide.
Balancing Innovation and Ethics
Proptech can deliver tremendous public benefit—when deployed responsibly. But when used to maximize profit without transparency or fairness, it becomes a tool for systemic housing abuse.
What’s Needed
- Mandatory transparency in rent algorithms
- Tenant rights to review and dispute digital records
- Limits on data collection and resale
- Human oversight requirements for billing, screening, and eviction systems
- Strict antitrust enforcement against data-sharing schemes that distort markets
Conclusion
Proptech is transforming housing as profoundly as fintech transformed banking—but without the same regulatory guardrails. Cases like Stuart v. Brookfield illustrate how automation and data centralization can cross the line from innovation to exploitation.
Technology should make housing fairer, not more predatory. As courts and regulators catch up, the challenge will be to preserve the good of proptech—efficiency, insight, access—without allowing it to become a digital weapon against tenants.