This is only irrational for the landlords, not the software suggesting prices to them. If you churn 10% of your units, but prices go up by 20%, then you're making more money as a rental management company.
Another point is how rents affect real estate prices, even if an apartment stays empty for a year if that makes the value go up of said apartment by $20k then that was still worth it.
A single apartment wont have that effect, but when most landlords does that then the value of their assets will go up, and that value increase will probably outpace any lost rent income.
That is a perspective I had not thought of. I also suppose that if every rental management company starts behaving like this then it can be difficult for a landlord to find an alternative.
A single apartment wont have that effect, but when most landlords does that then the value of their assets will go up, and that value increase will probably outpace any lost rent income.