“Hm this software we pay lots of money for says we could be charging more money? No no, let’s ignore this suggestion for the good of our tenants”
"So, technically yes, you can reject the recommendations, but if you work for a PM company we will probably tell your boss you're ignoring the software they pay for".
If they accept the higher price suggested by the software, they risk being vacant for longer. A month of vacancy is generally not worth 100 extra dollars a month.
So if the price is too high, the landlord has a strong incentive to drop it.
The price suggestion isn't the issue, the lack of stock absolutely is.
Is that wrong?
https://www.investopedia.com/terms/d/dscr.asp
If a landlord leaves units empty, their income drops, so their DSCR drops, and the lender can consider the property in default.
That does not mean a lender will foreclose or otherwise take control of the property, they also might not want to get involved. But it does give them negotiating power, and is something borrowers want to avoid.
Actually considering the DSRC it seems a large landlord would be more unlikely to lower rents unless desperate. Otherwise as people renew or lease at the lower rate, they’ll have less and less buffer
But the software doesn’t make the number go up. Landlords’ privileged bargaining position does. Collusion requires some prohibition on undercutting; otherwise it’s just markets being markets.