Apartment Managers Face New Challenge Over Listing Photos

Multifamily owners and brokers are working to comply with new disclosure laws that will affect how they market their properties, according to Bisnow. These laws, which will go into effect in some states, are designed to protect renters from misleading marketing practices. The laws may lead to increased costs and operational challenges for the industry.

The issue of altered listing photos has become more pressing with the rise of AI technology, which can be used to enhance or manipulate images. Apartment industry leaders support greater transparency, but they are concerned about the potential costs and logistical challenges of complying with the new laws. Bisnow reported that the laws may require significant updates to existing listings.

The California law, for example, will require landlords to clearly indicate when photos have been altered and to provide the original, unaltered image for comparison. This may involve significant costs, as thousands of apartment communities in California may need new photography to comply with the law. Many of these communities have yet to update their listings.

Industry experts estimate that the cost of updating photos could be substantial, potentially diverting money from operational budgets and ultimately affecting renters. The cost of compliance may be particularly challenging for smaller landlords or those with older properties. Bisnow noted that the issue reflects wider pressures surrounding apartment listings, including regulatory scrutiny of rental fee disclosures.

The proliferation of additional costs and new imagery is creating complexity for landlords and property managers, who must navigate a fragmented landscape of rental websites and platforms. Outdated technology and understaffed property management teams can make it difficult to keep listings consistent and up-to-date. According to Anthony Paganucci, CEO of Brynson, this can lead to issues with listings that don't conform to fair housing laws.

Landlords and property managers are seeking guidance on how to comply with the new laws, including information on potential grace periods for owners who are working to update their listings. The industry is also exploring ways to make it easier to share updated rental fee information across platforms. Bisnow reported that the National Multifamily Housing Council has created a data model to facilitate this process.

The use of AI in listings has added a layer of complexity to the issue, as it can be difficult to distinguish between authentic and manipulated images. The big concern is that altered photos can waste consumers' time and lead to disappointment or frustration when the actual property does not match the online listing. According to Jonas Bordo, co-founder and CEO of Dwellsy.com, this can ultimately harm landlords by violating trust and losing out on rentals.