Will Zillow’s Breakup Impact Your Rental Marketing?
If you’re a landlord, Zillow is probably your go-to platform for listing rentals.
It’s the biggest name in the game, pulling in over 225 million visits per month, according to Semrush.
But does that make Zillow a monopoly?
That’s what a series of high-profile lawsuits are suggesting.
Five states and the Federal Trade Commission (FTC) have filed lawsuits alleging Zillow created a monopoly by paying its top rival, Redfin, $100M to exit the rental listings market.
This news should make every landlord sit up and pay attention.
Is your rental marketing strategy prepared for this potential shake-up?
What’s Happening with Zillow?!
At the core of these lawsuits is an allegation of anti-competitive behavior.
Attorneys general claim that Zillow’s deal with Redfin was designed to eliminate a key competitor in the multifamily rental space. The agreement required Redfin to stop its apartment rental advertising and redirect clients to Zillow’s platform instead.
While Zillow maintains that its partnership with Redfin is “pro-consumer,” critics argue this move hurts both property managers and renters by driving up advertising costs and limiting housing options.
If competition dwindles, what’s to stop Zillow from hiking its listing fees?
For the 41% of U.S. rental units owned by individual investors, these increased costs could squeeze already tight margins.
What Does This Mean for Your Rental Marketing?
We’ve seen this script before.
A tech giant dominates a market, and small businesses become dependent on it.
Then, the rules change, prices go up, and the businesses that didn’t diversify are left scrambling.
As a property management company that meticulously tracks every aspect of our rental marketing performance, we see the writing on the wall.
Relying solely on Zillow is no longer a logical strategy.
Here are the potential impacts for landlords:
- Increased Advertising Costs: With less competition, Zillow could raise prices for listing rentals, forcing you to either absorb the cost or pass it on to your tenants. With 85% of landlords having already raised rents in 2024, there isn’t much room to maneuver.
- Reduced Listing Visibility: If you choose not to pay higher fees, your properties could be buried in search results, leading to longer vacancies and lost income.
- Less Innovation: Monopolies often lead to complacency. With fewer competitors pushing for better features and services, the quality of listing platforms could stagnate.
The good news is that you don’t have to be a passive victim of market shifts. Proactive landlords have options.
Actionable Strategies to Protect Your Investment
At Logical Property Management, our entire system is built on proactive, data-driven strategies. We don’t wait for problems to arise; we anticipate them.
This Zillow situation is a perfect example.
Here’s how you can adapt your rental marketing to stay ahead of the curve.
1. Diversify Your Listing Platforms
The most crucial step is to stop putting all your eggs in the Zillow basket.
We already syndicate our clients’ listings to over 20 websites, but now is the time to analyze which platforms are delivering the best results.
- Apartments.com: While historically focused on multifamily properties, it remains a powerhouse, generating over $570 million in the first half of 2025. It’s a must-use platform for reaching a wide audience.
- Facebook Marketplace & Craigslist: These platforms are affordable and attract high traffic. However, they lack the robust screening and anti-fraud measures of paid sites. Use them, but be prepared to implement your own thorough vetting process.
- Niche and Local Sites: Don’t underestimate the power of local rental sites or community groups. Renters often look for housing in specific neighborhoods, and these targeted platforms can yield high-quality leads.
2. Double Down on SEO and Direct Traffic
Instead of relying solely on listing sites to bring you tenants, make it easier for tenants to find you directly. This is a core part of our innovative marketing approach.
- Optimize Your Listings: Use descriptive titles and detailed ad copy rich with keywords that renters are searching for (e.g., “three-bedroom rental in Dearborn Heights,” “updated kitchen Redford rental”).
- Create Your Own Web Presence: A simple website or landing page for your properties gives you a direct channel to connect with prospects. You can control the narrative, showcase high-quality photos, and build a brand.
- Watermark Your Photos: We watermark all our photos with our logo and phone number. This not only protects your images from being stolen for scams but also serves as free advertising as they get shared across platforms.
3. Leverage the Power of Local Networks
Before the internet, word-of-mouth was the best marketing tool. It’s still incredibly effective.
- Referral Programs: Offer a small bonus to current tenants who refer a qualified applicant who signs a lease. A good tenant often knows other good tenants.
- Community Engagement: Build relationships with local employers, colleges, and organizations. They can become a great source of tenant referrals.
- “For Rent” Signs: A physical sign is still one of the most effective ways to attract local renters who are already familiar with and interested in the neighborhood.
The Logical Difference: Turning Data into Dollars
This Zillow situation is exactly why our meticulous, system-driven approach to property management is so vital. We don’t just post an ad and hope for the best. We monitor everything:
- Web views
- Inquiries
- Scheduled and completed showings
- Submitted applications
This data allows us to make logical adjustments—like editing an ad, rebooting a listing, or recommending a price change—to get your property rented faster. In a shifting market, this level of detail is not a luxury; it’s a necessity.
Don’t Wait for the Market to Dictate Your Success
While Zillow will likely remain a major player, its unchallenged dominance may be coming to an end.
This is an opportunity to re-evaluate your strategy and build a more resilient, diversified marketing plan that protects your investment from market volatility.
Are you prepared for the potential fallout? If your current property manager’s strategy is just “post it on Zillow,” it might be time for a change.
Ready to build a rental marketing strategy that drives results, no matter what happens with Zillow? Contact Logical Property Management today for a free consultation.