Seattle City Council approves ban on tech used by landlords to allegedly set higher rents
A Seattle apartment complex.
(GeekWire File Photo / Nat Levy) The Seattle City Council nowadays unanimously approved a bill banning the utilize of software that critics allege allows for collusion among landlords and drives up rental prices.
Council Bill 121000, which now goes to Mayor Bruce Harrell for approval, prohibits tech companies from providing algorithm-driven, rental-cost services in the city; orders landlords not to utilize these services; and builds civil penalties for violations.
The bill was proposed by Councilmember Cathy Moore and is based on a measure that failed to make its way through the Washington State Legislature earlier this year.
The legislation passed in the state Senate, but not the House.
Before the vote on Tuesday at City Hall, Moore stated “rent really is too darn high” in Seattle.
“This is one minor way that we can contribute to making this a more diverse and equitable city,” she added.
State and federal leaders have additionally filed lawsuits to curb the utilize of the tech.
Washington Attorney General Nick Brown filed a lawsuit in April against asset management software firm RealPage and nine Seattle-area landlords, accusing them of colluding to inflate rental costs.
He alleged the plaintiffs are illegally engaging in “price fixing.” The U.S.
Department of Justice took a similar step in 2024.
Seattle City Councilmembers praised the bill and called out Moore’s efforts to address affordable housing during her roughly 18 months in office.
She is resigning from the council on July 7, citing “health and personal reasons.” Councilmember Rob Saka called the measure “landmark legislation” and stated Moore was a “steadfast champion of renters rights.” The City Council hearing did not include comments from RealPage.
But Mike Semko, the Texas-based firm’s associate general counsel and vice leader, testified in opposition to the proposed state legislation in March.
He stated the firm primarily uses publicly available information to generate rental rate suggestions, does not encourage landlords to keep assets off the market to create scarcity, and does not push managers to select higher rental rates.
“This is simply market research and analysis with a suggested price,” Semko stated of RealPage’s services, adding that the legislation “essentially bans math.” The City Council was set to vote on the local bill last week, but members decided to delay the action.
RELATED: ‘It’s price fixing’: Washington leaders target rent algorithm companies with lawsuit, legislation Carter Nelson, director of administration affairs for the Washington Multi-Family Housing Association, raised concerns “about the speed of this process and the lack of outreach to impacted stakeholders, including our industry.” She asked for more time to assist refine the language in the proposed rule.
Moore last week urged the council to proceed to a vote, saying the policy “was thoroughly vetted statewide” when lawmakers considered a similar measure in Olympia.
On Tuesday she conceded the delay was the right move as the final legislation included several amendments that addressed four key issues: Provides outreach to landlords informing them of the rent algorithm ban.
Clarifies that the measure does not apply to the prices set for short-term rentals such lodging offered by Airbnb or hotels.
Develops clear that the rules do not extend to basic record-keeping software.
Establishes penalties to provide a deterrent to the utilize of the algorithm software and enables renters to take legal action against landlords who violate the law.
In April, RealPage filed a federal lawsuit against the city of Berkeley, Calif., which had recently passed an ordinance aimed at regulating algorithmic rental software.
Almost three years ago, ProPublica published a report that found in Seattle’s Belltown neighborhood, 70% of the apartments were being offered by 10 asset managers who all used RealPage.
