A fast-growing set of state and city laws now restricts landlords from setting rents with software that pools private data from competing landlords. The laws grew out of antitrust cases against rent-pricing platforms used by large apartment operators, but they are written broadly enough that a small landlord who subscribes to the wrong tool, or follows its recommendations without thinking, can be covered too. This guide explains what the laws target, where they apply as of 2026, and how to price your units in a way that stays clearly on the right side of them.
Note: This article is general education, not legal advice. These laws are new, several are being challenged in court, and more cities and states are considering similar rules, so confirm the current rules for your property's location with a local attorney.
This guide is part of the compliance and legal hub for independent landlords.
What these laws are aimed at
The concern behind these laws is not software in general. It is a specific model: a platform collects nonpublic, competitively sensitive information from many landlords in the same market, such as current rents, lease terms, and occupancy, then feeds it into an algorithm that recommends rents back to those same landlords. Regulators and plaintiffs argue that when competitors all follow recommendations built from each other's private data, the result works like coordinated pricing, even if no landlord ever speaks to another.
In November 2025, the U.S. Department of Justice announced a settlement with RealPage, one of the largest rent-pricing software providers, that restricts its use of competitors' nonpublic data when generating live recommendations, limits how older data can train its models, and prevents its tools from defaulting to automatic acceptance of recommended prices. The settlement applies to the provider, but it signals how federal enforcers view the practice.
Where the rules apply as of 2026
State and local restrictions have multiplied since 2024. According to a 2026 summary by the law firm Morgan Lewis, cities with ordinances restricting algorithmic rent coordination include San Francisco, San Diego, Berkeley, and Santa Ana in California; Philadelphia; Minneapolis, effective March 1, 2026; Providence; Jersey City and Hoboken in New Jersey; Seattle, King County, and Spokane in Washington; and Portland, Oregon, with Rockville, Maryland scheduled for 2027. New York State also enacted a statewide ban in 2025 that makes it unlawful to set or adjust rents based on recommendations from tools that pool data across unaffiliated landlords.
The details differ. Some ordinances prohibit landlords from using any coordinating algorithm that relies on nonpublic competitor data, some also target the software providers, and some limit the prohibition to certain building sizes. At least one city paused enforcement of its ordinance in response to litigation. Treat this list as a starting point, not a complete or permanent map.
Does this apply to a small landlord?
Many of these laws apply to any residential landlord in the jurisdiction, not only large operators. What usually matters is the tool, not the size of your portfolio. You are most likely to be affected if you:
- Subscribe to a revenue management or rent optimization platform that draws on data contributed by other landlords.
- Work with a property manager who uses such a platform to set rents on your units.
- Accept automated rent recommendations without independently reviewing them.
You are generally not the target of these laws when you set rent using public information, such as active listings on major rental sites, published rent reports, and your own history, or when you use software that only analyzes your own properties.
Pricing rent without coordinating software
Setting a defensible rent does not require pooled competitor data. A practical method most small landlords can use:
- Pull public comparables. Review current listings for similar units nearby, adjusting for size, condition, amenities, parking, laundry, and pet policy.
- Check your own history. Days on market, inquiry volume, and renewal rates at your current rent tell you whether you are priced too high or too low.
- Factor in your costs. Taxes, insurance, and maintenance set the floor you need to cover.
- Weigh retention against increase. A modest renewal increase that keeps a good tenant often beats a larger one that triggers a turnover.
- Document your reasoning. A short note of the comparables and factors behind each rent decision shows the price was set independently.
For a deeper walkthrough, see the guide to rental pricing strategies for landlords, and for renewal decisions, the landlord-tenant laws by state guide summarizes notice rules that apply when you do raise rent.
Questions to ask a software vendor or property manager
If you use a pricing tool, or a manager who does, ask directly:
- Does the tool use nonpublic data contributed by other landlords, or only public data and my own property's data?
- Are recommendations accepted automatically, or does a person review and set the final rent?
- Has the vendor changed its product in response to the DOJ settlement or local ordinances, and can it confirm compliance where my properties are located?
- Who is responsible if the tool is found to violate a local ban?
Get the answers in writing. If the answers are unclear, the simplest protection is to set rents yourself from public information.
Frequently asked questions
Are rent pricing algorithms illegal?
Not everywhere, but a growing number of cities and New York State restrict landlords from setting rents with software that pools nonpublic data from competing landlords. Tools that rely only on public data or a landlord's own records are generally not the target.
Which cities ban algorithmic rent-setting software?
As of 2026, restrictions exist in cities including San Francisco, San Diego, Berkeley, Philadelphia, Minneapolis, Providence, Jersey City, Hoboken, Seattle, Spokane, and Portland, Oregon, along with a statewide law in New York. The list is changing, so check your local rules.
Do rent pricing software bans apply to small landlords?
Often yes. Many of these laws apply to any residential landlord in the jurisdiction, and what matters is whether the tool relies on nonpublic competitor data, not how many units you own.
How can a landlord set rent without violating these laws?
Use public comparables from active listings, your own vacancy and renewal history, and your operating costs, set the final rent yourself, and keep a short record of how you decided.
What to do next
The safest pricing process under these new laws is also the simplest: base rent on public comparables and your own data, make the final call yourself, and keep a record of why. That depends on having your own numbers organized, including current rents, lease dates, and how long units sit empty.
Shuk keeps those numbers in one place. Centralized lease records show active and upcoming leases, lease end dates, and rent amounts across your properties, and the Rent Roll and other payment and income reports export to PDF or Excel for your own analysis. The Lease Indication Tool (LIT) provides early renewal intelligence starting six months before lease end through tenant polling and predictive lease renewal insights, so you know which renewals to price for retention before you decide. Year-Round Marketing keeps each listing current, so you can track inquiry interest in your own units.
At as low as $2 per unit per month, with no setup fees and no contract, and with White Glove Onboarding included at no additional cost, Shuk makes independent, well-documented rent decisions feasible for landlords and property managers running 1 to 100 units.
Book a demo at shukrentals.com/book-a-demo to see how lease records, reports, and the Lease Indication Tool work together so every rent decision rests on your own data.
