Seattle landlords banned from using rent-setting software

Seattle landlords will soon no longer be allowed to use rent-setting software like RealPage to suggest and set prices, after the Seattle City Council voted on Tuesday to ban its use.
The move from the City Council follows a multistate legal challenge that initially included then-Washington Attorney General Bob Ferguson's office.
In April, Attorney General Nick Brown decided to withdraw from that lawsuit, and file a new suit in state court. At the time, Brown stated this route could provide additional consumer protections and restitution for more Washingtonians.
The City Council's legislation referenced both cases, and their arguments that RealPage used sensitive, non-public competitor information to feed an algorithm that recommends higher rents and occupancy levels.
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The bill passed 7-0, with Councilmember Maritza River abstaining from the vote due to her background as a small landlord and Councilmember Dan Strauss absent.
The legislation now goes to Mayor Bruce Harrell's office for his signature.
Once the new law is in place, landlords who are found violating the ban may face a civil action from the Seattle City Attorney's office, and financial penalties of up to $7,500 per violation.
The ban does not apply to hotels, or short-term rentals.
Bill sponsor Cathy Moore said the legislation may need "tweaks" in the future, but given the current housing crisis in Seattle, action is needed now.
"We want to make sure that this is a city that all who want to live here have the ability to do so," Moore said. "And I think that this is one small way that we can contribute to making this a more diverse and equitable city."
Councilmember Rob Saka voted in favor of the bill, and an amendment to educate local landlords about the change.
"We endeavor to educate how we can help folks become in compliance with this, rather than being punitive," Saka said.
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The city's Department of Construction and Inspections will be in charge of outreach efforts. The department will also be required to provide the council a report on their work with landlords to implement changes by the end of January 2026.
Mike Semko, the vice president of RealPage, told the council that the ordinance goes "far beyond" any regulation the attorney general's office and U.S. Department of Justice has requested from the company.
"All this software does is... provide market analysis with a pricing suggestion," Semko said. "Most of the time, our customers do not even accept our pricing recommendations."
The attorney general's office estimates about 800,000 leases in Washington state were priced using RealPage software between 2017 and 2024.