The Seattle City Council recently approved a bill that aims to address concerns about collusion among landlords and rising rental prices. The legislation, Council Bill 121000, prohibits the use of software that critics argue facilitates price fixing in the rental market. This decision comes after similar measures failed to pass at the state level earlier this year. The bill, proposed by Councilmember Cathy Moore, is now awaiting Mayor Bruce Harrell’s approval before becoming law.
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 said “rent really is too darn high” in Seattle. “This is one small way that we can contribute to making this a more diverse and equitable city,” she added.
State and federal leaders have also filed lawsuits to curb the use of the technology.
Washington Attorney General Nick Brown filed a lawsuit in April against property management software company 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 said Moore was a “steadfast champion of renters rights.”
The City Council hearing did not include comments from RealPage. But Mike Semko, the Texas-based company’s associate general counsel and vice president, testified in opposition to the proposed state legislation in March. He said the company primarily uses publicly available data to generate rental rate suggestions, does not encourage landlords to keep properties off the market to create scarcity, and does not push managers to select higher rental rates.
āThis is simply market research and analysis with a suggested price,ā Semko said of RealPage’s services, adding that the legislation “essentially bans math.ā
The City Council was set to vote on the local bill last week, but members decided to delay the action.
Carter Nelson, director of government 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 help 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 multiple 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 as lodging offered by Airbnb or hotels.
- Makes clear that the rules do not extend to basic record-keeping software.
- Establishes penalties to provide a deterrent to the use 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 Seattleās Belltown neighborhood, 70% of the apartments were being offered by 10 property managers who all used RealPage.
