Seattle’s City Council has approved Council Bill 121000 (Ordinance 127241), adding SMC 7.34, which prohibits “algorithmic rent-fixing.”
Under this new law:
Landlords are not allowed to use or contract with services that coordinate or share rent-pricing recommendations with other landlords.
Service providers offering such coordination are also prohibited.
Publicly available rent estimates (such as listings or tools accessible without a contract) are not considered a violation.
Violations may result in penalties of up to $7,500 per offense, and tenants are granted a private right of action.
The ordinance will take effect approximately 30 days after mayoral approval, as outlined in SMC 1.04.020.
What Changed—and Why
On June 24, 2025, the Seattle City Council approved CB 121000; Mayor Bruce Harrell signed it on July 1, 2025, and it is now codified as SMC 7.34. The law targets software that uses competitively sensitive data from multiple landlords to recommend rents, occupancy levels, or other lease terms, which the City says can facilitate anti‑competitive price‑setting. The ordinance was adopted amid growing national scrutiny of revenue management software and ongoing federal antitrust litigation involving pricing platforms used in the multifamily housing industry.
Who is Affected
- Landlords and property managers operating residential rental housing within Seattle city limits.
- Service providers that perform a coordinating function (i.e., collect price/occupancy/lease‑timing data from two or more landlords—from public or private databases—and process it with algorithms to recommend prices/terms to more than one landlord).
Note: The ordinance excludes short‑term rentals and hotels. The ordinance applies only to residential rental housing within Seattle city limits and does not apply to commercial real estate or properties located outside Seattle.
What’s Prohibited
- Contracting with or paying any service that performs a coordinating function to recommend or set rent/renewal terms/occupancy levels for residential units.
- For service providers: offering coordinating services to two or more landlords.
What’s Still Allowed
- Referencing publicly available market information—price estimates or listings that are equally available to everyone and do not require a contract (e.g., general Zillow or Craigslist listings, public market comps).
- Using basic software for record‑keeping (not for coordinated pricing recommendations).
Industry summaries also emphasize that the ordinance aims at coordinated pricing—not every use of algorithms—so internal analysis that doesn’t aggregate multi‑landlord data is treated differently.
Penalties & Enforcement
- City enforcement: Civil penalties up to $7,500 per violation; each instance for each unit can count separately; City Attorney may recover attorneys’ fees.
- Private lawsuits: A person injured by a violation may sue for up to $7,500 per violation, plus actual damages and attorneys’ fees.
When Does it Take Effect?
The ordinance “takes effect as provided by SMC 1.04.020,” which generally means 30 days after the Mayor’s approval unless otherwise specified. (Ordinance signed July 1, 2025.)
Owner Action Plan (5 steps)
- Audit your tools. Confirm that neither your team nor vendors use “revenue management”/pricing tools that collect and process data from multiple landlords to recommend prices. Disable any such modules.
- Update vendor contracts. Add language prohibiting any coordinating function as defined in SMC 7.34; request written attestations from PM/pricing vendors.
- Set rent the compliant way. Use public comps (listings/estimates that anyone can access) plus property‑specific factors (condition, amenities, local demand). Keep a record of sources.
- Document decisions. For each unit, log the date, sources reviewed, final rent, and approver; save screenshots/notes to your file. (Good records help if questions arise.)
- Train & monitor. Brief staff; revisit annually and whenever software changes. Keep an eye on guidance from the City. (The ordinance tasks SDCI with outreach.)
At GPS Renting, we set rents using publicly available market data and property-specific analysis — not coordinated pricing systems — to ensure compliance with Seattle’s evolving housing laws while protecting long-term owner returns.
FAQ
1. Does this ban all AI tools?
No. The law targets coordination across landlords—collecting and processing data from two or more landlords to recommend pricing/occupancy. Internal tools that don’t coordinate among multiple landlords are treated differently, but get legal advice for your specific workflow.
2. Can I still look at Zillow/Craigslist or public price estimates?
Yes—public estimates and listings that are equally available to everyone and don’t require a contract are expressly outside the “coordinating” definition.
3. Is basic property‑management software okay?
Yes—record‑keeping systems are not a violation on their own (absent otherwise prohibited conduct).
4. What if I used a pricing vendor before?
Stop now, document when you discontinued, and consider a legal consult to assess risk and next steps. The ordinance includes both City penalties and a private right of action.
5. Are short‑term rentals/hotels covered?
No—explicitly excluded.
6. Where can I read the law?
See Seattle’s Legistar record (Ordinance 127241) and the City Council’s summary post for dates and context.
Disclaimer: This article is for general information only and is not legal advice. Laws can change; consult your attorney about your specific situation.
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