SB 5469 Could Make Property Management Software Illegal

SB 5649 is a statewide ban on algorithmic price setting. At first glance, this seems like a great bill, but the rental housing industry has some serious misgivings.

The final bill that will head to Senate includes the following text:

(2) It is a violation of this chapter for any service provider, 17 in or affecting commerce, to coordinate two or more landlords.

The blanket inclusion of "coordinating" or "coordinate" as it pertains to service providers could unintentionally criminalize ALL property management activities, appraisal, financing and the ownership of multiple properties.

If read broadly enough, SB 5469 could criminalize property management software.

Management companies or individual managers with multiple LLCs may be in violation of this law as written if they use software to collect rent or manage rentals if that software uses artificial intelligence to analyze rent price data. SB 5469 could make it illegal to maintain historical rent records on your properties.

Although the intention of this law is good, this law as written can create some serious complications for housing providers in Washington State. We need your help to reach out to the legislature to make sure that you can continue to use your software of choice to manage your business.

Submit your comments on the bill, sign up to testify, and get in touch with your Senator to make your voice heard!