Virginia Residential Landlord and Tenant Act; algorithmic pricing devices, report.
Impact
The legislation aims to provide safeguards for tenants against potential exploitation through opaque pricing mechanisms. By requiring disclosures, HB2047 seeks to ensure that tenants are not subjected to unjust rental rates determined by algorithmic processes that might incorporate unfair market practices. Furthermore, the bill establishes an oversight mechanism through the appointment of an Algorithmic Rent Pricing Ombudsman responsible for handling tenant complaints and ensuring compliance with the new regulations.
Summary
House Bill 2047 (HB2047) proposes amendments to the Virginia Residential Landlord and Tenant Act, specifically addressing the use of algorithmic pricing devices in setting rental prices. The bill introduces new sections to the Code of Virginia that detail the definition of algorithmic pricing devices and establish requirements for landlords who utilize these devices to determine rent. Notably, landlords will be mandated to disclose their use of such devices to prospective tenants, allowing them to make informed decisions prior to entering into rental agreements.
Authority
HB2047 mandates the Virginia Housing Commission conduct a one-year study on the effects of algorithmic pricing devices in housing to assess their impact on systemic biases within the housing market. This study will culminate in a report with findings and recommendations, which will be presented to relevant legislative committees by November 1, 2026.
Contention
While the bill has received support for adding transparency to rental practices, there is contention regarding the potential administrative burden it places on landlords. Critics of the legislation argue that imposing stringent rules could deter investment in rental properties and complicate the rental process for both landlords and tenants. Additionally, concerns have been raised about how the definitions and regulations around algorithmic pricing devices may impact landlords who use such tools in good faith.
Housing: landlord and tenants; use of certain software to share pricing information and set rent rates; prohibit. Amends title & sec. 1 of 1972 PA 348 (MCL 554.601) & adds sec. 1e.