Residential Leases - Use of Algorithmic Device by Landlord to Determine Rent - Prohibition
Impact
If enacted, this bill will lead to significant changes in how landlords set rental prices in Maryland. It will ensure that rent determinations are not influenced by complex algorithms that use competitor data, which could potentially lead to inflated rental amounts that do not reflect actual market conditions. By prohibiting the use of such technology, the bill aims to create a fairer housing market where rental rates are based on transparent and publicly accessible information rather than proprietary algorithms that may misrepresent the rental landscape.
Summary
House Bill 817 aims to prohibit landlords from using algorithmic devices to determine the amount of rent charged to residential tenants. The bill specifically defines 'algorithmic devices' as any tools that use algorithms to calculate real-time or historical rental data, thereby influencing rent prices. By disallowing such practices, HB817 seeks to protect tenants from potential unfair pricing practices that may arise from the misuse of proprietary data, particularly 'nonpublic competitor data.' This data could include sensitive information about market trends that may not be readily available to the general public, thereby giving an unfair advantage to landlords who might exploit it.
Contention
The bill may face opposition from certain real estate and landlord associations who may argue that the use of technology can streamline the rental pricing process and provide landlords with necessary market insights. Critics of the bill may contend that it limits landlords' ability to make informed decisions based on legitimate market analysis tools. However, supporters advocate that the protection of tenant rights and the stabilization of rental prices take precedence over the operational benefits for landlords, emphasizing the potential risks involved in algorithmically derived rent calculations.