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RealPage, landlords and tenant advocates clash at committee over motion to study algorithmic rent-setting
Summary
Dozens of public commenters urged the committee to act on a motion to study or ban algorithmic pricing tools used by landlords; industry groups argued the technology is a management tool and urged caution before any ban.
The committee heard extended public comment on a motion asking the Los Angeles Housing Department to report on how many ownership and management companies use algorithmic software to set rents and the feasibility of a ban.
The item (agenda Item 13) is a staff report request rather than an ordinance; it will return to the committee as a report. Dozens of speakers took opposing views at the meeting: tenant advocates said algorithmic pricing software has facilitated illegal rent spikes after the recent fires, while property-industry groups said the tools are research and management products whose recommendations landlords may accept or reject.
Lisa Gritzner, representing RealPage, said the company's tools can help property owners comply with emergency orders and provide features to "hold rents flat" or to suspend automatic payments. "RealPage customers decide their own rental prices," she said.
Business groups urged caution. Chris Wilson of the Los Angeles County Business Federation (BizFed) said the proposed notice requirements are unnecessary because the city already requires notices under the 2023 just-cause ordinance. "It is against basic privacy principles to require owners to notify the city before notifying the renter," he told the committee.
Tenant advocates pressed for more aggressive action. A Sage representative called for a rent-increase formula that would cap annual increases at 3 percentage points and remove additional occupant and utility-based bumps. A representative of Strategic Actions for a Just Economy told the committee there were "over 1,300 verifiable instances of rent gouging since January 7th," and said algorithms were implicated in some of those cases.
Real-estate industry representatives warned the committee about legal risk and urged careful study. Gerard Wright of the Greater Los Angeles Realtors said the housing shortage, not technology, is the main driver of price increases and flagged potential conflicts with state law including AB 2347.
Committee members did not vote on the motion at the meeting; the item remains on the committee's agenda for a forthcoming report from LAHD.
Ending: The committee's next steps are procedural: LAHD will prepare the requested report on algorithmic pricing usage and the feasibility of a ban, and the motion's sponsors and opposing stakeholders will have opportunities to respond as the committee considers policy options.
