November’s Impact on the Rental Housing Industry
Just when rental housing providers thought all they had to worry about was rent control misconceptions, along comes more detrimental industry misconceptions. Algorithm-driven revenue management tools are the newest attack owners/operators must deal with. Legislators have introduced industry crushing bills that could drastically affect national daily operations.
Senator Amy Klobuchar (D-MN) introduced S.3686 - Preventing Algorithmic Collusion Act of 2024. This bill aims to expand federal anti-trust laws and close loopholes that allow businesses to lawfully utilize algorithm-based technologies. These technologies benefit owners/operators by preventing online fraud, a massive thorn in a property manager’s side. While it’s unlikely this bill will pass this Congress, next year could be a different story.
Senator Ron Wyden (D-OR) also introduced industry crushing legislation. S. 3692 Preventing the Algorithmic Facilitation of Rental Housing Cartels Act of 2024 would make it unlawful for housing providers to contract for revenue management services and prevent price coordination between multiple owners. The title alone is reason enough to show up to the polls. Rental housing providers feel called to provide a necessary good/service to their community. Being compared to criminals is ridiculous, hurtful, and ignorant. Owners/operators have struggled for years to overcome negative misconceptions, and this horribly named bill doesn’t help. Words matter. It’s everyone’s civic responsibility to hold unfriendly industry legislators accountable this fall.
However, not all hope is lost. The H.R. 802-Respect State Housing Laws Act recently passed out of the House Financial Services Committee and will hopefully head to the House Floor. Local industry supporter, Congressman Ralph Norman (SC-05), voted for the bill that removes the 30-day notice rental property owners must give residents before they can begin the eviction proceedings. The CARES Act 30-day notice to vacate pandemic-era legislation costs rental housing providers thousands of dollars a year that could be spent elsewhere. By forcing owners/operators to spend more money out of pocket, they are forced to increase rents to cover the costs. Removing this outdated law is the key to creating housing affordability across the country. Because it’s a short session due to the election, this bill would need to move quickly to become law. It’s important to thank local elected officials for their continued support as they fight for the rental housing industry and remember their efforts on Election Day.