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S 2266Real Estate

Property - Residential Landlord and Tenant Act

Landlords are banned from using AI software based on private competitor data to set rent prices starting in 2027.

Held for study
Population
Affected
65
Email Legislator
Introduced Jan 23, 2026Committee Senate Housing & Municipal Government

Plain-English Summary

This legislation prohibits landlords and property managers from using "algorithmic devices" (software or AI) that utilize non-public data from competitors to set or recommend rent prices. The bill defines these devices and the specific types of data that cannot be used. It aims to prevent price coordination among landlords. Exceptions are made for government housing programs and internal record-keeping. The ban on using such software begins on January 1, 2027. Violations are classified as deceptive trade practices, allowing the Attorney General or affected tenants to take legal action.

For younger readers

Imagine if all the stores that sell toys secretly shared their prices with a computer to make sure everyone charged a lot of money. This bill stops landlords (people who rent out houses) from doing something similar. It says they cannot use special computer programs that look at secret information from other landlords to decide how much rent to charge. This helps make sure that rent prices are fair and not fixed by a computer using secret tricks. If landlords break this rule, they can get in trouble with the law.

Who & Where It Applies

Impacted groups
LandlordsResidential TenantsProperty Management CompaniesReal Estate Software DevelopersReal Estate Agents
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Combats corporate greed and systemic price-fixing in the housing market, potentially stabilizing rents for working-class families and preventing artificial inflation of housing costs.
  • Empowers tenants and the community by classifying the use of these algorithms as a deceptive trade practice, granting the right to sue and seek damages against exploitative landlords.
  • Strengthens regulatory oversight by authorizing the Attorney General to promulgate regulations and enforce penalties against property owners who prioritize profit maximization over fair housing practices.
  • The prohibition does not take effect until January 1, 2027, leaving tenants vulnerable to algorithmic price gouging for several more years before relief arrives.
  • The definition of "nonpublic competitor data" could potentially be circumvented by corporations finding ways to make data technically "public" or aggregated, diluting the bill's effectiveness.
  • While it addresses price-fixing, it does not fundamentally solve the lack of affordable housing supply or provide immediate rent control measures for those currently struggling.
For Conservatives
  • Promotes a true free market by preventing collusion and cartel-like behavior where businesses coordinate pricing rather than competing fairly for customers.
  • Includes specific exemptions for internal record-keeping and accounting, ensuring that businesses can still manage their own finances without excessive government intrusion.
  • Targets specific anti-competitive behavior rather than imposing broad rent controls, preserving the general right of property owners to set prices based on legitimate market factors.
  • Interferes with the rights of private property owners and businesses to utilize available technology and data to maximize the return on their investments.
  • Expands the power of the Attorney General and the government to intervene in private business contracts and dictate what tools a business owner is allowed to use.
  • Creates a new avenue for litigation against property owners by classifying these actions as deceptive trade practices, likely leading to increased legal costs for businesses.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 41 additions

SECTION 1. Chapter 34-18 of the General Laws entitled "Residential Landlord and Tenant Act" is hereby amended by adding thereto the following section: 34-18-63. Determination of rent amount -- Use of algorithmic device prohibited.

(a) Definitions. For the purposes of this section:

(1) “Algorithmic device” means a device, software, tool, or model that uses one or more computer-based algorithms, including machine learning or artificial intelligence, to perform calculations concerning local or statewide rent amounts, occupancy trends, or other rental market data for the primary purpose of advising, recommending, or determining the amount of rent a landlord may charge, including adjustments to existing rent, that is not widely publicly accessible.

(2) “Nonpublic competitor data” means information that is derived from or about other landlords, renters, occupancy, or pricing that is not widely available to the general public, including but not limited to:

(i) Actual current rent prices for specific properties, units, or landlords collected from nonpublic sources;

(ii) Occupancy rates, lease start/end data, or historical rental performance data obtained from proprietary sources;

(iii) Data licensed or shared among participants in a competitive rental marketplace.

(3) “Rent” means the total consideration, fees, or charges a residential tenant is required to pay for occupancy of a residential premises under any rental agreement, including concessions.

(b) Prohibition. Effective January 1, 2027, no landlord, property owner, property manager, agent, or person acting on their behalf shall:

(1) Employ, use, knowingly rely upon, or cause another to employ, use, or rely upon an algorithmic device that incorporates, uses, or was trained using nonpublic competitor data for the purpose of determining, fixing, or suggesting the amount of rent to be charged to a residential tenant; or

(2) Use an algorithmic device to determine any change in rent for a renewed lease term or rent adjustment for an existing residential tenant.

(c) Exemptions. This section does not apply to:

(1) Rent or income limits established by federal, state, or local housing programs where algorithmic tools are used solely to comply with program guidelines;

(2) Tools that produce only historical reporting of aggregate market data published no more frequently than monthly, provided no individualized rent recommendations are made;

(3) Bona fide internal record-keeping or accounting systems that do not influence or set rent amounts.

(d) Enforcement and remedies.

(1) Violations of this section shall be deemed an unfair or deceptive act or practice under chapter 13.1 of title 6 ("deceptive trade practices").

(2) The Rhode Island attorney general, or any person aggrieved by a violation, may seek relief including equitable relief and civil penalties, as appropriate, under § 6-13.1-5 et seq.

(3) The attorney general may promulgate regulations necessary for enforcement of this section, including definitions, exemptions, recordkeeping requirements, and compliance processes.

(e) Severability. Should any provision of this section be held invalid, the remainder shall remain in full force and effect.

SECTION 2. This act shall take effect upon passage.