- When Seattle passed Ordinance 121000 back in July, it seemed that much of the industry’s concern stemmed from the ambiguity of the language, or at least how easily it could be misinterpreted. Two particular questions troubled me: Did the City actually intend to prohibit the use of publicly available information, or was that simply an unintended consequence of unclear language? This distinction matters, because the Department of Justice, through its proposed settlements with Cortland and Greystar, explicitly targeted the use of non-public competitor data. So the question is: was Seattle deliberately creating a stricter rule, or was that never the intent?
- Were interpretations correct in claiming the Ordinance banned all third-party software? Our view has always been that a straightforward reading of the law does not prohibit third-party software, as long as that software excludes competitor data. We explained this in our blog on the Ordinance. However, at the time, we were relying on a commonly shared interpretation rather than definitive legal confirmation.
I remember telling our attorneys and senior executives that I wished there were a way to ask the City what they meant. We searched for ways to get a clear answer. Ultimately, we accepted that we might never know for certain, so we focused on clearly explaining why we were confident in our interpretation and trusted that logic would prevail. As luck would have it, the City of Seattle took the initiative to issue specific guidance to all housing providers, clearly answering both questions in their Renting in Seattle Update back on September 17, 2025
The most relevant sections of the letter are pasted below (italics are theirs; yellow highlights are mine to emphasize the key points):
The bill prohibits the use of computer software that generates rent recommendations using data from other rental properties—whether the data is publicly available or nonpublic in nature.
- Landlords are not allowed to use pricing software that aggregates data from unaffiliated third-party properties to be used in the calculations of rents or rent recommendations for their property.
- Only data from the landlord’s own property may be used by the pricing software to make rent recommendations or set rent—such as, but not limited to, the unit's historical rent, location, size, and amenities.
- Any pricing software used must comply with this restriction or be discontinued by July 31st.
The first paragraph answers question one. The City did intend to ban the use of even publicly available competitor date. This was not a mistake.
Regarding the legality of using third-party software (question two), the City clearly anticipates that such tools will continue to be used, provided they comply with the new rules. If the intent were to ban third-party algorithmic pricing altogether, the Ordinance would have stated that directly—instead of outlining conditions for compliance. We commend the City for taking the time to clarify its intent. With California and New York adopting nearly identical language in their recent laws, we’re even more confident in our interpretation and approach. As the initial hype and uncertainty fade, clearer understanding has emerged and we’re proud to affirm that REBA Rent has always been, and remains, fully compliant with the Seattle Ordinance as well as California and New York regulations.
Operators using any pricing software, whether third-party or home grown, should take a hard look under the hood to confirm their practices fully align with the law.
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