The Rockville City Council has approved an ordinance updating the city’s landlord-tenant code, including a provision that prohibits the use of algorithmic pricing software to set rental rates.
According to Rockville Councilmember Barry Jackson, the measure makes Rockville the first city in Maryland to enact such a ban.
Algorithmic pricing software uses public and private market data to recommend rental prices to landlords. Critics argue the technology can reduce competition by encouraging similar pricing across properties, potentially driving up rents. The practice is currently the subject of investigations in Maryland and other jurisdictions, while legislation introduced by Julie Palakovich Carr at the state level and a separate proposal before the Montgomery County Council also seek to prohibit its use.
In addition to the pricing ban, the ordinance strengthens and updates Rockville’s landlord-tenant code by clarifying the rights and responsibilities of landlords and tenants and streamlining related procedures.
Jackson, who said he has advocated for banning algorithmic pricing at the city, county and state levels, thanked fellow councilmembers and city staff for advancing the ordinance. He said he hopes other jurisdictions adopt similar measures to promote fair competition and balanced landlord-tenant relationships.
