New York Prohibits Algorithmic Rent-Setting Tools for Landlords – Effective December 15, 2025
Recently, Governor Kathy Hochul signed Assembly Bill A1417B, prohibiting residential landlords and property managers from using algorithmic or data-driven software to determine or adjust rents, lease renewals, or occupancy levels.
Effective December 15, 2025, the new General Business Law § 340-b makes it unlawful for property owners and managers to knowingly or recklessly rely on any pricing tool that performs a “coordinating function,” such as collecting and analyzing market data from multiple owners to generate rent or leasing recommendations.
The law expands New York’s antitrust protections under the Donnelly Act and could expose property owners to significant penalties, including fines of up to $1 million per violation for corporations. The prohibition applies even when the data used is publicly available, with limited exceptions for affordable and rent-regulated housing programs.
With the law taking effect soon, property owners should promptly review any rent-setting or pricing software to ensure it doesn’t rely on algorithms to coordinate shared industry data or automate pricing.
Kucker Marino Winiarsky & Bittens LLP is assisting owners and property managers to conduct compliance reviews, audit vendor systems, and implement risk-mitigation measures ahead of enforcement. Contact our team to schedule a review of your leasing technology and confirm your portfolio is protected before the December 15 deadline.
Media Contacts:
Valerie Shutack
Kucker Marino Winiarsky & Bittens, LLP
(212) 869-5030
vshutack@kuckermarino.com
