The owners of Jersey City will have to set the rent in the old manner.
The City Council of Jersey unanimously voted to prohibit the use of rental software based on AI-RENT by the owners.
The ordinance, introduced by counselor James Salomon, is the first of its kind in the state of the garden.
The modified ordinance violates the code outside the tools of rental software companies such as the RoyalPage or Yardi systems. Proponents of the ordinance claim these tools help owners and real estate management companies artificially inflaze and restrict supply.
Solomon, in a statement provided to the post, called the movement a “daring stand” against the renting collusion.
“With the passage of this legislation first, we are warning the corporate owners: if you use software as Realpage to coordinate the rental ascents, breach the law and now, tenants and the city have the tools to hold you responsible,” the statement states.
The application of the code violations includes the residents’ capacity to sue owners or send complaints to the city on the use of algorithmic rental configuration, according to Salomon.
The detractors of the new ordinance say that the measure does not address the root of the problem: the lack of supply of new homes. Others argue that the language of the bill is too wide and could cause unnecessary penalty for property owners, Gothamist reported.
Jersey City has a documented accessibility problem. The rental prices in the city have increased by 50% since 2015, according to a report of 2024 of the Association Regional Non -profit Plan. The city was the third most expensive city in the country to rent in April, according to Zumper, just after the city of New York and San Francisco.
Prindors of the new PIN ordinance.
These tools, according to the bill, add local prices, supply levels, employment rates and lease details. The information allows owners to increase the profits by selecting the most advantageous rent prices, the leases or the levels of occupation of their buildings.
A 2022 Propbica investigation found faster price increase in cities where Realpage’s performance software was widely adopted by major real estate management companies.
The ordinance is based on a similar bill proposed in the fall of 2024, which is currently stopped in the state legislature, Gothamist reported.
New Jersey Attorney General Matthew Platkin On the alleged use of software that forced “tens of thousands” the residents of New Jersey to pay in excess of rent.
“In this case, the defendants illegally aligned the pockets at the expense of New Jersey tenants who struggled to pay the increasingly essential price levels imposed by this cartel,” Platckin said in a statement.
Realpage and Yardi could not make comments for press time.
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