WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
1(a)–(f) 1. The Legislature finds and declares that: a. New Jersey is in the midst of an affordable housing crisis, as demonstrated by rental housing industry data showing median rent for a three-bedroom apartment increasing by 35 percent in the State from 2021 through 2024 and a studio in a more urban environment such as Hoboken increasing by 61 percent in the same timeframe. b. Data from the United States Census Bureau indicates that over 50 percent of renters in New Jersey are deemed "rent burdened," which means an individual spends more than 30 percent of income on rent. c. Recent national data indicates that landlords of residential rental housing use property management software to collude and raise residential rental housing prices, which may have contributed to recent increases in the State. d. Landlords engaging with the software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices. As a result, competition decreases and typically rental prices increase. e. A leading property management software company in the United States hinted at the outcome of using its software by stating on its website that it enables landlords to "outperform the market" by two to five percent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 percent. f. New Jersey recognizes housing as a basic human need and endeavors to expand access to affordable housing.
This section sets forth the Legislature's findings regarding New Jersey's affordable housing crisis, citing median rent increases of 35 percent statewide and 61 percent in urban environments from 2021 through 2024, and noting that over 50 percent of New Jersey renters are rent-burdened. The findings identify property management software used by landlords to share real-time pricing data and receive algorithmic price recommendations as a contributing factor to reduced competition and increased rental prices.
2. As used in this act: "Coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2 from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner. "CoordinatorCoordinator"Coordinator" means any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Section 2" means any personPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2 who operates a software or data analytics service that performs a coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2 for any rental property owner, including a rental property owner performing a coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2 for their own benefit. "PersonPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2" means, unless the context otherwise requires, any natural personPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2 or personsPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2, or any corporation, partnership, company, trust, or association of personsPerson"Person" means, unless the context otherwise requires, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.Section 2. "Residential dwelling unitResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unitResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.
This section defines the key terms used throughout the bill. Coordinating function is defined as a three-part process: collecting pricing, supply, or lease data from two or more rental property owners; algorithmically analyzing that data; and recommending rental prices, lease terms, or occupancy levels. Coordinator covers any person operating software or data analytics services that perform this function, including a rental property owner who self-performs. The definitions are intentionally broad — a coordinator need not be a third-party vendor, and the coordinating function captures any computational system including algorithm training.
(a) 1 3. It shall be unlawful and a violation of the "New Jersey Antitrust Act," P.L.1970, c.73 (C.56:9-1 et seq.) for: a. a rental property owner, or any agent, representative, or subcontractor thereof, to subscribe to, contract with, or otherwise exchange any form of consideration in return for the use of services of a coordinatorCoordinator"Coordinator" means any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Section 2;
(b) 2 b. a coordinatorCoordinator"Coordinator" means any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Section 2 to facilitate an agreement among rental property owners that restricts competition with respect to residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.Section 2, including by performing a coordinating functionCoordinating function"Coordinating function" means: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system, software, or process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Section 2.
This section creates two distinct prohibitions, both declared to be violations of the New Jersey Antitrust Act. Subsection (a) prohibits rental property owners — and their agents, representatives, or subcontractors — from subscribing to, contracting with, or otherwise exchanging consideration for the services of a coordinator. Subsection (b) prohibits coordinators from facilitating agreements among rental property owners that restrict competition with respect to residential dwelling units, including by performing a coordinating function. Together, these provisions target both the demand side (landlords using algorithmic pricing tools) and the supply side (vendors offering those tools).
4. This act shall take effect on the first day of the fourth month next following the date of enactment.
The act takes effect on the first day of the fourth month following enactment. Because the bill has not been enacted, the effective date is not yet determinable.