The California Apartment Association today released an Industry Insights paper to help rental housing providers better understand a new San Diego ordinance that restricts the use of algorithm-driven rent-setting tools. 

The ordinance, titled the Anti-Competitive Automated Rent Price-Fixing Prohibition Ordinance, prohibits landlords from using software that incorporates nonpublic competitor data to recommend rental rates or occupancy levels. It also bans the sale, licensing or provision of such tools to landlords in the city. 

Adopted by the City Council on May 13, the ordinance took effect today, June 12, 2025, and applies to all rental properties in San Diego, without exemptions for property type or ownership size.  

While smaller “mom and pop” rental housing providers are unlikely to have their operations affected — as the types of revenue management software targeted by the ordinance are not commonly used by such owners — the ordinance’s broad coverage means all rental owners should still review their practices. CAA recommends all owners review the paper to make sure they understand whether any tools they use may be within the ordinance’s coverage. 

CAA’s compliance paper outlines the ordinance and flags compliance risks. It recommends that landlords who use or intend to use rent recommendation software talk directly with their service providers to understand how the products work and consult with legal counsel to determine whether those products comply with the ordinance. 

CAA members can access the full compliance paper here.