Michigan Senate Bill SB0794

Michigan 2025-2026 Regular Session

• Introduced: 2/19/26
• Refer: 2/19/26

Caption

Housing: landlord and tenants; use of certain software to share pricing information and set rent rates; prohibit. Amends title & sec. 1 of 1972 PA 348 (MCL 554.601) & adds sec. 1e.

Impact

If enacted, SB 794 would significantly alter the current landscape of rental agreements in Michigan. The legislation would introduce specific guidelines around acceptable pricing practices, effectively limiting landlords' ability to use certain data-driven techniques for setting rental rates. This could lead to a stabilizing effect on rental prices by preventing collusion among landlords, but it also raises questions about how landlords will adjust their pricing strategies in the face of these regulations. The bill aims to create a fairer housing market while providing legal remedies for violations, which could empower tenants against exploitative practices.

Summary

Senate Bill 794 seeks to amend existing regulations concerning the relationships between landlords and tenants in Michigan. The bill specifically addresses the use of algorithmic pricing devices that landlords might use to set rental prices for their units. By prohibiting the use of algorithms that utilize nonpublic competitor data to determine rent, the bill aims to curb potential abuses in pricing strategies that could distort the rental market and create unintended consequences for competition among landlords. This regulation is seen as necessary to protect prospective tenants from inflated rental prices driven by unfair competitive practices.

Contention

The discussions surrounding SB 794 have already highlighted notable points of contention, particularly among property owners and housing advocates. Proponents of the bill argue that it is essential for maintaining affordability and fairness in the rental market, especially in light of rising housing costs. However, opponents have raised concerns about the potential overreach of regulation, suggesting that restricting landlords' pricing strategies could limit their ability to manage properties effectively and impact their economic viability. Critics may argue that innovative pricing models could actually benefit tenants by making housing more accessible, countering the bill's intent to clamp down on such practices.