Minnesota Senate Bill SF2087

Minnesota 2025-2026 Regular Session

• Introduced: 3/3/25
• Refer: 3/3/25

Caption

Use of tenant screening software that uses nonpublic competitor data to set rent prohibition

Impact

The bill seeks to amend Minnesota Statutes, specifically section 504B.245, and would be effective from August 1, 2025. It provides that any individual injured by violations of its provisions may pursue civil action against landlords or residential screening services, enabling claims for damages of at least $1,000 or actual damages plus legal fees. This approach strengthens tenant rights and creates additional accountability for landlords and associated services, which may lead to a shift in how rental services operate.

Summary

SF2087 aims to regulate the use of tenant screening algorithms by prohibiting any screening software that relies on nonpublic competitor data to determine rental prices. Specifically, it restricts landlords from utilizing algorithmic devices that incorporate this type of data in setting rents. The bill emphasizes ensuring fairness in rental practices by eliminating discriminatory practices ingrained in the use of biased algorithms. If enacted, it would substantially impact the fast-evolving housing rental market, especially influenced by technology.

Contention

Notably, there may be pushback from landlords and property management firms regarding the implementation of these restrictions, as they could complicate and potentially increase the cost of tenant selection processes. The bill’s proponents argue that it is a necessary step to combat discrimination and promote equal access to housing by preventing algorithmic bias. However, opponents may highlight concerns over the practicality of enforcing these regulations and potential unintended consequences in their enforcement.