California may soon ban landlords from using AI-powered tools to help price their rentals. Senate Bill 52 (SB 52), also known as the End AI Rent Hikes Act, is advancing through the legislature—and it could significantly impact how landlords set rent in California.
Staying compliant in California’s fast-changing rental market takes more than guesswork. At Good Life Property Management, we help landlords stay informed and competitive while navigating new laws. If you want help setting the right price for your rental—without crossing legal lines—schedule a call with our team today. We’ll help you price confidently and protect your rental business.
Key takeaways
- SB 52 aims to ban AI rent-setting tools in California.
- The law could disproportionately affect small landlords who rely on tech for pricing help.
- It adds another layer of regulation to California’s rental market.
- Housing supply, not algorithms, is the real problem.
Table of Contents
Why SB 52 Should Be on Your Radar
This summer, California lawmakers advanced SB 52, also called the “End AI Rent Hikes Act.” Championed by Senator Sasha Renée Pérez (D-Pasadena), the bill aims to ban the use of AI-based rent-setting tools. It has already passed the State Senate and is now moving through the Assembly.
While it’s marketed as a consumer protection law designed to prevent rent gouging, landlords need to understand what’s really at stake—and how it could affect small and independent housing providers across California.
What SB 52 Proposes to Do
SB 52 seeks to ban rent pricing algorithms that:
- Analyze neighborhood trends
- Pull local occupancy rates
- Benchmark comparable units
- Use historical data to suggest optimal pricing
The bill stems from a U.S. Department of Justice lawsuit targeting RealPage, a rent-setting software used by large property management firms. The concern is that these algorithms may result in higher rents through coordinated pricing.
But there’s a catch: tools like Zillow Rent Zestimate, Rentometer, or Cozy rent calculators are commonly used by small landlords just trying to stay competitive. SB 52 doesn’t differentiate between large-scale corporate collusion and everyday tech tools used for insights, not manipulation.
What It Means for California Landlords
Here are the real-world implications if SB 52 becomes law:
- Loss of Competitive Insight
Most small landlords don’t have a research team or access to real-time market data. AI tools help level the playing field. Banning them may cause landlords to under- or overprice units, leading to longer vacancies or lost income. - More Legal Gray Area
What counts as an AI tool? Would even a rent comparison spreadsheet that uses external API data qualify? The lack of clarity puts landlords at risk. - Further Regulation Creep
Just like California’s rent control law (AB 1482), SB 52 could be the start of more oversight over how landlords operate—all under the guise of protecting tenants. - Reduced Rental Supply
If landlords can’t use tools to efficiently set rent, some may choose to exit the market altogether—shrinking the already tight housing supply.
What Lawmakers Are Using to Justify It
- A White House report claims algorithmic pricing may cost renters $3.8 billion annually.
- Legislators cite a 9% increase in homelessness for every $100 hike in rent.
But these stats lack context. The root of California’s housing crisis is supply and permitting delays—not AI tools.
Tips for Setting the Right Rent (Without AI)
Worried about how to price your rental without using AI tools? This video outlines four practical strategies to help you price your property competitively:
You can also get a head start with these tools from Good Life:
What You Can Do Now
SB 52 is not law yet, but it’s gaining momentum. Here’s how landlords can push back:
- Contact Your Assemblymember
Ask them to vote NO on SB 52. You can use this lookup tool to find your representative. - Share Your Experience
Lawmakers need to hear how small landlords use AI tools to stay afloat—not gouge renters. - Review Your Rent-Setting Methods
Audit the software or tools you use. Be ready to explain your methods and ensure compliance if this law passes.
Want Help Navigating California's Rental Laws?
At Good Life Property Management, we help landlords across Southern California stay ahead of legislation and run profitable, compliant rentals. Let us take the stress out of property management so you can enjoy peace of mind.
Schedule a call today to talk with a Good Life expert.
FAQs About SB 52
1. What is SB 52 in California?
SB 52 is a proposed law that would ban landlords from using AI-based rent pricing algorithms.
2. Does SB 52 apply to small landlords?
Yes. The bill doesn’t distinguish between large corporations and small property owners.
3. Is SB 52 already a law?
Not yet. It has passed the Senate and is now under consideration in the Assembly.
4. Why is AI rent pricing under fire?
Lawmakers argue that algorithmic rent tools can lead to price fixing and higher rents.
Resources and Useful links:
Steve Welty
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