Weekly Real Estate News
A federal court has approved a $2.3 million settlement that resolves charges that SafeRent, an artificial intelligence (AI) screening tool used by landlords, used its algorithm scores to determine if a rental housing applicant using vouchers should be approved as a tenant.
Under the terms of the five-year settlement, SafeRent will cease displaying tenant screening scores for applicants who rely on housing vouchers – even if landlords use the “affordable” SafeRent Score model. Furthermore, the SafeRent’s service can no longer offer accept or deny recommendations on applicants using housing vouchers.
The settlement resolves a 2022 class action lawsuit in Massachusetts that claimed the people using housing vouchers were negatively impacted by SafeRent’s scoring system disproportionately harmed, with a disproportionately high number of Black and Hispanic applicants being impacted.
The SafeRent settlement is the latest legal development involving algorithm-driven property management software. In August, RealPage was sued by the U.S. Department of Justice over allegations that software contributed to rent hikes.
Unfortunately, in my experience as a property manager, applicants using housing vouchers (aka Section 8) way too often tend to add undisclosed co-tenants, who would have been declined for criminal background/ history regardless of race or ethnic background. In addition, there is often greater disrespect/ abuse for the property than direct pay tenants.
The requirements of various “housing authorities” can add other “conformity/ compliance” expenses such as window screens on housing which lacks cross-ventilation in the first place.
Too often co-payments can be problematic, whether from the authority or tenant or both.
Clearly, the exclusion of sec 8/ voucher tenants isn’t without merit.
Evictions for good cause, such as non-payment
The comment above this is a perfect example of bias, discriminative opinions that so many landlord and property managers have. They judge them all after a few experiences they encountered. Shame on you and this is why more class action suits will begin to roll in with the ne AI BS.