Beware Using AI For Tenant Screening

A recent lawsuit provides a cautionary tale for landlords regarding the use of artificial intelligence in tenant screening. In Louis, et al. v. SafeRent Solutions, et al., Case No. 1:22-cv-10800, filed in the United States District Court for the District of Massachusetts, the Plaintiffs alleged that SafeRent’s use of AI in tenant screening resulted in discrimination.

The case centered on claims that SafeRent’s algorithmic scoring system disproportionately disadvantaged Black and Hispanic applicants, particularly those using housing vouchers, by relying heavily on credit information and failing to account for voucher benefits. The lawsuit alleged violations of the Fair Housing Act and Massachusetts state discrimination laws.

The judge in the case has approved a settlement totaling $2.275 million. The settlement required SafeRent to cease using unvalidated scoring models for applicants with housing vouchers unless validated by organizations like the National Fair Housing Alliance. Additionally, SafeRent agreed to educate landlords on the implications of its scoring models for housing voucher applicants.

This case illustrates the complexity of using AI in any kind of regulated industry, and the risks to unwitting users. Kennyhertz Perry’s AI group helps clients navigate this complexity and take advantage of AI’s enormous potential.

By Jon Dedon, Kennyhertz Perry, LLC

About Kennyhertz Perry, LLC

Kennyhertz Perry, LLC is a business and litigation law firm representing clients in highly regulated industries. The firm was founded by two veteran Kansas City attorneys, John Kennyhertz and Braden Perry. To learn more about the firm, visit kennyhertzperry.com.

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