The Seattle City Council has passed its rental fee regulation ordinance, ending months of debate over rental fee transparency and regulation, and removing the word “junk fees” from the ordinance.
“This is a significant step forward in making Seattle a more affordable place to live and work, and giving renters the clarity and confidence they deserve,” said city attorney Erika Evans. “Good landlords who play by the rules will benefit, too, as we hold bad actors accountable by making the housing market fairer and more transparent for everyone.”
Fees for some administrative services, like application screenings, security deposits, move-in, pet damage deposits, late rent, utilities, key replacements, lockouts, insufficient payments, reimbursements for qualified and documented landlord expenses, and tenant liability for defaulting on rent or abandoning the unit will still be permitted.
The Washington Multi-Family Housing Association (WMFHA) said it secured several important improvements to the final legislation, including an extended implementation date of July 2027, new right-to-cure provisions, and changes allowing the Seattle Department of Construction and Inspections to pursue voluntary compliance.
“All of the goals of the legislation could have been accomplished without negatively impacting tenants. Despite persistent engagement by the industry, Seattle City Council adopted a politics-first approach driven by populist sentiment instead of sound policy,” WMFHA said. “We expect the ordinance to have real consequences for Seattle renters, including:”
- Higher rents as providers absorb increased compliance and liability costs, pet-related expenses, and costs associated with uninsured and underinsured resident-caused losses.
- Longer commutes and more traffic as advertised rents in Seattle artificially increase, driving potential tenants to outlying areas.
- Fewer pet-friendly housing options and amenities as providers lose the ability to charge recurring pet rent.
- Challenges around renter’s insurance, potentially leaving residents underinsured for liability or double-paying in order to obtain personal-property coverage.
- Less access to optional services even in luxury buildings like on-demand package delivery, valet trash, and building-wide internet.
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