Blog Post

AN UPDATE ON SHORT TERM RENTAL REGULATION IN SEATTLE

September 19, 2019
The Seattle City Council’s Affordable Housing, Neighborhoods, and Finance Committee met on June 15, 2016 to discuss their proposals for regulating short term rentals. The meeting started with Public Comment, scheduled for twenty minutes on the agenda, that ran for over an hour. Over 50 attendees stepped up to the microphone to share their impassioned testimony in front of the Council Chamber’s standing room only audience, the Committee, and multiple local news cameras.

It was obvious from the comments, and loud audience support, that the majority were there to defend their short term rental related business from additional regulation.

There were several comments from short term rental operators about how this was a tool that allowed them to augment income to pay bills including their mortgage. Some were able to afford retirement by renting a room in their house, for some it was the centerpiece of their retirement plan. A few owners of businesses that manage short term rentals, a cleaning company, and employees of related businesses, all shared that they would be put out of business or a job if the proposed regulations were made law.

Many shared that they utilize a short term rental to house friends and family when they are in town, along with their neighbor’s friends and family who do not have extra space. Some were able to offer housing in areas where there are no hotels, or where hotels are incredibly expensive. Short term rentals offer a place to stay for visitors in town for medical treatment, those moving to town for work and looking for a long term residence or even a place for contractors or interns to stay who are temporarily in Seattle with one of the large tech firms. Some people commented that they are proud to act as a “cultural ambassador” for the city of Seattle with their short term rental.

Several commenters proposed the solution is to tax short term operators and use that money to provide more affordable housing. The audience was very supportive of the suggestion. One commenter suggested that the nice, high end units that are being utilized as short term rentals, once regulated out of the short term rental market, will still be unaffordable to the very people the Council is trying to provide housing for. Many said because of the structure of the regulation they would not be adding their units back into the long term pool at all.

There were one or two comments from those that were or are homeless, supporting the need for more housing. Some condo owners commented that a significant percentage of their building had been converted to short term rentals. Some short term rental owners thought the regulations as proposed were appropriate in their current form and supported the Council.

A commenter posed the following question, which was cheered by the audience: The tech industry has been a major factor in the housing shortage in Seattle, are they going to be made to participate in the solution to create more affordable housing?

 

After the Public Comment period the Committee discussed the proposal for regulation. Points of note from that discussion include the following:

The committee acknowledged the public’s interest in additional taxation as a solution. Member Rob Johnson proposed further discussion on this topic in the next committee meeting.
 A committee member asked why the short term rental proposal was for only 90 days. A member of the group that crafted the proposal stated that they determined that was the breakeven point, by their estimation, at which it made more sense to covert a unit from a short term rental to a long term rental. The audience expressed a lot of dissatisfaction with this suggestion.
The proposed timeline they shared includes another committee meeting on July 20th. A full council vote in August or September 2016 and implementation in 2017.
 

Here is a link to the Seattle City Council’s webpage relating to the regulation of short term rentals: http://www.seattle.gov/council/issues/regulating-short-term-rentals

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June 14, 2021
Last week, one resolution and a series of rental housing bills were passed by the Seattle City Council. They will now be presented to the Mayor for approval and signature. If the bills are signed, (unless otherwise specified), they will become effective 30 days after they are returned to the City Clerk. Resolution 31998 recommends that the city's Covid eviction moratorium, currently set to expire 6/30, be extended through the end of 2021. Plainly summarized, the current eviction moratorium temporarily removes the ability for landlords to: Terminate or give notice of intent to terminate a lease (even term leases) for any reason other than the tenant poses an imminent threat to health or safety Nonpayment of rent and other lease violations must be endured by landlords Prohibits landlords from moving tenants out at the end of a lease term to sell or re-inhabit their own homes (a protection the state order allows outside Seattle city limits) Prohibits raising rent or giving notice of a rent increase CB120046 will shield educators and tenants with minor children from eviction during the school year. Evictions for just cause (including nonpayment of rent) cannot take place during the school year as defined by the Seattle Public School calendar. CB120077 further defines the required language for the eviction process following the eviction moratorium, for the period of time defined by the pandemic emergency. CB120090 effectively ends the practice of term leases, mandating landlords to offer lease renewal to tenants 60 - 90 days prior to lease end dates. Once a housing unit becomes a rental, CB120090 requires that it must now remain a rental until the lease is terminated by the tenant, or if just cause exists to evict a tenant when it becomes legal again to do so, following the covid eviction moratorium. The ordinance also allows tenants the right to rescind a notice of intent to vacate, which could greatly impact the practice of pre-leasing units before the previous tenant has moved out. Students, who secure housing primarily through pre-leasing, will be most impacted, but landlords will also incur longer vacancy time and costs between tenants. Alex Pedersen, a dissenting council member from district 4, made the comment, "We want to be mindful of the financial challenges faced by small housing providers who lack the economies of scale to absorb these costs." Our firm agrees, believing the net effect of these policies on independent landlords, housing supply, and affordability wasn't studied or considered in the council's vote. We anticipate a negative long-term outcome for tenants in particular, resulting from this legislation.
By Melissa Melia August 24, 2020
City dwellers are on the move, and they are moving to the suburbs - trading in micro-apartments for spacious townhouses with balconies and single family homes with outdoor space.
By tim.melia July 2, 2020
Well-maintained common areas speak volumes about a multifamily building and its ownership. Residents notice well-kept grounds, hallways and stairwells, and clean laundry facilities. These areas set a visual expectation for how residents should treat their own dwellings, and are a key component to resident comfort, satisfaction, and safety. Savvy owners recognize common areas as a vital tool for improving resident retention, allowing them to enjoy lower vacancy rates and the ability to command higher rents. Outsourcing common area cleaning carries the added benefit of experienced and consistent eyes on the property, to spot maintenance and other concerns which are exceptionally valuable to building owners managing their properties remotely. Good business practice aside, keeping common areas reasonably clean and safe is a legal expectation in many local municipalities, including Seattle. Recognizing the key role building owners now play, in helping to curb the spread of COVID-19, many owners are taking cleaning a step further with common area sanitization, helping their residents remain safe and healthy at home. The Centers for Disease Control and Prevention (CDC) recommends taking the following actions for effective sanitization1: Hard (Non-porous) Surfaces If surfaces are dirty, they should be cleaned using a detergent or soap and water prior to disinfection. For disinfection, most common EPA-registered household disinfectants should be effective Follow the manufacturer’s instructions for all cleaning and disinfection products for concentration, application method and contact time, etc. Additionally, diluted household bleach solutions (at least 1000ppm sodium hypochlorite) can be used if appropriate for the surface. Follow manufacturer’s instructions for application, ensuring a contact time of at least 1 minute, and allowing proper ventilation during and after application. Check to ensure the product is not past its expiration date. Never mix household bleach with ammonia or any other cleanser. Unexpired household bleach will be effective against coronaviruses when properly diluted. Prepare a bleach solution by mixing: 5 tablespoons (1/3 cup) bleach per gallon of water or 4 teaspoons bleach per quart of water Soft (Porous) Surfaces For soft (porous) surfaces such as carpeted floor, rugs, and drapes, remove visible contamination if present and clean with appropriate cleaners indicated for use on these surfaces. After cleaning: If the items can be laundered, launder items in accordance with the manufacturer’s instructions using the warmest appropriate water setting for the items and then dry items completely. Otherwise, use products that are EPA-approved for use against the virus that causes COVID-19 and that are suitable for porous surfaces. More information is available at www.polishedhousekeeping.com.
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