Blog Post

Seattle Rental Legislation Update

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. 

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