The Washington State Senate voted last Tuesday to pass House Bill 1694 by Rep. Melanie Morgan (D-Parkland), to allow residential tenants to pay initial move-in fees, including deposits, nonrefundable fees, and last month’s rent in monthly installments. The House previously passed the bill in mid-February.
Rep. Morgan worked collaboratively with housing stakeholders and Senators to strengthen protections for both tenants and landlords. The bill was amended to allow landlords to seek reimbursement from the landlord mitigation account when a tenant fails to complete their installment payments. Additionally, holding fees are limited to no more than twenty-five percent of the first month’s rent. Landlords are subject to a fine of one month’s rent if they refuse to allow installment payments. The fine is payable to the tenant.
Because of these efforts, the bill earned a bipartisan vote in the Senate.
The 29th Legislative District that Rep. Morgan represents is in desperate need of affordable housing. HB 1694 will help to reduce barriers that Washingtonians encounter to obtain and maintain affordable housing.
“As a former renter, I know firsthand how hard it can be to come up with many thousands of dollars to put a roof over my children’s heads. These fees can easily reach $5,000,” said Morgan.
In all cases where premises are rented for a specified time that is three months or longer, the tenant may elect to pay in three consecutive and equal monthly installments, beginning at the inception of the tenancy.
In all other cases, the tenant may elect to pay in two consecutive and equal monthly installments, beginning at the inception of the tenancy.
A landlord is not required to permit a tenant to pay in installments, if the total amount of the deposits and nonrefundable fees do not exceed 25 percent of the first full month’s rent and payment of the last month’s rent is not required at the inception of the tenancy.
Morgan continued, “This policy has been working well for tenants and landlords in Tacoma, Burien and Seattle. It is now time to implement this policy statewide.”
This is a priority bill for low-income tenant advocates.
John Arbeeny says
Not only does government tax the heck out of your real estate investment, but now they’re your business partners too! Installment payments??? That’s another word for “no security” for landlords. Apparently these politicians have never owned a residential rental. What do you think happens when a tenant moves out of their previous rental? If they’ve been good tenants they get back their ENTIRE security deposit, not in installments but all at once! That security deposit is then applied on the new residence. Put enough pressure on landlords and they’ll sell their investments leaving fewer affordable rentals on the market. What’s next? Rent control?
The “homeless crisis” has nothing to do with rents. People are homeless due to mental illness, substance abuse and lack of a means of employment….none of which are “solved” by installment payments to landlords. Working well for Tacoma landlords??? Baloney! I am one and I’ve never rented a property to a homeless person: they simply fail the application criteria…like how about having an income?? Or references? Or good credit? Or clean criminal record? This is nothing more than an attempt to distract the public from the homeless crisis which is government caused and supported. Rather than dealing with mental illness, substance abuse and lack of employment which are at the core of the problem, politicians feel the need to do something, anything, to appear as though they “care”. Deal with the real homelessness problems and leave those like landlords who have nothing to do with the problem out of your “solutions”.
Rep. Morgan apparently can’t do math either. She already has to have the next month’s rent on hand….she would have to even if she didn’t move, so that’s 1/3rd of the problem solved. She would get her security deposit back if she didn’t do any more than “fair wear and tear” to the property she’s leaving. That’s 2/3rds of the “problem” already solved. The last 1/3rd is probably prepaid last month’s rent and typically most landlords don’t charge that up front. Even if they did charge it, at the end of her tenancy she’d have not had to pay the last month’s rent, saved it plus first month rent on hand on the new place plus security deposit returned: 3/3rds and problem solved. This legislation is what happens when politicians don’t know what the hell they’re talking about.
Joseph Boyle says
John Arbeeny,
I spent 40+ years as a real estate owner, landlord, and property manager before retiring in an effort to escape government interference with our free enterprise system such as Lakewood’s Rental Safety Inspection program. I was a renter too.
Now this installment payment plan. Politicians are ignorant when they think a property owner wants to turn the keys to a $100,000 + property over to someone who is not qualified to pay the upfront transition move-in costs.
Many landlords will never see the installments. If I were willing to accept installments, I would not require the fees in the first place.
I have a thought. If the installment idea is so wonderful for tenants and landlords alike, why not establish a program where landlord losses caused by deadbeats failing to make the installments are reimbursed from the politician’s retirement fund? If confiscating money from landlords is okay, then confiscating money from politicians makes even more sense.
As a landlord, I put up a $100,000 plus property and the tenant puts up a measly amount of money in exchange for the privilege of taking possession of my property.
I took all my rentals off the market which meant they were no longer available for housing the tenant population. A key reason for me refusing to provide rental property is government interference.
Mr. Arbeeny, your every word and concept is right on target.
Joseph Boyle
Marie Thompson says
After my last long-term tenant, I have refused to stay in the rental business. I was successful for over 30 years, enjoyed my business, and had many tenants who stayed years. One less very nice home available. Our society has seriously changed!
Daniel W. Dodge says
Once the landlords sell their properties, there will be no private housing for the tenants. I am selling my rentals. Landlords are being eliminated by the State of Washington. Tenants will be the long term losers.
Daniel W. Dodge says
The available rental properties are shrinking and the rents will rise because of the shortage. I am selling my rentals. I have had my fill of unreasonable rules and regulations. We have been heading in the wrong direction, and there will be unintended consequences like fewer properties to rent. Good luck to all of the future tenants!