SEATTLE NEWS ARCHIVES & FEATURES

Is the Seattle City Council partially responsible for rent increases?

May 4, 2018, 2:57 PM | Updated: May 7, 2018, 1:41 pm

secondary cities, seattle sustainability...

(File, AP Photo/Ted S. Warren, file)

(File, AP Photo/Ted S. Warren, file)

Though it’s slowed of late, Seattle rents are among the fastest-rising in the nation. But this may be partially due to the Seattle City Council itself, argues William Shadbolt, the landlord board president of the Rental Housing Association of Washington (RHAWA).

The RHAWA and Pacific Legal Foundation last week launched a lawsuit against the City of Seattle alleging that the law banning rental denial based on criminal records is unconstitutional. Under the law, landlords cannot screen applicants based on criminal convictions.

KTTH’s Todd Herman pointed out, “If you’re a landlord with a small rental unit and you’ve got a single mother and her two daughters living next door, and this guy comes in and wants to rent next door, and you get a real bad feeling. If he’s first come, and he has the money, you’ve got to let him in.”

Landlords like Shadbolt are concerned that over-regulation and taxes are exacerbating the financial risk of managing small properties.

“You have to deal with federal rules. You’ve got to deal with the residential Landlord-Tenant Act in the State of Washington,” said Shadbolt. “Then in Seattle there’s an inordinate amount of regulation.”

RELATED: After years of spiking prices, Seattle rent growth slowing

Shadbolt pointed to the ban on criminal records, as well as the First-in-Time law, which forces landlords to take the first renter that applies and meets the criteria. It was recently struck down by a Superior Court judge, but the City of Seattle has filed an appeal.

For many landlords, the issue is not merely about rent being paid, it’s about protecting the property against risk.

“If somebody damages it, is there something to go after? You can’t garnish social security income, you can’t garnish a Section 8 voucher,” Shadbolt said.

“So in that case you’ve got people coming out of prison, and the Department of Corrections gives them a three-month voucher. As long as they meet your rental property standards, under the First-in-Time, you’ve got to rent to them.”

The small landlord is just giving up

The virtual jungle of regulation and potential risk is causing many small-property landlords to vote with their feet and leave the housing industry.

“The amount of time and effort that I’ve got to figure out all these all these regulations, and the risk that comes with them,” Shadbolt said. “I might as well put my money in the stock market. Literally thousands of small landlords have sold their properties in the City of Seattle because of the failures of the City of Seattle council, and that’s taken ten of thousands of units off the market.”

“And there goes an affordable place for some people to live,” Todd added.

According to Shadbolt, the single-family homes become owner-occupied, the duplexes and triplexes get scraped down and turned into town homes, and smaller apartments are bought by investors, who see it as an opportunity to raise the below-market rent.

“So the City of Seattle council is directly responsible for tenant’s rents going up.”

The statue Contemplation of Justice at the Supreme Court is seen at day's end in Washington, Thursd...

Associated Press

Supreme Court rejects effort to revive Khalid Sheikh Mohammed plea deal

WASHINGTON (AP) — The Supreme Court on Monday rejected an effort to revive a plea deal for Khalid Sheikh Mohammed, the accused mastermind of the attacks on Sept. 11, 2001. The agreement would have spared Mohammed the risk of execution in exchange for his guilty plea and a sentence of life in prison without parole. […]

10 minutes ago

SR 18 crash tiger mountain...

Frank Sumrall

Crash near Tiger Mountain summit shuts down all westbound SR 18 lanes

All westbound lanes of SR 18 are currently blocked at I-90 in Snoqualmie due to a crash near the Tiger Mountain summit.

26 minutes ago

bird flu...

KIRO 7 News Staff

Yakima resident tests positive for bird flu

A person in Yakima County has tested positive for avian flu, otherwise known as bird flu, according to the Yakima Health District and Washington State Department of Health.

45 minutes ago

october seattle driest...

Ted Buehner

Seattle on track for one of its driest Octobers on record

The driest October on record was back in 1895, when records were kept in downtown Seattle. Only 0.02 inches of rain fell that month.

46 minutes ago

Grays Harbor County Bus Crash...

KIRO 7 News Staff

One dead, two injured after head-on crash with transit bus in Grays Harbor County

One person is dead after colliding head-on with a transit bus in Grays Harbor County, Washington State Patrol (WSP) Trooper Katherine Weatherwax confirmed Sunday night.

1 hour ago

Associated Press

Japan and the US kick off joint drills around islands as regional tensions rise

TOKYO (AP) — Japanese and U.S. troops on Monday kicked off one of their largest joint exercises focusing on the defense of Japan’s southwestern islands and showcasing advanced weapons systems in the face of growing tension in the region. About 45,000 Japanese troops and 12,000 American service members are participating in the biennial Keen Sword […]

1 hour ago

Is the Seattle City Council partially responsible for rent increases?