PRIVACY & PROPERTY MANAGEMENT

In order to prevent identity theft landlords, and the real estate brokers who represent them, must protect a tenant’s private information.  The information on applications, a tenant’s employer, bank account numbers, credit history, social security number and previous addresses are all valuable to identity thieves and the landlord is responsible for keeping that information protected.

Federal law requires landlords to take reasonable steps to dispose of sensitive information obtained from credit reports and reports related to tenant history or employment. Per the “Disposal Rule” of the Fair and Accurate Credit Transactions Act, (known as the FACT Act), landlords must keep the information in a locked cabinet, dispose of the information when they no longer need it, establish a system for purging their paper and electronic files, and use an effective method (such as a shredder) to destroy paper documents. Computer files should be destroyed with a utility that will “wipe” the data completely, by deleting the text and the directory.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

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ADU ISSUES

An owner-occupied property with an accessory dwelling unit may be considered a duplex if sold to an investor who rents both units.  An accessory dwelling unit (ADU) is a separate living space within a property, typically within a single-family home. These units are not legal unless they have been established through a permit process. A legally permitted unit on the property but not within the home is called a detached accessory dwelling unit (DADU).

Traditionally the definition of an ADU includes a requirement that the owner live in one portion of the rental property. Recently some jurisdictions have relaxed this requirement.  Typically, it is it easier to get zoning permission for an owner-occupied property with an ADU than for a duplex.  If a rental property is found to be in violation of local codes, a landlord could be required to pay relocation costs for the displaced tenant.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

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GIVING NOTICE

Each tenant must receive a separate copy of any legal notice.  In addition, there must one additional copy addressed to “all other occupants.”

There also are specific requirements about service of any notice.

  • You must knock on the door or ring the bell and wait.

  • If all adult occupants are available, hand each a copy plus an extra copy for “all other occupants,” OR

  • If a person of suitable age and discretion is available, hand them a copy for every adult occupant plus one extra AND mail one to each of the adult occupants, plus one more copy to “all other occupants,” OR

  • If no one of suitable age and discretion answers, post the open notice conspicuously on or near the front door AND mail to each of the adult occupants plus one extra for all others.

  • Mailed copies must be mailed by first-class mail from the county in which the rental property is located.

If notice is done incorrectly or if the notice doesn’t include required disclosures, the process will have to be redone. Legal consultation is therefore recommended.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.
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SECURITY DEPOSITS, FYI…

The Washington State Landlord/Tenant Act requires a written move in inspection report, signed by both parties, if a deposit is collected.  If there’s no written inspection report, the landlord can’t withhold any portion of the deposit, even if the tenant significantly damages the property and owes back rent. 

Without a written report, documenting the condition of the property at move in, it is impossible to prove that the damage didn’t pre-date the tenant’s occupancy.  The law specifies a written report; photos can augment the inspection report but aren’t sufficient without the written report. Per the Landlord Tenant Act, RCW 59.8.260, the report must specifically describe:

“the condition and cleanliness of or existing damages to the premises, fixtures, equipment, appliances, and furnishings including, but not limited to:

(a) Walls, including wall paint and wallpaper;

(b) Carpets and other flooring;

(c) Furniture; and

(d) Appliances.”

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

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RENTAL LAW – ONE OR MANY?

Several cities require landlords to provide a handbook to all tenants at the beginning of tenancy and annually thereafter plus whenever the handbook is revised. Some cities require that the first copy be a hard copy, with electronic copies thereafter.

This is a partial list of handbooks. Some cities have additional disclosures that must also be provided to tenants.

Auburn: Renting in Auburn

Burien: Renting in Burien Handbook

SeaTac: Renting in SeaTac Guide

Seattle’s handbook was updated in January 2024: Seattle Renter’s Handbook

Tacoma: Renting in Tacoma

Tukwila: Tukwila A Guide to Landlord and Tenant Issues

Tumwater: Renting in Tumwater

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

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HOA TENANT APPROVAL – PROBLEMATIC?

Some condominium homeowners’ associations require that rental applications be approved by the board of directors. This can be problematic:

  1. Due to state and federal laws, if an applicant is screened and approved based on the pre-established criteria of the owner or management company, the tenant cannot be turned down.  (What do you do if the applicant is approved by the management company and denied by the board of directors?)
  2. If the requirement includes a review by the board of the tenant’s confidential information, the tenant would have to give his or her written permission before this could happen.
  3. Delays in getting the approval of the board of directors could result in prospective tenants deciding to rent another property.

Many screening companies will provide a “report card” documenting that the person was professionally screened and met screening criteria. It is a good idea to check with the HOA to confirm that this would be adequate prior to listing the property for rent.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

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TENANT DEPOSIT ACCT AT MOVE OUT

Unless the lease specifies fewer days, state law now gives landlords 30 days to provide an accounting of the tenant’s deposit. This increases the amount of time landlords have to  “give a full and specific statement of the basis for retaining any of the deposit.” However, the law now requires documentation of any charges. RCW 59.18.280 specifies that, “the landlord shall include copies of estimates received or invoices paid to reasonably substantiate damage charges.”  The law used to say that the tenant cannot be charged for normal wear and tear; that phrase has been changed to, “wear resulting from ordinary use of the premises.”

The accounting of the tenant’s deposit must be in writing and either placed in the US Mail or handed personally to the tenant. Email and text are not sufficient.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

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PROPOSED PET DEPOSIT REGULATION

The Washington State legislature is considering a proposal that would limit pet deposits to $150.00. To follow is the message I sent to the proponents of SB 6064. I’ve included the email addresses of the sponsors of the measure, in case you’d like to submit your own comments.

I believe this is bad legislation that will have serious unintended consequences.

I am director of property management at Coldwell Banker Bain, and I have been in this profession for 41 years. I believe that we as a society have an obligation to help those less fortunate, but that is an obligation of society and should not be placed solely on landlords.

I am writing regarding your proposed legislation limiting pet deposits to $150, regardless of the amount of rent. I think that would be unfair to tenants and landlords.

We just leased a property that the owners purchased for over $3 million. They plan on moving into the rental after they retire in a year. The rent for this property is significantly higher than the typical rental. The cost to make repairs if there is damage will also be greater because everything in this new construction property is high-end.

It is unfair to charge a tenant who is renting a room for $750/month the same pet deposit as someone who is paying $12,000/month. $150 on a $750/month rental is 20% of one month’s rent. On a $12,000 rental, that’s 1.25%. You’re punishing the low-income tenant and the high-end landlord.

We had a tenant recently move out with extensive pet damage. There was cat urine and feces in the carpet and on the garage floor. In one place it looked like a cat was sick and no one cleaned it up. There was so much pet hair on the molding that it had to be cleaned before it could be painted. We use HUD guidelines to determine the life of components such as paint and carpet. Therefore, although the property was only two years old when the tenant moved in and it was trashed at move out, the tenant was not charged for new carpet and paint throughout. The tenant was, however, charged for the cleaning required before the walls could be painted. The tenant was also charged for the cost to pull the carpet and seal the subfloor where urine had saturated it, so the urine smell won’t come back after new carpet is installed. I’ve included five of the over 100 photos documenting the damage done to this property.

The majority of our clients own one or two rental properties, and they are a significant portion of their wealth and retirement. The laws that have been passed in the last three years are making landlords think their investments are at increasing risk and they are selling. These small landlords tend to take excellent care of their investment property; they keep rents down because they don’t want vacancies and turn over costs. In the current market, most buyers are going to move into the property so there will be a loss of inventory. On the rare occasion when the property is purchased by an investment buyer, they will have to raise the price of rent because they paid so much more for the property than the seller. Most investment buyers are also institutional buyers, who won’t have any idea who is living in the property. They will only look at the bottom line in their monthly reports. 

Yes, there are some bad landlords, but I believe the majority of small landlords care about the property and the tenant and want to be fair. However, the pendulum is swinging too far in the other direction. The end result will be detrimental to tenants and small investment buyers. There has to be a middle ground.

Please reconsider this policy.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Drew Hansen, 23rd Legislative District

drew.hansen@leg.wa.gov

Marko Liias, 21st Legislative District

Marko.Liias@leg.wa.gov

Patty Kuderer, 48th Legislative District

patty.kuderer@leg.wa.gov

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SMOKE FREE RENTALS

Smoke-free rules can protect rental properties and their landlords certain liabilities. Non-smokers with serious breathing disabilities or smoke allergies have legal protection under federal and state laws. Secondhand smoke can interfere with some disabled residents’ ability to have equal access to, and enjoyment of, their housing.

Tenants may be protected under the Fair Housing Act. When this is the case, property managers and owners are required to make reasonable accommodations to protect their residents from secondhand smoke.

Courts in California, Oregon, Massachusetts, New York and Washington state have also found property managers liable when they fail to address problems caused by secondhand smoke. Residents have successfully sued for breach of warranty of habitability, constructive eviction and breach of covenant of quiet enjoyment, because property managers did not stop smoke from drifting into their units.*

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