Bellingham City Council is considering actions to prevent or limit landlords from charging tenants excessive or unfair fees, also known as “junk fees.”
An ordinance brought forward by council member Jace Cotton on Monday, Sept. 30 would cap rental application fees at $25, prevent move-in fees and security deposits from exceeding one month’s rent, prohibit “pet rent,” cap late fees at $10 a month and more.
At a committee meeting, council members peppered staff and Cotton with questions about the ordinance and postponed a vote on the motion, in order to address some of those questions and conduct more public engagement on the issue. A second ordinance preventing similar fees for manufactured mobile homes was also held for a future meeting.
Cotton told CDN ahead of the meeting that given the city declared a housing crisis, this is one way the city can make a “dent” in people’s ability to access housing.
“I think what we want from corporate property managers is to build in those costs into their overall cost structure,” Cotton said. “Because these really high moving costs can be such a barrier to housing for people who could otherwise afford the price of the unit.”
Cities across the state have implemented restrictions on excessive fees for renters. House Bill 2114, which died in house committee in the last legislative session, would have capped some rental fees statewide. More than 20,000 Bellingham renters are “cost-burdened” (they spend more than 30% of their income on rent) with 6,450 “severely cost-burdened” (spending 50% of their income on rent), according to the city’s ordinance.
Legislative Policy Analyst Iris Nott surveyed 44 rental properties on apartments.com and found most of them had these fees, with administrative fees ranging from $100–$300, application fees ranging from $33–$65 and pet deposits ranging from $40–$500, she told council on Monday.
Cotton said he thinks there are a few drivers of junk fees in Bellingham: Property management companies want to keep their fees low and competitive to landlords, so they look for sources of revenue directly from tenants. Another driver is that if the “true cost” of housing is disguised in a listing, “the more competitive” they can appear, Cotton said.
Council members spoke at the Monday meeting in favor of a part of the ordinances that required rental listings to state all fees a tenant may pay over the course of the tenancy. Many said they agreed with the intent of the work but had many questions they wanted to see addressed, with some disagreement on where some fees are set and how certain fees should be categorized — as “unfair” or “excessive.”
Cotton agreed that transparency is great but said that “tenants don’t have a structural market power at this point to be able to shape the market through their preferences.”
As for potential enforcement, the ordinances outline that people can pursue civil action against landlords over infractions, but people can also be fined by the city.
Director of Planning and Community Development Blake Lyon said two people could dedicate part of their workload to enforcement of ordinances like these, but that there’s limited capacity.
Cotton highlighted the ordinance’s removal or limitations on “really punitive fees,” like late fees or fees for leaving a bike on a porch, for example.
“These can all serve to really strip tenants of both their dignity and pile on debt at a time when they’re struggling to stay housed,” he said. “That’s a portion of this policy, which I think will do the most good to stem the rising tide of homelessness in our community.”
Numerous organizations from around the city wrote letters in support of the ordinances, including Whatcom Humane Society, Skagit Legal Aid, an organizer from the Bellingham Tenants Union, Lydia Place, UFCW 3000, a range of additional animal organizations, the Law Advocates of Whatcom County, Northwest Youth Services and the Northwest Justice Project.
Executive Director of the Whatcom Humane Society Laura Clark said the society has seen an increase in surrendered pets at its shelter due to housing issues.
“Prohibitive pet deposits and monthly pet rental fees have created undue financial burdens for many residents, causing them to have to make heartbreaking decisions regarding their companion animals,” Clark wrote in a letter to council members.
Experiences of renters reflect the need for more checks on property managers, some say. Dozens of renters appeared to speak at public comment at the Sept. 16 meeting, all with stories of rental fees that made it difficult or impossible for them to afford their rent.
Charlotte Alden is CDN’s general assignment/enterprise reporter; reach her at charlottealden@cascadiadaily.com; 360-922-3090 ext. 123.
