Just in, courtesy of WMFHA:

The Built Environment Committee of the Seattle City Council has adopted a proposal that would authorize a mandatory licensing and inspection program throughout the city.  The legislation now goes to the full council and will most likely appear on the council’s agenda for June 1, 2010.  The committee acted today because of the impending deadline on June 10, 2010.  On that date, a new state law takes effect that puts some restrictions on any rental inspection program a city may choose to implement.  If Seattle adopts a rental inspection program before June 10, the program can be amended later and will not be subject to the new state law.

The proposal approved today contains several significant features:

1.     Beginning April 1, 2012 all rental housing owners or operators will have to be licensed and to get that license the rental property must be inspected.

2.     Some rental properties are exempt including owner-occupied rental units; rental units owned or operated by a government unit of agency; rental units that receive federal funding and that are inspected as part of the funding program.

3.     Inspectors will be required to certify that the building and units meet certain standards set for in the Seattle Housing Code and there are no conditions that impair or endanger the health or safety of the tenant.

4.     Inspection by sampling will be allowed for larger properties.  If the property has more than 20 units, no more than 20% of the units need inspection up to a maximum of 50 units in each building.

Two separate resolutions were also put before and discussed at the meeting.  The first resolution asks the Department of Building and Development (DPD) to prepare a report to the council by July 1, 2011 evaluating the effectiveness of the new civil search warrant tool that has been given to the city.

The second resolution is significant because it requests a report from DPD by July 1, 2011 with recommendations “developed after working with stakeholders, for implementing the rental housing inspection program.”  The report outlines 10 areas that the report should analyze including - appropriate inspection standards; sampling; whether inspections should be targeted to certain areas or citywide; how often properties should be inspected; how should the program be commenced.

More information to follow!

Courtesy of WMFHA & Landlord Solutions Inc …

HB 2484:  TERMINATION NOTICES: 
This is a new bill and it was given a hearing in the House Judiciary Committee on January 13.  The bill would require landlords and tenants to give 30-days notice to terminate a month-to-month tenancy.  It would also require a landlord to give 60 days notice if the tenancy has been in existence more than one (1) year.  The termination date could be any day of the month.  The bill also requires a refund of any prepaid rent and provides that a tenant who gives notice but fails to vacate is guilty of unlawful detainer and can be evicted.  Landlords testified in opposition to the bill but stated they would support a bill providing for a change in the law to require 30-days notice so long as the notice could be effective on any day selected by the landlord or the tenant.

HB 2438:  DEFINITION OF SERVICE ANIMAL:  
This bill would eliminate the requirement of training or certification for a service animal under our state laws regarding discrimination against the disabled in real estate transactions.  A committee hearing was held on January 13.  Landlords testified in opposition.

HB 2622:  TENANT SCREENING:  
This is a new bill and has some similarities to a screening bill introduced last year.  It requires that a tenant’s screening report be “portable” for 60 days after it was initially issued.  It also prohibits screening companies from reporting a filed eviction unless a final judgment was entered in favor of the landlord and against the tenant.  Finally, it requires a landlord who denies an applicant or requires a larger security deposit, a co-signer, or some other increased security to give the applicant a written statement setting forth the reasons for the “adverse action.”  There is a hearing scheduled for January 19 

SB 6459:  INSPECTIONS AND CIVIL SEARCH WARRANTS:  
Representatives for landlords, tenants and various cities have been meeting for the past 3 months to try and work out mutually agreeable legislation that would put reasonable restrictions on any mandatory inspection program that a city might adopt.  In return for these limitations, cities would be given authority to obtain a civil search warrant for rental property to look for housing code violations.  In order to obtain the warrant, the city would have to satisfy a judge that there was “probable cause” to believe that code violations existed.  The city would not be able to go on a “fishing expedition.”  There is a hearing set for January 19 on the bill in its current draft form.  The parties have also agreed to meet again on January 20 to continue their discussions in an attempt to resolve remaining disagreements.

HB 2618:  STREET UTILITY TAX:  
This bill authorizes cities to adopt a “street maintenance utility” to enable the city to charge property owners for street maintenance in relation to the burden that their properties put on city streets.  This would mean that multifamily property owners would be charged based on the number of units at their property.  A hearing is scheduled for January 20.

HB 2592:  PROHIBITING INCENTIVES FOR TOWING FROM PRIVATE PROPERTY:  
Several months ago a local TV station highlighted a local towing company that was offering rewards and gift cards to resident managers based on the number of tows authorized by the property.  This bill would make the practice illegal.  A hearing is set for January 18.

HB 2413 / HB 2414:  CRIMINAL STREET GANGS:  
These 2 bills are an attempt to deal with gang activities and the adverse affects that such activities can have on a community.  The first bill sets up procedures that allow law enforcement to seize, forfeit and sell real or personal property used in connection with gang violence.  The second bill authorizes occupants of a multifamily property and neighbors or any rental property to file a compliant seeking a declaration that the property is a nuisance.  If a court determines that the property is a nuisance, the property can be closed for up to one year.  This bill had a hearing on January 14.

SB 6261:  CLARIFYING MUNICIPALLY OWNED UTILITIES’ COLLECTIONS FROM OWNERS:  
This bill will make it clear that a municipally owned electric utility can only hold a rental property owner responsible for a maximum of 4 months unpaid bills if the tenant fails to pay.  Current law provides that the utility has a lien against the property for up to 4 months of unpaid bills.  However, some utilities have charged owners and required owners to pay more that 4 months of bill in order to continue, transfer or restore service.  A hearing is set for January 19.

HB 2469:  CANDIDATES ACCESS TO TENANTS:  
This bill provides that a landlord may not unreasonably deny access to the premises to political candidates or their agents or those who are advocating for or against ballot measures.  However, the bill would allow a landlord to provide in the rental agreement that the tenant authorizes the landlord to deny such access.  No hearing has been set. 

For additional information- visit http://www.leg.wa.gov

BROUGHT TO YOU BY Landlord Solutions Inc.:
In an unpublished opinion dated July 27, 2009, Division One of the Court of Appeals (Case number 62307-9-1) decided a case against landlords that has a profound effect on landlords and how notices are served. Given this opinion we recommend you take caution by following these steps when serving any notice to your tenants.

1.      List each of the tenant’s names on the notice.

2.      When personally serving a notice with 2 or more tenants named, you need to provide a copy for each tenant. If each tenant named is not standing before you to accept serve of the notice in their hand, then you can only serve the tenant who is present. You will need to post the remaining copies of the notice and mail a copy to each that weren’t personally served.

3.      When posting the notice, post a copy for each tenant named. (If there are 3 tenants post 3 copies). You are required to mail a copy to each named tenant when the notice is served by posting.

4.      Mail a separate copy addressed to each tenant named on the notice. Do not list more than one name per envelope. Mailing is required when a notice is posted.

HERE IS WHAT HAPPENED
Tenants were husband and wife.  They entered into a lease with a landlord for a residence in Snohomish County, Washington.  In the Spring of 2008, they became delinquent in their rent.  The landlord physically hand delivered a three day notice to “Pay or Vacate” to the husband tenant, H Jordon.  The Notice stated it was to “H and W Jordon”  Within minutes of receiving the Notice, and while the landlord was still present, H handed the notice to his wife, W.  The tenants neither paid rent in full nor vacated the premises.

The landlord filed the unlawful detainer (eviction). The tenant responded and in their answers, the tenants argued that the court lacked subject matter jurisdiction.  They asserted that RCW 59.12.040 required the landlord provide a copy of the notice to each of them.

Because the landlord only delivered one copy of the notice and because he only delivered that copy to the husband, the tenants claimed that wife W had not been properly served with the notice and the court lacked subject matter jurisdiction.  The Court of Appeals ruled in favor of the tenants.

When: Aug 19^th - 3pm-6pm
What: RHA Class - The Move-In Process at RHA’s office in lower Queen Anne
Description: A large number of problems with Landlord-Tenant relationships can be avoided by your efforts during the first hours you spend with a tenant. This includes the initial E-mail contacts and phone interviews, the appointment to show the property, your criteria for tenancy, the lease application and tenant screening, the lease signing and the move-in condition report.
Cost: $45

When:  Aug 20^th - 9:30am-1pm
What: Pierce County NARPM/Cascade Real Estate School’s Advanced Landlord-Tenant Law Class at Denny’s South Hill
Description: 3 Clock Hours Continuing Education Class for Real Estate Property Managers.  Topics will cover Current Landlord-Tenant Law Issues and Clarification on Eviction Procedures.
Cost:  $65/NARPM member, $75/Non-NARPM member (lunch included)

When:  Aug 25^th - 11am-1:30pm
What:  NARPM Membership Meeting at the Best Western by the Space Needle
Description:  Statewide meeting with the NARPM National President Fred Thompson in attendance, speaking about new online classes included one called Paperless Offices.   
Cost:  $25/members, $30/non-members (lunch included)

When: Sept 3^rd - 6pm-8pm
What: RHA Membership Meeting in Redmond
Description: How to Evaluate a Property for Purchase, by Chris Benis. This annual fall event is once again sponsored by Contract Furnishings Mart. Now is a great time to be looking into increasing your portfolio. Chris Benis will be presenting on what you should be looking for; due diligence in terms of your legal responsibilities and obligations as well as proper documentation and reporting.
Cost:  $30 (includes dinner by chef Steve Frasier and drinks) 

When:  Sept 8^th & 9^th  
What:  IREM Current Trends at Lake WA Technical College
Description:  “Achieving Real Estate Success in Today’s Market” taught by Kemper Freeman & a bunch of real estate attorneys. Topics include Commercial Core Curriculum, Local Economic Updates, Investment Strategies, Success Secrets, Mixed Use meets Green Building, Successful Development Techniques, Time Management for RE Professionals, and Human Resource Essentials. Receive 7.5 clock hours for one day or 15 clock hours for both days. 
Cost:  $125/one day, $195/two days (lunch included)

When:  Sept 16^th -  5pm-8pm
What:  WMFHA Membership Meeting Dinner at Spirit of WA Event Center in Renton
Description:  Social Media: Speaker Mike Whaling’s work as a brand builder was recognized by BusinessWeek this year when one of his clients — Urbane Apartments — was named as one of four Innovators in Social Media, next to companies like Ford and the Sharing Foundation.  With many clients in the multifamily real estate industry, Mike moderates the weekly #AptChat on Twitter to discuss how apartment companies can use social media and other digital tools for their business. Let his experience light up your social media sidewalk.
Cost:  $35/members, $45/non-members (dinner included)

When: Sept 29^th  
What: Washington Apartment Outlook
Description: This is the 4th annual Economic Forecast hosted by Washington Multi-Family Housing association. At this event, our panel of experts will provide Apartment Industry and Real Estate Professionals, Community Leaders, Owners, Lenders, Executives and Asset Managers information on economic trends in real estate, property forecasting, developing your 2010 budgets and formulating strategies for success. Our panel consists of Real Estate Economic expert Matthew Gardner (Principal, Gardner Economics-Seattle) and Mike Scott (Principal, Dupre & Scott - Seattle) - and will be Moderated by Local Talk Radio Co-Host John Carlson of KOMO AM1000.
Cost: Sold Out

When: Oct 15^th - 9am-4:30pm
What: Advanced Legal Seminar with Joe Puckett at Spirit of Washington Event Center in Renton
Description: Joe Puckett of Puckett & Redford is one of the best known advocates for landlord rights. Joe was instrumental in securing legislation to deal with the thorny issue of storage of tenant’s property after an eviction and secured a victory in the Supreme Court regarding 3-day notices to pay or vacate. This is your best opportunity to learn from the experts and stay current in all developments regarding landlord/tenant law in Washington.
Cost: $99/members, $115/non-members (lunch included)

When:  Dec 4^th - 7:30am-9am
What:  IREM Forecast Breakfast at Hyatt Regency Grand Ballroom in Bellevue
Description:  Popular annual residential and commercial real estate event wrapping up the year’s trends in the real estate, commercial and multifamily industry and predicting goals for the upcoming year.
Cost:  $85 for non-members, $75 for members

Last week I was interviewed by Angela King at Q13 about current rental market conditions and it looks like it surfaced this morning- click here for the entire clip!

I am glad the interview came up when it did because our rental market has been severely impacted by the decrease in sales activity and financial crisis.  Hundreds upon hundreds of owners in the Seattle area have recently taken their condos and homes off the sales market and placed them into the rental pool in hopes of benefiting from our “stellar” rental market…but only to find out they are about 4-5 months too late.

Every Monday morning, SRG agents get together to discuss market trends/experiences and for the past 3 months, we have all been feeling the pressure of an oversupply, decrease in demand, and the dreaded reduction in rental rates.  I personally started to feel this crunch in August when there were a couple properties that just wouldn’t move- properties that would have leased for $2500 months prior (and in mere weeks) were below $2000 and still sitting.

Here are a couple issues that come up during our discussions, please feel free to comment or contact me with questions.

Tightened Pocketbooks: Due to the financial strain and economic state, renters have definitely been paying more attention to their bottomline and planning for the worst.  The most common scenario is that people are trying to consolidate and downsize in order to rent a 1 bedroom + den instead of needing a 2 bedroom or a townhouse instead of a home.  Renters are more price sensitive than ever and in some cases lower rental rates are the motivating factor rather than quality of building or home finishes- could come down to a difference of $50!

Apartments vs Condos/Homes: We have two rental markets- the private market with individually owned condos and homes, and the apartment rental market.

One of the challenges the private market has in competing with the larger apartment buildings is the ability to offer specials like “1-2 Months FREE” or “waived security deposits.”  Private landlords have the flexibility to reduce the rental rates to compensate tenants for such specials but in no way should reduce standard security deposits as they take on more liability when renting their property.

Some advantages the private market has is that the monthly rental amount often includes utilities, parking and additional storage.  These items are covered in HOA dues and therefore passed down to the tenant in a lump sum or included in the monthly rental amount.  This is easily missed by renters when searching so be sure to clarify what is included!

Note: Over 6600 apartment units are supposed to come on the market in 2009 and even more in 2010- just one of the many items discussed at the IREM Forecast Breakfast last Friday.  One of the better Forecast Breakfasts I have attended!

Where Are All the Renters? What we could be experiencing right now is an extreme case of the cyclical blues in combination with all the above.  We are approaching the dead of winter and typically Spring and Summer are the most common months for moving- so lets just hope that activity bursts in March!  We are seeing signs of this and have been getting a lot of inquiries for Feb/March move-ins…just hoping that the properties available NOW, don’t have to wait that long.

So in short, we are advising all of our clients to be market sensitive and price aggressive.  Renters have been starting their searches a lot earlier than in the past (1-3 month prior to their desired move-in) and rental rate negotiations are occurring left and right.

I hate to be a total pessimist so I will depart on this note… although this all may sound grim, relative to other markets, Seattle is still amongst the top in the nation!

Tom Cain of Cain Inc. recently reported that the average vacancy rate for properties of 50 units or more in the King and Snohomish counties are currently sitting at 4.44%- just a slight drop from last year.

The lowest vacancy rate found in both counties was in Seattle’s First Hill neighborhood at 2.6%. This could be attributed to the new hirings at Swedish Medical Center, the limited availability of newer apartment buildings, very convenient access to the downtown core/freeways and reasonable rental rates.

Cain also sited over 7,613 new apartments are under construction, 3,124 of which are located in Seattle- a 32% increase over the last quarter!

Click here to read more.

RHA ……..Call to Action……..
December 14, 2007

UPDATE: Inspections in Seattle
Dear RHA Member,

The Seattle City Council’s, Urban Development and Planning Committee voted to unanimously support Resolution 31031, allowing for a study to analyze and recommend implementation strategies for a Seattle Rental housing inspection program. The rental housing industry is not a proponent of any type of rental housing inspection program.

We urge you to contact your Seattle City Councilmembers to voice your opposition and request the following amendments to Resolution 31031.

1. A task force be created that would structure the scope of the study and review and comment on the findings of the city’s inspection consultant. This task force should include representatives from the rental housing industry.

2. That the study also review and comment on the existing law and other models to include those:

- That target rental housing that is known to be substandard;
- Regarding boarding room housing;
- That strengthen the existing complaint-based system;
- Improve the ability of the City to enforce its retaliation ordinances;
- That educates tenants on their rights and responsibilities.

If the City of Seattle chooses to move forward with a study we hope the city of Seattle will make the stakeholders part of the process.

This will go to the full council on Monday, December 17, 2 p.m. at City Hall. You are welcome to attend this meeting.

It looks like I did miss some exciting news while I was away?

NEWS
Seattle-based REIT, The Schuster Group, launched a $100 million private real estate investment fund called Schuster Realty that will focus on the Seattle area.

Zillow.com signed a real estate advertising deal with 282 U.S. newspapers through 11 major publishers

CONDOS
The Cosmopolitan Community Committee wrote a letter to Mayor Nickels

Mosler Lofts will get certificate of occupancy on the 16th of November

The Parc now has two model homes and a 360 degree tour of the units, lobby and homeowner?s lounge on their website- check it out!

Ben Kakimoto?s update for Seattle condo sales performances in October

EVENTS
IREM?s 22nd Annual Forecast Breakfast (11/29, 7:30-9:30am, Meydenbauer Center) - I really enjoyed last year?s breakfast so I will be attending again this year. Martin Selig, Mayor Degginger, Mike Scott, John Curley and Jamie Moyer are a few of the speakers this year, click here to reserve your spot!

23rd Annual TRENDS Rental Housing Management Conference and Trade Show (12/11, all day, Convention Center) - This year we are not sponsoring a booth but I will still be volunteering and attending seminars throughout the day. AGENTS: You can earn clock hours! Click here for more information.