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.  

According to the Dupre+Scott Apartment Vacancy Report, Seattle’s apartment rates have jumped 12.2%– the highest annual increase anywhere in central Puget Sound.  The Eastside wasn’t too far behind at a 10% annual increase.

Vacancy rates aren’t the lowest ever but are sitting at 3.8% for King County and are as low as 2.6% from the Ship Canal up to the county border- FYI – 5% is considered a balanced market but anything above would be considered a Renter’s Market.  (Click here to read more)

A lot of the condos and homes I leased last year are being rented this year for $75-$200 more per month.  There are still some neighborhoods and property types that are not experiencing quite the increase but for the most part I think that the private rental market will follow the overall trend. 

As we go into the “slowest” time of the year for real estate in general, I have a feeling that we might all be surprised at how sustainable the rental market will be- I leased 15 properties in September alone!

Typically you don’t see this issue come up in the condominiums downtown but it never hurts to educate yourself! 

For all those landlords who are curious about Section 8, there will be a workshop on Wednesday, July 25th from 8am-4:30pm held in Ballard (907 NW Ballard Way, Suite 200).  It costs $25 per person to attend which includes manuals, handouts, breakfast and lunch. 

Topics, I must say are a bit discouraging, but will touch on screening, lease agreements, Section 8 complications and evicting.  Workshop contributors include representatives from the Seattle Housing Authority, Rental Housing Authority of Puget Sound, Seattle Police Department and Seattle Neighborhood Group. 

To register or to get more information contact Lois Grammon-Simpson at (206) 323-3150 or email lois@sngi.org.

But if you don’t pay your rent on time, Landlord Pearl may visit you!

This afternoon I was interviewed by Rachel Belle with KIRO News Radio.  The interview was primarily aimed at the rental market and what we (being investors/landlords and renters) should expect from this point forward.  It will be airing tomorrow morning if you are interested in listening. 

As I have said before, summer is our busiest time of year and the market is expected to tighten as we head into June.  I have had several people inquire about my listings for July and August move-ins (listings that are unfortunately available NOW), but I anticipate July is going to be the most competitive month for finding that perfect apartment or condominium. 

We are finally starting to see more and more new employees coming through the corporate channels- which is typical for May and June.  This will bring in new BUYERS and RENTERS to the playing field as well.   

Rental rates ARE increasing but I advise those landlords who are approaching the end of their lease terms not to overzealously increase rental amounts.  If you take advantage of your current tenants you could risk loosing a month of rental income plus time and money spent on marketing.  Even a vacancy of a week or two can potentially set you back!

In glancing over my listings…I am down to 2 Live2200 units!  The rental market has settled a bit but I still see 37 units listed for sale on the MLS.  (Aria- 4, Azur- 9, Arte- 24)

The spotlight has now shifted to The Cosmopolitan.  Honestly, it is getting a little out of hand with the differences in pricing, the number of units for sale/rent and the competition- the games have just started!  Tomorrow I will be listing 3 more condos in the Cosmo including a penthouse (that is absolutely phenomenal) so I will have 6 total units for lease.  There are currently 64 condos listed for sale on the MLS! 

Obviously these buildings affect the downtown/Belltown market (as well as the owners trying to rent/sale their units) but given the forecast ahead I think everything will even out during the summer months.

Please feel free to email me with any questions or leave comments if you would like to add anything to the topic.    

I was indeed on the news last night…I missed it, but they have it posted on Komotv.com if you are curious!

Yes, rental prices have increased over the past year.  Last year I rented a studio in Belltown for $975 and this year it rented for $1095- in just 4 days! I have noticed that those vacancies priced around the $1000-$1200 range have been renting the quickest, while one bedrooms in the $1600-$2000 stay on the market for just a bit longer.  A year ago, higher-end 2 bedrooms in the $3000+ range were on the market for nearly two months, but this year I have experienced them going as quickly as 1 week and have rented unseen! 

The average rental price increase in the downtown area has been affected by the new condominium projects- higher quality, higher rents.  Most importantly, our typical renter is not so typical anymore.  Over the past year, I have noticed that there are a lot more people selling their homes and moving downtown with the plans of renting for a couple years.  Some have already purchased condominiums and are just waiting for their buildings to be completed.  Not to mention that the local corporations have continued to hire new employees and relocate many of their executives to the area.  The typical renters in the downtown area are more than willing to pay a bit extra for the location, building amenities and finish level. 

As we get closer to summer, the market is expected to tighten up a bit, making it even harder to find that perfect place!

HB 1865 has been working its way through the legislative process in Olympia.
This bill will make it very clear that landlords have no duty to store property when conducting physical evictions. The bill is currently on the Senate floor and is being vigorously opposed by tenant advocates. They are trying to prevent the bill from receiving an up or down vote in the Senate.

We believe that if the bill is allowed to come to a vote it will be passed and, hopefully, signed by the governor. Tenant advocates know this and are trying to prevent a vote from happening. We need each of you and your staff members to write to your respective state Senators and urge them to bring the bill up for a vote and then to vote in favor of HB 1865. We only have until April 13 to get the matter to a vote or it will die for this session.

Please write your Senator- Click here for a sample letter. 

Engrossed House Bill 1956 would add source of income as a protected class and therefore require all landlords to accept tenants with Section 8 vouchers.  This is a no-brainer so please oppose EHB 1956!

Why should landlords NOT be mandated to accept Section 8?
-Orca Information Broadcast

1. Section 8 is a federally funded program that is administered by local housing authorities. The federal government sets the rules and guidelines that apply to the Section 8 program and the local housing authorities are not permitted to waive or vary the rules set down by the federal government.

Congress recognized that some landlords may not want to participate in the Section 8 program because of the rules and regulations that are imposed such as limits on rent and requiring good cause for termination of a tenancy.

Congress does not require landlords to participate in the Section 8 program. It does not make sense to have the state require landlords to participate in the program when the state does not set the rules of the program and cannot vary the rules set by the federal government.

2. The rental amounts that landlords can charge are set by the federal government and local housing authorities. Rents can be adjusted on once each year and the landlord is required to get approval from the housing authority for any rent increase. This sounds like rent control and rent control is prohibited by statute in this state.

3. The housing authorities conduct annual inspections of most housing that is under the Section 8 program. Any deficiencies found during the inspection become the obligation of the landlord to repair even if the problem was caused by the tenant. If the landlord does not make the repairs the housing authority cuts off the subsidy and the landlord’s only option then is to evict the tenant. If the tenant caused the problem and the landlord fixes it the landlord can require the tenant to reimburse for the costs of repairs but the tenant will probably not have the financial resources to pay the landlord and the only option for the landlord is to evict the tenant.

4. By definition, Section 8 recipients have limited income. If the tenant does damage to the unit that exceeds the amount of the security deposit, the landlord had the option of pursuing collection actions against the tenant to recover the costs. This option is not available with a Section 8 tenant because of their very limited income. One solution for the landlord would be to charge a higher security deposit in an attempt to minimize the risks of losing money. However, if a landlord charged Section 8 tenants a higher security deposit the landlord would be illegally discriminating against Sections 8 recipients under this bill.

5. In 1996, the Washington State Human Rights Commission conducted a study and concluded that there was not sufficient evidence to conclude that source of income should be or needed to be a protected class. There is no subsequent evidence or study to indicate that the facts have changed since 1996. If the legislature believes that it may be appropriate to add source of income as a protected class, the legislature should direct the WSHRC to conduct another study.

6. The Department of Housing and Urban Development (HUD) recently issued guidelines dealing with people who have limited English proficiency (LEP).
These guidelines require landlords who receive federal funds to insure that tenants who are LEP are provided with rental documents and other information in their native language. The costs of providing for the translation of documents fall on the landlord. These guidelines were set to take effect on February but they have created quite a controversy and their implementation has been delayed. This is an example of the type of federal rules that Washington landlords would be required to follow if this bill were to pass.