As professional property managers in Washington State, we know better than anyone that there’s a housing crisis, and it’s a crisis that has not been dealt with effectively by local or state leaders.
A new bill has passed the statehouse which introduces rent stabilization – better known as rent control – into our communities. On the surface, we can see how this might seem like an easy answer to making housing more affordable, more available, and more inclusive.
In fact, we worry it will lead to just the opposite.
As property managers, local business owners, and citizens who care about our community, we’re looking for more innovative and effective solutions than rent control. We are looking for ways to provide more affordability and stability for everyone renting a home and renting out a home. Rent stabilization is not it, at least not in the approach that the government is taking.
Let’s dive into what the current bill might mean for owners and for tenants.
HB1217
First passed as a House bill and recently moving out of the Senate Finance Committee, HB1217 aims to limit rental increases in Washington State. The law would limit any rent increases to 7 percent within any 12-month period. There would also be a notice requirement in this bill: landlords would have to provide six months of notice before a “significant” rent increase.
Fees and deposits would also be limited, and the attorney general of Washington would be empowered to enforce this law.
What’s So Wrong with Rent Control: Scarcity and Affordability
Rent control is not going to solve the existing housing crisis, which is not only about affordability, but also about scarcity. There’s a lack of housing for people at all income levels, and that’s due to factors such as higher demand for rental homes, less inventory on the market, and inflation, which has driven housing and other costs up across the nation.
Rent control, instead of bringing down the cost of renting a home, actually does the opposite.
- It deters investments in new housing projects, including new construction.
- Reduces the quality of the existing homes for rent on the market.
- Makes it more difficult for owners to keep up with maintenance and upgrades.
- Decreases supply, especially for renters in high-need neighborhoods.
Rent stabilization depresses the current supply and does not incentivize new construction. To solve the affordability problem, we need more options for renters. A larger supply of homes for rent will drive down the cost of rent, and increase access to safe, attractive, and affordable housing.
A Different Direction: Strategic Planning for Housing in Washington State
Instead of trying to pass laws implementing unrealistic and counter-productive rent control, we believe that some of the most strategic and innovative solutions can be found in eliminating predatory renting practices and investing in new developments and construction. The governor of Washington wants to build 200,000 new units. That’s an excellent start.
Smart Housing Solutions has come up with some unique and potentially beneficial solutions to the housing crisis in Washington State. We invite you to consider them with us:
- More Efficient Development
The faster we can bring new housing units online, the better our market services the needs of tenants looking for affordable homes for rent. We are advocating for government actions that reduce the permitting delays faced by many developers. A more efficient process of building properties will make them available sooner. Furthermore, if we can incentivize developers to invest in new housing projects, we’ll be able to get good homes to more people, and faster. This is one of the best and most effective ways to meet the demand for high-quality, affordable rental housing.
- Increasing Supply
Rent control will not increase the supply of affordable housing, but making the rental market more competitive will deliver positive results to tenants. When there’s more housing to choose from, there’s more of an incentive for owners and landlords to offer competitive rental prices. When there’s more rental housing to offer, there’s more that owners will have to do to attract tenants. That’s good for well-qualified residents who are hoping to pay less in rent.
- Prohibiting Predatory Rental Increases
We know there are some terrible landlords out there, and they’re making all landlords look bad. If the state legislature wants to pass laws, we believe that more effective legislation might target those predatory landlords who take advantage of their tenants. Unethical housing providers should be called out for their bad practices, and there should be consequences for the rental increases that threaten the housing stability of good tenants.
- Boosting Tenant Assistance Programs
Making the Tenant Assistance Program (TAP) a well-funded and functional safety net for residents who need extra help is a much better use of state resources than enforcing rent control laws that make no sense for the market. When senior citizens, people with disabilities, veterans, and other renters who are facing economic or financial stress can access assistance in finding and paying for housing, the entire community benefits. We support programs that support tenants in meaningful ways.
Your Real Estate Gladiators: Fighting on Behalf of Better Housing
When we look at our neighbor states who have strict rent control laws in place, we don’t see a solution to housing problems. We see markets that are still unaffordable, and we see cities that still cannot provide a strong supply of safe, quality rental housing to the people who need it.
As your property management partners, it’s our job to advocate for you and for the tenants we serve. Our vision of housing in King and Snohomish Counties is more positive than what the pending legislation reflects. We’re looking for a situation where bad landlords are held accountable and good landlords are encouraged to provide more housing into the rental market.
We are working with organizations and local leaders to push back against the rent stabilization laws that we believe will further damage our community as well as our housing situation.
There’s a lot going on in terms of Washington State’s housing landscape. If you cannot keep up with the latest news yourself, make sure you’re working with a team like ours. We’re following the most recent developments and making sure your voice is heard.
Interested in learning more? Contact us at Real Estate Gladiators. We’d love to talk about it.
