CURRENT - December 2022

Bannon, Alex Robertson,

Chester Baldwin

Sailing into the New Year

Sean Flynn | RHAWA Board President and Executive Director |  president@RHAwa.org

RHAWA continues to provide the highest level of service to its members across Washington state. We are the largest association of small housing providers in the state which also means that we are held to the highest standards an association can be held to. As RHAWA continues to provide its members with the highest level of service possible, we are consistently improving the organization, adding services, and bolstering our staff’s knowledge base. Because of this desire to always be improving, there will be a slight increase in membership dues effective at the start of the year. However, we did not want to increase our membership dues without providing a clear explanation of what you are getting out of your membership

Education

Event

2023 Legislative Session: Grassroots Advocacy & Legislative Session Preview 8

Government Affairs

Local Government Update 11 Washington State Legislature Likely to Remain in Democratic Control After November 8 General Election 12

Support Center

Burien City Council Passes Extreme Housing Provider Regulations

Market Report: Seattle Multi-Family Market Report

with RHAWA. In this article I will detail some of the changes that RHAWA will be implementing in 2023 as well as highlighting our ongoing efforts that will always be there for you.

I will start by highlighting the aspects of RHAWA that have always, and will always, be key benefits to our members. A service that many members consider to be our number one benefit; leasing forms, are updated constantly in order to reflect changes in state laws and local laws. Local laws change like the tides, and it is crucial for our team to act quickly in this area in order to ensure our forms are in compliance at all times. Furthermore, it is often necessary to consult with local attorneys on certain forms, which

CONTACT US

Accounting + Membership Administrator

Geoff Schertz: (206) 905-0606

Administrative Assistant Val Kushi: (206) 283-0816

Board Administrator Jim Nell: jnell@RHAwa.org

Deputy Director Melissa Canfield: (206) 905-0615

Education + Resources

Denise Myers: (206) 905-0614

Government Affairs Analyst Alex Robertson: (206) 905-0611

Grassroots Organizer Daniel Bannon: (206) 905-0609

Member Services Specialist (Resource Desk) Sue Lewis: RHAwa.org/supportcenter Screening (206) 283-0816

CONNECT WITH US

as some of you are aware, attorney fees are rising as well.

RHAWA is also passionate about investing in the education and success of its staff. RHAWA is dedicated to improving the skillset of the staff through educational events and training courses which directly benefit the efficiency and effectiveness of the association. One such event was a marketing conference which educated members of our team on effective tools utilized by social media companies. The lessons learned at this event resulted in some of the recent changes to the CONNECT Forum—which has seen a notable increase in member engagement—as well as the upcoming reorganization and visual overhaul of our website. The more skilled our employees are, the better they can assist you with all your rental housing needs.

waste time looking for the right page and can use our services with as little headache as possible. The CONNECT Forum will also be receiving a visual refresh to accompany the website overhaul. As mentioned earlier, recent changes to the CONNECT Forum have nearly doubled our members engagement on the platform. Further changes to this system will continue to drive engagement and will further the mission to make the CONNECT Forum a hub of rental housing advice and member interaction.

Advertise

For advertising information (rates, production specifications, and deadlines), visit RHAwa.org/advertise

RHAWA Current is published every month by the Rental Housing Association of Washington. Copyright ©2022 RHAWA Current with all rights reserved. Reproduction or use without permission of editorial or graphic content in any manner is prohibited. All copyrights, trademarks, and servicemarks are property of their respective owners. P.O. Box 31103 Seattle, Washington, 98103.

EXECUTIVE COMMITTEE

We have received feedback from membership that the website could be visually and organizationally improved. Because of this, we are making significant changes to our website in 2023 which is no small feat. Our hope is to make the website more visually appealing, but also to make the website easier to use. Categories and services will be reorganized and simplified to make it easier to find the page you are looking for and get you there faster. Certain pages may be combined to streamline the website and make it an overall more useful asset for our members. We want to reduce confusion and expedite your use of our website so you don’t have to

Make sure to also keep on the lookout for in-person events in 2023. Although in-person events may be more costly, they are incredibly valuable as it allows our members to meet face to face with one another as well as meet staff. We are excited to start seeing our members at our events once again and finally move back to a “normal” level of interaction. RHAWA will host five large events in 2023. These include the Spring Workshop + Tradeshow, Legal Forum, Membership Appreciation Day, Annual Business Meeting, and Annual Gala.

Speaking of in-person meetings, we are also implementing changes to our LINK meetings to make them even more valuable to our members. The LINK meetings were historically all scheduled on the same day; however, this makes it difficult for us to ensure that staff is able to attend these meetings and engage with our members. In 2023, LINK meetings will be held

DIRECTORS

Jason Dolloph

LEGAL COUNSEL

Christopher Benis

Sean Flynn

RHAWA CONTINUES TO PROVIDE ITS MEMBERS WITH THE HIGHEST LEVEL OF SERVICE POSSIBLE, AND IS CONSISTENTLY IMPROVING THE ORGANIZATION, ADDING SERVICES, AND BOLSTERING OUR STAFF’S KNOWLEDGE BASE.

Application Screening Criteria

Screening Department |  screening@RHAwa.org |  (206) 283-0816, option 2

Prior to obtaining any information about a prospective tenant, Washington State Law (RCW 59.18.257) requires that housing providers provide their screening criteria in writing. See RHAWA forms, Application Screening Criteria Guidelines for instructions on creating your application screening criteria notice. For properties in the City of Seattle, refer to Application Criteria Guidelines (Seattle).

Legal Requirements

Before collecting information on a prospective tenant, you must first inform them in writing of the following:

• The types of information that will be accessed to conduct the tenant screening.

• All criteria that may result in denial of the application.

• If a consumer report is used:

• The name and address of the consumer reporting agency.

• A statement of the prospective tenant's rights to obtain a free copy of the consumer report in the event of a denial or other adverse action, and to dispute the accuracy of information appearing in the consumer report.

• Whether or not the landlord will accept a comprehensive reusable tenant screening report made available to the landlord by a consumer reporting agency.

• If the housing provider indicates their willingness to accept a comprehensive reusable tenant screening report, the landlord may access the landlord's own tenant screening report regarding a prospective tenant as long as the prospective tenant is not charged for the landlord's own tenant screening report.

See RCW 59.18.257.

City of Seattle: Under the First-inTime Ordinance (SMC 14.08.050) you must also include:

• Minimum objective thresholds for each criterion that applicants will be screened against.

• List of all required documentation that needs to be included for a complete application.

• How to request extra time to complete the application in the case of

a disability or language barrier.

• The application screening criteria notice must be included in all advertisements and given to each prospective tenant before accepting their application.

Tip: Your application screening criteria notice can be within the text of your

advertisement, included as an image or series of images in the advertisement, or you may include a link to another website where your criteria are permanently hosted.

See Support Center article First-InTime Tenant Selection (Seattle) for more information.

Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.

EDUCATION + EVENTS

DECEMBER CALENDAR

(206) 905-0614

Our education program is designed to provide independent housing providers, MHC owners, and others in the residential housing industry a foundation of knowledge and skills to help them meet legal responsibilities and succeed in the business.

RHAWA'S ANNUAL GALA

When: Saturday, December 3 | 6 - 9pm

Register: RHAwa.org/events/annual-gala-202212

Location: The Ruins – 703 6th Ave N, Seattle 98109-4212

At RHAWA, we like parties, and you are invited to our most exclusive one! This year’s Annual Gala will be in the theme of F. Scott Fitzgerald’s The Great Gatsby. Come dressed in your best 1920’s attire and enjoy a night of live music, entertainment, and exquisite dining. The entertainment for the evening will be provided by Maison de V Entertainment –aerialist performances and spectacle performers to keep you wanting more. Come with us and be amazed. Photo and interaction opportunities with our resident flapper girls throughout the cocktail reception

EXPANSION OF LOCAL RENTAL LAWS

When: Wednesday, December 7 | 2 - 4pm

Cost: $30 Members | $200 Freemium Subscribers

Location: ONLINE Only

While Washington’s Residential Landlord Tenant Act is comprehensive and governs landlord-tenant law throughout the state, it is only enforceable through civil actions taken by landlords and tenants. Now several local jurisdictions have taken on the role of enforcer by implementing their own laws, enabling them to inflict hefty fines on housing providers. They have also crafted new laws which have spread to other cities and then up to the state level. RHAWA’s legal counsel Chris Benis will explore these trends and review recently enacted laws in Burien, Issaquah, Kenmore, Kirkland, Olympia, Port Townsend, Redmond, and more.

RHAWA MEMBERSHIP PREVIEW & ORIENTATION

When: Tuesday, December 13 | 1 - 2pm

Cost: FREE to Attend

Location: ONLINE Only

Please join Membership Specialist Daniel Bannon for an overview of member benefits and services offered by RHAWA. Participants will receive a tour of the RHAWA website and tools and are encouraged to ask questions relating to member benefits throughout the meeting. This meeting is designed for New Members and those considering membership with RHAWA. Specific property management and Legal questions cannot be addressed during this meeting. Seats are limited to 25 participants and registration is required.

LINK MEETING

When: Tuesday, December 13

Cost: FREE to Attend

Responsible for your own food & beverages

Pierce County | 5:30 - 7pm

Urban Elk Bar and Restaurant 2013 S Cedar St, Tacoma 98405

Legislative Session is always a whirlwind of new information and changes to state policy

so it is crucial that our members are properly informed in order to effectively advocate on their own behalf. Come join the members of RHAWA legislative team and have a conversation about everything you need to know before Legislative Session.

Snohomish County | 6 - 7:30pm

Bob's Burger 1611 SE Everett Mall Way, Everett 98208

Do you know how to handle the upcoming tax season? Learn now how to handle the next tax season, gain knowledge about what are and are not taxable events.

King County – Eastside | 6:30 - 8pm Dukes Seafood 500 Bellevue Way NE, Bellevue 98004

Do you have a list of reliable vendors? Things tend to need to be addressed during a tenancy, do you have vendors you can count on? Join us as we talk about developing and maintaining those vendor relationships.

King County – Southside | 6:30 - 8pm Claim Jumper 5901 S 180th St, Tukwila 98188

Have you ever had a tenant die while living in your unit? Join use as we discuss what to do in case of a tenant death. We will explore what measures you should have in place ahead of time and what to do once you have been informed of the death. It may not be as simple as you think.

JUST CAUSE TERMINATION LAWS

When: Thursday, December 15 | 3-5pm

Cost: $30 Members | $200 Freemium Subscribers

Location: ONLINE Only

Since introduced in Seattle over 40 years ago, "Just Cause Eviction" laws restrict the rights of the landlord to terminate month-to-month tenancies. This concept has now spread across the west coast, with many variations. First the State and now several Washington cities have developed their own list of just causes for terminating tenancies. Many have extended this protection for tenants in fixed term leases, taking away the last safety net for property investors who need to maintain control over the usage of their property. Christopher Cutting, Attorney and RHAWA Board Vice President will explain this complicated web of state and local regulations and how to navigate them.

HOLIDAY CLOSURE

When: Friday, December 23, 2022 Monday, December 26, 2022

Denise Myers | Education + Resources Director |  dmyers@RHAwa.org | 

Annual Business Meeting

Daniel Bannon | Grassroots Organizer |  dbannon@RHAwa.org |  (206) 905-0609

RHAWA hosted our Annual Business Meeting on October 26 where we recapped 2022, discussed our plan for 2023, gave a legislative update, and presented awards to some outstanding members.

RHAWA’s Board President and Executive Director Sean Flynn detailed our post-pandemic focus. He noted that in 2022 RHAWA invested money into talent development, reviewed RHAWA bylaws, and reevaluated our products and services.

Following this, Legislative Committee Co-Chair Christopher Cutting stepped in to give a local policy update which included an update on the Rent Roll Data Bill in Seattle which was vetoed by Mayor Harrell. He noted a recent development in tenant protections in Kenmore and Olympia and highlighted the spread of A Regional Coalition for Housing (ARCH) recommendations which have cropped up all over King County this year.

Our Legal Defense Fund (LDF) chair Chris Benis followed up this local government update by detailing some of the most recent legislation the LDF has engaged in. He mentioned two instances of Just Cause protections in Burien and Federal Way which were partially overruled and moved to appeals, respectively. He finished up by noting the COVID eviction ban in Seattle which was also partially overruled because of the efforts from our LDF.

RHAWA lobbyist Chester Baldwin provided an overview of the work our Political Action Committee (PAC) is engaging in and highlighted all of the candidates that RHAWA has supported through our PAC. He noted that our members have contributed over fifty-nine thousand dollars to our PAC which is put directly towards advocacy for our members. He additionally explained that RHAWA has raised over twenty-seven thousand dollars during our private fundraisers for candidates, which is also greatly beneficial to our advocacy efforts. Chester finished by giving a preview of some of the issues we will likely deal with during the

EVENT ATTENDEE POLL

FUTURE FOCUS – What would you like RHAWA to focus on improving this year?

LOCAL LEGISLATIVE ADVOCACY

STATE LEGISLATIVE ADVOCACY

DEFENSE (filing lawsuits related to L-T legislation)

LEGAL

POLITICAL

ACTION (supporting candidates)

LEGAL FORMS EDUCATION

RENTAL OPERATIONS SERVICES (screening, leasing, etc.)

upcoming legislative session as well as some of our greatest achievements from last year’s session.

Intermixed with Chester’s political updates, Sean Flynn polled event attendees regarding aspects of the association that attendees wanted RHAWA to focus on for 2023. The top choices from this vote were legal defense and local legislative advocacy. The second matter that was voted on by attendees was the approval of the RHAWA Board Slate. This included the renewal of Chris Gurdjian, Cory Brewer, Devin Easterlin, Mark Mullally, Synthia Melton, and William Shadbolt, as well as the addition of Cathy Jeney. The Board Slate was overwhelmingly approved by attendees of the meeting.

In my favorite part of the Annual Business Meeting, RHAWA recognized some of its outstanding members who had received physical awards a few days prior to the meeting. It was my

pleasure to introduce the award recipients during this portion of the meeting and I was also pleased that we were able to allow these individuals to say a few words after they were recognized. We presented volunteer awards to our LINK Meeting facilitators including Alberto Stein Rios, Sharon Cunnington, Allison Moser, Bill Jackson, Marija Spasikova, and thanked them for their time and effort that they pour into every LINK meeting. We would also like to take an opportunity to thank of of our educators and instructors, committee members, newspaper contributors, and event sponsors throughtout the year.

We presented Gordon Haggerty with a member of the year award to recognize his incredible involvement during and beyond legislative session, and lastly, presented Holly Diamond with a recognition of service award to recognize the assistance she has provided to RHAWA over her career. I would like

to once again thank all of these individuals for their outstanding contributions to our association and I encourage all of our members to use these members as an example of how to make the most out of your membership.

We finished the Annual Business Meeting with a quick thanks from Sean and a mention of our Annual Gala held in early December. You may have seen our promotional emails for the Gala, but it is important to recognize that tickets to this event are limited and we are already starting to run out. If you are thinking about going to the event, I would encourage you to grab your tickets as soon as possible as they may not be available.

Thank you for reading this brief recap of our 2022 Annual Business Meeting. If this interested you, I would encourage you to watch the recording of this event and to attend our in-person 2023 Annual Business Meeting.

GRASSROOTS ADVOCACY & LEGISLATIVE SESSION PREVIEW

Daniel Bannon, Grassroots Organizer | Alex Robertson, Policy Analyst | Chester Baldwin, RHAWA Lobbyist

The 2023 Legislative Session begins on January 9, 2023, which is just around the corner. We are looking forward to YOU joining our events and legislative calls-to-action to amplify the voice of small housing providers, educate lawmakers, and support rental housing in Washington.

This year we will undoubtedly see an onslaught of regulations targeting housing providers, many of which we have seen before. Ideas are already being discussed and a strategic plan developed well before the opening day of the legislative session. Rent control, further restriction including increased notice periods, and eliminating late fees are just a few examples of the policies that we are preparing to take on for small housing providers. We will need your help now more than ever as we not only fight to stop these harmful regulations, but also push for things that will help housing providers, such as electronic notices and statewide preemption. The solution to bad housing policy is to not only stop the harmful legislation, but to promote and bolster legislation that will make it easier to provide housing. Improving a small housing providers ability to run their business will keep small providers in the market, reduce costs, make it easier to negotiate lease terms, and encourage a more cooperative rental housing environment. The legislative problems we currently face can be solved in Olympia with legislation and RHAWA is always looking to find these solutions and spread our ideas. But, of course, our success with these goals is dependent on you being involved, joining us, and sharing your voice. Together we can make the difference!

GRASSROOTS ADVOCACY

Grassroots advocacy is necessary to defend the rights of housing providers. As we are reminded by our President and Executive Director Sean Flynn, one housing provider’s testimony is worth ten of our lobbyists. While some of you might be nervous to give testimony or speak to your lawmakers, we strive to make it as easy as possible, from one click registration to speak, to having our staff, lobbyists and fellow housing providers give advice and feedback on your testimony, it's never been easier to share your experience with the lawmakers. Learning how to effectively advocate on your own behalf during session will also help teach you the skills necessary to engage with local issues as well. It is difficult to understand and follow every local issue that arises in city councils but learning how to interpret and present talking points during Legislative Session will ensure that you are fully prepared for anything that may come down the line in your local jurisdiction. Again, it is essential for these lawmakers to hear your lived experiences so they can truly understand the needs and struggles of small housing providers.

In addition to harnessing the voices of our members, we must ensure that all facets of the rental housing industry work together to create a

robust and effective grassroots advocacy effort.

RHAWA has brought together property managers, rental housing owners, manufactured housing owners, and industry professionals from across the state to form the Rental Housing Association Coalition (RHAC). Members of the coalition will be invited and included in our Legislative Session preparation in order to present a unified voice in our advocacy efforts.

Coalition members include:

LEGISLATIVE EVENTS

LEGISLATIVE SESSION KICKOFF

When: January 4, 2023 | 6 - 7:30pm Register: RHAwa.org/events Cost: FREE to Attend Location: ONLINE Only

Join RHAWA government affairs team and lobbyists, Chester Baldwin and Jim Henderson, to discuss the upcoming legislative session with lawmakers who work hard to support us on the hill. You can help drive the solutions to our challenges by advocating for policies that build a healthy housing economy for all, so don't miss this opportunity to learn how to get involved. Make your voice heard and join us in defending your rights as a housing provider.

Please note: Registering for the kickoff event will automatically register you for all other Legislative Session events.

BRIEFING ROOMS

Staff and lobbyists will be available to consult with you two hours before any critical hearings in the Virtual Briefing Room throughout the session. They can assist you with signing up for your remote committee testimony and help you prepare your speaking points prior to your appointment.

WEEKLY ONLINE MEET-UP

Hop into our Monday morning meet-up to learn what the most pressing bills are for the week. You will receive an event reminder with a join link prior to each meet-up.

LEGISLATIVE SESSION RECAP

This event will discuss the 2023 Legislative Session from start to finish. We will be going over our hardest fights, biggest opportunities, and key takeaways. Don't miss this opportunity to peek behind the curtain and

figure out not just what happened, but why it happened. Learn what messaging is effective and how we can bolster our grassroots advocacy efforts. We will also be talking about what comes next, and how to prepare for the upcoming elections.

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CALLS TO ACTION

Watch your inbox for hearing announcements, upcoming events, and Calls-to-Action! Content from this coalition is developed and approved by our RHAC leadership advocacy team. All Calls-to-Action and advocacy updates will include a way to submit written testimony, or a link that will grant you easy access to the sign-up process.

ADVOCACY CENTER

The Advocacy Center is your go-to resource to make sure you're ready to participate in our advocacy efforts. This page is continually updated with our most up-to-date campaign.

LEGISLATIVE SESSION PREVIEW

The 2023 legislative session will kick off on Monday January 9, 2023, in Olympia with most lawmakers and most staff returning in person after a 2-year COVID hiatus. During that 2-year hiatus all Legislative meetings and activity has been done remotely, over Zoom. Most people are excited to be returning in person and to have the opportunity to sit together with lawmakers and discuss our important issues.

The coming session will likely bring many challenges for our small housing providers as the State looks for ways to keep rents down and tenants in housing. And with at least 25 new lawmakers in 2023, this means that we have a lot of work to do in educating these new members about the challenges facing small housing providers. This is a big opportunity for RHAWA and small housing providers to develop and build relationships with your local lawmakers, these lawmakers really care about what you think. Through your participation in the Rental Housing Association Coalition, we will provide you with the information and talking points for each of the housing bills that will have hearings during the upcoming legislative session. We will also help make it as easy as possible for you to reach out to your lawmakers with our craft-

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GRASSROOTS ADVOCACY & LEGISLATIVE SESSION PREVIEW

ed messages to educate them on housing provider issues.

While we won’t see any official legislation under much closer to the start of session, we know that there will be a HUGE effort to pass a rent control policy for WA state. We remain the only state on the West Coast that does not have a statewide rent control policy and your participation in the Rental Housing Association Coalition has been the driving force behind stopping rent control… and with your help we are going to stop rent control again in 2023! In addition to rent control, we expect to see legislation again this coming session attempting to put the ARCH provisions into state law including:

LEGISLATIVE SESSION KICKOFF

January 4, 2023 | 6 - 7:30pm | FREE ONLINE Event

Join RHAWA leadership and lobbyists to discuss the legislative session with lawmakers who work hard to support us on the hill. Help drive solutions to our challenges by advocating for policies that build a healthy housing economy for all. Make your voice heard and join us in defending your rights as a housing provider.

Register at RHAwa.org/events

posits of no more than one month's rent except in subsidized tenancies and allow tenants to pay in installments.

1. Notice of Rent Increase – Require at least 120 days' written notice of rent increases >3%, and 180 days' notice of rent increases >10%, except in subsidized housing.

2. Limits on Late Fees – Cap on fees for late payment of rent at 1.5% of a monthly rent.

3. Limits on Move-In Fees – Cap on move-in fees and security de-

The election will determine the final makeup of the legislature, but RHAWA is a bipartisan organization which has supported candidates from both sides of the aisle because anyone who understands what it is to be a small housing provider, especially in these times, is a friend of ours and someone that we want to continue to educate and build relationship with. We need to help lawmakers to understand that historically, small mom-and-pops housing providers have been the only source of naturally affordable housing units in the State and now because of the Explosion of New Housing Laws since 2017, those units are quickly leaving the market. And rent control and other regulations will Increase rents and reduce housing supply. The dramatic increase in regulation and legislation on small housing providers has taken its toll, and small housing providers are leaving the market by the thousands. While no statewide data exists to show the full magnitude of rental housing units lost, Seattle data exists, and the recent rash of laws targeting small housing providers has caused thousands to sell their units and flee the market. Seattle alone has lost more than 2,400 single family rental homes in the last year (Seattle RRIO Study – https://data.seattle.gov/ Permitting/Rental-Property-Registration/j2xh-c7vt). Also, there will likely be additional legislation to attempt to regulate housing providers in various way. Unfortunately, the root problem is underfunding and undersupply of affordable housing by governments at every level.

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In addition to defending against harmful legislation, we intend to work with a bipartisan group of lawmakers to introduce proactive legislation as well. We believe that working on legislation to allow electronic notices is a WIN/WIN for housing providers and tenants alike and that there is lawmaker support for carefully making a change like this. Additionally, the Residential Landlord-Tenant Act (RLTA) was established in 1973 and was meant to balance the duties and responsibilities of housing providers and tenants, unfortunately, over the past handful of years the changes to that Act has had the effect of unbalanced the scales and has made many processes unworkable. There needs to be considerable work done in modernizing and fixing the RLTA in a more holistic way to address many legitimate concerns that now exist. Finally, we will be working with lawmakers to educate them on how beneficial a State Rental Assistance Program would be if that program were stackable with Section 8 and accessible to assist community members experiencing a financial hardship or needing a hand up. It could help low-income tenants bridge the gap between financial need and market rents, especially in Seattle and the Puget Sound.

Local Government Update

Alex Robertson | Policy Analyst |  arobertson@RHAwa.org |  (206) 905-0611

The election is now behind us, and we begin to prepare to jump right into the 2023 Legislative Session; however, that doesn’t mean that local governments have stopped passing their own policies. We have seen more local regulations this year than nearly any year before. Local governments have passed more and more differing regulations on housing providers, making it harder than nearly any time in Washington’s history to operate rental housing. As such, lets walk through all the changes to the housing provider and tenant relationship this year.

We start with Kenmore passing their regulations in February, while session was still ongoing. They led the pack in passing increase notice periods for rent increases, move-in fee caps, late fee caps, and Social Security Number (SSN) requirement ban. These regulations passed only weeks before the letter from A Rental Coalition for Housing (ARCH) in April, recommending rent increase, move-in fee, and late fee regulations.

Following the ARCH letter, RHAWA sent a response letter to each of the ARCH cities pointing out the many flaws with the recommended regulations. We also ramped up our advocacy efforts, meeting almost daily with City Councilmembers. Following the ARCH letter, Shoreline met and made the wise decision of putting the recommendations on their 2023 workplan rather than pushing through rushed, short-sited regulations.

The next city to join Unincorporated King County, Kenmore, and Seattle was Redmond. In July, the Redmond City Council decided, despite strong opposition from housing providers and realtors, to pass the same rent increase notice requirements, move-in fee cap, late fee cap, and SSN requirement ban. Quickly after Redmond was Kirkland, which passed the rent increase notice and move-in fee regulations but, through strong advocacy efforts by

RHAWA members, did not add the late fee cap.

August marked the first non-ARCH city to follow its lead. The City of Olympia passed not only the increase rent notice period but went beyond what ARCH recommended for move-in fee caps. Olympia has not only capped move-in fees to one month’s rent but has outright banned non-refundable fees. Olympia does allow a pet deposit for non-assistance of up to 25% of one month’s rent, which makes Olympia now one of the most restrictive move-in fee regulations.

Issaquah and Port Townsend both opened up discussion on tenant regulations and were responsive to the many concerns brought forward by housing providers. Issaquah decided to pass a weakened version of the rent increase notice regulations after pointing out that there were a growing number of cities that added to the confusion for housing providers by passing different regulations. Port Townsend, towards the end of September passed on the rent increase notice regulations as well. The key difference between these cities is that while both identified that they would like to revisit the topic at some point in the future, Issaquah wants to have the discussion and find a solution, Port Townsend said they want to pass more regulations and made some extremely concerning comments regarding rent control.

Finally, we come to October, which has been a busy budget season for many City Councils across the state, including Seattle, with discussions of the Eviction Resolution Pilot Program (ERPP), rent assistance, and bolstering city programs. Burien has passed a first in the state screening regulation with very little discussion or input. Burien passed the ARCH regulations, RRIO penalty raises, modified their just cause, and passed the first ever portable screening requirement. In another unnecessary move, Burien made the ordinance an emergency ordinance, meaning it went into effect immediate-

ly after its October 24 passage. The ordinance not only has the provision that housing providers cannot require a Social Security Number from a prospective tenant, but also requires a housing provider to accept any other form of tenant financial screening information, including portable tenant screening. The ordinance does not have any provision regarding the timeliness of the report, meaning the portable report has no requirement for it to be recent by any standard. The ordinance also does not identify what these other informational sources must look like. The ordinance initially had required relocation assistance similar to Seattle's Economic Displacement Relocation Assistance (EDRA). Due to advocacy effort by RHAWA and our members, that was removed from the ordinance.

There are some positive developments as well. Both the State and Seattle

Emergencies ended on October 31. This begins the clock for many of the regulations related to COVID put in place over the long pandemic eviction moratoriums. We are now, finally, beginning to see the end of the COVID pandemic and will begin the long road to normalcy. Many of the protections for non-payment of rent are still in place until the end of April, which means that there is still the chance that the State Legislature tries to extend, or make permanent, the regulations.

This legislative session is shaping up to be another long fight for housing providers and we are looking to be more proactive than ever. To do so we need your help. Check the Advocacy Center, keep an eye out for our Calls to Action, and as always please reach out to arobertson@RHAwa.org or dbannon@ RHAwa.org if you have any questions.

Alex Robertson

GOVERNMENT AFFAIRS

Washington State Legislature Likely to Remain in Democratic Control After November 8 General Election

Chester Baldwin, RHAWA Lobbyist | Alex Robertson, Policy Analyst

The Washington state 2022 midterm election season saw numerous hotly contested legislative races in the 42nd Legislative District (Whatcom County), 10th (Island, Skagit, North Snohomish County), and 26th (South Kitsap County) legislative districts, all of which are showing Democrats well ahead on election night. While there are many ballots still on-hand left to count, it is unlikely in most of these races that the remaining ballots will shift the direction of some of the races.

We are likely to see little change to the existing Democratic majorities in both the State House and Senate chambers – in fact it’s possible that House Republicans will see a net loss of seats.

In federal races, U.S. Senator Patty Murray cruised to a significant win over Republican challenger Tiffany Smiley. In two closely-watched U.S. House races, Republican candidates did not perform well, and it appears that incumbent Rep. Kim Schirer (D) will retain her seat, and Marie Gluesenkamp Perez, a Democratic newcomer may win in southwest Washington’s Congressional District 3 – flipping the seat from Republican to Democrat – if her election performance continues in subsequent ballot counts.

Turnout in this election appears to be on par with 2018’s election. County election offices will continue to count votes throughout the week and updated count information will be released between 5-6pm every day for the next week. You can view the latest election results at WA Secretary of State website.

STATEWIDE | SECRETARY OF STATE

In a unique special election for state-

wide office, incumbent and former state senator, Steve Hobbs (D), who was appointed to the position after Republican Kim Wyman left to work in the Biden administration last year, is running a close race on election night by receiving just under 50% of the vote to challenger and Independent Pierce County Auditor Julie Anderson who earned 47% of the vote. Republican write in candidate, Brad Klippert, is receiving 3% of the vote. About 50,000 votes separate Hobbs and Anderson.

STATE HOUSE & SENATE | LD 42

All three Democratic candidates are currently running ahead on election night. Incumbent Democrat Representative Alicia Rule is at 52% of the vote, the highest of the three Democrats in this district, but still putting her in a tight spot of reelection against her Republican challenger, former police officer Tawsha Thompson who is earning 48% of the vote. There is a 2,000 vote difference between the candidates.

In the vacated seat that Rep. Sharon Shewmake held before running against Sen. Simon Sefzik (R), Democrat Joe Timmons is earning 52% of the vote and Republican Dan Johnson is earning 48%. There is a 1,700 vote difference between the candidates.

Shewmake’s run against recently appointed Sefzik, is earning the least of the three Democrats at 51% to Sen. Sefzik’s 49%. There is a 1,250 vote difference between the candidates. This race was among the most expensive elections in Washington state this year.

STATE HOUSE & SENATE | LD 47 In this historically swing district, Democrats are seeing strong results on elec-

tion night for their House candidates with incumbent Representative Debra Entenman receiving 58% of the vote. In a unique Democrat versus Democrat race, Chris Stearns received 67% of the vote and is the likely candidate replacing retiring Democrat House Majority Leader Representative Pat Sullivan. In the Senate race, Republican Bill Boyce is keeping the race close receiving 46% of the vote to Democrat former state Senator Claudia Kauffman who is receiving 53% of the vote. This is a race to keep a close eye on as future vote counts are released.

STATE HOUSE & SENATE | LD 26 Incumbent Senator Emily Randall (D) is continuing her stronger than expect-

ed performances on election night receiving 53% of the vote to challenger Republican Representative Jesse Young’s at 47% of the vote. There are 2,500 votes separating the candidates, making this election vulnerable to tightening in future vote counts and an election to keep a close eye on. This election was another very expensive race for the parties and the candidates. In the open seat left by Representative Young in his bid to unseat Senator Emily Randall, Democrat Addison Richards is currently ahead with 51% of the vote to Republican Spencer Hutchins at 49% of the vote. There are 1,000 votes separating the candidates.

Continued on page 14

Chester Baldwin

Alex Robertson

Washington State Legislature Likely to Remain in Democratic Control After November 8 General Election

STATE HOUSE | LD 10

In another swing district, Democrats are seeing continued strong results on election night for their House candidates with incumbent Representative Dave Paul receiving 54% of the vote, similar to his primary election performance. His seatmate, Republican Representative Greg Gilday, is running behind his Democratic challenger Clyde Shavers. Representative Gilday is earning 47% of the vote to Shavers’ 53% of the vote. This is a race to watch for subsequent vote counts as there are 1700 votes separating the candidates.

OTHER RACES TO WATCH

LDS 17, 18, AND 35

Four house races in three legislative districts are running surprisingly close on election night and may be races to keep an eye on. In LD 17, Democrats are running at 49% of the vote in the open seat vacated by Representative Vicki Kraft. The Republican candidate is receiving 51% of the vote with 700 votes separating the candidates, making this among the closest races in the state at the moment. Incumbent Republican Representative Paul Harris is also running closer than expected margins at 53% to the Democrat challenger’s 47% of the vote. In LD 18, the open seats left by Representative Brandon Vick and Larry Hoff are likewise seemingly contested on election night with the Republican candidates running at 51% and 52% and their Democratic counterparts running closely behind at 49% and 48%. In the election with Republican Stephanie McClintock and Democrat John Zingale, there are 550 votes separating the candidates, making this among the closest races in the state at the moment. In LD 35, the open seat left by Republican Representative Drew MacEwan seems to be having a competitive race with his potential Republican replacement, Travis Couture, running at 51% of the vote compared to his Democrat counterpart at 49% of the vote. There are currently 1,000 votes separating the candidates.

CONGRESSIONAL | SENATE Incumbent Patty Murray (D) leads

with 57% of the votes, while Republican challenger Tiffany Smiley has 43% of the vote on election night. The total vote for all Democrat candidates tracks very closely to President Biden’s vote share in the state in the 2020 Presidential election of 58%.

CONGRESSIONAL | HOUSE

District 3 Joe Kent (R), who notably unseated the soon to be former Representative Jamie Herrera-Bueatler (R) in the primary, is currently running behind his Democrat opponent, Marie Gluesenkamp Perez, with 47% of the vote to Perez’s 53%. Numbers in this race are likely to change significantly, given the hundreds of thousands of votes left to count in this race.

District 4 Incumbent Dan Newhouse (R), who survived primary challenges from the right for his vote to impeach President Trump, is sailing to victory, receiving 67% of the vote on election night.

District 8 In the state’s sole congressional swing district, Incumbent Kim Schrier (D) received 53% of the vote to her Republican challenger, Matt Larkin, who is at 47% of the vote. However, with hundreds of thousands of votes left to count, this race should be closely monitored for a potential flip.

GENERAL ELECTION RESULTS

It is important to note that in Washington State we have a mail in ballot system which does always give a clear outcome on election night. Over the next few days, we will be able to identify winners of close races but those races that are within 5 percentage points are typically in the realm of possibility for a win. Any more than 5 points will be difficult to overcome but nothing is impossible.

General election results are certified by each county on November 29, 2 and transmits results of the General Election. Thursday, December 8 is the last day for the Secretary of State to certify final results.

FRIENDS OF RHAWA ARE IN BOLD – Election results as of 11/9/2022

SECRETARY OF STATE

• Steve Hobbs - 49.8%

• Julie Anderson - 46.7%

LEGISLATIVE DISTRICT 1

• Rep. 1: Davina Duerr - 70.9%

• Rep. 1: John Peeples - 28.9%

• Rep. 2: Shelly Kloba - 71.3%

• Rep. 2: Jerry Buccola - 28.5%

LEGISLATIVE DISTRICT 2

• Rep. 1: Andrew Barkis - 93.2% (Uncontested)

• Rep. 2: J.T. Wilcox - 72.8%

• Rep. 2: Edward Meer - 25.3%

LEGISLATIVE DISTRICT 3

• Rep. 1: Marcus Riccelli - 62.5%

• Rep. 1: Scotty Nicol - 37.4%

• Rep. 2: Timm Ormsby - 60.1%

• Rep. 2: Natalie Poulson - 39.7%

LEGISLATIVE DISTRICT 4

• Rep. 1: Suzanne Schmidt - 62.6%

• Rep. 1: Ted Cummings - 37.2%

• Rep. 2: Leonard Christian - 50.6%

• Rep. 2: Rob Chase - 47.2%

LEGISLATIVE DISTRICT 5

• Rep. 1: Bill Ramos - 59.4%

• Rep. 1: Ken Moninski - 40.4%

• Rep. 2: Lisa Callan - 54.4%

• Rep. 2: Chad Magendanz - 45.4%

LEGISLATIVE DISTRICT 6

• Senate: Jeff Holy - 94.39% (Uncontested)

• Rep. 1: Mike Volz - 94.7% (Uncontested)

• Rep. 2: Jenny Graham - 61.6%

• Rep. 2: Michaela Kelso - 38.1%

LEGISLATIVE DISTRICT 7

• Senate: Shelly Short - 97.4% (Uncontested)

• Rep. 1: Jacquelin Maycumber - 73.2%

• Rep. 1: Lonny Ray Williams - 25%

• Rep. 2: Joel Kretz - 97.5% (Uncontested)

LEGISLATIVE DISTRICT 8

• Senate: Matt Boehnke - 72.9%

• Senate Ronni Batchelor - 26.7%

• Rep. 1: Stephanie Barnard - 73.3%

• Rep. 1: Patrick Guettner - 24.8%

• Rep. 2: April Connors - 56%

• Rep. 2: Joe Cotta - 42.3%

LEGISLATIVE DISTRICT 9

• Rep. 1: Mary Dye - 96.3% (Uncontested)

• Rep. 2: Joe Schmick - 96.2% (Uncontested)

LEGISLATIVE DISTRICT 10

• Rep. 1: Clyde Shavers - 52.6%

• Rep. 1: Greg Gilday - 47.2%

• Rep. 2: Dave Paul - 54.2%

• Rep. 2: Karen Lesetmoe - 45.6%

LEGISLATIVE DISTRICT 11

• Rep. 1: David Hackney - 69%

• Rep. 1: Stephanie Peters - 30.7%

• Rep. 2: Steve Bergquist - 68.2%

• Rep. 2: Jeanette Burrage - 31.6%

LEGISLATIVE DISTRICT 12

• Rep. 1: Kevin Goehner - 94.1% (Uncontested)

• Rep. 2: Mike Steele - 79.2%

• Rep. 2: Robert Amenn - 16.7%

LEGISLATIVE DISTRICT 13

• Senate: Judy Warnick - 97.2% (Uncontested)

• Rep. 1: Tom Dent - 97.2% (Uncontested)

• Rep. 2: Alex Ybarra - 97.5% (Uncontested)

LEGISLATIVE DISTRICT 14

• Rep. 1: Chris Corry - 67.3%

• Rep. 1: Laurene Contreras - 32.3%

• Rep. 2: Gina Mosbrucker - 67.9%

• Rep. 2: Liz Hallock - 31.7%

LEGISLATIVE DISTRICT 15

• Senate: Nikki Torres - 69.4%

• Senate: Lindsey Keesling - 30.2%

• Rep. 1: Bruce Chandler - 96.1% (Uncontested)

• Rep. 2: Bryan Sandlin - 96.3% (Uncontested)

LEGISLATIVE DISTRICT 16

• Rep. 1: Mary Klicker - 69.7%

• Rep. 1: Jeff Strickler - 30.1%

• Rep. 2: Skylar Rude - 72%

• Rep. 2: Jan Corn - 27.8%

LEGISLATIVE DISTRICT 17

• Rep. 1: Kevin Waters - 51.5%

• Rep. 1: Terri Niles - 48.3%

• Rep. 2: Paul Harris - 53%

• Rep. 2: Joe Kear - 46.8%

LEGISLATIVE DISTRICT 18

• Rep. 1: John Zingale - 50%

• Rep. 1: Stephanie McClintock - 49.8%

• Rep. 2: Greg Cheney - 52.1%

• Rep. 2: Duncan Camacho - 47.7%

LEGISLATIVE DISTRICT 19

• Rep. 1: Jim Walsh - 60.5%

• Rep. 1: Kelli Hughes-Ham - 39.3%

• Rep. 2: Joel McEntire - 59.9%

• Rep. 2: Cara Cusack - 39.9%

LEGISLATIVE DISTRICT 20

• Rep. 1: Peter Abbarno - 95.4% (Uncontested)

• Rep. 2: Ed Orcutt - 95.6% (Uncontested)

LEGISLATIVE DISTRICT 21

• Senate: Marko Liias - 63.6%

• Senate: Janelle Cass - 36.2%

• Rep. 1: Strom Peterson - 67.4%

• Rep. 1: Amy Schaper - 32.4%

• Rep. 2: Lillian Ortiz-Self - 66.9%

• Rep. 2: Petra Bigea - 33.01%

LEGISLATIVE DISTRICT 22

• Rep. 1: Beth Doglio - 66.7%

• Rep. 1: Loretta Byrnes - 33.1%

• Rep. 2: Jessica Bateman - 67.2%

• Rep. 2: Kate Plager - 32.6%

LEGISLATIVE DISTRICT 23

• Rep. 1: Tarra Simmons - 65.9%

• Rep. 1: Janell Hulst - 33.9%

• Rep. 2: Drew Hanson - 67.4%

• Rep. 2: Paige Jarquin - 32.5%

LEGISLATIVE DISTRICT 24

• Rep. 1: Mike Chapman - 58.6%

• Rep. 1: Sue Forde - 41.2%

• Rep. 2: Steve Tharinger - 57.6%

• Rep. 2: Brian Pruiett - 42.3%

LEGISLATIVE DISTRICT 25

• Rep. 1: Kelly Chambers - 55.6%

• Rep. 1: Jamie Smith - 44.2%

• Rep. 2: Cyndy Jacobsen - 57.9%

• Rep. 2: Cameron Severns - 41.9%

LEGISLATIVE DISTRICT 26

• Senate: Emily Randall - 52.9%

• Senate: Jesse Young - 47.6%

• Rep. 1: Adison Richards - 50.9%

• Rep. 1: Spencer Hutchins - 49%

• Rep. 2: Michelle Caldier - 55%

• Rep. 2: Matt Macklin - 44.8%

LEGISLATIVE DISTRICT 27

• Senate: Yasmin Trudeau - 70.1%

• Senate: Ashley Ray - 29.7%

• Rep. 1: Laurie Jinkins - 71.3%

• Rep. 1: Jalonnie Givens Jackson - 29.2%

• Rep. 2: Jake Fey - 70.5%

• Rep. 2: Janet Large - 29.2%

LEGISLATIVE DISTRICT 28

• Rep. 1: Mari Leavitt - 57.8%

• Rep. 1: Gabe Sachwitz - 42%

• Rep. 2: Dan Bronoske - 55.5%

• Rep. 2: Susana Keilman - 44.2%

LEGISLATIVE DISTRICT 29

• Senate: Steve Conway - 58.7%

• Senate: Terry Harder - 41%

• Rep. 1: Melanie Morgan - 56.6%

• Rep. 1: Brett Johnson - 43.2%

• Rep. 2: Sharlett Mena - 57.9%

• Rep. 2: David Figuracion - 41.9%

LEGISLATIVE DISTRICT 30

• Senate: Claire Wilson - 55.6%

• Senate: Linda Kochmar - 44.1%

• Rep. 1: Jamila Taylor - 55.8%

• Rep. 1: Casey Jones - 44%

• Rep. 2: Kristine Reeves - 57.6%

• Rep. 2: Ashli Tagoai - 41.1%

LEGISLATIVE DISTRICT 31

• Senate: Phil Fortunato - 55.4%

• Senate: Chris Vance - 44.1%

• Rep. 1: Drew Stokesbary - 59.6%

• Rep. 1: Holly Stanton - 40.3%

• Rep. 2: Eric Robertson - 61.7%

• Rep. 2: Carrie Wilbur - 38.1%

LEGISLATIVE DISTRICT 32

• Senate: Jesse Salomon - 75.2%

• Senate: Patricia Weber - 22%

• Rep. 1: Cindy Ryu - 81.3%

• Rep. 1: Lori Theis - 18.1%

• Rep. 2: Lauren Davis - 78.5%

• Rep. 2: Anthony Hubbard - 21.2%

LEGISLATIVE DISTRICT 33

• Senate: Karen Keiser - 69%

• Senate: Marliza Melzer - 30.7%

• Rep. 1: Tina Orwall - 93.6%

• Rep. 2: Mia Su:Ling Gregerson - 93.3%

LEGISLATIVE DISTRICT 34

• Senate: Joe Nguyen - 85.2%

• Senate: John Potter - 14.6%

• Rep. 1: Emily Alvarado - 68.9%

• Rep. 1: Leah Griffin - 29.2%

• Rep. 2: Joe Fitzgibbon - 82.6%

• Rep. 2: Andrew Piloud - 17.2%

LEGISLATIVE DISTRICT 35

• Senate: Drew MacEwen - 55.1%

• Senate: Julianna Gale - 44.7%

• Rep. 1: Dan Griffey - 57.8%

• Rep. 1: James DeHart - 42%

• Rep. 2: Travis Couture - 51.8%

• Rep. 2: Sandy Kaiser - 48%

LEGISLATIVE DISTRICT 36

• Senate: Noel Frame - 83.2%

• Senate: Kate Martin - 15.9%

• Rep. 1: Julia Reed - 73.9%

• Rep. 1: Jeff Manson - 25%

• Rep. 2: Liz Berry - 98.1% (Uncontested)

LEGISLATIVE DISTRICT 37

• Senate: Rebecca Saldaña - 97.9% (Uncontested)

• Rep. 1: Sharon Tomiko Santos - 90.2%

• Rep. 1: John Dickinson - 9.4%

• Rep. 2: Chipalo Street - 54.3%

• Rep. 2: Emijah Smith - 44.3%

LEGISLATIVE DISTRICT 38

• Senate: June Robinson - 59.2%

• Senate: Bernard Moody - 40.6%

• Rep. 1: Julio Cortes - 59.4%

• Rep. 1: Gary Kemp - 40.4%

• Rep. 2: Mary Fosse - 57.9%

• Rep. 2: Mark James - 41.9%

LEGISLATIVE DISTRICT 39

• Rep. 1: Sam Low - 54.9%

• Rep. 1: Robert Sutherland - 41.6%

• Rep. 2: Carolyn Eslick - 57.5%

• Rep. 2: Jessica Wadhams - 42.2%

LEGISLATIVE DISTRICT 40

• Rep. 1: Debra Lekanoff - 77.1%

• Rep. 1: Shannon Perkes - 27.7%

• Rep. 2: Alex Ramel - 76.3%

• Rep. 2: Trevor Smith - 21.2%

LEGISLATIVE DISTRICT 41

• Rep. 1: Tana Senn - 75.6%

• Rep. 1: Mike Nykreim - 23.9%

• Rep. 2: My:Linh Thai - 68.3%

• Rep. 2: Al Rosenthal - 31.4%

LEGISLATIVE DISTRICT 42

• Senate: Sharon Shewmake - 50.8%

• Senate: Simon Sefzik - 49.1%

• Rep. 1: Alicia Rule - 51.7%

• Rep. 1: Tawsha Thompson - 48.1%

• Rep. 2: Joe Timmons - 51.4%

• Rep. 2: Dan Johnson - 48.5%

LEGISLATIVE DISTRICT 43

• Senate: Jamie Pedersen - 98.1% (Uncontested)

• Rep. 1: Nicole Macri - 98.2% (Uncontested)

• Rep. 2: Frank Chopp - 97.9% (Uncontested)

LEGISLATIVE DISTRICT 44

• Senate: John Lovick - 59.3%

• Senate: Jeb Brewer - 40.5%

• Rep. 1: Brandy Donaghy - 54.3%

• Rep. 1: Mark Harmsworth - 45.5%

• Rep. 2: April Berg - 57.4%

• Rep. 2: Ryne Rohla - 42.4%

LEGISLATIVE DISTRICT 45

• Senate: Manka Dhingra - 63.2%

• Senate: Ryika Hooshangi - 36.6%

• Rep. 1: Roger Goodman - 69.3%

• Rep. 1: Cherese Bourgoin - 30.5%

• Rep. 2: Larry Springer - 72.2%

• Rep. 2: John Gibbons - 27.5%

LEGISLATIVE DISTRICT 46

• Senate: Javier Valdez - 84.9%

• Senate: Matthew Gross - 14.2%

• Rep. 1: Gerry Pollet - 86.5%

• Rep. 1: Hadeel Jeanne - 12.5%

• Rep. 2: Darya Farivar - 56%

• Rep. 2: Lelach Rave - 43%

LEGISLATIVE DISTRICT 47

• Senate: Claudia Kauffman - 53.1%

• Senate: Bill Boyce - 46.6%

• Rep. 1: Debra Jean Entenman - 57.4%

• Rep. 1: Kyle Lyebyedyev - 42.4%

• Rep. 2: Chris Stearns - 66.4%

• Rep. 2: Shukri Olow - 28.2%

LEGISLATIVE DISTRICT 48

• Senate: Patty Kuderer - 70.5%

• Senate: Michelle Darnell - 29.3%

• Rep. 1: Vandana Slatter - 95.24% (Uncontested)

• Rep. 2: Amy Walen - 95.1% (Uncontested)

LEGISLATIVE DISTRICT 49

• Rep. 1: Sharon Wylie - 63.6%

• Rep. 1: Park Llafet - 36.1%

• Rep. 2: Monica Jurado Stonier - 62.2%

• Rep. 2: Jeremy Baker - 37.2%

City Law Articles Under Development – See Burien’s Now!

Denise Myers | Education + Resources Director |  dmyers@RHAwa.org |  (206) 905-0614

This year we’ve seen an explosion of new local laws across western Washington. Initially, we have focused on providing instructions with forms that reflect all local laws. RHAWA members can access these instructions within various tenant notice forms, and in the Lease Signing section, there is a separate instruction document, Leasing Requirements by Local Jurisdiction. This past month we decided to also write individual law summary articles for each city or county that creates its own set of rental regulations. In the case of Seattle, there will likely be several different articles involved. We anticipate this project will take a few months to complete.

So far, we have completed law summa-

ry articles for Redmond, Burien, and Kenmore, as well as a few articles on specific areas of Seattle law. In addition, we’ve created a separate article called Local Government Rental Law Codes which simply lists all of the local government rental regulations we are aware of, including links to either the code, or ordinance if it is not yet codified. This list of local law references includes eleven cities (+ one county) with extensive rental regulations, and an additional ten cities that have a rental registration/inspection programs, but no other rental regulations. Our goal is to provide members with law summary articles for all of these and more as new laws appear. Following is our new article summarizing Burien rental regulations as an example:

City of Burien Law Summary

This article provides a summary of the following Burien policies related to rental housing:

• Rental Registration and Inspection

• Use of SSN in Screening

• Move-In Cost Caps

• Move-In Cost Payment Plan

• Notice to Increase Rent

• Late Rent Fee Cap

• Notice Disclosures

• Notice to Terminate Tenancy

• Rent Due Date Accommodation

The policies are found in the following legal codes and/or ordinances:

• The Burien Rental Housing Inspection Program (RHIP) BMC 5.62 adopted in 2019 applies to all tenancies governed by RCW 59.18 (Residential Rentals) and RCW 59.20 (MHC Rentals).

• Rental Housing Policy (BMC 5.63) adopted in 2019 applies to all tenancies governed by RCW 59.18 (Residential Rentals).

• Ordinance 804, effective 10/24/2022 expanded upon tenant rights in both of the above chapters, yet to be codified.

Rental Registration and Inspection

The Burien Rental Housing Inspection Program (RHIP) BMC 5.62 requires the following:

• Landlords renting or leasing any units within the city limits shall, in accordance with Chapter BMC 5.05, obtain and maintain a business license. Landlords of single-family residences, mobile/ manufactured homes, and/or condominiums/townhomes only are exempt from the business license requirement.

• All long-term residential rental properties available to the general public must be inspected once every three years by a qualified rental housing inspector and will require a certificate of inspection.

• Accessory dwelling units are ex-

empt from the inspection requirement.

• In addition to the enforcement and penalty provisions of BMC Chapter 1.15, after the mailing of Notice of No Certificate of Inspection, there shall be assessed:

• $100.00 per day for each day that a residential housing unit operates without a certificate of inspection for the first 10 days of noncompliance with BMC Chapter 5.62

• $250.00 per day for each day in excess of 10 days of noncompliance with BMC Chapter 5.62.After 30 days of noncompliance, the property shall be deemed to be uninhabitable. If there is a valid business license, that license shall be deemed revoked as of the 31st day of noncompliance. Based on the revoked business license and the uninhabitable property, the property owner shall be financially responsible for assisting in the relocation of each tenant as provided in RCW 59.18.090, Rental of condemned or unlawful dwelling – Tenant’s remedies – Relocation assistance – Penalties, as it exists or may be amended. The property owner shall continue to be liable for the $250.00 per day penalty until each tenant has been successfully relocated.

Use of SSN in Screening

A housing provider shall not require a social security number for the purposes of screening a prospective tenant, as allowed under RCW 59.18.257.

Housing providers are required to accept “alternative proof of financial eligibility such as portable screening reports.”

Move-In Cost Caps

The total of all move-in fees and deposits charged by landlord must not ex-

CURRENT | December 2022 17

ceed one month's rent, except in subsidized housing where the monthly rent is based on the tenant’s income.

Move-In Cost Payment Plan

• Tenants entering rental agreements with terms lasting six or more months may choose to pay their move in fees and security deposits in six equal monthly installments over the first six months occupying the dwelling unit.

• Tenants entering rental agreements with terms lasting fewer than six months or month-to-month rental agreements, may choose to pay move in fees and security deposits in two equal monthly installments over the first two months occupying the dwelling unit.

Notice to Increase Rent

• When raising rent at the beginning of a rental period or term lease renewal, landlords must give:

• 120 days' written notice for rent increases greater than three percent (3%); or

• 180 days' written notice for rent increases greater than ten percent (10%).

• As required under WA State law, 60 days' written notice for any rent increases 3% or less.

• Tenants who receive any rent increase may terminate the tenancy, without penalty, at any time prior to the rent increase becoming effective.

• All rent increase notices must be served and must inform the tenant of their right to terminate tenancy.

• If the rental agreement governs subsidized housing where the amount of rent is based on the income of the tenant or circumstances specific to the subsidized household, the landlord shall provide a

minimum of thirty (30) days' prior written notice of an increase in the amount of rent to each affected tenant.

Late Rent Fee Cap

Late fees and penalties due to nonpayment of rent charged to a tenant shall not exceed $10.00, including notice service or legal fees.

Notice Disclosures

All 14-day Pay or Vacate Notices must include the following in 16-point bold font:

You have 14 days to pay the rent required by this notice. After 14 days, you may pay the rent but will have to include a late fee totaling at most $10.00 per month for each month of rent owed. If the landlord has started a court case to evict you and the case is filed in court, you will need to pay court costs as well before the hearing date to avoid eviction.

Notice to Terminate Tenancy

• A housing provider cannot refuse to continue a tenancy after the rental agreement expires without cause per BMC 5.63.070(1)(a - m). This applies to both month-to-month and term leases with a fixed end date.

• Housing provider must be in compliance with licensing, registration and inspection requirements per BMC 5.62 to evict a tenant.

Rent Due Date Accommodation

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SEATTLE MULTI-FAMILY MARKET REPORT

CoStar Group OVERVIEW

Consisting of King, Pierce, and Snohomish County, Seattle is among the largest multifamily markets in North America, with around 367,000 market-rate apartment units and about 25,000 more under construction. Formation of new apartment households has slowed after a record year of growth last year. Absorption does remain above historic averages, and over the past 12 months, the region gained about 8,400 new apartment households. This deceleration in demand comes at a time when the construction of new apartments remains near an all-time high. Developers delivered 11,000 new units over the past year, and 25,000 units remain under way.

As a result, the near record low vacancy rates that the Seattle area enjoyed over the last year are beginning to rise. Concessions have returned to the market, as well. In downtown areas, about half of the properties are currently offering some form of concession, a trend that is driven by many new communities competing for tenants.

Supply pressure is affecting rents across the metro as new supply exceeds the immediate demand for new units. For example, the Downtown Seattle and Lake Union submarkets are seeing a wave of construction that is delivering new units far exceeding recent demand. These areas have some of the highest vacancy levels in the region, and rent growth has decelerated as a result.

This has led to rent growth deceleration, particularly in downtown Seattle, where a large amount of new inventory hit the market this year. That area was the first in the metro to record negative annual rent growth, but growth overall is decelerating across the metro.

While sales volume remains near record levels, pricing has been affected by shifts in capital markets. The cost of debt has been on the rise, and as such, Seattle has seen upward pressure on its extremely low cap rates. Price per unit has decreased in recent quarters, and market players have reported repricing or backing out of deals as of late.

VACANCY

The Seattle metro's vacancy rate has been on the rise. The rate sits at 5.6%, compared to the 10-year average of 5.9%. A surge of construction recently at a time of decreasing demand caused vacancy to increase from a near-record low of 4.9%.

Vacancy rates differ by submarket as some submarkets are still catching up to spikes in demand while others are seeing more new units delivered than absorbed in the near term. Areas that have seen rapid growth recently saw vacancy spike with the delivery of new product. Submarkets in this category include Downtown Seattle, Lake Union, and Redmond. While vacancy spiked in these areas recently, they tend to see strong demand and properties that have completed their lease-up period continue to see relatively low vacancy rates by comparison.

A lack of affordability in the home buying market keeps people in apartments, and more than four out of 10 households in the metro rent. For a significant share of the population, homeownership is out of reach, thanks to price appreciation that has been among the strongest in the nation for several years and reached record levels last year. A recent ranking by Florida International University and Florida Atlantic University showed that Seattle was among the top five cities in the nation where renting is a better option than buying in 2022. A slowing economy at a time when significant new supply is arriving to market may have a cooling effect on the housing market prices. However, a rapid increase in interest rates recently has amplified affordability issues.

In addition, typically more than 60% of the population growth in the Seattle region in any given year is due to in-migration. As households move to a new city, it is common for them to rent until they become established in a new city.

The region's tech presence has been a draw and has had a significant impact on apartment demand in the urban core and on the Eastside. While it appears those trends will continue, large tech companies have an outsized presence on the Eastside and many have indicated a slowdown in their plans for growth in light of economic uncertainty. This could provide some headwinds in the short term.

Looking ahead, vacancy expansion appears to be on the horizon. Construction of high-end units has reached unprecedented levels, especially in urban core areas like the Downtown Seattle and Lake Union submarkets and in Eastside cities like Redmond.

RENT

Seattle's average market rent sits at $1,950, compared to the national average of $1,620. Over the past decade, rent in Seattle grew faster than most other metros in the nation but has grown slower than the national average over the past 12 months.

Rent growth has begun to decelerate in the Seattle area and is now below pre-pandemic levels after reaching a recent all-time high of 10.7%. Annual rent growth sits at 3.5% over the past 12 months, compared to the 10-year average of 4.3%. A correction was to be expected after stellar growth in 2021, and rent growth will likely fall below historic averages in the coming months before moving upward toward the historic average by the end of 2023.

Renters seeking affordability have caused lower-priced properties to see stronger rent growth than newer highquality assets. Annual rent growth in 4 & 5 Star assets sits at 2.7%, compared to 4.9% for more mid-tier 3 Star properties.

Concessions have increased overall, especially for newer high-quality assets that are still in their lease-up periods. The effective annual rent growth for the overall market now sits at 3.4% when concessions are included. That figure is down from a recent high of 12.3%.

Sailing into the New Year

throughout the month at various locations and each meeting will take place on its own individual date. Not only will this ensure that a staff member will almost always be present at these meetings, it will also allow members who wish to attend multiple meetings throughout the month to do so. Each LINK meeting location has a unique style resulting from the culture our incredible LINK facilitators and regular attendees have built. This means that you can learn new skills and meet unique groups of people at every LINK meeting you attend. We are also considering adding an additional LINK meeting in 2023 in the direct Seattle area! In order to do this, we would need a member to volunteer as a facilitator for this meeting. If that is something you would be interested in helping come to fruition, reach out to Daniel Bannon.

I would also be remiss to forget to mention our advocacy efforts. Every year, we fight for your rights as small housing providers. This fight is ongoing, and we utilize all the resources we have to improve the legislative landscape for our members. This manifests itself in our advocacy team and lobbyists providing public testimony at city council meetings which often occur late in the evening. We also host meetings with local lawmakers where we explain the struggles of our membership and offer suggestions as to alternative policies. Further than this, during election season RHAWA will host fundraisers for candidates who are supportive and sympathetic to the needs of small housing providers. Electing moderate lawmakers to office is key to maintaining balance at the local and state level, and as a bipartisan organization, it is essential for RHAWA to promote these kinds of lawmakers.

We hope you are looking forward to 2023 and everything we have planned; we certainly are excited to have you on board with us. Thank you for taking the time to read through this article and thank you for your membership. The efforts of RHAWA would not be possible without our members and we are always grateful that you support us in the work that we do. If you have further questions regarding the association, feel free to reach out and ask questions, we love hearing from our members.

Industry in Motion

Submissions are compiled and printed, depending on space available. RHAWA does not guarantee submissions will be included.

ANNOUNCEMENTS

Interested in Submitting Your Annoucement?

WBPA SUIT AGAINST GOVERNOR’S EMERGENCY POWERS REACHES STATE SUPREME COURT

The Washington Business Properties Association (WBPA), along with the plaintiffs, Gene and Susan Gonzalez, filed suit against Gov. Inslee and Washington State. They argue that the governor lacked the authority to extend proclamations past 60 days.

“The Legislature was unable or unwilling to meaningfully address serious concerns we brought forward in our suit. We’re pleased the Court recognized that our case presents issues of significant public interest,” said Chester Baldwin, Executive Director and CEO of the Washington Business Properties Association. “The state’s COVID response was an overreach to say the least, and from our perspective, raise serious concerns about fundamental principles of justice and our democracy. We absolutely need the court to weigh in.”

In the Gonzalez case, the Washington Business Properties Association argues that emergency proclamations issued by Inslee during the height of the COVID-19 pandemic eroded basic constitutional rights. The suit’s main points are that the governor lacks the authority to issue Proclamation 20-19 through 20-19.4, and they:

• Create a ‘Delegation’ and ‘Separation of Powers’ issue;

• Interfere with the power of the judiciary and rights to petition for redress of grievances;

• Violate the Takings Clause of the state Constitution; and

• Impairs contracts;

“What the state demanded of housing providers is unprecedented and out of step with what other industries had to deal with,” Baldwin said. “Tenants and providers entered into contracts that exchange housing for compensation, but the governor’s proclamations unduly interfered with those agreements. Grocery stores were not forced to provide food to people for free or with the vague idea that they might get paid at some point in future.”

The Washington Business Properties Association is a statewide organization that focuses on education, advocacy, legislation and litigation for its commercial, retail and residential members. To date, their suit is the only remaining challenge to pandemic-related actions by the government. The WBPA has also filed suit earlier this year in Spokane over another state policy interfering with access to the courts for housing providers.

VENDOR LISTINGS

We encourage you to consider the vendors found within these listings for your rental business needs. When seeking competitive bids, be sure to mention your RHAWA membership as many offer member discounts. RHAWA does not specifically endorse any business listed herein. References are always recommended. If you would like to submit a customer testimonial for our records, please submit to publications@RHAwa.org. Please note that changes made to a vendor member profile will not be reflected in the CURRENT Vendor Listings unless the change is also sent to publications@RHAwa.org.

ACCOUNTING | BOOKKEEPING

Brink & Sadler

(253) 582-4700 | brinkandsadler.com

Hutchinson & Walter, PLLC (425) 455-1620 | hutchcpa.com

ADVERTISING | VACANCY LISTINGS

Pacific Publishing Co. | Print + Internet (206) 461-1322 pacificpublishingcompany.com

Seattle Rental Group | Property Management (206)315-4628 | www.seattlerentalgroup.com

AIR CONDITIONING

Alpine Ductless, LLC (360) 529-7567 | alpineductless.com

Fischer Heating and Air (206) 783-1190 | fischerheating.com

ASSOCIATIONS

Brink Property Management

Dean Foggitt

(425) 458-4848 | brinkpm.com

ATTORNEYS

Access Evictions

Travis Eller

(425) 641-8010 | accessevictions.com

Christopher T. Benis, Attorney at Law

First Avenue Law Group, PLLC

Vendor of the Year 2006 (206) 447-1900 | firstavenuelaw.com

Demco Law Firm, P.S. (206) 203-6000 | demcolaw.com

Dimension Law Group PLLC

Synthia Melton (206) 973-3500 | dimensionlaw.com

Flynn and Associates, PLLC

Sean Flynn (206) 330-0608 | theflynnfirm.com

Glasson Legal (206) 627-0528 | glassonlegal.com

Gourley Law Group / The Exchange Connection (360) 568-5065 | gourleylawgroup.com

Holmquist & Gardiner, PLLC (206) 438-9083 | lawhg.net

Jeffery Bennett (503) 255-8795

Law Office Of Shaun Watchie Perry (206)729-7442 | swp-law.com

Ledger Square Law (253) 327-1701 | ledgersquarelaw.com

Ling & Liang PLLC (206)462-2884 | ling-liang.com

LT Services (206) 241-1550 | ltservices.net

Loeffler Law Group, PLLC (206) 443-8678 | loefflerlawgroup.com

Maxwell Glasson (206) 627-0528 | loefflerlawgroup.com

Micheal D Mclaughlin, Attorney at Law (253) 686-9786

Reed Longyear Malnati & Ahrens, PLLC (206)624-6271 | www.reedlongyearlaw.com

Seattle Real Estate Law Group (206) 623-4846 | seattlerealestatelawgroup.com

BANKS

Eastside Funding (425) 230-0000 | eastsidefunding.com

First Federal Savings and Loan (206) 586-1701 | ourfirstfed.com

First Financial Northwest Bank Tom Jarzynka (425) 264-2757 | ffnwb.com

Homebridge Financial (206) 915-3742 | homebridge.com

Luther Burbank Savings Bank Tiana Jackson: (425) 739-0023 lutherburbanksavings.com

Pacific Crest Savings Bank Scott Gibson (425) 670-9600 | (800) 335-4126 paccrest.com

+1

Bellan Group, LLC Susan Bellan (206) 383-0102 | bellan.com

Construction Expeditors, LLC (206) 595-8852 | (877) 644-1700 constructionexpeditors.com

You’ll like what you see from the Crest. 425.670.9600

Scott Gibson sgibson@paccrest.com Johnny Smith jsmith@paccrest.com

Kevin Hogan khogan@paccrest.com

Umpqua Bank | Multifamily Lending Matt Couch (425) 602-1250 | umpquacrelending.com

Washington Federal Vendor of the Year | 2015

Tim Marymee: (206) 777-8213 | (800) 324-9375 washingtonfederal.com BATHTUB

Fischer Restoration (888) 345-2532 | fischerrestore.com

Tub Cove Inc. New Tubs, Surrounds and Bathroom Plumbing (206) 522-1711 | tubcove.com

Contractors with Integrity. We do it all: A to Z 206-595-8852 ConstructionExpeditors.com

Fischer Restoration (888) 345-2532 | fischerrestore.com

Haynes Contracting LLC (253) 335-7905 | haynescontractingllc.com

Interland Design Jake Cervilla (425) 290-9639 | interlanddesign.com

Kanso Homes, Inc. (206) 278-3403 | kansohomes.com

Masonry Restoration Consulting (425) 344-3893

masonryrestorationconsulting.com

Next Level Property Maintenance (206) 922-8119 | nxtlevelpm.com

Pro Realty Options, Inc. (425) 745-2400 | prorealtyoptions.com

T.E. Kelly Company, LLC Tim Kelly: (206) 240-1950

The Wall Doctor, Inc. Gary Borracchini (425) 822-8121 | thewalldoctor.com

Top-Rung Construction LLC Gary Gilmer (253) 893-1101 | fieldsroofservice.com

CARBON MONOXIDE + SMOKE DETECTION

Envirotest | Mold & Air Quality Analysis

Donald B. Kronenberg (206) 877-3191 | seattlemoldandairquality.com

Greenwood True Value Hardware | Detectors (206) 783-2900 | greenwoodhardware.com

Pacific Northwest Locksmith | Detectors (206) 531-0411 | pnwlocksmith.com

CARPET CLEANING

Genesee

CARPORTS

Carports of Washington Inc (360)897-1200 | carportsofwashington.com

CATCH

CHIMNEY CLEANING | REPAIR (MASONRY)

The Chimney Specialists, Inc.

Pierce Co.: (253) 475-0399 | (888) 979-3377 Seattle: (206) 782-0151 | (888) 979-3377 So. King Co.: (253) 833-0144 | (888) 979-3377 thechimneyspecialists.com

Masonry Restoration Consulting (425) 344-3893 CLEANING

CleanSpace Cleaning Services (206) 462-3200 | cleanspace2day.com

Genesee Carpet Cleaning (206) 569-5573 | genesseecarpetcleaning.com

COLLECTIONS

Puget Sound Collections Garrett Michaud (206) 728-5000 | pugetsoundcollections.com

COMMERCIAL REAL ESTATE

Capstone Commercial Real Estate Advisors John Downing (206) 324-9427 | capstonerea.com

CBRE - Mountain-Northwest Division Marketing (206)292-6088 www.cbre.us/seattle

Colliers International (206) 223-1428 | colliers.com/seattle

CPX LLC (866) 405-1435 | cpxone.com

DVF Legacy Investments (206) 650-6113 | pugetsoundinvesting.com

First Federal Savings and Loan (206) 586-1701 | ourfirstfed.com

HFO Investment Real Estate (971) 717-6337 | hfore.com

Icon Real Estate Services Inc. Jeremiah Roberson (425) 633-3330 | iconre.org

Kidder Mathews

Dylan Simon: (206) 414-8575

Jerrid Anderson: (206) 499-8191 DylanSimon.com

VENDOR LISTINGS

COMMERCIAL REAL ESTATE

Lee & Associates

Multifamily Team

Candice Chevaillier & Don Flanigan (206) 284-1000 | lee-nw.com

CONTRACTORS

First Choice Remodeling, Inc. (253) 846-9000 | firstchoiceremodelinginc.com

Global Paving LLC (253) 286-7943 | globalpavingllc.com

Masonry Restoration Consulting (425) 344-3893

Pioneer Masonry Restoration Co. (206) 782-4331 pioneermasonry.com

Reinhart Electric & Service (425) 251-5201 reinhartelectric.net

T.E. Kelly Company LLC

Tim Kelly: (206) 240-1950

CRIMINAL BACKGROUND CHECKS

ENERGY CONSERVATION + WEATHERIZATION

Capstone Solar

(206) 580-3448 | capstonesolar.com

Energy Benchmarking Services

Michael Jones (206) 245-8737 | EnergyBenchmarkingServices.com

SRC Windows (253) 565-2488 | srcwindows.com

ESTATE PLANNING

Dimension Law Group PLLC

Synthia Melton (206) 973-3500 | dimensionlaw.com

Flynn and Associates, PLLC

Paragon Real Estate Advisors, Inc.

Vendor of the Year | 2016 (206) 623-8880 | (800) 643-9871

paragonrea.com

Pilot Ventures, LLC

Jason Kono (206) 566-6600 | pilotnw.com

Prospector Property Management (206) 508-6366

prospectorpropertymanagement.com

Foundation Group, LLC (206) 324-7622 | foundationgroupre.com

Westlake Associates (206) 505-9400 | westlakeassociates.com

Windermere Real Estate Commercial

Therasa Alston (206) 650-4777

COMMERCIAL

1031 Capital Solutions (800) 445-5908 | 1031capitalsolutions.com

First Federal Savings and Loan (206) 586-1701 | ourfirstfed.com

CONSULTING

Alliance Flooring Services (253) 850-1288 | allianceflooring.com

Real Estate Transition Solutions Exchange - 1031 Real Estate (206) 502-4862 | www.re-transition.com/rhawa

Redside Partners, LLC

Craig Swanson (206) 323-1771 | redsidepartners.com

CONSTRUCTION + DEMOLITION

Haynes Contracting LLC (253) 335-7905 | haynescontractingllc.com

CONTRACTORS

+1 Construction

(206) 313-6587 | plusoneconstruction.com

A&A Electric (206) 212-1888 | anaelectric.com

ABC Towing, Inc.

Seattle: (206) 682-2869

Tukwila: (206) 767-4024 abc4atow.com

Bellan Group, LLC

Susan Bellan (206) 383-0102 | bellan.com

Bravo Roofing, Inc.

GoldStar Vendor + Vendor of the Year | 2014

John Paust, Estimator: (206) 948-5280

(253) 335-4825 | (360) 886-2193

john@bravoroofs.com | bravoroofs.com

Construction Expeditors, LLC (206) 595-8852 | constructionexpeditors.com

Diamond Roofers, LLP | Flat & Low Slope (206) 202-7770 | diamondroofers.com

ER Flooring (360) 402-9566 | erflooring.com

Rental Housing Association of Washington

Chartrice Young (206) 283-0816 | RHAwa.org

DECKS

Dunn Lumber | Doors, Windows & Lumber (206) 632-2129 | dunnlum.com

DEVELOPERS

Affinity Real Estate Management (206) 812-9155 affinityrem.com Pacific Crest Real Estate (206) 812-9155 pacificcrestre.com

DOORS

Sean Flynn (206) 330-0608 | theflynnfirm.com

Olympic Estate Group, LLC

G.A. “Jeri” Schuhmann (206) 799-0544 | OlympicWealthStrategies.com

EVICTIONS

Access Evictions

Travis Eller, Attorney at Law (425) 641-8010 | accessevictions.com

Demco Law Firm, P.S. (206) 203-6000 | demcolaw.com

Glasson Legal (206) 627-0528 | glassonlegal.com

LT Services, Inc. (206) 241-1550 | ltservices.net

SRC

Loeffler Law Group, PLLC (206) 443-8678 | loefflerlawgroup.com

Maxwell Glasson (206) 627-0528 | loefflerlawgroup.com

DRAIN CLEANING

Best Plumbing Group (206) 633-1700 | (425) 771-1114 bestplumbing.com Day & Nite Plumbing & Heating Inc. Vendor of the Year | 2020 (425) 775-6464 (800) 972-7000 dayandnite.net

Fischer Plumbing, Inc. (206) 783-4129

EXCHANGE — 1031 REAL ESTATE

1031 Capital Solutions (800) 445-5908 | 1031capitalsolutions.com

Gourley Law Group / The Exchange Connection (360) 568-5065 | gourleylawgroup.com

Investment Property Exchange Services, Inc. (425)582-3487 | www.ipx1031.com

Kay Properties & Investments Dwight Kay (855) 899-4597 | kpi1031.com

Real Estate Transition Solutions Exchange - 1031 Real Estate (206) 502-4862 | www.re-transition.com/rhawa

FINANCIAL | LIFE INSURANCE SERVICES

Diamond Cut Insurance Group, Inc.

Larry Janowicz (425) 879-5198 | larry@dcigi.com

Olympic Estate Group, LLC G.A. “Jeri” Schuhmann (206) 799-0544 | OlympicWealthStrategies.com

VENDOR LISTINGS

INSURANCE

Brent Ward State Farm Insurance

(425) 488-9100 | (888) 532-1875

brentwardagency.com

Diamond Cut Insurance Group, Inc.

Larry Janowicz (425) 879-5198 | larry@dcigi.com

State Farm Insurance (206)322-3910 | myseattleinsurance.com

INVESTMENT + FINANCIAL SERVICES

Colliers International

GoldStar Vendor + Vendor of the Year | 2018

Tim McKay: (206) 223-5586

INVESTMENT + FINANCIAL SERVICES

CPX LLC

(866) 405-1435 | cpxone.com

Dan Chhan: (206) 223-1265

Joe Levin: (206) 223-5583

Sam Wayne: (206) 515-4498

Brittany Rondello: (206) 515-4495 colliers.com

Flynn Family Lending Matt Flynn (425) 221-8660 | flynnfamilylending.com

Havium. Inc (888) 642-8486 | havium.com

Kidder Mathews

Dylan Simon: (206) 414-8575

Jerrid Anderson: (206) 499-8191

DylanSimon.com

Luther Burbank Savings Bank

Tiana Jackson: (425) 739-0023 lutherburbanksavings.com

McTaggart Real Estate (206) 322-9495 | darcoapts.com

Paragon Real Estate Advisors, Inc. Vendor of the Year | 2016 (206) 623-8880 | (800) 643-9871 paragonrea.com

Peak Mortgage Partners Dave Eden (206) 660-3014 | peakmp.com

Sound Reatly Group Charles Burnett, CCIM (206) 931-6036 | soundmultifamily.com

Umpqua Bank | Multifamily Lending Matt Couch (425) 602-1250 umpquacrelending.com

Wilson Property Management, Inc. Gary Wilson, CPM (425) 453-0089 | wilsonmanagementinc.com

Seattle

Kanso

Tacoma Housing Authority (253) 281-7674 | tacomahousing.net LANDSCAPING

Echo Yard Maintenance (206) 909-6873

Coin Meter (503) 750-8442 | coinmeter.com

Hainsworth Laundry

Jason Hainsworth (509) 534-8942 | hainsworth.biz

LENDERS, MORTGAGE CAPITAL

CrossCountry Mortgage LLC (206) 650-4041 | keaneloans.com

Eastside Funding (425) 230-0000 | eastsidefunding.com

First Financial Northwest Bank Tom Jarzynka (425) 264-2757 | ffnwb.com

Flynn Family Lending Matt Flynn (425) 221-8660 | flynnfamilylending.com

Homebridge Financial (206) 915-3742 | homebridge.com

LENDERS, MORTGAGE CAPITAL

Kidder Matthews Simon and Anderson Team (206) 747-4725 | dylansimon.com

Luther Burbank Savings Bank Tiana Jackson: (425) 739-0023 lutherburbanksavings.com

MASONRY SERVICES

Masonry Restoration Consulting (425) 344-3893

masonryrestorationconsulting.com

Pioneer Masonry Restoration Co. (206) 782-4331 | pioneermasonry.com

METER + BILLING SERVICES

Guardian Water & Power Chris Apostolos (206) 271-6913 | (877) 291-3141 x139 guardianwp.com

METER + BILLING SERVICES

Submeter Solutions, Inc. Jeff Lowry: (425) 228-6831 (888) 64-METER (63837) | submetersolutions.com

MOLD | MOLD INSPECTIONS

PROPERTY MANAGEMENT

Affinity Real Estate Management (206) 812-9155 | affinityrem.com

All County Evergreen Property Management (253) 238-9590 | allcountyevergreen.com

Allen Property Management

Mike Larson (253) 582-6111 | (800) 995-6111 haroldallen.com

Bell-Anderson & Assoc., LLC, AMO (253)852-8195 | bell-anderson.net

Brink Property Management

Dean Foggitt (425) 458-4848 | brinkpm.com

Cadence Real Estate (206)258-4871 | www.cadencere.com

Capstone Commercial Real Estate Advisors John Downing (206) 324-9427 | capstonerea.com

Champions Real Estate Services (425) 744-5550 | nwchampions.com

Fischer Plumbing, Inc. (206) 783-4129

Call for purchase or refinance transactions.

Tiana Jackson 425.739.0023 Seth Hallock 425.440.2099

Lending on multifamily real estate. ©2022

Pacific Crest Savings Bank Todd M. Hull | Scott Gibson (425) 670-9624 | (800) 335-4126 pacificcrestbank.com

Peak Mortgage Partners Dave Eden (206) 660-3014 | peakmp.com

First Federal Savings and Loan (206) 586-1701 | ourfirstfed.com

Sound Community Bank (206) 448-0884 x202 | soundcb.com

Umpqua Bank | Multifamily Lending Matt Couch (425) 602-1250 | umpquacrelending.com

Washington Federal Vendor of the Year | 2015 Tim Marymee (206) 777-8213 | (800) 324-9375 washingtonfederal.com

LIGHTING

Tacoma Public Utilities Power: (253) 502-8600 Water: (253) 502-8723

TacomaPowerRebates.com/multifamily

LOCKSMITH

Pacific Northwest Locksmith (206) 531-0411 | pnwlocksmith.com

LUMBER

Dunn Lumber (206) 632-2129 | (800) 248-3866 dunnlum.com

MAINTENANCE

First Choice Remodeling, Inc. (253) 846-9000 | firstchoiceremodelinginc.com

Multifamily Elites (425) 698-1631 | multifamilyelites.com

Pro Realty Options, Inc. (425) 745-2400 | prorealtyoptions.com

Real Property Management Today (253) 426-1730 | rpmtoday.com

RentalRiff (541) 600-3200 | rentalriff.com

Envirotest | Mold, Air Quality Analysis, Inspections Donald B. Kronenberg (206) 877-3191 | seattlemoldandairquality.com

ON-SITE LAUNDRY SERVICES

Hainsworth Laundry

Jason Hainsworth (509) 534-8942 | hainsworth.biz

PAINTING | PAINT

Extreme Steam Carpet Cleaning (425) 330-9328 | extremesteamcc.com

Interland Design Jake Cervilla (425) 290-9639 | interlanddesign.com

Ohlsen's Property Renewal (206) 228-2123 | propertyrenewals.com

PEST INSPECTIONS

NWK9 Bed Bug Detectives (206) 801-3522 | nwk9bedbugdetectives.com

Straight Street Building / Home Inspection John Leon Gonzalez (206) 999-1234 | hi@homeinspect.ws

PIPE RESTORATION

Best Plumbing Group (206) 633-1700 | (425) 771-1114

Fischer Plumbing, Inc. (206) 783-4129 | fischerplumbing.com

The Pipe Guys (253) 537-2830 | pipeguys.com

Tub Cove Inc. One-piece one-of-a-kind bath walls (206) 522-1711 | tubcove.com

PLUMBING

Best Plumbing Group (206) 633-1700 | (425) 771-1114 bestplumbing.com

Day & Nite Plumbing & Heating Inc. Vendor of the Year | 2020 (425) 775-6464 | (800) 972-7000 dayandnite.net

Fischer Plumbing, Inc. (206) 783-4129 | fischerplumbing.com

POOL LEAK DETECTION

American Leak Detection (425) 747-7118 | americanleakdetection.com

PRINTING

Pacific Publishing Co. (206) 461-1322 | pacificpublishingcompany.com

Cornell & Associates Inc (206)329-0085 | www.cornellandassociates.com

Dave Poletti & Associates (206) 286-1100 | davepoletti.com

Dobler Management Company Inc. (253) 475-2405 | doblermanagement.com

Elita Living Real Estate LLC

Erica Vincent (206) 323-0771 | elitaliving.com

Emerald Heights Property Management

Ryan Dosch (206) 457-2475 emeraldheightspm.com

First Comercial Properties NW. (206) 985-7275 | fcpnw.com

Icon Real Estate Services Inc.

Jeremiah Roberson (425) 633-3330 | www.iconre.org

Jean Vel Dyke Properties, LLC (206) 725-3103 veldyke.com

Jevons Property Management Enrique Jevons (206) 880-7935 | jevonsproperties.com

Krishna Realty (425) 209-0055 | krishna-realty.com

Lexington Asset Management (310) 650-3343

Longley Property Management Inc. Venita Longley (206) 937-3522 | longleypm.com

Madeson Management LLC Melissa Melia (206) 673-4282 | madesonmanagement.com

Madrona Real Estate Services, LLC

Bradford Augustine (206) 538-2950 | MadronaRealEstate.com

Maple Leaf Management LLC Michelle Bannister (206) 850-8095 | mapleleafmgt.com

Marathon Properties Jeff O’Hare (425) 745-9107 | marathonpropmgmt.com

Multifamily Elites (425) 698-1631 | multifamilyelites.com

Nathaly Burnett Property Management (253) 732-9535 | beyondseattle.com

Next Brick Property Management (425) 372-7582

Niche Realty Associates LLC (206) 851-4694 | nichrealtyassoc.com

Northfield Properties Inc. (425) 304-1250 | (425) 304-1250

North Pacific Property Management Joshua Fant (206) 781-0186 | (800) 332-1032

northpacificpropertymanagement.com

Pacific Crest Real Estate (206) 812-9155 | pacificcrestre.com

Park 52 Property Management

Paul Jakeman (253) 473-5200 | park52.com

People’s Real Estate, Inc.

Lisa Brannon (425) 442-9941 | peoplespm.com

Phillips Real Estate, LLC (206)22-8600 | philipsre.com

PROPERTY MANAGEMENT

Pilot Ventures, LLC

Jason Kono (206) 566-6600 | pilotnw.com

PROPERTY MANAGEMENT SOFTWARE

Rental Housing Association of Washington (206) 283-0816 | RHAwa.org/RMAP

Yardi Kelly Krier (805) 699-2040 | yardi.com

RECYCLING + GARBAGE

Junk Busters-Big Haul (360) 390-2014 | junkbustersllc.com

REAL ESTATE BROKERS

Capstone Commercial Real Estate Advisors

LISTINGS

REAL ESTATE BROKERS

Park 52 Property Management

Paul Jakeman (253) 473-5200 | park52.com

The Paris Group NW (206) 466-4937 | theparisgroupnw.com

People’s Real Estate, Inc. (425) 442-9941 | peoplespm.com

Phillips Real Estate, LLC (206) 622-8600 | phillipsre.com

Prime Metropolis Properties, Inc. (425) 688-3003 | pmp1988.com

Real Estate Gladiators (425)260-3121 | www.realestategladiators.com

Prospector Property Management (206) 508-6366

prospectorpropertymanagement.com

Real Estate Gladiators

(425)260-3121 | www.realestategladiators.com

Real Estate Investment Services (REIS)

Lakewood: (253) 207-5871

Seattle: (206) 319-5981

REISinvest.com

Real Property Management Today (253) 426-1730 | rpmtoday.com

Redside Partners, LLC

Craig Swanson (206) 323-1771 | redsidepartners.com

Rentals Northwest Richard Wilber (253) 581-8616

Renters Marketplace Larry Cutting (425) 277-1500 | rentersmarketplace.com

Seattle's Property Management (206) 856-6000 | seattlespropertymanagement.com

Seattle Rental Group Property Management (206)315-4628 | www.seattlerentalgroup.com

SJA Property Management (425) 658-1920 | sjapropertymanagement.com

SJC Management Group

Jason Clifford (253) 863-8117 | sjcmanagement.com

Spartan Agency, LLC (253) 863-6122 spartanagency.com

SUHRCO Residential Properties (425) 455-0900 | (206) 243-5507

suhrco.com

Foundation Group, LLC (206) 324-7622 | foundationgroupre.com

The Paris Group NW (206) 466-4937 | theparisgroupnw.com

T-Square Properties | Real Estate Brokers (425) 485-1800 | www.tsquaremanagement.com

Weber & Associates Property Management (425) 745-5838

Westlake Associates (206) 505-9400 | westlakeassociates.com

Wilson Property Management, Inc.

Gary Wilson CPM (425) 453-0089

wilsonmanagementinc.com

Windermere Property Management / Lori Gill & Associates (425) 455-5515 wpmnorthwest.com

John Downing (206) 324-9427 | capstonerea.com

Champions Real Estate Services (425) 744-5550 | nwchampions.com

Colliers International (206) 223-1428 | colliers.com/seattle

Cornell & Associates Inc (206)329-0085 | www.cornellandassociates.com

Dave Poletti & Associates (206) 286-1100 | davepoletti.com

DVF Legacy Investments (206) 650-6113 | pugetsoundinvesting.com

Elita Living Real Estate LLC

Erica Vincent (206) 323-0771 | elitaliving.com

HFO Investment Real Estate (971) 717-6337 | hfore.com

Jean Vel Dyke Properties, LLC (206) 725-3103 | veldyke.com

Kidder Mathews

Dylan Simon: (206) 414-8575

Jerrid Anderson: (206) 499-8191 DylanSimon.com

Krishna Realty (425) 209-0055 | krishna-realty.com

Leading Edge Property Management (425) 405-2358 | edgehomerentals.com

Lee & Associates Multifamily Team

Candice Chevaillier (206) 284-1000 | lee-nw.com

Real Estate Investment Services (REIS) Lakewood: (253) 207-5871 Seattle: (206) 319-5981 REISinvest.com

Seattle Land Broker Inc. (206) 973-3022 | seattlelandbroker.com

SJA Property Management (425) 658-1920 | sjapropertymanagement.com

Sound Reatly Group Charles Burnett, CCIM (206) 931-6036 | soundmultifamily.com

SUHRCO Residential Properties (425) 455-0900 | (206) 243-5507 suhrco.com

Tecton Corporation (206) 448-4100 | tecton.com

The Chang Group (425) 678-2288 | changgroup.com

Foundation Group, LLC (206) 324-7622 | foundationgroupre.com

T-Square Properties | Real Estate Brokers (425) 485-1800 www.tsquaremanagement.com

Westlake Associates (206) 505-9400 | westlakeassociates.com

Windermere Property Management / Lori Gill & Associates (425) 455-5515 | wpmnorthwest.com

Windermere Real Estate Commercial Therasa Alston (206) 650-4777

Windermere Real Estate / East Buck Hoffman (206) 660-3764 | buckhoffman.com

WPI Real Estate Services, Inc. (206) 522-8172 x105 | wpirealestate.com

BricksFolios Real Estate Solutions Jyotsna (Jo) Dixit (425) 503-1225 | brickfolios.com Havium. Inc (888) 642-8486 | havium.com

Kay Properties & Investments Dwight Kay (855) 899-4597 | kpi1031.com

712-7504

653-ROOF(7663) |

Madrona Real Estate

Bradford Augustine (206) 538-2950 MadronaRealEstate.com

McTaggart Real Estate (206) 322-9495 | darcoapts.com

Next Brick Property Management (425) 372-7582

Niche Realty Associates LLC (206) 851-4694 | nichrealtyassoc.com

North Pacific Property Management (206) 781-0186 | (800) 332-1032

northpacificpropertymanagement.com

Paragon Real Estate Advisors, Inc.

Vendor of the Year | 2016 (206) 623-8880 | (800) 643-9871 paragonrea.com

Windermere Property Management / JMW Group (206) 621-2037 | windermere-pm.com

Windermere Property Management / WPM South, LLC

Ed Verdi (253) 638-9811 | wpmsouth.com

WPI Real Estate Services, Inc. (206) 522-8172 | wpirealestate.com

Exceptional Brokers. Superior Service. info@ParagonREA.com | www.ParagonREA.com

SEWER & DRAIN VIDEO INSPECTIONS

633-1700 | (425) 771-1114 bestplumbing.com Fischer Plumbing, Inc. (206) 783-4129

Best

(206) 633-1700 | (425) 771-1114 bestplumbing.com Fischer Plumbing, Inc. (206) 783-4129 | fischerplumbing.com

SUBMETERING

Guardian Water & Power

Chris Apostolos (206) 271-6913 | (877) 291-3141 x139 guardianwp.com

TEMPORARY HOUSING

Short Term Suites (206) 652-9356 | shorttermsuites.com

TENANT SCREENING

Rental Housing Association of Washington Chartrice Young, Lea Leong (206) 283-0816, option 2 | RHAwa.org

SafeRent Solutions (419) 367-7615

THIRD PARTY BILLING | UTILITIES

206-271-6913

Submeter Solutions, Inc.

Jeff Lowry: (425) 228-6831 (888) 64-METER (63837) | submetersolutions.com

TAX CONSULTING | PREPARATION

Brink & Sadler

Johann Drewett (253) 582-4700 | brinkandsadler.com

Hutchinson & Walter, PLLC (425) 455-1620 | hutchcpa.com

TAX-DEFERRED EXCHANGES (1031)

Investment Property Exchange Services, Inc. (425)582-3487 | www.ipx1031.com

Real Estate Transition Solutions 1031 Exchanges & Delaware Statutory Trusts

Vendor of the Year | 2017 (206) 686-2211 | re-transition.com

Guardian Water & Power

Chris Apostolos (206) 271-6913 | (877) 291-3141 x139 guardianwp.com

Submeter Solutions, Inc. Jeff Lowry: (425) 228-6831 (888) 64-METER (63837) | submetersolutions.com

TOWING + IMPOUND MANAGEMENT

ABC Towing, Inc.

Seattle: (206) 682-2869 Tukwila: (206) 767-4024 abc4atow.com

TRAUMA SCENE CLEAN-UP

Bio Clean, Inc. (425) 754-9369 | biocleanwa.com

Conservice

(435) 419-4960 | conservice.com

Tacoma Public Utilities

Power: (253) 502-8600 Water: (253) 502-8723

TacomaPowerRebates.com/multifamily

Future-Proofing in the Wake of COVID-19

Cory Brewer, General Manager | Windermere Property Management / Lori Gill & Associates | RHAWA Board of Director and Vendor Member

Full disclosure: As I write this, I am coming from the perspective that the worst of COVID-19 is behind us, and I really hope not to look back on this one day and realize I was wrong about that!

Taking the optimistic approach… COVID-19 and the “temporary” measures put forth because of it are behind us, now what?

I’d like to suggest to the RHAWA membership that we take this as a learning opportunity and prepare ourselves for the next time a major shake-up comes along. Specifically, for those of us managing rental property in multiple cities, the task of keeping up with ordinance after ordinance after ordinance at the local level is enough to make your head spin. It wasn’t too long ago that I could walk into a room full of realtors, as I often do, and give blanket answers to their questions about rental property. Nowadays, I usually need to ask them several follow-up questions of my own (location, type of lease, type of property) before I can even begin to answer theirs.

When it comes to the documents that we use on a day-to-day basis (management agreement, lease, etc.) we used to provide very specific guidelines based on landlord-tenant law that was consistent statewide, or at least throughout the region (Greater Seattle Area). We have learned, however, that being too specific can lead to information be-

coming outdated quickly. As an example, we had language in our management agreement that dictated security deposit levels in Seattle, and then different language covering everywhere else. Fast forward a few years and now we have a growing list of cities (Redmond, Kirkland, Kenmore to name a few) that have added their own unique twist on security deposits. We also had language in our lease that provided a specific description of how late fees were calculated on a percentage basis, not knowing that places like Auburn would create a flat cap or Seattle

would prohibit them altogether during its “state of emergency.”

So, we adapt and move on, trying to be as efficient as possible. No longer do we announce in our lease that the security deposit resolution will be delivered within 21 days, rather we state it will be delivered in the timeline as currently prescribed by applicable law. No longer do we provide for a set of rules in Seattle and a set for everywhere else, rather we state that security deposits may be limited according to “local applicable ordinance” so that when it changes, we don’t need to sign a new agreement.

There are, of course, certain jurisdictions that have very specific requirements about the language - and even the font size! - used on a notice, so we can’t universally future-proof everything. An efficient housing provider will closely follow RHAWA’s legal updates in just about every issue of the CURRENT, read Support Center articles, and attend RHAWA’s fantastic education classes in order to stay up to speed. Building in a good reminder or notification system will be crucial to your success, as well, due to the wide array of different notice periods required for rent increases at various lev-

els, or just cause reasons not to renew a lease, etc. Always know when your leases expire, and future-proof your communication benchmarks by setting up reminders well in advance.

The better you can capture potential future changes, the better chance you’ll have to remain in timely compliance because you don’t lock yourself in to outdated language.

Cory Brewer is the General Manager at Windermere Property Management / Lori Gill & Associates. His firm oversees management of approximately 1,500 residential rental homes throughout the Greater Seattle Area, as well as commercial & multi-family properties. He may be contacted via wpme@windermere.com. Visit their website wpmnorthwest.com.

AN EFFICIENT HOUSING PROVIDER WILL CLOSELY FOLLOW RHAWA’S LEGAL UPDATES IN JUST ABOUT EVERY ISSUE OF THE CURRENT AND ATTEND RHAWA’S FANTASTIC EDUCATION CLASSES IN ORDER TO STAY UP TO SPEED.

How to Determine if a 1031 DST Will Benefit You

Austin Bowlin, CPA – Partner | Real Estate Transition Solutions | Vendor Member

The time comes when every investment property owner must ask themselves if it makes sense to sell. For most owners, there eventually does comes a time when it no longer makes financial or lifestyle sense to keep holding on to the property, but determining what to do with their investment real estate is a whole different question. Most multifamily and residential rental owners have heard about the benefits associated with selling their appreciated investment property and performing a tax-deferred 1031 exchange. Exchanging into a Delaware Statutory Trust as a replacement property has several unique advantages as well as risks & restrictions. So how does a property owner know if DSTs are right for them?

The answer to this question depends entirely on the individual owner’s financial and lifestyle objectives, as well as their overall financial picture. The goal of this article is to provide a framework for evaluating whether a 1031 exchange into Delaware Statutory Trusts may be a fit for you.

Step 1 – Determine Your Financial and Lifestyle Objectives

Real estate can be a tremendous investment for many reasons. Few assets can simultaneously generate income potential, appreciation, and shelter cash flow from income tax through depreciation. Furthermore, owners can influence their investments by choosing tenants, investing in improving the property, and refinancing the property when advantageous. Along with these positive

elements comes variability in the level of income potential from year-to-year and month-to-month, management effort, regulatory risk and concentration risk. While controlling and managing your real estate may be one of the best ways to build wealth, it may not be the best fit as an owner begins to place greater value on stable potential income, diversification, estate planning, and free time. We encourage all owners to reflect on and evaluate the following objectives:

• Income – How much income do you both currently have and want? How important is income stability to you?

• Appreciation Potential – Are you focused on growing your investments?

• Desire to Actively Manage Property – Do you enjoy managing properties? Who would manage your properties if something were to happen to you?

• Preservation of Capital – Are you concentrated in one property type and/or one geographic area? Do you have the investment timeline to hold through a full real estate market cycle?

• Estate Planning – Are your properties staged for an eventual transition to beneficiaries? Will your beneficiaries have to co-own and manage properties together?

• Risk Tolerance – Are you diversified? Do you feel comfortable with factors outside your control such as the landlord-tenant laws or potential re-zones?

• Tax Mitigation – Do you have depreciation remaining in your properties?

Objectives should be evaluated based on not only what you are looking to accomplish today, but also over the coming years and decades. One thing we cannot stop is the passage of time, which means owners must consider the future right now in order to be staged for success down the road.

Step 2 – Evaluate Your Properties

Once an owner has determined their objectives, the next step is to evaluate

whether their current properties meet those objectives. By no means is this an “all or nothing” decision. Some properties may have a strong history of low management effort, stable income potential, appreciation, and little deferred maintenance. For others, this may not be the case. If income is an objective, a worthwhile exercise is to review your most recent tax return and compare the net cash flow from your Schedule E (if the property is 100% owned by you) or K1 (if the property is owned in a partnership or multi-member LLC) to the net equity in the property. The net equity can be calculated by taking the property’s estimated value and subtracting any outstanding loan. This figure, expressed as a percentage, is the property’s ROE (return on equity). If the ROE is below 5%, from our experience there may be other options, such as Delaware Statutory Trusts when suitable, that have the potential to enhance your income. Note, when performing this analysis there should be an expense taken for management, even if you manage the property yourself. Your time has value and the cost of your time should be considered and reflected in the analysis.

Step 3 – Evaluate Your Potential Tax Liability

If it appears your properties may not meet your objectives, the next step is to consider whether an exchange is warranted. No one likes to pay taxes. Fortunately, 1031 exchanges allow for investment real estate to be sold and reinvested while deferring the tax liability that would otherwise result from a sale. In Washington State, taxes on the sale of investment real estate can be as high as 28.8%. Determining the tax liability associated with a potential sale is not overly complicated but does require an understanding of the property’s value and remaining tax basis. The amount of tax that warrants an exchange depends on the owner’s financial situation and objectives.

Step 4 – Understand Your Available Options

There are many forms of investment real estate, each of which presents its own benefits, opportunities, and risks.

Austin Bowlin

Knowing your options is key to making informed decisions. If you would like to learn more about your options, I encourage you to visit our website and sign up for one of our webinars. An informed investment property owner will be much more effective in staging themselves and their property to accomplish their objectives.

Step 5 – Schedule a Consultation

A firm's focus should be on educating investment property owners and developing strategies that will help reposition their investment real estate so that it helps meets their objectives over the years and decades to come. It should be experienced in working with investment property owners to determine their objectives, analyze their properties, and provide suitable tax-efficient recommendations to help stage them for future success. Each, and every, property owner is unique.

Working with a trusted 1031 Exchange partner that understands your specific goals and has both the experience and expertise to assist you in a transition will help you as you navigate the next chapter of life.

Austin Bowlin, CPA is Chief Exchange Strategist & Partner at Real Estate Transition Solutions. As Chief Exchange Strategist, Austin leads the firm's team of licensed 1031 Exchange advisors & analysts and provides consultation on tax liability, deferral strategies, legal entity structuring, co-ownership arrangements, 1031 replacement property options, and Delaware Statutory Trust investments. If you are selling your investment property and would like to learn more about tax-deferred 1031 Exchanges and Delaware Statutory Trusts, contact Real Estate Transition Solutions to schedule a complimentary consultation with one

of our FINRA-licensed 1031 Exchange Advisors. Our consultations are informal and can be done via phone, via web conference, or in person at one of our offices. To schedule your consultation, call (206) 502-4862 or visit us re-transition.com/rhawa.

IMPORTANT INFORMATION

The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsor's Private Placement Memorandum (PPM), which is solely available to accredited investors and accredited entities. Case studies and examples are for illustrative purposes and not representative of future results. There are risks associated with investing in real estate properties, including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies, and illiquidity. Because investor situations and objectives vary, this information is not intended to indicate suit-

ability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your situation. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney. Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC. Advisory services offered through Secure Asset Management, LLC (SAM), a registered investment advisor. ASI and SAM are affiliated companies. Real Estate Transition Solutions (RETS) is independent of ASI and SAM.

How to Winterize Your Rental Property

Phil Schaller, CEO | RentalRiff | RHAWA Vendor Member

It's that time of the year again. Winter will bring cold and wet weather and it’s critical to prepare your rental for the elements. Just one cold spell can wreak havoc on your pipes, gutters, roof, and unfortunately more. But have no fear, we are here to help! The checklist below is a mustdo heading into winter.

While the items listed below will set your property up well for the months ahead, it is not exhaustive. The koi pond in the front yard will require some attention, although we don't have it listed below (maybe a future blog post).

1. Blow the irrigation system. This will require a landscaping company to come out to clear your sys-

tems, but it's quick and not very expensive.

2. Detach your hose(s) and cover the spigots. Water left in the hose/spout can cause pipes to crack and the spouts to malfunction (not to mention the hose as well).

3. Caulk any cracks or holes around your windows. Exterior silicone caulk is the way to go here. It's water-resistant and very durable.

4. Clear the gutters. With more precipitation in the winter months, your gutters need to function as well as possible. All those needles, leaves, pinecones, etc. clog things up.

5. Clean up the roof and siding. If you notice any moss build-up (common in the PNW) it's best to

scrape it to prevent further buildup. We don't recommend hopping on the roof yourself, hire someone who has the proper equipment.

6. Bring in outdoor furniture and grills. If your furniture sits outside all winter in the elements, you'll be buying new furniture before you know it.

7. Insulate water supply pipes. Focus on pipes that aren't kept warm by insulation or heating - pipes in the attic, crawl spaces, garage. Foam pipe covers work well and are easy to install.

8. Install draft guards and weather stripping to necessary doors. Draft guards are inexpensive and slide onto the bottom of a door.

9. Replace the furnace filters. This is important to do regularly but especially important heading into winter. You and your tenants will

want the furnace working as well as possible.

10. Adjust the thermostat. If you're turning over a unit or a single family home, make sure you don't let the temperature dip below 50 degrees. Damage to uninsulated pipes can ensue if it gets too cold.

While there's a decent to-do list above, winterizing your rental property (or any property for that matter) will pay dividends in the long run. On top of that, these tasks aren't very time-consuming or expensive.

Any questions for us, please feel free to reach out anytime. Happy winterizing!

If you are interested in learning more about RentalRiff’s property maintenance service, give us a call at (541) 600-3200.

Phil Schaller

No Heat?

What to Do Before You Call for Furnace Repair

Bruce Davis, Jr., General Manager | Day & Night Plumbing & Heating, Inc. | 2020 Vendor Member of the Year

Every chilly winter our schedule is filled with so many No Heat service calls it looks like the lineup of inbound flights at SeaTac. Here are a few tips that might help you make your own safe landing and possibly save you from shouldering needless expense.

When a furnace decides it doesn’t want to put out the heat any longer, that dusty old box in the garage becomes the most important thing in the world – especially in freezing temperatures.

All of a sudden, what hardly got a second thought, needs immediate attention, and it's typically one of the few times you'll interact with your furnace. Our HVAC techs see this daily, and they also witness scenarios where a little information and preparation could have changed everything.

FIRST: CHECK THE BASICS

Throughout the heating season, especially at the start, we're often called for emergency service only to find the furnace isn't working for one simple reason; the power is off. So, before you call for help:

• Confirm the power is on at the breaker and check the power switch on or next to the equipment.

• Next, go to the wall thermostat and double check the settings. It should be set to Heat and then it should be calling for heat.

• If the furnace is blowing cold air, make sure the fan is set to “Auto” and not “On.”

• If this is a gas unit, confirm the meter is on. (If the utility company turned it off, they'll usually put their lock on the valve).

• If this unit is propane, verify the propane tank isn’t empty.

DON'T FORGET THE FILTER

Every forced-air ducted system will normally have a filter in it somewhere. A dirty filter can restrict airflow so se-

verely that it shortens the life of components and can cause the furnace to overheat and stop working altogether.

Filter replacement is often forgotten, especially on rental properties (a good reason why maintenance is particularly beneficial to rental property owners). Having a professional remind the tenant to maintain the filter or having the service tech replace the filter during the furnace maintenance, will give you the peace of mind that your equipment is being taken care of at least once a year.

BACKUP HEAT

A second source of heat can be a life saver. Portable oil filed electric heaters can provide a temporary heat source while a service technician is enroute. Never use a source of heat that produces a flame or burns fuel unless it is properly installed to vent exhaust out of the house (Portable kerosene heaters, barbeques, camp stoves, are examples of what NOT to use).

WHAT ABOUT MAINTENANCE?

Whether you're risk averse, or choose to gamble, some things can't be ignored. In addition to the regular filter maintenance, you should be already doing, the EPA, fire departments, and equipment manufacturers all recommend annual equipment maintenance

by a professional. Plus, professionally tuned equipment will help keep operation costs down and verify safety and proper operation.

Most maintenances can be done without any additional repairs, though a good technician may have some recommendations. If you believe in maintenance, finding a company you can trust is key.

BEFORE YOU CALL

Regular maintenance will carry you a long way. But just in case your furnace does fail, and you need emergency help now, figure out who you can count on… before you call.

Will they help at night when you come home from work and your house is cold? What about holidays and weekends? Do they have good reviews online? Are their technicians NATE Certified, Background checked, and drug screened? What does the BBB say about them? Can you trust them? These questions are often overlooked when choosing a company under the pressure of an emergency yet can make all the difference when it comes to having someone work in your home.

STARTING OVER

Okay, so you've had the tech over, and he proclaimed your furnace D.O.A. Given enough time, it happens to the

best of furnaces. Here are a few tips to ensure your next furnace lives a long, healthy life.

• Purchase a quality brand

• Make sure the equipment is sized properly for your home

• Get a top-notch professional to do the installation

• Perform regular filter maintenance as required by the type of filtration

• AND (here it comes…) consider Annual Professional Maintenance

We've given you some tips you can use if your furnace decides to go "south for the winter” and shared some things that might help such a catastrophe from happening. They're simple and basic ideas that can help save you time and money. If they're beyond your abilities, or you're reluctant to try them, don’t take any chances. Call a trusted professional. You won't regret it. Wishing you a warm, uneventful winter!

Bruce is a second-generation plumber and HVAC technician. He earned his Commercial Plumbing License and later became N.A.T.E. Certified and E.P.A. Refrigerant Certified for HVAC service and repair for commercial and residential HVAC appliances. Bruce has years of experience as an HVAC Technician, Boiler Technician, and Plumber. He is now General Manager for the company he has been with his entire career and oversees the Plumbing, Heating, and Air Conditioning business for Day & Nite Plumbing & Heating, Inc.

Build a Positive Working Relationship with Your Tenants

Lotus | Taurus Home Inspections | RHAWA Vendor Member

Here are some things to keep in mind if you own or manage properties and rent the units to tenants:

1. When is the last time you have been inside the unit you own? Do you even know what kind of condition it’s in? You want the tenant to take care of your investment. You want them to trust you. Even if you don’t invest in top-of-the-line building materials or appliances, consider replacing appliances and maintaining the unit in ways that are appealing to tenants. They will want to take care of your place and will appreciate using nice things in good working order.

2. Good communication is imperative! Do you want tenants to let you know about repairs that need to be made or damage to the home, or are they afraid to talk to you because you might increase their rent or try to evict them? Successful landlord/tenant relationships are highly communicative, have longevity and mutual care. Make sure you check in periodically with tenants just to see how they are doing. Build a positive working relatioship with them. Find out about their work and hobbies and remember details. People LOVE when you remember anecdotes from previous conversations. Consider sending them holiday cards or small gifts to let them know they are in your thoughts.

3. Be prompt with repairs and maintenance. Again, you want your tenants to trust you and keep your investment in good condition. If you become known as the one who lets things slip until the little problems become big ones, your tenants will avoid communicating with you until it’s too late. You don’t want a $35 plumbing fix to turn into a $20,000 flooring remodel and wa-

ter heater replacement!

4. Consider getting a preemptive rental inspection done. If you hire a licensed and qualified inspector, that person can obtain a record ID number necessary for recording the inspection has taken place in Seattle. If you have property in a different city where it’s not a requirement, it is still worthwhile to have an inspection done if it’s been a while since you’ve laid eyes on the unit. Why wait for the required inspection which may come when you least expect it? Instead, be proactive and have it taken care of! Don’t let other people’s problems become yours!

Lisa Lotus (WA State Residential Home Inspector #2261) of Taurus Home Inspections conducts residential home inspections and also performs rental inspections for the cities of Seattle, Tukwila, Burien, and Renton. Lisa is happy to answer any questions you may have. For more information about rental or any other kind of inspections, please contact Lisa at (206) 676-0023, or at lisa@taurushomeinspections. com. Learn more about her company by visiting her website taurushomeinspections.com.

In denial about changing rental laws?

Rapidly changing state and local rental laws can be overwhelming, but you can manage with a little education. RHA’s comprehensive education program covers all current laws governing rental housing, as well as best practices for operations and financial matters related to owning investment property in Washington. EDUCATION PASSES

MEMBER PRICE $25 / mo

Lisa

Lisa Lotus

We can help you face the new reality.

SUPPORT CENTER

Maintenance and Repairs During Tenancy

Denise Myers | Education + Resources Director |  dmyers@RHAwa.org |  (206) 905-0614

Under Washington State law, the responsibility of maintaining property condition is shared between the housing provider and residents. The housing provider is responsible for maintaining the property by repairing damage caused by regular wear and tear and responding quickly to all tenant repair requests. The tenant is responsible for the cost of damage beyond regular wear and tear. Understanding and communicating maintenance and repair responsibilities can help prevent disputes.

Laws and Common Practices

• Maintain property condition.

• Ensure residents understand responsibilities.

• Respond quickly to tenant repair requests.

• Invoice tenants for their damages and pay for other repairs.

Maintain Property Condition

Keeping rental property in good condition as required under RCW 59.18.060, requires a proactive approach. It is important to plan for major repairs based on the age of the building and its features. For example, if the roof is 20 years old, the housing provider will need funds to replace it soon before leaks begin causing damage. See the International Association of Certified Home Inspectors Life Expectancy Chart for Home as a reference, keeping in mind that in rental housing, interior surfaces generally have a much shorter life. Also, it is common practice to paint and re-carpet between tenancies.

Find unexpected maintenance and repair issues by conducting property inspections at least once a year. See Support Center article Routine Inspections for more details.

Try to make major repairs that will place a significant burden on the tenant between tenancies. If not possible, consider making a concession such as reduced rent while the work is being done.

Ensure Residents Understand Responsibilities

In addition to regular cleaning and taking out trash, common household repairs such as unclogging drains, and replacing lightbulbs or smoke detector batteries are usually the responsibility of the tenant (RCW 59.18.130). Provide clear instructions in writing and review at move-in. Residents should know how to shut off water in an emergency or reset circuit breakers if the panel is accessible to them. See Support Center article Setting Property Care Policies for more information.

Respond Quickly to Tenant Repair Requests

Washington legal code, RCW 59.18.070, requires that housing providers respond to tenant repair requests and begin to fix the problem as soon as possible but not later than the following time periods, except where circumstances are beyond their control – see table upper right

It is critical to stay in contact with the tenant while completing

IF THE ISSUE

START TO FIX IT WITHIN:

Deprives the tenant of hot or cold water, heat, or electricity, or is imminently hazardous to life 24 hours

Deprives the tenant of the use of a refrigerator, range and oven, or a major plumbing fixture supplied by the landlord 72 hours

Is any other repair 10 days

... and complete the repairs PROMPTLY.

repairs. Regardless of obstacles, the housing provider must continue to actively work on the issue until the problem is resolved.

Document the steps you are taking from the moment you receive a request for repair. Keep a running dialog, or “communication contact” sheet, of all your steps and continually communicate to the tenant where in the process you are. The clock starts ticking once you are informed of the issue; the law states that you must “commence” or begin the repair process within 10 or fewer days, depending on the severity of the issue. The listed number of days are not completion time limits, but the repair must be completed promptly.

Tenants and housing providers are often reasonably frustrated when the timeline for fixing something is held up for reasons beyond their control. From the tenant’s perspective they are paying for something they are not able to use. If an appliance requires backordered parts or there is a warranty issue, these delays generally make the tenant feel entitled to compensation. When considering whether to offer a “courtesy good-will” compensation make sure you would treat all tenants the same and consider what you would want in their shoes. Balance this against your operating costs to determine what you can afford.

If the housing provider fails to make repairs in a timely manner, they may receive a court order to pay damages to the tenant. The tenant may also have the right to end the tenancy, make repairs and deduct the cost from rent, or in extreme cases, pay rent into escrow until substandard conditions are repaired (RCW 59.18.090, .100, .110, .115).

Invoice Tenants for Their Damages and Pay for Other Repairs

Unless a tenant causes the damage by accident, negligence or improper use, the housing provider must bear the cost of the repair (RCW 59.18.060). If the tenant is responsible, simply make the repair and then send them an invoice to cover the cost. Never deduct money from a security deposit during tenancy. See Support Center article Determining Responsibility for Repairs for more details.

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Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.

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