Important Update for all Owners of Rental Property in the City of Tacoma WA.
The Tacoma City Council unanimously passed ordinance #28559,
enacting a whole new law entitled “Rental Housing Code” which will be found in
TMC 1.95.
By amendment, they made the
Effective Date December 1, 2018 (officially 10 days after ordinance is
published on their website) for paragraph TMC 1.95.060 which requires giving at least sixty (60) days advance
notice for rent increases of any amount. No penalty will be enforced
until February 1, 2019, but if you tender a shorter rent raise notice, the City
will not allow you to enforce the rent raise and require you to reissue a
proper 60-day advance notice before any rent raise can be effective. This includes raising rent on any lease
renewal offers – must allow at least 60 days before rent can go up. The
one exception is if the fixed term lease has a built-in automatic
increase/escalation clause, then the 60-day notice will not be required as the
rent increases will have been pre-disclosed in the lease agreement. (This was
approved as an amendment to the original language).
The rest of the new code goes
into effect on February 1, 2019, including the penalties for violating the code
and timelines:
Change of Use is defined as: “Change of use” means the conversion of any
dwelling unit from a residential use to a nonresidential use; conversion from
one type residential use to another type residential use, such as a conversion
to a retirement home, emergency shelter, transient hotel, or short-term rental
as defined in Tacoma Municipal Code (“TMC”) 13.06.700; the removal of use
restrictions, including those in an assisted housing development; provided that
an owner displacing a tenant so that the owner or immediate family member can
occupy the rental dwelling unit shall not constitute a change of use. Any
“change of use” are provided herein requires displacement of a tenant.
Substantial Rehabilitation is
defined as: “Substantial
rehabilitation” means extensive structural repair or extensive remodeling and
requires a building, electrical, plumbing, or mechanical permit for the
tenant’s dwelling unit at issue. Any “substantial rehabilitation” as provided
herein requires displacement of a tenant.
1. If you displace a tenant for
either of these items requires:
a. Providing at least 120 days
prior to end of a rental period advance notice to vacate; and
b. Providing resident(s) with a
packet of information on relocation assistance – If tenant has applied to the
city for the assistance and qualifies, the Total relocation assistance starts
at $2000 for 2019, with city contributing ½ and landlord contributing ½.;
and
c. If requested, landlord must
hold a meeting with tenant to explain situation, etc. within 20 days of any
request.
Other new Rental Housing Code
requirements (effective Feb 1, 2019):
• Provide information packet to
tenant prepared by City that covers tenant rights, fair housing,
Landlord-Tenant law, minimum building code info, etc. and a link to voter
registration on the Secretary of State website. For existing tenants, landlords
must provide to tenants within 30 days of information being available by city.
First packets must be in printed form, and updates may be sent by email, unless
tenant requests it in written/printed form.
• Provide all applicants your
written rental criteria that must include a link to a city website that will
give potential renters information on any code violations and any fair housing
complaints that involve the landlord.
• Landlords must accept
installment payments for deposits, last month’s rent and any fees (except
screening/application fee) upon a tenant’s written request.
o Month to month tenancies
& 2-month fixed term tenancies: 2 equal installments – ½ up front and have
together with 2nd month’s rent.
o Fixed term tenancies of 3
months or longer: 3 equal installments – 1/3 at move-in, 1/3 together with each
of 2nd and 3rd month’s rent.
o For Non-payment must give a ten-day
notice to comply/vacate.
• Landlord must comply with any
reasonable accommodation requests in giving notices to the tenant. • As mentioned
above, require 60 days advance notice for ALL rent increases.
• For “no cause” terminations:
Give at least 60 days advance notice prior to end of rental period to
terminate. Can still use a 3 day for nuisance, 3 day pay/vacate or 10-day
notice to comply/vacate if situation warrants it.
o 60-day notice to terminate is
required to end a fixed term lease! So if you don’t want to renew or not sure,
you probably should give notice to terminate, else tenant will not be required
to vacate when lease expires.
• All new rental agreements
must reference these new laws.
• No retaliation or reprisals
allowed. (Mimics state law)
• Penalties for noncompliance
are steep:
o For violating notice to
increase rents, failure to give info packets or accept installment payments:
1st violation $500 per dwelling unit; subsequent violations within 3 years are
$1000 per dwelling unit.
o For violating notice to
vacate timeline: $250 per day per dwelling unit for 1st 10 days; then goes up
to $500 per day per dwelling unit. And if tenant has already vacated – a flat
$1000 penalty per unit.
In addition, the City of Tacoma
adopted ordinance 28558 which makes a violation of the State Source of Income
Law become a Human Rights violation to be investigated as any other fair
housing complaint.
Note this is a summary of the
new requirements only for rentals within the city limits of Tacoma – Landlords
should review the full text of the new code, as amended, when establishing
rental policies.
Link to full text: Rental Housing Code
Summary provided by Washington Landlord Association
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