(The Center Square) – The Bellingham City Council unanimously approved increases to rental property registration and late fees despite the Rental Registration and Safety Inspection Program consistently seeing revenues exceeding expenses.
The motion finds that in order to cover the additional expenses associated with the program’s inclusion of two additional staff positions, an increase in the registration fee and late fees for rental units and increases to the inspection and/or missed appointment fees is necessary.
The additional revenue from the fee increases will fund the addition of a program administration specialist position and a second inspector position as part of the planned Rental Registration and Safety Inspection Program expansion.
Currently, Bellingham’s registration fee is set at $10 per unit for properties with up to 20 units, and $8 per unit for properties with 21 or more units. With the council’s approval, the registration fee will increase to $20 per unit for properties with up to 20 units and $16 per unit for properties with 21 or more units starting next year.
Late fees are currently set at $50 for one to four units, $125 for five to 20 units, and $250 for 21 or more units, if the registration payment is between one and 60 days late. If the registration payment is more than 61 days late all prior fees established by this schedule are due, plus all costs associated with collection.
The late fee schedule will shift from a per unit fee escalation to an escalation rate based on the time it takes for payment as part of the newly approved motion. Payments that are received one to 15 days late will be subject to a $50 late fee per day, 16-30 days late will be subject to a $125 late fee, 31-60 days late are set at a $250 late fee per day, and 61 or more days late would be subject to all prior fees established by this schedule plus all costs associated with collection.
According to the motion, the conversion to this methodology “promotes prompt payment of the fees regardless of the number of units associated with the property.”
Bellingham’s Rental Registration Program has an annual budget of $187,656 for 2023. From January 2023 through July 2023 the registration fees brought in $113,680 in revenue and the inspection fees brought in $111,412, for a total year to date revenue of $225,092. This exceeded the anticipated budget expenditures with five months remaining in the fiscal year.
Since the rental registration program first began operations in 2015 – with a hiatus in 2020 and 2021 due to the COVID-19 pandemic when the city was not performing rental inspections – revenues have exceeded expenses each year.
During Monday’s city council meeting, Bellingham City Councilmember Lisa Anderson said that she expects the approved motion to be one of several changes coming forward for the program in the next couple of months.
