(The Center Square) – A survey on how tenants and landlords in Bellingham feel about rental fees and potential ordinances reveals all parties are in favor of transparency, but are divided on rent-related fees.
The Bellingham City Council is considering two proposed ordinances that regulate excessive fees, promote fee transparency, set guidelines for optional fees, and define which rental fees are permitted.
In order to understand the state of the city’s rental market, Bellingham paid approximately $10,000 for a contract with Whatcom Dispute Resolution Center to develop a survey, as well as create a public engagement plan and follow-up report.
The online survey was administered from Jan. 24 through Feb. 14, with 546 respondents. The results of the survey, including 99% of tenants, 97% of small landlords, and 97% of large landlords said they agree or mostly agree with disclosing all rental fees up front.
The current versions of the proposed ordinances include upfront disclosure requirements for any rental leases and advertisements.
The majority of tenants that responded to the survey claim an imbalance of power between landlords and tenants.. Tenants also expressed the belief that fees are unfair and fines feel punitive.
Landlords, on the other hand, believe the fees are necessary to cover costs, but are still too low. Landlords also expressed frustration that tenants do not read the leases they agree to, or do not understand the lease.
Rental housing providers also view any tenant-friendly ordinances as harmful to the rental supply, with mom-and-pop landlords being forced out of business. In turn, overall rent in Bellingham would increase.
Larger landlords, usually property management companies, are more likely to charge what Bellingham City Councilmember Jace Cotton called “junk fees” or excess fees on top of the base rent. This is shown in the survey as 67% of large landlords said they charge administrative fees, whereas 15% of small landlords said they do.
Over half of the larger landlords say they charge a pet rate, whereas 26% of small landlords said they do as well.
The survey found that larger landlords are more likely to change certain fees than smaller landlords.
Bellingham City Councilmember Michael Lilliquist said these property management companies have been feeling squeezed due to contractual businesses with land owners and tenants.
“Without that fee revenue, that property management company is saying ‘We can’t cover our costs; you’re driving us out of business,'” Lilliquist said during the Committee of the Whole meeting on Monday.
Lilliquist also said he is fine with rent costs becoming higher if the ordinances are passed, as long as the excess fees are gone.
“I’m not asking for landlords to take a loss, but I’m OK if rent goes up, if it also means fees go down,” said Lilliquist.
Further discussion on the two proposals is set for April 14.
