Seattle’s rental law and unintended consequences

I heard a good deal from landlords and others in real estate about the potential downsides of Seattle’s new first come, first served rental law. Here are a few points, especially from small landlords, who complain about lack of city outreach in advance (“We literally learned about this from your newspaper after City Council approved.”):

• Some small landlords might opt to take units off the market and leave them empty, reducing supply. Although they wouldn’t have a rental income, they also wouldn’t face the city’s extra oversight. In such a hot market, the properties will continue to appreciate in price. This is a problem in Vancouver, B.C. City Council could respond, of course, by putting a tax on unoccupied properties.

• “Small landlords will shift from Craigslist to private workplace social network, when threatened with (Seattle Office of Civil Rights) litigation the first time we decline a tenant who we objectively think does not belong in our home.”

• “As a small-time landlord for 20 plus years. If you get a bad tenant in your property, you have no rights and it’s a nightmare and very costly. This law will destroy the small-time, thoughtful landlord that doesn’t usually ask for top dollar rents for their properties. They are looking for a good fit for both the tenant and landlord to build a good relationship. The hope is always that the tenant enjoys the house and stays a long time. Big-time apartment buildings can hire all the people they need to take care of the City Of Seattle’s crazy ideas. The small-time landlords are the ones that are really going to be hurt by this new law.”

Read more: http://www.seattletimes.com/business/economy/the-rental-law-and-unintended-consequences/