Landlord-Tenant Ordinances
Landlord-Tenant Ordinances
Seattle has rules; Chicago has rules; New York City has rules; many cities in many states have rules for landlords and tenants. Municipalities may enact key ordinances that regulate rental housing in their cities/areas. The above mentioned cities are but a few of major metropolitan areas that have landlord-tenant codes and ordinances. However, cities do not have to have large populations in order to set rules and regulations for landlord-tenant rights and responsibilities. Small towns can be more stringent in their requirements for rental housing than their respective state’s requirements. Recent rental housing legislation by some city councils and/or housing authorities has strengthened protections against applicant/tenant discrimination and required landlord disclosure of rental policies and practices.
Accordingly, landlords are advised to research all applicable laws and maintain currency with all rental housing issues. Rental policies must be fully compliant with requirements at all levels of governing authorities. Research must include determination if rent-control, rent stabilization or rent subsidy regulations are applicable and how such regulations integrate with landlord-tenant laws and property management operations. Such risk management measures must be incorporated into business policies and practices to protect the landlord’s business, tenants’ rights, and comply with legal requirements.
As example of how local ordinances can impact the landlord’s business and property management, there are new rules for Seattle landlords. Recent ordinances enacted by the Seattle City Council affect how landlords set and communicate rental policies to applicants and tenants.
One ordinance in particular, commonly referred to as the “First-in-Time” Ordinance, believed to be the first of its kind, requires landlords to screen completed rental applications in chronological order to determine whether an applicant meets all screening criteria necessary for approval of the application and to offer tenancy of the available unit to the first applicant who meets the minimum criteria.
The landlord’s tenant screening policy is now regulated by ordinance. Per the Seattle Municipal Code it is an unfair practice for a landlord to fail to provide notice to a prospective tenant of the criteria the landlord will use to screen prospective occupants and the minimum threshold for each criterion that the applicant must meet to advance in the application process. This includes providing notice of any different or additional criteria that will be used if the landlord chooses to conduct an individualized assessment related to criminal records. Notice can be in writing, a posting in the building where the unit is physically located and, if existing, on the website advertising of the rental of the unit, in addition to and at the same time as providing information required by Washington state statute RCW 59.18.257(1).
A rental application is considered complete when it includes all information, documentation, and submissions as stated in the notice. A landlord must note the date and time when he receives a completed rental application, whether submitted through the mail, electronically, or in person. A landlord must screen the completed rental applications in chronological order to determine whether an applicant meets all screening criteria as noticed.
If, after conducting the screening, the landlord needs more information than was stated in the notice, the landlord must notify the applicant in writing, by phone, or in person what additional information is needed and state the specified period of time, at least 72 hours, which the applicant has to provide the additional information. If the additional information is provided within the specified timeframe, the original submission date of the completed application (for purposes of determining chronological order of receipt) is not affected. If the information is not provided in a timely manner, the landlord may consider the application incomplete or reject the application.
A landlord must offer tenancy of the available unit to the first applicant meeting all the screening criteria necessary for approval of the application. If the first approved applicant does not accept the offer of tenancy for the vacant unit within 48 hours of the offer being made, the landlord can review the next completed rental application in chronological order and follow the proscribed process until a qualified applicant accepts the landlord’s offer of tenancy.
If an applicant requires additional time to submit a complete application for reasonable accommodation or other exception as permitted by ordinance, the applicant must make a request to the landlord. The landlord must document the date and time of the request to serve as a date and time of receipt for purposes of determining chronological order of receipt. A landlord shall not unreasonably deny a request for additional time. This does not affect the duty of the landlord under local, state, and federal law to grant reasonable accommodation to individuals with disability.
First-in-Time Evaluation
The City will conduct an evaluation 18 months after implementation of the First-in-Time program to determine whether the program should be maintained, amended, or repealed. The evaluation should include analysis of the impact on discrimination based on a protected class and the ability of low-income persons and persons with limited English proficiency to obtain housing.
Other Provisions
Discrimination Protections
The Municipal Code strengthens protections against applicant discrimination. It is illegal in the City of Seattle to discriminate against any person because of race, color, creed, religion, ancestry, national origin, age, sex, marital status, parental status, sexual orientation, gender identity, political ideology, honorably discharged veteran or military status, participation in a Section 8 or other subsidy program, alternative source of income, presence of any disability, use of a trained dog guide, or service animal by a disabled person.
Alternative Sources of Income
Verifiable alternative sources of income may be Social Security benefits, Supplemental Security Income, unemployment insurance, child-support payments, veteran benefits, short term rental assistance, and other support programs. Rejecting applicants who have such sources of income is illegal. However, the Ordinance states that nothing in the Ordinance shall be interpreted to prohibit any person from making a choice among applicants on the basis of factors other than those noted above.
Rent Subsidy
The landlord must cooperate with applicants or current tenants to complete and submit information and documentation required for eligibility or receipt of rental assistance from Section 8 or another rental subsidy.
It is an unfair practice for a landlord to apply an income screening criterion, such as an income to rent ratio, in a manner inconsistent with:
- any payment from Section 8 or other subsidy program that reduces the amount of rent for which the tenant is responsible must be subtracted from the total of the monthly rent and
- all sources of income must be included as part of the tenant’s total income.
This means that a landlord may only consider the tenant’s portion of the rent for income-based eligibility screening. Rent subsidies are reductions in monthly rent and are not considered income.
A landlord must accept a written pledge by a Section 8 or other subsidy program to pay for past due or current housing costs and court costs or reasonable attorney’s fees already incurred and directly related to recovery of unpaid housing costs lawfully owed under all of the following conditions:
- by itself or in combination with: other payments from a Section 8 or other subsidy program and any verifiable source of income including but not limited to wages, salaries or other compensation for employment and all alternative sources of income, the written pledge is sufficient to allow the tenant to become current on all housing costs and court costs or reasonable attorney’s fees already incurred and directly related to recovery of unpaid housing costs lawfully owed once the pledge is fulfilled,
- the written pledge is received by the landlord at any time prior to
- issuance of a notice served to pay or vacate,
- end of time period allowed for compliance in notice served to pay or vacate,
- The written pledge does not commit the landlord to any conditions, including any agreement not to pursue future unlawful detainer actions except those requiring the landlord to provide timely information necessary for payment, and
- Section 8 or other subsidy program provider commits to paying written pledge within five business days of issuance of written pledge. Where possible payment should be made directly from Section 8 or other subsidy provider to the landlord.
Preferred Employer Program
It is an unfair practice to advertise, institute, or maintain a preferred employer program. A preferred employer program is a policy or practice in which a landlord provides different terms and conditions including but not limited to discounts or waivers of fees or deposits because the applicant is employed by a specific employer. Any existing employer program that is part of an unexpired rental agreement may continue until the occupant vacates the unit and the rental agreement is terminated.