Proposal could limit move-in deposit and fees for renters

SEATTLE — Seattle Councilmember Kshama Sawant will propose legislation on Monday, to cap the amount that a landlord can charge for a security deposit and non-refundable fees when a tenant moves in.

If the landlord also charges the last month’s rent as a requirement upon moving in, this legislation would also allow the tenant to pay that amount, plus the security deposit and fees, over the course of six months without interest.

The Washington Community Action Network conducted a survey of several hundred tenants, 87 percent of whom stated that high upfront costs were a barrier to moving.

Sawant said that for a person renting a $1,500 unit, the cost of moving in could amount to as much as $5,000, once that first month’s rent is added to a security deposit, last month’s rent and other fees.

“Most people in this city don’t have that kind of money in their checking account,” Sawant said.

Sawant added that many landlords already charge a security deposit and fees that are lower than one month’s rent. But she believes there are still certain landlords who charge much more.

She said, “We want the city law to be crafted in such a way that no matter who we’re renting from, the law is on your side.”

She said she was not aware of any other jurisdiction that has enacted such laws before.

Charon Stewart-Silvano said she recently had to look for a new place, when her previous landlord wanted to remodel and sell his place.

Stewart-Silvano is a hair stylist, and her husband is an academic advisor at the University of Washington. She said they had lived in the same place for five years, so they were shocked to find out the prices for a two-bedroom apartment for them and their children.

The move-in fees provided more sticker shock.

“Wait a minute. I literally have to come up with $4,000 or $5,000 just to move into a house now?” she said.

She said that was for an apartment which was advertised to her as a ‘great deal,’ costing $2,600 a month for two bedrooms.

She eventually found a cheaper place, and her family has agreed with the landlord to pay deposit and fees over monthly installments.

“I want to leave this city better than I found it, and I want to encourage more land owners – landlords – to do the same for families or for single people,” said Stewart-Silvano.

Hugh Brannon, who rents out 11 units in Queen Anne, said he only charges half a month’s rent for initial deposits. He does not charge last month’s rent, so he would not be subject to accepting those payments over monthly installments.

While he doesn’t personally take issue with the legislation, he said he can imagine other landlords who end up taking payments over six months will incur greater risk.

“If all you’re getting is the first month’s rent and a payment, how do you know they’re going to pay you the rest of it?” he said.

Brannon said he may consider eventually getting out of the business of being a landlord, due to the stress and anxiety of dealing with city politics.

“Today’s proposed legislation is not the issue. It’s what she’s going to come up with the next month, the month after, the month after,” Brannon said.

Cox Media Group