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News / Clark County News

Vancouver could require landlords to have rental licenses, pay for regular unit inspections

Council weighs proposed rental habitability program aimed at making sure city’s rental units safe and well-maintained

By Alexis Weisend, Columbian staff reporter
Published: October 22, 2024, 1:58pm

Starting in 2026, landlords with long-term rentals in Vancouver may be required to obtain a $30 per unit annual license, as well as pay for regular private inspections.

The Vancouver City Council is weighing a proposed rental habitability program similar to Seattle’s in hopes of ensuring a safe and robust stock of rental housing.

“Whether it’s affordable or market rate, we want much rental housing to be preserved going forward, and we want tenants to live in safe and healthy rental units,” Samantha Whitley, Vancouver’s housing programs manager, said at a Vancouver City Council workshop Monday.

Program requirements

Although landlords are already required to obtain an annual business license, the city may require an additional rental housing license, which would require regular inspections.

Most rental-unit owners would be required to hire and pay for a private inspection every three to four years. Newly constructed units would be exempt for the first five years.

The license would cost $30 per unit each year, which, according to Whitely, is low compared to what other cities in Washington charge for the license. The program would become largely self-sustaining after an initial city investment, she said.

Short-term rentals and owner-occupied single-family housing (mobile homes or people renting a bedroom) would be exempt from the license requirement. Landlords of units with rent set to be affordable for those who earn 60 percent of the area median income — that is, $49,560 a year — won’t have pay registration fees.

Landlords who fail to register would face fines of $500 a year per property.

If properties are registered within the first 90 days of the program’s launch, the city would waive the registration fees for the first year, according to the proposal.

A property could either pass an inspection, pass with some corrections or fail. If a rental unit owner does not make corrections or provide a certificate of passed inspection to the city within 60 days of the due date, the unit would be referred to the code compliance department for an inspection, which would incur a fee, according to the proposal.

As long as the owner demonstrates a commitment to fixing issues that need correcting, code compliance officers would give rental-unit owners the necessary time to make repairs, according to the proposal. But if the owner doesn’t demonstrate a commitment or complete the repairs, the code compliance department would issue daily fines of up to $250 until repairs are done.

The proposed program also would assist tenants who have to move out of properties the landlord knows — or should have known — are uninhabitable.

The landlord would be required to pay for the tenant’s relocation within seven days at a cost of up to $2,000 or three months’ rent, whichever is greater, along with refunding any prepaid deposits or rent for that time.

If the landlord were unwilling or unable to pay the relocation assistance in time, the city would pay the costs upfront and seek reimbursement from the landlord.

Clashing opinions

City staff brought together a group of stakeholders, including landlords and tenants, to offer advice on the proposal.

Denny Miller, co-founder of Zenith Properties, a property management and brokerage company that manages units in Clark County, said he encourages the city to adopt the proposal.

“I just think it’s a great proposal, and I think it’s one that the industry can stand behind and will give protection to residents who are looking for minimum standards of habitability,” he said at the workshop.

Tenant advocate Ren Autrey said the proposed program is a good place to start.

“I think that there are a lot of concerns and fears around making sure that your house is safe, but then your ability to continue renting is also in a stable spot, too,” Autrey said.

Several city councilors expressed concern that the registration fee would be passed onto tenants. Whitely responded that even if this were the case, that would amount to $2.50 extra a month.

Councilor Erik Paulsen expressed concern that owners could convert long-term rentals into short-term rentals to sidestep the fee, reducing the city’s stock of much needed housing.

Councilors Kim Harless and Ty Stober expressed concern that rental unit owners would inspect themselves or hire biased private inspectors. Whitely said the city would require inspectors to meet qualifications and conduct spot checks.

Councilor Bart Hansen said he’s “not very supportive” of the proposed program. The fees might make housing less affordable or make rental property more difficult to sell and stay rental housing, he said.

“All of these things are adding on and making affordable housing a lot more difficult to achieve, in my opinion,” Hansen said.

Councilor Sarah Fox said she thinks the program would level the playing field between tenants and landlords. Although Washington law requires landlords to fix and maintain their rental properties, tenants must report noncompliance themselves.

“Most of us should know that we have rental housing stock out there that is not safe, and tenants don’t always feel empowered to seek repairs to those units,” Fox said.

The city council expects to vote on the program in early 2025 following a public hearing, according to Whitely. The city would conduct outreach for about a year before registration for the program would open at the beginning of 2026, according to city staff.

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