As landlords and owners continue to deal with falling rents and vacancy rates near 8%, the Spokane City Council is considering a new ordinance that would apply more pressure to property owners and landlords within the City of Spokane.
Currently, landlords are required to give tenants a 60 day notice prior to a rental increase. City Councilman Paul Dillion is proposing an increase to that notice time frame to 6 months. While the intention behind the proposal is to protect tenants, if this ordinance is passed, it will also:
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- Limit owners’ ability to bring rents in line with the market.
There is little to no research to substantiate that a six month notice of rent will benefit a tenant more than the current 60 days. Imagine a scenario where a tenant calls a landlord looking for a new place to live six months prior to their lease being up. The landlord would have no idea what units will be available in six months.
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- Limit the private development of housing for residents.
Nothing deters private investment more than additional government regulations. Deterring private investment into housing will actually place a greater burden on tenants by making residential units more scarce.
Also, housing and rental markets can change dramatically, typically in six week increments, so if you require a landlord to give 180 days notice of rent increase, it will almost certainly mean that a landlord will issue some sort of rental increase, burdening the tenant further.
If these issues are of concern to you, please contact your City Council member today and let your voice be heard.
Please reach out if you have any questions or would like to discuss how this ordinance could affect you.
SVN Cornerstone Multifamily Team
Nate Gant is an Advisor with SVN Cornerstone. Nate has been an active member of the Eastern Washington real estate community since 2010. He has brokered more than $100 Million in real estate transactions, specializing in land development, REO and investment properties. To get in touch with Nate, email nate.gant@svn.com or call 509.993.4440.
Jordan Lester is an Associate Advisor with SVN Cornerstone. Jordan served as a brokers assistant for 3 years with SVN Cornerstone before becoming a full time broker. Jordan specializes in the multifamily sector of commercial real estate. To get in touch with Jordan, email jordan.lester@svn.com or call 509.496.6922