Inslee is out of the Housing Business - Now What?
/By: Whitny Norton and Tyler O’Brien
The Eviction Moratorium “Bridge” came to an end on October 31st. Now, Landlord’s can go back to the status quo … but what was it? The “Bridge,” in and of itself, was not as restrictive or protective as many political pundits made it out to be. The significant changes are relatively simple.
The important thing for landlords to remember is that many of the changes to Washington law in the past year were made by the legislature. Even with Governor Inslee out of the housing business, the Washington Residential Landlord-Tenant Act (“WARLTA”) looks significantly different than it did prior to the pandemic. There are plenty of laws, still in effect, that can cause significant issues and liability for Landlords.
The Significant Changes Resulting from the Expiration of the Bridge
i. Certain Collection Actions Are Allowed
Landlords may now treat defaulted rent accrued between February 29, 2020 and July 31, 2021 as an enforceable debt. Unless the terms of a lease agreement say otherwise, Landlords can: (1) apply a security deposit to past due rent; (2) attempt to collect debt through a collection agency; or (3) report to credit bureaus.
REMEMBER: Landlords are still obligated to offer repayment plans and cannot report defaulted rent from this period to prospective landlords. HB 5160.
ii. Restrictions are No Longer Based on Local Programs
Landlords may proceed with evictions, regardless of whether their county has a Right to Counsel, Rental Assistance, or Eviction Resolution Programs in place.
REMEMBER: your county may have adopted its own policy. Look to your county’s standing order (issued by its superior court) and any other rules it may have.
Still in Effect – Recent Changes to the WARLTA
i. For Cause Evictions and 60 Days’ Notice to Terminate Most Fixed-Term Leases
In order to terminate most fixed term leases and ensure they do not continue on a month-to-month basis at the end of the term, landlords must send a notice informing the tenant the lease will end at least 60 days before the term expires.
ii. Eviction Resolution Program Notices and Repayment Plans – the New Status Quo.
Eviction Resolution Program Notices are required by statute in all evictions based on defaulted rent. HB 5160. The same law requires repayment plans to be offered for all rent accrued between March 1, 2020 and 6 months past the end date of the state of emergency declared by Governor Inslee on February 29, 2020, which is still in effect today. For the foreseeable future, both ERP notices and Repayment Plans are required.
iii. Adverse Actions Still Forbidden
Landlords cannot charge late fees for rent accrued since March 1, 2020 until after December 31, 2021. This means Landlords can go back to charging late fees on January 1, 2022 but cannot retroactively apply late fees to defaulted rent from March 1, 2020 to December 31, 2021.
For this same time period, current/former Landlords cannot report the tenant’s nonpayment or an unlawful detainer action brought against them to prospective Landlords. Prospective Landlords also cannot take adverse actions for the nonpayment of rent during this period. In short, Landlords cannot discuss or make decisions based on defaulted rent accrued between March 1, 2020 and December 30, 20221.
A landlord who violates these laws is liable for up to 2.5 times the amount of monthly rent of the property at issue, court costs, and attorney’s fees.
Sending notices for evictions, rent increases, and lease renewals have become risky endeavors. Taking the wrong action can, in some cases, force a landlord to pay a tenant up to 2.5x damages, court costs, and attorney’s fees.
We can help. Piskel Yahne Kovarik, PLLC (“PYK”) is an experienced team of legal professionals offering, among other things, comprehensive legal representation to owners, property managers, and businesses.
PYK carefully tracks the frequent changes in landlord tenant law, so we can better serve our clients.
Contact our legal team today to see how we can assist you in protecting your investment.