Bellingham City Council will consider measure to curtail rental home ‘junk fees’
A pair of measures addressing so-called "junk fees" that landlords are increasingly adding to monthly rent are scheduled to go before the Bellingham City Council next week.
Discussion on the measures is planned when the council's Committee of the Whole meets at 1 p.m. Monday in City Hall, 210 Lottie St.
Councilman Jace Cotton has been considering the issue for several months, and he will be presenting the city's findings along with two proposed ordinances at the afternoon committee session.
Votes are scheduled when the City Council meets at 7 p.m. and no public hearings are on the agenda. Both meetings will be streamed live on YouTube.
One proposed ordinance focuses on residential tenants and the second measure is aimed at mobile home lease agreements.
According to research provided in reports and documentation that were included with the online agenda for Monday's meeting, examples of "junk fees" include:
Administrative fees of $100 to $300.
Application fees of $33 to $65.
Nonrefundable pet fees, $40 to $500.
Pet rent, $25 to $100 per month per animal.
Valet trash, $20.
Parking fees for guests.
Surcharges to use an in-unit washer and dryer.
Many renters are surprised by fees, forced to pay for services they didn't want and charged for services not provided, according to the report.
As written, the ordinance:
Limits application fees to $25.
Says assistance animals are not pets.
Limits pet damage fees to 20% of monthly rent and sets other restrictions.
Prohibits any combination of move-in fees and security deposits that exceeds one month's rent.
Prohibits fees to use appliances in the dwelling unit.
Prohibits any administrative fee for a rental agreement take-over or the addition of a tenant.
Included with documentation on the ordinances are statements from local residents and letters of support from organizations such as the Whatcom Humane Society, Skagit Legal Aid, Lydia Place and the United Food and Commercial Workers Local 3000.
Anne Wilce, who grew up in Bellingham and graduated form Western Washington University, describe the effect of junk fees on her family.
"After living in my apartment for several years, the property changed ownership. Instead of staying month-to-month, as we were currently, my new apartment manager requested I sign a new year-long lease. Upon inspecting the lease terms, I saw a plethora of new potential fees. A replacement key was $50, a clogged drain $150, lock change $200, and late payment $168," Wilce wrote.
Several Washington cities have limited such fees, according to research included with the online agenda.
"When someone falls behind on rent, excessive late fees create a barrier for a tenants' ability to catch up, leading tenants to fall farther behind. Housing is a necessity and people want to maintain stable housing and avoid eviction proceedings. Like overdraft fees in banking, excessive late fees negatively impact those who are already struggling to get back on track," according to a report from Iris Nott, the city's legislative policy analyst.
About 56% of Bellingham's 97,000 residents are renters, and more than 20,000 renters are "cost-burdened," meaning that they spend more than one-third of their income on rent.
The Council of Economic Advisors estimates that 10 common junk fees cost Americans more than $90 billion annually, and that apartment application fees alone cost an estimated $276 million in 2023.
In her report, Nott said that these "junk fees" are pervasive and can be above the actual cost of what it takes to provide a service.
"Further, junk fees are often hidden, prohibiting comparison shopping and surprising consumers late in the purchase process or even after purchase, or in the case of tenants, after committing to a rental and signing a lease," Nott said.
