Seattle 'junk fee' ban passes unanimously
SEATTLE - Seattle City Council on Tuesday unanimously passed legislation banning rental "junk fees."
Mayor Wilson applauded the decision, calling it a "major step forward in making Seattle an affordable city for working families."
The ban goes into effect on July 1, 2027.
What are ‘junk fees?’
What we know:
According to the National Low Income Housing Coalition, a nonprofit based in Washington, D.C., a "junk fee" is a fee charged on top of a tenant's base rent for their occupancy of a unit.
Fees such as application fees, pet fees, late fees, processing fees, and administrative fees fall under the junk fee umbrella.
"Often undisclosed, unpredictable, and arbitrary, such fees can quickly accumulate for tenants, impacting their ability to access stable and affordable housing," the NLIHC says.
"Irresponsible actors are nickel and diming ordinary people finding sneaky ways to add on a fee here a fee there," Wilson said. "This legislation is about fixing that problem and creating predictably and transparency for renters across Seattle."
In a news release, the Mayor's Office specifically mentioned administrative service fees, pet rent, and package fees as ones that would be banned following the legislation's approval.
By the numbers:
The mayor had previously noted that these hidden fees can sometimes increase monthly housing expenses for local renters by 10% to 30%.
Additionally, a citywide survey in Seattle revealed that 58% of local renters pay extra fees beyond their standard rent.
Seattle proposal targets hidden renter junk fees
Seattle mayor Katie Wilson proposed new legislation to regulate hidden renter junk fees, requiring landlords to disclose all costs upfront.
The NLIHC said in 2024 that 16 states have introduced legislation to address excessive rental fees, and that Georgia, Illinois, and Minnesota were among the states that had passed some form of regulation.
The National Consumer Law Center also wrote a report on how junk fees can contribute to the housing affordability crisis being felt by many across the country. In a survey conducted by the organization, it found that:
- 89% of respondents reported landlords imposing rental application fees
- 87% said landlords charged "excessive late fees"
- 73% reported utility-related fees
- 68% reported processing or administrative fees
- 60% reported convenience fees
Seattle officials call decision a win for affordability
What they're saying:
Mayor Wilson thanked Councilmember Dionne Foster and City Attorney Erika Evans for their partnership in crafting the legislation, and called its approval an "important step forward for renters."
Foster said, "We know that transparency creates a better housing market. This legislation gives renters the ability to compare rental options based on their actual cost, not an artificially low advertised price followed by a list of surprise charges."
Evans said the legislation gives renters the "clarity and confidence they deserve" when looking for a place to live.
"Good landlords who play by the rules will benefit, too, as we hold bad actors accountable by making the housing market fairer and more transparent for everyone," the city attorney added.
The other side:
Some small property owners expressed concern over the proposed changes. They state that new regulatory requirements will make it too difficult to operate profitably and could force them out of business.
When does the ban go into effect?
What's next:
The rental "junk fee" ban will go into effect on July 1, 2027.
The Mayor's Office notes that any landlord found in violation of the ban may be taken to court by the City Attorney's Office and could be liable to pay three times the amount of the illegal fee they charged tenants.
The Source: Information for this story came from the Office of Mayor Katie Wilson and original reporting by FOX 13 Seattle.
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