Title
Renter Protection Measures Discussion
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss renter protections related to tenant screening, manufactured homes, and rent to own arrangements.
Report
Issue:
Whether to Discuss renter protections related to tenant screening, manufactured homes, and rent to own arrangements.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Office of Community Vitality, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Office of Community Vitality
Background and Analysis:
Income to Rent Ratios
As housing prices continue to rise, it becomes increasingly difficult for tenants to qualify for a rental unit, with current practices of requiring tenants to demonstrate that their income is three times (or more) than the rental rate. Staff have heard from local tenants that some landlords require each applicant to demonstrate their earnings are triple the cost of rent (even if they are applying as a couple or as roommates).
Using a rent to income ratio of three times the rent, an applicant would need to earn at least $54,000 annually to qualify for an average 1-bedroom rental unit at a rate of $1,500/month. The average annual income of an Olympia renting household is just under $50,000. A renter working full-time at minimum wage earns just under $34,000 annually and would only qualify for rents below $950 per month.
At a public hearing in March 2024, staff included information on tenant screening policies adopted by other local and state governments. Other cities and states have enacted policies which limit the amount of tenant income that may be required to qualify for a rental unit. In Colorado, a landlord may not require the tenant's income to be more than two times the rent. Tacoma and Portland have separate limits if the rent is considered affordable or under fair market rent. Minneapolis landlords must consider an a...
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