Navigating Challenges: Housing Providers Voice Concerns Over Regulatory Pressures & Rent Control

In November 2024, RHAWA conducted an extensive survey aimed at small housing providers, uncovering significant concerns around the future of rental housing, particularly the looming threat of rent control in the upcoming 2025 Legislative Session. A notable 77% of respondents identified rent control as their most pressing issue, with an overwhelming 92% expressing fears about its negative impact on their ability to provide affordable housing. Additionally, an alarming 98% believed that rent control would complicate their business operations, with 96% anticipating a reduction in investments and 95.36% expecting a decrease in new housing construction as a result. Such outcomes paint a bleak picture for Washington State's rental market, where 84.52% forecast that rent control would lead to higher rental rates. Reflecting the gravity of the situation, 87.85% indicated they would withdraw from investing in rental housing, and 84.46% were considering selling their properties if rent control legislation passed. Many respondents noted plans to implement stricter rental criteria to mitigate risks associated with rent control, further restricting housing availability.

While rent control prevailed as the most significant concern, the survey also shed light on the challenges posed by existing eviction restrictions, which have skewed toward tenant protection. Experiences shared by housing providers illustrated the frustrations of navigating an overwhelmed legal system, as one provider recounted the difficulties faced while attempting to evict a non-paying tenant who had accumulated over 16 months of arrears, with the process dragging on for nearly two years. Additionally, a significant percentage of housing providers—34%—reported current tenants behind on rent, with some exploiting legal loopholes despite receiving substantial rental assistance, leading to extensive financial strain for housing providers. Recent legislation was cited by 62.45% of respondents as a hindrance to maintaining safe living environments, with 92.81% believing that eviction delays ultimately compromise tenant safety.

The survey also brought attention to the bureaucratic burdens faced by housing providers, with many feeling overwhelmed by extensive documentation requirements that increase legal costs and contribute to delays; about 29.4% reported setbacks in eviction processes. Frustration over minor infractions resulting in penalties and fines was common, with a number of members detailing their experiences of receiving fines after attempting to issue formal notices based on procedural errors. Moreover, housing providers expressed discontent over the growing influence of corporate housing providers, fearing that their exit from the market could lead to higher rents and a lack of personal service for tenants. Many are considering selling properties, anticipating that new owners may convert affordable units into high-end rentals. In fact, 68.26% of participants have sold or are contemplating selling their rental properties due to harsh regulations, with 18.86% reporting that the new owners chose not to continue renting.

Despite these challenges, a significant number of members remain committed to staying in the rental industry, driven by a sense of civic duty and responsibility to provide affordable housing. For instance, one RHAWA member who runs a small rental business in Seattle, expressed her resolve to stay in the industry, citing her personal connection to the community and a desire to maintain the availability of affordable options. She emphasized the importance of small, family-owned rental businesses like hers, which are often driven by a passion for providing a place to call home, rather than seeking to maximize profits. This member, and others like her, believe that their continued involvement in the rental industry will ensure that affordable housing options remain available, even in the face of rising costs and challenging regulatory environments.

Compounding these challenges are rising property taxes and operational costs, which force many providers to consider significant rent increases, often against their inclinations. One member reported a 50% surge in property taxes within a single year, creating pressure between raising rents or risking foreclosure. Frustrations about tenant accountability were echoed throughout the survey, with housing providers lamenting the limited recourse available against non-compliant tenants, thus incurring thousands in unaddressed property damage and repair costs. The emotional toll of navigating these various challenges significantly impacted housing providers, with many recounting the stress and anxiety stemming from managing problematic tenants, some of whom engage in illegal activities. Additionally, the convoluted eviction process has led to feelings of helplessness, further exacerbated by the regulatory climate that has strained relationships between housing providers and tenants. This growing distrust complicates new lease agreements, making it increasingly difficult to foster cooperative interactions.

In essence, the multitude of stringent regulations, rising operational costs, cumbersome tenant management processes, and emotional strain constitutes a perfect storm, leading many small housing providers to reconsider their future in the rental business. This trend threatens the availability of affordable housing as more providers may exit the market, increasing the disparity between those who can afford rising rents and those left without housing options. The ongoing dialogue within the housing community emphasizes the need for policymakers to reassess the balance of tenant protection laws, advocating for reforms that support both tenant rights and the financial stability of small housing providers, who play a crucial role in maintaining housing supply and promoting affordability in their communities.

While highlighting these challenges, respondents also expressed appreciation for RHAWA's advocacy and support efforts. Many members value RHAWA's commitment to representing their interests in legislative matters and providing essential resources for navigating the regulatory landscape. Initiatives such as educational programs, networking opportunities, and access to crucial industry information were recognized for empowering housing providers to manage their properties more effectively.

To better assist small housing providers, RHAWA is committed to implementing several strategies:

1. Continuing commitment to our educational programs to focus on legal changes, best practices in property management, and effective tenant communication, along with financial planning resources. Interested members can join the Education, Resources, and Forms committee by contacting Denise Myers at dmyers@RHAwa.org.
2. Fostering stronger partnerships with local governments to advocate for fair policies balancing tenant protections with housing provider rights, thus promoting a more equitable housing market.
3. Creating a community network for housing providers to share experiences, resources, and solutions, helping to alleviate feelings of isolation while promoting collaborative problem-solving. Members are encouraged to participate in one of our six monthly LINK meetings or the members-only COMMUNITY Forum by contacting Daniel Bannon at dbannon@RHAwa.org.
4. Engaging in public awareness campaigns to illuminate the essential role small housing providers have in their communities, aiming to foster a more supportive environment and improve housing provider-tenant relationships. To get involved, contact our Government Affairs staff at advocacy@RHAwa.org.

Through these initiatives, RHAWA aims to continue amplifying the collective voice of small housing providers, promoting better regulatory conditions, and ultimately safeguarding affordable housing availability for the community. To achieve this, we depend on the active participation and support of members. As a valued member, we invite you to get engaged in this community and take an active role in shaping the future of the rental industry. Consider joining our volunteer groups, participating in our LINK meetings, or attending our educational events to connect with like-minded professionals and stay informed about important industry developments. Moreover, we encourage you to refer a friend or colleague to RHAWA, as together we can foster a stronger, more united community of rental housing providers. By staying a part of RHAWA and encouraging others to join, you'll not only be part of a powerful voice for the industry, but also contribute to creating a better, more affordable housing environment for everyone.