Tacoma Rental Code + Measure 1
Those subject to the residential rental code in the City of Tacoma are reeling with the city council-approved ordinance taking effect in July and just a few months later, a voter initiative that doubled the new regulations facing housing providers as of December 8, 2023. RHAWA offered a class reviewing all the Tacoma laws in context with the Rental Housing Code and has also updated the city summary article in our Support Center and various forms as needed. Following is the newly revised city law summary article.
City of Tacoma Law Summary
TMC 1.95 with an Ordinance effective 7/24/2023 and a voter initiative, Landlord Fairness Code Initiative effective 12/8/2023, creates additional tenant rights in the City of Tacoma. These codes apply to all tenancies governed by RCW 59.18 (Residential Rentals).
Penalties & Procedures
There are two separate parts of Tacoma city residential rental laws. The Rental Housing Code as passed by city council and the Landlord Fairness Code as passed by the voter initiative. They are each enforced differently as follows:
Throughout the law summary on this page, indicates parts of the law that are enforced differently under the Landlord Fairness Code. All other parts are enforced by the City of Tacoma based on submitted complaints.
Information for Applicants
Written rental criteria and other information must be provided to all applicants, including:
• That tenant has the right to pay move-in costs (fees, deposits, last month rent) in installments.
• City of Tacoma Tenant Resources webpage that provides information on properties and landlords:
• https://www.cityoftacoma.org/cms/one.aspx?pageId=167941.
• Or if the prospect cannot access online information, provide a hard copy of your property info found at https://tacomaopendata-tacoma.hub.arcgis.com/.
• That social security number will be requested but not required (details below).
• How criminal history will be assessed under the new Tacoma law (details below).
• Minimum income requirements in compliance with new Tacoma law (details below).
Information for Tenants
A Tenant Information Packet is provided by City of Tacoma and can be downloaded from their web-page, Landlord Resources. Landlords must provide an initial distribution to tenant or prospective tenant when offering a lease as a hard copy with a receipt signed by the tenant. Landlords must also distribute at renewal and upon revision by the City (electronic copy is OK) and with any notice to a tenant under RCW 59.12.030.
The City of Tacoma has also created a form tenants can use to request payment plans for move-in costs. Landlords must distribute this form to prospective tenant/tenant when offering a lease.
Use of Social Security Number in Screening
• A landlord shall not require that any tenant, prospective tenant, occupant, or prospective occupant of rental property provide a social security number.
• A landlord may request and must accept alternative proof of financial eligibility such as portable screening reports, Individual Taxpayer Identification Number (ITIN), or other proof of income, where available, if offered by the tenant.
• A landlord must offer the same rental agreement terms to the applicant offering alternative proof as if a social security number was provided.
Use of Criminal History in Screening
Individualized assessment of criminal records is required per HUD and WA Guidelines. See the article, Screening for Criminal History.
Tacoma law adds specific criminal records that may and may not be considered for denial.
Determining Financial Responsibility in Screening
For groups, the prospective tenants have the right to decide who will apply as the financially responsible party(s) and who will be considered an occupant with no financial responsibility.
A landlord may not screen “occupants” for financial responsibility, only for the conduct, care of property and rules compliance.
The income-to-rent ratio used by landlords to qualify potential tenants will be determined by Tacoma law and HUD Fair Market Rent (FMR) as follows:
• If the offered rent is below FMR, the minimum income criteria can be up to but no higher than three times the rent.
• If the offered rent is at or above FMR, the minimum income criteria can be up to but no higher than 2.5 times the rent.
The landlord must consider all combined income of financially responsible tenant(s) following WA State source of income law (RCW 59.18.255).
Rental Agreement Regulations
Any residential rental agreement (including a renewal) entered into after 7/24/2023 is prohibited from:
• Including any penalties or charges for tenant ending a month-to-month
tenancy with proper notice. No “minimum” stays can be enforced.
• Requiring a tenant to pay rent electronically.
• Requiring a tenant to provide more than a 20-day notice to terminate tenancy.
• Regulating or banning dogs based on dog breeds. Exception: A “pet” may be denied if landlord's insurance policy requires such a ban.
• Using money collected for last month’s rent for anything other than last month’s rent.
Any residential rental agreement (including a renewal) entered into after 7/24/2023 must include:
• A description of the number of occupants allowed to occupy the unit as outlined in TMC 2.01.060.V. (details below).
• A description of any uninhabitable spaces such as attics, basements, and garages that have not been properly permitted for occupancy.
• The name and physical address of the landlord or representative who resides in WA State where notices can be served.
• A description of the tenant’s right to alternative rent payment date based on date of government program income.
Setting Occupancy Limits
The maximum number of residents of each dwelling unit shall not exceed the gross area divided by 200, rounded to the nearest whole number. Bedrooms will accommodate two persons with a minimum size of 70 square feet, with no dimension being less than seven feet. An additional 50 square feet per bedroom shall be provided for each person in excess of two. Children less than one year of age shall not be considered in applying the above provisions.
Example calculations for a 3 bedroom, 1450 sf home.
• 1450 sf ÷ 200 = 7.25, rounded to 7
• 2 per bedroom = 6
Maximum occupancy is 6 people over the age of one year. Any children one year or younger are not restricted.
Move-In Cost Caps
In total, move-in fees (including deposits and rent prepayments) must not exceed the first month’s rent. (LFCI)
If a tenant pays a portion of rent and the remainder is covered by a subsidy, “first month’s rent” includes both the tenant’s payment and subsidy. (LFCI)
A landlord may not charge more than 25% of rent for a pet deposit. Anything not
applied toward damage by the pet must be returned at move-out.
Move-In Cost Payment Plan
Reinforces state laws regarding deposits and other move-in charges, but with more generous minimum installment terms. The same as state law, there is no installment required if the total of deposit and fees does not exceed 25% of rent; and if prepayment of last month’s rent is not required.
If rental agreement is: Pay deposits, fees and last month's rent in:
Landlord must inform all applicants of their right to pay move-in costs in installments and they must provide the tenant with an installment payment form created by the City of Tacoma at the time the lease is offered.
Notice to Increase Rent
• To increase rent by any amount, must serve THREE notices:
o Initial notice between 210 and 180 days before effective date. (LFCI)
o 120 days’ notice before effective date. (RHC) (Note: The 120-day notice may or might not be covered by the initial notice required under LFCI.)
o Reminder notice between 120 and 90 days before effective date. (LFCI)
• Use city provided rent increase notice forms (LFCI and RHC).
o The increase notice must specify the percentage of increase, the amount of new rent, and the effective date.
• Must be served in accordance with RCW 59.12.040.
• Must provide a copy of a resource summary prepared by the city for rent increases.
o Notice of Resources-Required/Notice of Rent Increase
• Prior to serving notice, the landlord and rental property must be in compliance with:
o City business license requirements. (TMC 6B) before a landlord may serve notice.
o All Tacoma tenant protection laws. (LFCI)
o Tacoma tenant health and safety laws under TMC 2.01.050, and dwelling habitability laws under RCW 59.18.060. (LFCI)
Economic Relocation Assistance (LFCI)
1. Anytime after receiving an initial rent increase notice of 5% or more, a tenant deciding to relocate may send the landlord a request for relocation assistance. All tenants have the same right to assistance without regard to income level.
2. Within 30 days of receiving such a request, landlords must pay the relocation assistance to the tenant. Calculate per table (below) based on rent in effect at the time of the initial notice. Payment is per dwelling unit, not per person. Payment is split evenly among all the tenants.
NOTE: This scale is adopted in recognition of the additional time required to find replacement housing when a tenant’s current rent is below market rate.
4. Per the voter initiative, the landlord must provide a copy of the request and confirmation of payment to a city-designated official. However, the city may not have funds to enable this, and enforcement is only by civil lawsuit.
5. If the tenant is unable to relocate and remains in the dwelling unit at the increased rent, the tenant must repay the relocation assistance.
EXEMPTIONS: The requirement to pay tenant relocation assistance will not apply to:
• a landlord and tenant living on the same site if the site has four or fewer dwelling units;
• tenants who have lived in the dwelling unit for less than six months;
• a landlord that temporarily rents out the landlord’s principal residence during the landlord’s absence due to active-duty military service.
Late Rent Fee Cap
• Late rent fees are limited to $10 or 1.5% of rent per unpaid month of rent, whichever is less. (LFCI and RHC)
• No other charges for late rent are permitted, including notice service or legal costs.
• A landlord must provide tenant with written notice outlining late fees and how to come into compliance at least once per quarter.
• Notice of late fees must include detailed information of all that is owed.
• No late fees on non-rent charges are permitted.
• No late fees to be charged or paid after the end of tenancy. (LFCI)
Notice to Terminate Tenancy
Tacoma law on terminating tenancies is mostly the same as WA State law (RCW 59.18.650).
• All notices must include the stated reason for or condition(s) justifying the termination of tenancy.
• Prior to serving notice, the landlord and rental property must be in compliance with:
• City business license requirements. (TMC 6B) before a landlord may serve notice.
• All Tacoma tenant protection laws. (LFCI)
• Tacoma tenant health and safety laws under TMC 2.01.050, and dwelling habitability laws under RCW 59.18.060. There is a defense against eviction that the landlord is, at the time of eviction, in violation of tenant protection laws related to health and safety. (LFCI)
Displaced Tenant Relocation Assistance
When giving 120-day notice to terminate month-to-month tenancies due to substantial rehabilitation, renovation, demolition, or change of use, a landlord is required to provide tenants with a Relocation Assistance Packet. A tenant meeting is required upon request. For further details on the relocation assistance program, see https://www.cityoftacoma.org/government/city_departments/equity_and_human_rights/rental_housing_code/relocation.
Seasonal Eviction Restrictions (LFCI)
Tenants will have a defense to an eviction that:
• Requires the tenant to vacate during the school year (first day of the academic year to the last day of the academic year, as set by Tacoma Public Schools), and the tenant or any resident is:
• A child or student: any person either under the age of 18 years or currently enrolled in a school;
• A person having legal custody of a child or student, such as a parent, step-parent, adoptive parent, guardian, foster parent, or custodian; or
• An educator: any person who works at a school as an employee or independent contractor of the school or its governing body, including but not limited to all teachers, substitute teachers, paraprofessionals, substitute paraprofessionals, administrators, administrative staff, counselors, social workers, psychologists, school nurses, speech pathologists, custodians, cafeteria workers, and maintenance workers.
• Requires the tenant to vacate between November 1 and April 1.
EXCEPTIONS: This eviction defense will not apply if the reason for termination is due to:
• Owner or family to occupy the unit.
• Condemnation/uninhabitability of the dwelling unit.
• Desire for landlord’s roommate to vacate.
• Sexual harassment by tenant.
• Tenant’s failure to comply with a three-day or ten-day notice to vacate for a drug-related activity nuisance.
• Maintenance of an unlawful business.
• Tenant’s conduct has a substantial detrimental impact on or constitutes an imminent threat to, the health or safety of other tenants in the rental building or the owner.
Special Protected Classes for Evictions (LFCI)
It shall be a violation of this chapter and a defense against eviction for a landlord to evict a tenant based upon membership in the following groups: Military, First responders, Seniors, Family, Health care providers, and Educators.
Shared Housing Regulations
• All shared housing agreements must be in writing and in compliance with TMC 1.95. 037.
• A landlord or master leaseholder renting to four or more tenants in a dwelling unit must have a separate rental agreement for each “habitable space.”
• A master leaseholder must exchange contact information between the property owner and all subtenants.
• Landlords and master leaseholders must both comply with Shared Housing Regulations.
• Landlords and master leaseholders must each investigate any complaints of crime on the rental property.
• Landlords must serve any notices to end tenancy to master leaseholders and provide enough copies for all other occupants.
• Master leaseholders must then serve notices to all other occupants.
• Landlord still ultimately responsible for eviction.