The Seattle City Council is considering legislation introduced by Councilmember Mike O’Brien intended to increase the availability of affordable housing in Seattle. The proposal, which largely seeks to expand the amount of accessory dwelling units (ADUs) available in order to increase affordable housing inventory and options, would also impose new regulations on the allowable floor […]
Real Estate
Governor Signs Sweeping Changes to Washington Landlord-Tenant Laws
On May 14, 2019, Governor Inslee signed SB 5600, a bill that dramatically alters the landscape of Washington residential landlord-tenant law. The effective date of this legislation is July 27, 2019. SB 5600 does not apply to commercial real estate. Residential landlords and property managers need to be well-versed in these changes, which are as […]
Washington Implements Graduated Real Estate Excise Tax at the State Level
The Washington State Legislature recently passed ESSB 5998, overhauling the state’s real estate excise tax framework and putting into place a graduated system replacing the prior flat rate applicable to all property sales. Governor Inslee is expected to sign the legislation into law, which replaces the statewide flat rate of 1.28% on all sales of […]
Mandatory Housing Affordability Legislation Passed by Seattle City Council and Signed by Mayor Durkan
On Monday, March 18, 2019, the Seattle City Council passed and adopted legislation which brings widespread zoning changes to 27 designated areas in the city. Mayor Durkan signed the legislation on March 20 and the bill will take effect on April 19. The new zoning updates are designed to increase housing density and affordability in neighborhoods […]
New IRS Safe Harbor Keeps Rental Real Estate Eligible for New Pass-Through Deduction
In December 2017, the Tax Cuts and Jobs Act created a new section to the Internal Revenue Code – Section 199A. In its simplest form, Section 199A allows owners of pass-through business entities (such as sole proprietorships, partnerships, limited liability companies, and S corporations) to deduct up to 20% of their qualified business income on […]
Hearing Examiner Issues Decision in Favor of the City of Seattle Regarding Mandatory Housing Affordability
On Monday, January 7, 2019, the Seattle City Council (“City Council”) began debating a proposed legislation that would allow for construction of larger buildings and the imposition of mandatory affordable housing requirements in twenty-seven (27) neighborhoods and commercial corridors throughout the City of Seattle (the “City”), including Wallingford, Fremont, Beacon Hill, Ravenna, and West Seattle […]
King County Superior Court Upholds Seattle Ordinance’s Cap on Move-in Fees and Security Deposits for Tenants
The King County Superior Court recently upheld a Seattle Ordinance that limits the amount tenants are required to pay for move-in fees and security deposits. Seattle Ordinance No. 125222 (the “Ordinance”), which was adopted by the Seattle City Council on December 12, 2016, limits the amount that landlords can charge tenants in up-front charges, including […]
Seattle-Based Zillow Under Fire in New Jersey Federal Court
Zillow Group, the Seattle-based online real estate database and creator of its proprietary “Zestimate” home valuation estimation algorithm, is being sued in the U.S. District Court for the District of New Jersey. Plaintiff EJ MGT LLC is alleging that the Zestimate is an inaccurate estimation tool, and that Zillow has violated antitrust laws by entering […]
Essential Considerations for Short-Term Rental Operators
Rentals for vacationers and travelers through platforms such as Airbnb, VRBO, HomeAway, and Vacasa have seen a surge in popularity over the past few years, and offer an alternative to the traditionally available options like hotels, resorts, and hostels. With the increase in consumers seeking alternative options, more and more property owners are embracing the […]
New Seattle City Ordinances Impose Restrictions on Short-Term Rental Operators
Over the course of the past several years, an enormous market for short-term and vacation rentals through platforms such as Airbnb, VRBO, HomeAway, and Vacasa has developed across the U.S. and worldwide. Operators of these short-term rentals range from homeowners and hosts renting out a spare bedroom, mother-in-law unit, or apartment, to larger operators renting […]