Seattle caps late rent fees at $10 per month
SEATTLE - Seattle City Council passed a new law capping rental late fees at just $10 per month.
The rule comes as the city grapples with a housing crisis and rising inflation, and also comes just over a year after Seattle's COVID-19 eviction moratorium ended on Feb. 28, 2022.
Council members Tammy Morales, Teresa Mosqueda and Kshama Sawant sponsored the amendment. Discussions earlier this week suggested moving the cap to 1.5% of total rent up to $50, but the council voted it back down on Tuesday.
The city council says this change brings Seattle in line with neighbor cities Auburn and Burien, which also employ a $10-cap on rental late fees.
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"Today, renters across the city can breathe a sigh of relief," said Morales. "Capping late fees at $10 is the bare minimum that the City can do for renters who are facing financial hardship. We know that wages are not rising at the same rate as the cost of housing. Being late on rent shouldn’t put people further in debt, and it should not jeopardize people’s ability to remain housed."
Morales and Mosqueda claim late fees do not incentivize on-time payment, as renters already prioritize paying rent over all other expenses. Council members say late fees accumulate as debt, tank credit scores, and make it harder to keep one's living space—once that home is gone, the consequences just compound further, they argue.
"Seattle is following a growing number of cities in the region who are limiting late fees to ten dollars," said Mosqueda. "We know renters consistently prioritize paying their rent over all other expenses. Losing housing can mean losing everything—and if a household is already having trouble paying their rent on time, adding large late fees on top only exacerbates their ability to pay, increases housing instability, and could increase the chance for more folks to fall deeper into debt or into homelessness. We must do everything we can to improve housing stability in our region - and this legislation helps."
PREVIOUS COVERAGE: Landlords, tenants prepare as eviction moratorium comes to an end
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According to a 2020 study by the Government Accountability Office, a $100 dollar rent increase is associated with a 9% increase in estimated homeless rate. Additionally, a 2018 study from the Seattle Women's Commission and Housing Justice Project found 51.7% of tenants evicted from Seattle housing are people of color, and 52% of people evicted were one month or less behind on rent.