Here's a copy of what I've sent to our City Council members.
I've been a licensed real estate agent here in Bellingham for almost 10 years but I don't own any rental properties.
I don't envy your position and that of other city, county, state and federal public servants that are taking on the responsibility of solving tough social problems we are faced with whether they be what to do with the homeless, law enforcement, growth, drugs, housing etc. etc.
Regarding the rental licensing issue. In my opinion the rental licensing proposal feels more like a revenue producing activity than a betterment of the community activity. First, there are already ordinances on the books to handle "problem" properties. If they are not financially viable to enforce then (although I don't feel that it's the best option) perhaps consider increasing the penalties for those that just can't seem to get it right rather penalizing all landlords with fees. I don't like penalty driven systems but if we as a society insist on having them - at least limit the penalty to those that need somekind of wake up call to get their act together. Second, any across the board licensing fees "may" realize increased city revenues but what are the overall effects? Will they be cost effective to enforce? Will they really add to the bottom line? How many already tax paying landlords will be able to pay? I know for a fact that not all landlords are making a killing off their rental properties. Many already have to "feed" their rental properties. Fees and/or fines will most likely result in further neglect and less maintenance. This would produce the opposite of the desired effect. Or, as mentioned several times by many, the cost will simply get passed through to the tenants with those negative implications regarding affordable housing.
There are so many ways to go about solving "problem properties". A reward system could be set up rather than a penalty or fee system. All landlords attending some kind of landloard course and have zero neighbor complaints during a calander year on any rental properties they own could be given some kind of property tax break or other reward. Or a combo system - some kind of reward for "good" landlords and a "penalty" for bad. Personally, in my opinion, any "penalty" system falls short - just look around at society that is currently operating primarily on a penalty driven system - things could be better. It's interesting that we continue to think that a law/ordinance or rule will make those intent on being unethical suddenly become ethical and do the right thing. Education and rewarding the desired behavior/activity will go much much further at creating an environment we all can flourish and prosper in than any "penalty" or "fee" based system ever will.
"If" the entire purpose of the rental licensing proposal is simply to generate funds then be honest about it and come with a better way to improve the bottom line.
Best Regards,
Dan Pittsenbarger
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