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Bellingham Rental Licensing Issue

By
Managing Real Estate Broker with Keller Williams Western Realty Lic #23590

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

Bellingham Real Estate                                     Bellingham Homes for sale

Posted by

Dan & Laurie
Pittsenbarger Team
Managing Broker - Keller Williams Bellingham

360-739-5857  | dan@pittsenbargerteam.com

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Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 www.ReverseLoansInColorado.com

I read one of your previous posts and still can't believe this is even being considered. Thanks for taking on this issue. It's riduculous and if happens there, it can happen anywhere.

Dec 08, 2009 03:18 PM
Terry Lynch
LAR Notary and Closing Services - Saint Clair Shores, MI

I'm sure someone in city hall will get a bonus for the revenue producing idea they came up with. There will be more and more of this to come as cities struggle to keep up.

Dec 08, 2009 03:20 PM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Dan,

The idea is nuts. I own three rentals and, far as I know, never had any police calls or anything of the sort. One rental is near WWU. On one hand the city fathers are crying for "affordable" housing and on the other they want to, in essence, fine those of us who have rentals for owning them. Call it a license if you wish. Do they not understand that we will pass that cost back to tenants? When I have good tenants, I try to keep their rent the same -- I mean like for years. I also offer them clean, decent and safe properties. Seems like that is what the city should be looking for. I know that when people have a burglar alarm, and it goes off too often, they start charging for police visits. It is a false alarm fee. How about that with rentals? If you are a landlord, and have lousy renters, then one call is free, but you get a bill for wasted police time after that. Government too often tries to dump everyone in a bag and the decent people end up paying for the rats, instead of letting the rats carry their own weight.

Dec 20, 2009 01:50 PM