Applies to any rental agreement or renewal entered into on or after July 1, 2027
A. The Basic Structure
The City of Seattle recently enacted CB 121254. Under this Ordinance, fees are now permitted only if they fall within a defined list. Any mandatory or optional fee not identified in Chapter 7.24, Chapter 7.25, or RCW 59.18 is automatically deemed “unfair or excessive” and prohibited, regardless of what it is called.
B. Fee Disclosure Is Now Mandatory (and Detailed)
Landlords must disclose, in advertisements/listings as well as the first page of the rental agreement on a form no longer than two pages: the rent, any discounts or concessions and how long they last, which utilities the tenant pays versus which are included in rent, the amount of every fee, and a total monthly cost figure (excluding optional fees and any short-term move-in discount). This disclosure must be updated and served at least every 12 months and/or any time a fee changes (unless the lease is a valid lease for longer than a year). Variable fees and utility charges require a trailing 12-month average (or a labeled estimate for new construction without a trailing 12-month average) plus a monthly statement of the actual amount. No fee can be charged for providing this disclosure. In advertisements and/or listings, if the fee disclosure is infeasible (e.g., due to size constraints, word limits, etc.), landlords may use a hyperlink that directly takes the user to the required disclosure. Prior to CB 121254’s effective date, the Seattle Department of Construction and Inspections (“SDCI”) will produce a model disclosure on its website.
C. Permitted vs. Prohibited Fees
| Permitted (§7.24.040.B) | Prohibited (§7.24.040.C) |
|---|---|
| Late fees | In-unit appliance/feature fees |
| Security deposit / move-in fee | Common area access fees (except temporary exclusive use) |
| Screening fee | Check/money order/cashier’s check/ACH payment fees |
| Pet damage deposit | Mail, package, or mailbox access fees |
| Utility fees (Ch. 7.25) | Fees for performing a required landlord duty |
| Key replacement (lesser of actual cost or $50) | Tenant add/remove (roommate swap) fees |
| Lockout access (≤ $50 / $150) | Any pet fee other than a damage deposit |
| NSF fee (≤ lesser of bank cost or $31) | Insurance fees, unless fully disclosed, opt-in, and cost-capped |
| Damage repair reimbursement | Any fee the Department later prohibits by rule |
| Default/abandonment liability (no added lease-break fee) | |
| Optional goods/services — disclosed, opt-in, opt-out anytime, cost-capped, unbundled option required |
A bundled optional service (for example, a “technology fee” combining cable and internet) must also be offered unbundled, item by item; tenants cannot be forced to buy the bundle.
D. Records Retention Obligations Create Potential Risk
The Ordinance also requires Landlords retain advertisements, applications, leases and renewals, disclosure forms, fee statements, rent/fee ledgers, and vendor receipts for three years per tenant. If records are inadequate, the ordinance creates a presumption that a violation occurred, rebuttable only by clear and convincing evidence. The practical result means accurate recordkeeping is more important than ever!
E. Enforcement Exposure – Civil Penalties and Private Right of Action
Potential citation penalties range from $750 for a first violation, $1,500 for a subsequent violation within five years, to $5,000 for retaliation, all escalating annually with CPI starting in 2028. The Department can investigate individual landlords, entire buildings, or entire companies, with subpoena power; failing to timely comply with a subpoena can permanently bar use of those records later on appeal. Finally, in addition to SDCI enforcement, the Ordinance contains a private right of action.
F. A Cure Opportunity Exists — But It’s Narrow
If a landlord receives written notice of a prohibited fee, there is a 30-day window to cure by paying double the full reimbursement of the prohibited fee plus interest to every similarly situated tenant in the building (not just the complaining tenant) and notifying the Department of the violation and the cure. Doing so provides a defense against private lawsuits over that fee. However, this defense is available only once every 24 months per specific fee, a second notice on the same fee within that window forecloses it even if cured again.
For more information or questions, please contact any of the landlord-tenant attorneys at Montgomery Purdue, including Christopher Reed or Mitchell Wallum.