Laws that regulate fees for rental units and manufactured/mobile home lots went into effect Aug. 1, 2025. The laws list allowed rental fees, limit amounts for some rental fees, and promote fee transparency. The laws also allow tenants and prospective tenants to take civil legal action against landlords who violate the rules.
View the two rental fee laws:
- Bellingham Municipal Code 6.16 – Prohibited Fees and Deposits in Residential Rentals
- Bellingham Municipal Code 6.19 – Prohibited Fees in Manufactured Home Communities
Find more Housing Laws, Rental Protections and Requirements.
Key points of the rental fee laws
Transparency
- Ads, listings, and application forms for rental units must list the rent amount, the utilities that tenants are responsible for and the utilities that are included in rent, and the amounts of all fees.
- The first page of the rental agreement must list all fees and utilities.
Allowed fees
- Screening and application fees no more than $50 plus the annual June-over-June Consumer Price Index for All Urban Consumers (CPI-U) for the Seattle-Tacoma-Bellevue region.
- Security deposits at one month’s rent (a non-profit can offer two month’s rent for clients).
- Pet deposits at 30 percent of monthly rent.
- Utilities not included in rent.
- Reasonable fees for optional goods or services that tenants opt in to in writing after receiving disclosures listing the amount, description, and opt out instructions for the goods and services, along with a clear statement that the tenant doesn’t have to opt in to continue renting the unit.
- Late fees at 2 percent of the outstanding balance still owed.
- Insufficient fund fees capped at the actual cost to landlords from their financial institutions.
- A fee up to $75 a month for violating or failing to comply with rental agreement terms, as long as the fee is disclosed up front, the tenant received a prior written warning for the violation, and the tenant has reasonable opportunity to address the violation.
Prohibited fees
- A fee for using an in-unit appliance.
- A fee to access common areas. Landlords can still charge fees to provide exclusive access to common areas, such as reserving pools for birthday parties.
- A fee to accept rent payments by check, money order, cashier’s check, or ACH. Landlords must pay third-party payment vendor fees for processing payments if they have the option to do so rather than allow the third-party payment vendor to charge the fee to tenants directly.
- A fee for mail and package collection and distribution
- A fee for one or more pets that is more than 2 percent of monthly rent, or any such fee if the landlord collects a pet deposit.
- A fee for duties a landlord is required to perform under RCW 59.18.060.
- A fee for adding or removing a tenant on the rental agreement. This does not include an application fee.
Rental agreements
If a rental agreement includes a part that does not follow the rental fee law, then that part is void and cannot be enforced by the landlord or property manager, and the rental agreement is in violation of the law.
Retaliation
Landlords can’t punish tenants for using their rights under the rental fee laws. Retaliation includes, but is not limited to, holding up the application or renewal process, making lease terms more burdensome, increasing rent, lying, omitting or misconstruing information on a rental reference, and calling into question a tenant’s immigration status. Retaliation is assumed if a landlord takes any of these actions within 120 days of when a tenant exercises rights granted by the laws. Landlords cannot retaliate against tenants who mistakenly, but in good faith, allege violations.
Civil action
Tenants and prospective tenants can take legal action against landlords who violate the rental fee laws. Landlords who lose these lawsuits must pay tenants three times the actual damages suffered or $2,000 ($1,000 for prospective tenants), whichever is greater; double the amount of any deposit unlawfully charged or withheld; legal costs; and other forms of relief.
Challenging evictions
Tenants can challenge evictions on the basis that landlords violated the laws or are retaliating against tenants exercising the rights granted by the rental fee laws.
Tenants can challenge rental agreements, penalties, or loss of deposits if landlords violate the laws.
Tenants who prevail in court against landlords violating the laws can receive reasonable attorney fees and costs.
Rental fee law FAQs
General questions
When do the ordinances go into effect?
Aug. 1, 2025
Does the ordinance apply to leases that are already in effect or only leases that start after Aug. 1?
The ordinances apply prospectively to new leases entered into on or after Aug. 1, 2025.
Why did Council pass these ordinances?
More than half of renters in Bellingham are cost-burdened, meaning they pay more than 30 percent of their income toward housing.
Bellingham community members shared their experiences via public comment, email, focus group feedback, and survey responses. They reported experiencing a wide range of mandatory monthly fees on top of their rent. Renters also reported that many fees were hidden, not included in listings or advertisements, or not disclosed until lease signing.
The Council of Economic Advisors (CEA) found that application fees exceeding the actual cost of a background check cost apartment renters $276 million annually. In March of 2023, Housing and Urban Development (HUD) Secretary Marcia Fudge published an open letter calling on “housing providers and state and local governments to adopt policies that promote fairness and transparency of fees faced by renters.”
What information must landlords disclose to tenants?
Ads, listings, and application forms for rental units must list the rent amount, the utilities tenants are responsible for or that are included in rent, and the amounts of all fees. The first page of the rental agreement must list all fees and utilities.
What if a landlord/property manager does not follow the laws?
Terms or conditions in rental agreements that violate the laws are void and can’t be enforced by landlords or property managers. The City does not have the resources to provide an enforcement component. Tenants and prospective tenants can take civil legal action against landlords who violate the rental fee laws. Landlords who lose these lawsuits must pay tenants:
- Three times the actual damages suffered or $2,000 ($1,000 for prospective tenants), whichever is greater.
- Double the amount of any deposit unlawfully charged or withheld.
- Legal costs.
- Other forms of relief.
If a prospective tenant does not meet income or screening criteria, can a decision not to rent to that prospective tenant be considered retaliation?
No. Landlords may use screening criteria that meet the requirements of the rental fee laws and any other applicable laws.
Is any claim of retaliation presumed valid solely based on the tenant’s assertion?
No. If a landlord takes an action listed in BMC 6.16.060 within 120 days of a tenant or prospective tenant exercising their rights provided by this chapter, then the landlord is responsible for providing sufficient proof that there is a valid reason to take the action and that it is not retaliation.
If a prospective tenant files a claim and the landlord prevails, can the landlord recover legal fees?
No. A prevailing tenant, prospective tenant, or other person injured by a violation can recover legal fees; however, the laws do not provide similar relief for a prevailing landlord.
If both a landlord and a property manager are involved in a rental property, who would be responsible?
Both landlords and property managers are responsible for following the rental fee laws, and both would be subject to civil action remedies and penalties.
According to the rental fee laws, “Landlord” has the same meaning as in RCW 59.18.030(16), which reads as follows:
“Landlord” means the owner, lessor, or sublessor of the dwelling unit or the property of which it is a part, and in addition means any person designated as representative of the owner, lessor, or sublessor including, but not limited to, an agent, a resident manager, or a designated property manager.
Are we allowed to charge a non-refundable administrative fee if we specify in our ads, as well as in the lease?
No. Administrative fees are not included in the allowed fees. Landlords are not allowed to charge such fees separately.
Is there a schedule to increase the applicant screening fee over time to adjust for increasing screening costs to landlords or property managers?
Yes. The laws allow screening and application fees of no more than $50 plus the annual June-over-June Consumer Price Index for All Urban Consumers (CPI-U) for the Seattle-Tacoma-Bellevue region. According to RCW 59.18.257, the “applicant screening fee” in Washington state refers to the cost a landlord can charge a prospective tenant to cover the cost of running a background check, which includes credit history, criminal background, and rental history. The fee must reflect the actual cost of the screening service used, not exceeding customary costs in the area; landlords cannot profit from this fee.
Is it acceptable to charge the rental registration fees back to tenants provided that it is disclosed clearly? Or is this a prohibited fee?
A landlord can set the monthly rent at an amount which covers their overhead costs (including the cost of rental registration fees). A landlord may not charge the tenant the cost of the rental registration as a separate mandatory fee but can account for this cost as part of rent.
If a renter leaves a unit in a condition that requires more than an ordinary amount of cleaning, can a landlord deduct cleaning time and associated costs from the security deposit?
State law under the Residential Landlord-Tenant Act regulates what a landlord can deduct from a security deposit.
BMC 6.16.030(B) limits the amount a landlord can charge as a security deposit. The relevant section of the code reads as follows:
“A landlord may charge a tenant for following fees in addition to rent…A refundable security deposit that does not exceed the monthly rent for one month. However, a nonprofit service organization may offer to pay a security deposit not to exceed the amount of monthly rent for two months on behalf of their client, which the landlord may accept. This subsection does not apply to subsidized housing where the rent is based on the income of the tenant”
Do the laws allow landlords to charge unpaid fees to security deposits?
A tenant would have to know about any mandatory fees up front or agree to pay any optional fees. A landlord could charge such unpaid fees to a tenant’s security deposit.
State law under the Residential Landlord-Tenant Act regulates what a landlord can deduct from a security deposit.
Would requiring a tenant/applicant to pay last month’s rent in advance be allowed under the ordinance? It is not a refundable deposit, nor a fee.
Yes. Landlords can require tenants to pay last month’s rent in advance.
We have many new leases beginning in August that have already been fully executed. Do these lease agreements need to be amended to comply with the ordinance?
For leases that take effect on Aug. 1, 2025, there is risk in not amending leases to comply with the ordinance.
Regarding late fees for unpaid rent, the new rules state no late fees until after 5 days and then you can charge 2 percent of the balance owed. Can you provide an example of how that would look on a lease agreement?
State law regulates the five-day grace period (RCW 59.18.170).
BMC 6.16.030(F) limits late fees for residential rentals to no more than 2 percent of the balance still owed for that month. A landlord may choose how to charge this fee and must outline this in the lease. If rent is $1,000 and a tenant pays $400 on time, but a past-due balance of $600 remains after the 5-day grace period, then the landlord may charge a late fee of up to 2 percent on the amount still owed ($600). We do not have sample lease language.
BMC 6.19.030(E) limits late fees for manufactured home lots to 1 percent of the balance still owed for that month.
Can a landlord charge a fee to remove a tenant from a lease?
A landlord can charge a fee to remove a tenant from the lease if the fee is disclosed in writing in the rental agreement and removal occurs mid-lease and not at the end of the lease.
Can a landlord charge a fee for a tenant breaking a lease before the agreed upon lease date if we specify it in the lease? If so, are there restrictions?
The laws prohibit landlords from charging unfair or excessive fees. An “early lease termination fee” may be more appropriately characterized as a “liquidated damages provision” that would only apply if the tenant breached a lease by terminating a tenancy before the lease expires. The laws do not prohibit that type of provision, so long as the amount of the early lease termination fee is disclosed up front, the amount is fair, and the tenant agrees to it in writing.
The majority of our residents use the online portal to pay their rent. Our software charges fees for online payments to reimburse their own fees. Would it be acceptable to maintain the fees for credit/debit cards but waive them for ACH so there is still an option for a “free” online payment and residents can choose if they want to pay the fee for credit/debit card payments?
The ordinance prohibits landlords from charging a fee to accept rent or other payments by personal check, money order, cashier’s check, or ACH. The ordinance does not prohibit landlords from passing through a credit card processing fee, if the landlord allows tenants to pay their rent or other payments using a credit card. The suggested approach of waiving the fee for accepting payments made by ACH while maintaining the credit card processing fee appears to comply with the plain language of the ordinance.
Month to month
Are month-to-month leases allowed?
Month-to-month leases are allowed. State law requires 5 percent parity between month-to-month leases and lease terms of other lengths.
If I have an existing month to month lease for my long-term tenants that does not include a specified list of allowed fees, do I need to write a new lease?
No. The new rules do not apply retroactively to existing leases. The new requirements apply prospectively to new leases entered into on or after August 1, 2025.
Pet fees
Do the laws address pet rent?
Yes. Landlords have two options for charging fees related to pets when they allow tenants with a pet or pets to rent a dwelling unit. They may charge the tenant a one-time refundable pet deposit of up to 30 percent of the monthly rent or they may charge the tenant a periodic fee (i.e., pet rent) so long as the amount of the pet rent does not exceed 2% of the monthly rent. The cap on pet rent is 2 percent of the monthly rent regardless of the number of pets. Landlords may not charge either fee per pet.
Landlords can charge tenants either a pet deposit or pet rent, but not both under BMC 6.16.040(B)(5).
For manufactured and mobile home lots, landlords may not charge any pet fees under BMC 6.19.040(B)(5).
The ordinance states that landlords can either charge pet rent OR a pet deposit- not both. If it is clearly disclosed on our website and on a cover page of the lease, can we charge a non-refundable pet deposit?
No. State law prohibits nonrefundable deposits (RCW 59.18.285). Under the new rental fees ordinance, a landlord may only charge a refundable pet deposit that does not exceed 30 percent of monthly rent or pet rent not to exceed 2 percent of monthly rent, not both, and may not charge a nonrefundable pet fee.
For current leases, do landlords need to cease charging pet rent or refund a pet deposit by Aug. 1, 2025, if it is above the allowable limit?
The ordinance applies prospectively to new leases entered into on or after Aug. 1, 2025. It does not apply retroactively to existing leases. This prospective application applies to all the ordinance’s requirements, including the pet deposit and rent provisions.
Optional fees
What does the City consider optional goods or services? Could you provide examples of both items?
An example of an optional good could be parking. Parking can either be bundled and automatically included as part of rent, or it can be unbundled and offered as an optional good that a tenant can opt to receive. One household might need two parking spaces at an apartment complex while another household might not need any, each household can opt in to the amount of parking they desire when parking is provided as an optional good.
An example of an optional service could be valet trash. If a tenant wants to receive valet trash service, they can opt-in to receiving the service.
We require renter’s insurance. Would that be allowed under these new rules?
Yes, landlords can require tenants to have renter’s insurance, but they cannot require tenants to use a specific insurance provider. Landlords may offer tenants rental insurance that complies with the optional fee requirements in the laws.
We charge a small, but non-refundable, cleaning fee. Would that be allowed under these new rules?
Cleaning fees could be allowed as optional fees if the landlords disclose them up front and the tenants agree to pay them. Landlords, though, would not be allowed to require that tenants agree to pay cleaning fees.
What if tenants lose keys, lose a garage door opener, or lock themselves out and need assistance from landlords?
If a fee is not listed in the allowed fees category or the prohibited fees list, then it must comply with the optional fee requirements.
Utilities
When talking about utilities, what are the items that the city is considering as utilities?
Water, sewer, electric, and gas.
We use a property management software to manage our utilities/bill utilities back to residents. For properties without submeters, they use an occupancy-based billback formula. The cost will vary depending on the actual bills we receive, so it would be close to impossible to disclose the cost tenants can expect to see monthly for utilities. Regarding disclosure, can we simply share the formula? Or is a cost estimate required?
The new rental fees ordinance does not require a cost estimate for utilities not included in rent. For properties without submeters where the actual use of the utilities by the tenant or tenants cannot be determined, the cost for utilities may be apportioned among the tenants on an equitable basis, provided that the landlord provides a clear accounting or methodology for calculating utility fees. A landlord may not charge a tenant an amount for utilities that exceeds the utility charges actually paid by the landlord on behalf of the tenant.
State laws
What are the state restrictions on rental fees?
Bellingham’s rental fee laws are in addition to state restrictions on rental fees in the Residential Landlord Tenant Act (RCW 59.18), which include, but are not limited to:
- A requirement for parity between lease types. No more than 5 percent difference in the amount of rent charged for any lease length.
- Limits on tenant screening fees to actual costs incurred (RCW 59.18.257).
- A requirement for rental agreements to clearly distinguish between deposits and nonrefundable fees. Nonrefundable fees cannot be designated as a deposit (RCW 59.18.285).
- Limits on the amount of holding deposit or fee to 25 percent on the first month’s rent, and landlords must credit the fee or deposit to the first month’s rent or the security deposit if the tenant occupies the unit (RCW 59.18.253).
- A requirement for landlords to accept payment of deposits, nonrefundable fees and last month’s rent over the course of three months when the fees and deposit total more than 25 percent of the first full month’s rent (RCW 59.18.610).
- Caps on late fees assessed to $75 during the unlawful detainer eviction process if a tenant reinstates their tenancy by paying back rent (RCW 59.18.410).
- Prohibiting terms of payment or material conditions in month-to-month rental agreements more burdensome than longer or shorter leases and vice versa.
