It is no secret that in Seattle’s current housing market, space is at a premium, causing bidding wars particularly at lower price points. In other cities, start-ups such as Rentberry have produced applications that arguably magnify the bidding problem. Now the Seattle City Council has taken steps to make sure that such applications do not make their way into the Seattle real estate market.
Seattle landlords are currently required to rent to the first qualifies candidate – Image Credit: Joe Mabel (CC by SA-2.0)
The bill, first introduced by councilor Teresa Mosqueda’s office and passed on Monday, will place a one-year moratorium on so-called “rent-bidding” platforms as well as establish a study to see what effect such technology would have on the already-competitive Seattle real estate market. The ban specifically targets “online or application-based” platforms that conduct auctions over rental terms including base monthly price and lease length.
Concerns cited in the bill included access to technology by would-be tenants as well as potential violations of existing renter-protection laws. In particular, Seattle currently has a much-challenged “first-in-time” law that requires many landlords to rent to the first qualified candidate. The ban will come into effect 30 days after being signed by the mayor, and could possibly be extended by the City Council beyond the initial year.
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