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Washington Rental Registry Study — Report to the Legislature (Commerce, January 2024)

Summary

Washington Rental Registry Study, a report to the Legislature from the Washington State Department of Commerce dated January 2024, with a cover letter dated January 12, 2024. The study responds to a proviso in the 2023 operating budget (Section 129 of ESSB 5187) directing Commerce to report on the scope of work, cost estimates and implementation timeline for an online registry of rental units. It states that HR&A Advisors estimate it would take two years to implement a rental registry program, and that the program is estimated to cost anywhere from $3.9 – $6.4 million annually depending on design decisions. It states that Commerce does not make any recommendations about a potential state rental registry.

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Cite this document

“Washington Rental Registry Study — Report to the Legislature (Commerce, January 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-commercereports-2024-hd-rental-registry-final-d50bb9de-2999-4714-d174fbf21a/, SHA-256 65138e3ec9b6ad3db71ab7bd8dd4ac4e224dfc0a4f39065cc28ef68156eed748.

Full text

                                         STATE OF WASHINGTON
                              DEPARTMENT OF COMMERCE
          1011 Plum Street SE  PO Box 42525  Olympia, Washington 98504-2525  360-725-4000
                                        www.commerce.wa.gov



January 12, 2024

Ms. Sarah Bannister, Secretary of the Senate
312 Legislative Bldg.
PO Box 40482
Olympia, WA 98504-0482

Mr. Bernard Dean, Chief Clerk of the House of Representatives
338B Legislative Bldg.
PO Box 40600
Olympia, WA 98504-0600

Subject: Washington State Rental Registry Study


Enclosed is the study on a potential rental registry program in Washington conducted in response to the
proviso outlined in the 2023 operating budget.

To complete this study, Commerce contracted HR&A Advisors and Artesia Systems. The work was
shaped by stakeholder engagement, including input from local government representatives, housing
providers, and members of the public. HR&A Advisors led the analysis, while Artesia Systems provided
technical expertise for evaluations of an internally hosted software solution and survey of external
software solutions.

This report provides detailed information on potential costs, implementation timelines and scopes of work
for a statewide rental registry and one for the six most populous counties only. The report does not
advocate for or against creating a rental registry. Its sole purpose is to provide the information requested
in the proviso. Commerce does not make any recommendations about a potential state rental registry.

Key findings:
   • A rental registry as described in the proviso would be first in the nation as it describes collecting
       unit level and timely data.
   • Existing local rental registries focus on specific objectives such as housing quality or business
       licensure. Only two of the 17 existing registries in Washington collect rent amount data.
   • Successful registries have a clear policy purpose, robust administrative support and enforcement
       mechanisms.

Cost and timeline estimates and considerations:
   • HR&A Advisors estimate that it would take two years to implement a rental registry program
       with stabilization of the program reached ten years after initial launch.
   •      Depending on program design decisions it is estimated that the rental registry program will cost
          anywhere from $3.9 – $6.4 million annually.
   •      Statewide implementation would be costlier but provides comprehensive coverage. Limiting
          implementation to six large counties could reduce costs by 20–25%.
   •      Cost-reduction strategies, like multi-year registration cycles, could lower expenses but risk
          reduced data quality and compliance.

Signed,




Tedd Kelleher

Acting Co-Assistant Director
Housing Division
Washington rental registry
study
Per Section 129 of the 2023-25 operating budget




                                                  January 2024

                                                  Report to the Legislature
     HOUSING POLICY AND
     STRATEGIC INITIATIVES UNIT                   Interim Director Diane Klontz

v3.5.1
Acknowledgments
Washington State Department of Commerce
Tedd Kelleher, Acting Co-Assistant Director,
Housing Division

Kirsten Jewell, Acting Director of Policy, Housing
Division

Augustine Sughrua, Housing Policy Senior
Coordinator, Housing Division

HR&A Advisors, Inc.
Judith Taylor, Partner

Jonathan Meyers, Partner

Sarah Kirk, Principal

Benjamin Cole, Senior Analyst

Francis Goyes Flor, Senior Analyst

Austin Amandolia, Analyst

Nisha Singh, Research Analyst

1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available on
request in other formats. To submit a request, please
call 7-1-1 and ask to be connected to 360-725-4000.




WASHINGTON RENTAL REGISTRY STUDY                            2
Table of contents
Executive summary .........................................................................................................................................4

Introduction ....................................................................................................................................................7

Rental registry design ...................................................................................................................................10

Integration with existing registries ................................................................................................................16

Implementation timeline ...............................................................................................................................18

Cost estimates ..............................................................................................................................................19

Stakeholder engagement ..............................................................................................................................23

Appendix A: Detailed program design considerations ...................................................................................25

Appendix B: Stakeholder engagement summary ...........................................................................................45

Appendix C: Rental registry case studies ......................................................................................................55

Appendix D: Overview of existing rental registries.........................................................................................72

Appendix E: Rental housing market scan.......................................................................................................84

Appendix F: Program implementation timeline ..............................................................................................94

Appendix G. Rental registry financial requirements .......................................................................................98

Appendix H: Artesia report on technical requirements and considerations ..................................................113




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                3
Executive summary
Overview
A rental registry is a program that creates an inventory of rental housing. At its most basic, a rental registry
collects information about rental housing. This can include information about the number and location of
rental homes; market data including housing type and cost; and information about the quality of homes.

Rental registries can produce data to support decisions and programs that help renters. In recent years, rents
have been rising across Washington, increasing affordability challenges for many renters. The state has
approximately 1,076,000 renter-occupied homes. Across regions, renters’ incomes are significantly lower than
the median income, and there are significant disparities in rentership by race.

Statutory authority
In 2023, the Washington State Legislature included a proviso in its operating budget (Section 129 of ESSB
5187) directing the Department of Commerce (Commerce) to develop a report and recommendations to create
or procure a registry of rental units. This report satisfies the requirements of the proviso:

    Proviso - Section 129: (82) $215,000 of the general fund—state appropriation for fiscal year 2024 and $345,000 of
    the general fund—state appropriation for fiscal year 2025 are provided solely for the department to produce a report
    to the legislature detailing the scope of work, cost estimates, and implementation timeline to create or procure an
    online registry of rental units in Washington state subject to state information system planning and oversight
    requirements. The online rental unit registry must have the capacity to collect and report out timely information on
    each rental unit in the state. Information to collect includes, but is not limited to, the rental unit's physical address,
    identity of the property owner, monthly rent charged, and vacancy status. The scope of work must assume
    integration with existing rental registries operated by local governments. Cost and timeline estimates must provide
    two alternatives with one assuming statewide implementation and the other assuming implementation in the six
    largest counties of the state. The department shall consult with landlord representatives, tenant representatives,
    local governments operating existing rental registries, and other interested stakeholders as part of the process of
    developing the scope of work and timeline for the online rental unit registry. The department must submit the report
    to the legislature by December 1, 2024.

Key findings
A registry of all rental units in the state, such as the one described in
the proviso would be the first of its kind in the nation
The proviso describes a program that collects and reports timely unit-level data for all rental properties. It does
not specify a purpose for the data or for the proposed rental registry. Existing state-wide rental registries are
narrow in scope; they apply to a limited number of properties and support a specific objective, such as
abatement of lead paint.

Cost estimates and implementation timelines
Implementing and operating a state rental registry such as the one the proviso describes requires significant
staffing, infrastructure, and investment.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                 4
      Timing: Implementation of the rental registry program will require several years to build staff capacity,
      program infrastructure, and public awareness. We estimate a two-year pre-launch phase to conduct
      outreach and build capacity, followed by a two-year launch phase to begin operations and pursue
      compliance through outreach and enforcement. The program would begin to reach stabilization in costs
      and in compliance rate five years from initiation,

      Cost: To secure high participation, a statewide program would require between about $3.9 and $6.4
      million annually. Major categories of program cost include management and oversight of the program;
      research and information technology (IT) requirements, including data storage, data management and
      analysis, and reporting; outreach, marketing, and enforcement; and overhead. Program revenues may
      offset many or all of these costs, but program revenue will be highly dependent on achieving compliance
      through an extensive marketing, outreach, and enforcement effort. The program's ability to achieve cost
      self-sufficiency through registration fees depends on the number of registrations and the fee per
      registration. Financial stabilization is projected within five years of the program's initiation, assuming
      approximately 75% compliance. At a $15 registration fee, program costs would be fully covered, with the
      breakeven point potentially occurring earlier, as only 50% compliance is required. In contrast, a $10
      registration fee would necessitate 80% compliance for self-sufficiency. If the registry were limited to the
      six largest counties, the breakeven point would remain comparable.

      Implementation geography: Implementation limited to the six largest counties would reduce pre-launch
      and launch timelines by 3 to 6 months. It would reduce application volume and create efficiencies
      resulting in a 20% to 25% reduction in cost. The six largest counties together account for approximately
      74% of renter-occupied homes in the state. However, this option would exclude many parts of the state,
      including much of central and western Washington and many rural areas.

      Cost reduction strategies: There are a few options the state could pursue to reduce the cost of a rental
      registry, with tradeoffs for data quality and effectiveness. These include requiring registration on a multi-
      year cycle instead of annually, which would limit the timeliness of data, or minimizing staffing for data
      analysis and outreach and enforcement, which would significantly reduce compliance and could reduce
      the program’s financial sustainability. As another option, the state could minimize costs by pursuing a
      data collection initiative focused on understanding specific rental market conditions and trends.

Stakeholder engagement
Engagement with a broad range of stakeholders through listening sessions and interviews provided valuable
input for the design of a state rental registry and context about the operations and perceptions of existing local
rental registries. Stakeholder input shaped the design recommendations and conclusions of this report.

Key stakeholder groups:
      Tenants and their advocates find merit in a rental registry if it results in better housing quality or
      transparency about property ownership and note that some existing registries have limited
      effectiveness.

      State and local government staff see value in producing detailed housing data and improving
      communication with housing providers. Operators of existing rental registries prefer to retain their
      programs but are open to sharing data with the state.




WASHINGTON RENTAL REGISTRY STUDY                                                                                  5
      Housing providers generally oppose a state rental registry. They see no value in added regulation and
      view a new program as government overreach.

Best practices, opportunities and recommendations for a rental registry
in Washington
The most effective city- and county-level rental registries have a clear policy purpose, as well as large
administrative structures and enforcement measures. The rental registries that have the highest compliance
rates typically have been in operation for many years, have adequate staffing to support enforcement, and
have clear and costly penalties for noncompliance. These programs generally support the enforcement and
implementation of other housing policies or programs beyond data collection.

Compliance mechanisms that include incentives as well as regulatory or financial penalties, coupled with
enforcement, will be critical to achieving participation. The most effective rental registry programs set and
enforce clear penalties that make non-compliance expensive and burdensome for property owners and have a
regulatory mechanism by which they can compel compliance. For example, in Minneapolis, the city can attach
unpaid fees and penalties to the property’s tax bill. For properties that continue to be noncompliant, the city in
some cases can revoke the owner’s rental license for the property. In Washington, the state does not currently
have a regulatory relationship with all rental property owners and would have to create one to enable
enforcement, which may entail further discussion of policy implications for ongoing implementation and
maintenance of a rental registry.

The design of a rental registry program must also consider how best to meet its purpose while mitigating
unintended consequences. The purpose of a rental registry should inform the design of the program including
the types of data collected and the structure and implementation of the registry. The design of the program
will drive both the cost to operate it and its effectiveness at achieving the intended purpose. Cost and
effectiveness are also directly linked; a registry with low operating costs is likely to have limited enforcement
and low compliance. To ensure that the program does not increase affordability challenges for renters or
exacerbate existing inequities, minimizing costs to property owners – and by extension renters – should be a
design objective. This is particularly true if the rental registry does not support tenant protections.

Integrating data from existing rental registries will be possible, but incomplete. There are 17 cities in
Washington with existing rental registries, covering approximately 40% of rental homes in the state. These city-
level programs focus on ensuring housing quality. Only two collect data on rent, and most collect property-level
(rather than unit-level) data. Making changes to existing registries to accommodate unit-level data collection
would not be feasible. Most city programs collect data via a digital portal and could likely provide data for
integration into a statewide database with some adjustments. However, because most existing registries do
not collect rent or other unit-level data, the proposed program would need to impose a second registration on
some housing providers or lose a significant amount of data.




Introduction
Rental registries collect information about rental housing
A rental registry is a program that creates an inventory of rental housing. At its most basic, a rental registry
collects information about rental housing. This can include information about the number and location of


WASHINGTON RENTAL REGISTRY STUDY                                                                                   6
rental homes; market data including housing type and cost; and information about the quality of homes. Rental
registries usually require property owners or managers to register any properties they operate as rental homes.
In many cases, registries charge a fee to offset the cost of operating the registry.

Rental registries are distinct from business licenses; however, some rent registry programs require a business
license as part of the registration process. In Washington, some residential rental businesses must obtain a
business license from the Department of Revenue, and many cities and counties in Washington require
business licenses and permits for all rental properties. Business licenses help state and local governments
enforce employment laws and collect taxes, though the state does not collect Business & Occupation (B&O)
taxes for residential rental properties. Business license applications collect business data, but do not collect
housing data.

Effective rental registries serve a specific policy purpose
Rental registries can serve a range of purposes, including informing policy decisions that relate to housing,
enabling engagement with property owners, and supporting regulation in the rental housing market. Though
some are focused on facilitating contact with property owners, such as to support first responders, many
support a specific goal such as enforcing another housing policy or improving housing quality.

A registry that collects detailed market data on all rental units in the state would be the first of its kind. Most
existing rental registries operate at the city or county level, though some state-level rental registries exist.
Existing state rental registries are often narrow in scope. For example, New York State’s rental registry applies
to rent-stabilized properties, and is therefore only applicable to some rental properties located in New York
City. Maryland’s rental registry focuses on lead abatement, so it only applies to older properties. Ohio requires
all counties over a certain size to establish rental registries, but it has limited effectiveness and does not
collect any data at the state level.


Local registries in Washington focus on ensuring the quality and
safety of rental housing
Rents have risen in all parts of Washington, and our housing stock is aging. This creates challenges with
affordability and housing quality. The state has approximately 1,076,000 renter-occupied homes. Across the
state, householders who identify as Black, Hispanic/Latino, Native Hawaiian and other Pacific Islander, or
Some other Race Alone are more likely to be renters than owners, while those who identify as White or Asian
are much more likely to be homeowners. Households who identify as American Indian and Alaska Native or as
Two or More Races are majority homeowners, but more likely to rent than White and Asian households.
Renters’ incomes are significantly lower than the median income. Single-family homes make up the largest
share of renter-occupied homes in each region, and 58% of renter-occupied homes are in buildings with fewer
than 10 units statewide. Renter occupied units also tend to be in buildings built prior to 1979, meaning that
many units are more than 40 years old. Average rents have increased by about 45% since 2015. Much of the
state’s housing stock faces challenges with aging and affordability.

Existing rental registries in Washington all have similar purpose and structure. In Washington, 17 cities,
including several of the largest cities in the state, already operate rental registries to address some of these
challenges. Appendix D provides an overview of existing city-level registries in Washington. The primary stated
purpose of these registries is ensuring that rental housing meets basic safety standards. Some programs state
secondary purposes such as data collection, support for property owners and tenants, support for first
responders, and housing preservation. Of the 17 rental registry programs, 11 require inspections on a recurring



WASHINGTON RENTAL REGISTRY STUDY                                                                                      7
schedule, three programs allow property owners to self-certify the condition of the property, and three
programs have no inspection requirements at all. Because of the emphasis on inspection compliance and
property condition, data collection focuses on property address and owner information. Only two registries –
Olympia and Tacoma – collect rent data, and Olympia makes rent data voluntary.


Potential design and requirements of a state rental registry
Study background
In 2023, the Washington State Legislature included a proviso in its supplemental operating budget (Section
129 of ESSB 5187) directing the Washington State Department of Commerce (Commerce) to develop a report
and recommendations to create or procure an online registry of rental units in Washington. In spring 2024,
Commerce released a Request for Proposals (RFP) for consultants interested in supporting this work.
Commerce awarded HR&A the contract for a portion of this work, which included four objectives:

      Objective A. Draft a comprehensive scope of work for a rental registry in Washington, identifying best
      practices, opportunities, and recommendations for the rental registry's scope.

      Objective B. Develop timelines for two scenarios: 1) a statewide registry rollout and 2) implementation
      limited to the six largest counties.

      Objective C. Estimate costs for statewide and county-level implementation, including both initial
      implementation costs as well as ongoing expenses.

      Objective D. Facilitate stakeholder engagement for the rental registry, including landlord and tenant
      representatives, local governments with existing rental registries, and other interested stakeholders.

Artesia Systems' study of technical requirements
Under a separate agreement, Commerce engaged Artesia Systems to deliver several key components for the
online rental registry project. Their responsibilities included creating detailed documentation of both functional
and non-functional requirements for a Commerce-operated system, covering aspects such as data collection
methods, reporting capabilities, user access levels, and security measures. Based on these requirements and
Artesia’s experience with Commerce, they then developed cost estimates and implementation timelines for the
Commerce-operated base rental registry portal. Additionally, they researched external vendors to assess the
potential for procuring existing software solutions for the rental registry platform. Their work, included as
Appendix H of this document, informed our estimates related to cost estimates and implementation timelines.

Methods
To inform this report, HR&A employed a multi-faceted approach that included interviews with key stakeholders,
data analysis, listening sessions, and extensive research. We developed summaries of these methods and the
findings of this analysis in a series of background reports included as appendices to this report.

   Appendix A outlines a detailed synthesis of relevant findings from various background reports and their
   implications for the design of a rental registry program.
   Appendix B provides a detailed summary of engagement activities and stakeholder input.
   Appendix C provides an overview of the national case study research.
   Appendix D provides an overview of existing city-level rental registries in Washington.


WASHINGTON RENTAL REGISTRY STUDY                                                                                 8
   Appendix E summarizes the methods and findings of this rental market scan.
   Appendix F provides additional detail about implementation timelines.
   Appendix G provides a more detailed explanation of the cost estimates.
   Appendix H is Artesia Systems’ study of requirements for a Commerce-operated software platform.




WASHINGTON RENTAL REGISTRY STUDY                                                                     9
Rental registry design
The purpose of a rental registry has critical implications for its
design
Rental registries can serve a number of potential purposes. This could include increasing transparency and
communication with property owners or providing detailed market data and analysis to policymakers at both
the state and local levels to inform investment and policy decisions, or to track progress toward housing goals.
Most rental registries exist to support another larger housing goal or program, such as ensuring that rental
housing meets basic standards of safety and livability or to support tenant protection-focused policy.

The purpose of a rental registry should inform the design of the program including the types of data collected
and the structure and implementation of the registry. In turn, the design of the program will drive both the cost
to operate it and its effectiveness at achieving the intended purpose. Cost and effectiveness are also directly
linked: a rental registry with low operating costs is likely to have limited effectiveness due to low enforcement.
In this study, we consider the cost to create and operate the registry effectively.

The design of a rental registry program must consider how best to meet the goal or policy purpose for its
creation while mitigating unintended consequences, such as creating significant costs or regulatory burdens
which might impact administrators, property owners, and renters. The proviso describes a program that
collects unit-level data for all rental properties. It does not specify a purpose for the data or for the proposed
rental registry.

Program design, cost and effectiveness are closely related
To secure high participation, a statewide program such as the one described in the proviso would require
significant cost and complexity. The primary reason to create such a program would be to support the
implementation of another regulatory program or policy. If the state creates a rental registry, its design should
consider how it might support vulnerable renters’ needs and improve equitable outcomes for Washington
residents.

Outreach and enforcement mechanisms will shape participation
Extensive outreach to property owners will be critical to raise awareness of any rental registry put in place and
its requirements, and to encourage and reduce barriers to participation. Pre-launch and throughout early
operations, the state will need an extensive outreach campaign using direct mail, in-person and virtual
information sessions, partnerships with trade associations and other organizations, and marketing. This will
require significant investment and will require dedicated staff to provide outreach and respond to inquiries.

However, setting and enforcing clear penalties for non-compliance that make non-compliance expensive and
burdensome for property owners is the most impactful way to encourage participation. Though it is important,
outreach alone will not produce high participation in a rental registry. In order to secure compliance, the state
must create and aggressively enforce financial or regulatory consequences for non-compliance.

The rental registries that have the highest compliance rates typically have been in operation for many years,
have adequate staffing to support enforcement, and have clear and costly penalties for noncompliance. For
example:




WASHINGTON RENTAL REGISTRY STUDY                                                                                 10
     Seattle’s Rental Registration and Inspection Ordinance (RRIO) has been in operation since 2014 and has
     an estimated compliance rate of about 90%. The Program has approximately nine full-time equivalent
     (FTE) employees. The city contacts property owners of likely rental properties by mail and uses other
     methods of marketing and outreach to let property owners know about program requirements. People
     who receive a notice in error (for instance, owners who are not operating their property as a rental
     property) can contact the city by phone or online to notify the city of the error. Property owners that do
     not register receive a warning letter followed by a notice of violation letter. Noncompliant properties
     accrue penalties of $150 per day for the first 10 days and $500 per day after the first 10 days. The city
     Attorney’s office will file lawsuits to compel compliance from noncompliant property owners. The city
     uses a portion of time for multiple program staff to pursue the enforcement process (this does not
     include time the city Attorney’s office spends pursuing enforcement, or enforcement related to missed
     inspections or inspection violations). After registrations fell during the COVID-19 pandemic due to a
     suspension of the program, the city hired temporary research staff to investigate properties with lapsed
     registrations.

     Minneapolis’s Rental License Program has been in operation since 1998 and has an estimated
     compliance rate of 92%. The city requires property owners to obtain a rental license for each rental
     property they operate and submit to regular inspections. The licensing and inspections program is part
     of a large city department and includes about 60 inspectors, analysts who work on the licensing program
     and other initiatives, housing liaisons, and a dedicated enforcement team. In addition to providing
     incentives for compliance such as reduced fees, the city charges a 25% late fee for rental license
     renewals that are more than 15 days late. The city issues $500 citations to properties with unpaid license
     fees in addition to the late fee costs. The city increases unpaid citations to $1,000 and assesses them to
     property taxes for annual payment. Program staff identifies non-compliant properties through
     complaints from the 311 system and property sale records. The city sets aside funds to support
     temporary housing solutions for tenants in properties that fail inspections. Minneapolis also conducts
     ongoing outreach to inform tenants and housing providers about the license program, including regular
     engagement on renter’s rights, local committees with advocate groups, education classes for new
     landlords, and door knocking in areas with a high volume of renters.

The state does not currently have a regulatory relationship with property owners, which will create
challenges to effective enforcement. The most effective rental registry programs, such as those described
above, have a particular regulatory mechanism by which they can compel compliance, such as property taxes
or business licenses. The state does not currently have a regulatory relationship with all rental property
owners. Some property owners require business licenses, but many do not. The state does not directly collect
property taxes, and it does not collect Business & Occupation (B&O) tax for residential rental property. To
enable effective enforcement, the state will need to pass legislation creating a regulatory mechanism to
compel compliance or work closely with county governments to attach penalties to property tax bills.
Commerce could also work with the Office of the Attorney General to develop protocols for enforcement.

Increased program complexity increases the cost and is likely to
decrease compliance
The program’s complexity (such as the number of and type of data points and other steps required for
registration) will have impacts on its costs, administrative and IT requirements, compliance, and effectiveness
at meeting its goals. Collecting more data creates more requirements for property owners to accurately track




WASHINGTON RENTAL REGISTRY STUDY                                                                             11
and report data, on administrators to support data gathering as well as reporting, and on the required IT
infrastructure to organize, store, and secure data.

Three primary design components each bring a level of complexity and cost to a rental registry program:

1. Collecting data directly from property owners: A rental registry requires significant program administrative
   and IT infrastructure, including an online portal and database, outreach and marketing activities, and staff
   to oversee these efforts as well as track compliance, respond to requests, and provide other administrative
   services. There are other, lower-cost ways to gather data on housing markets, but they do not offer a
   mechanism for direct communication to and from property owners.

2. Collecting data at the unit level versus the property level: Collecting unit-level data is more complex than
   at the property-level data. Unit-level data would require a more complex IT structure (to manage more
   records and track unit-level changes) and more administrative support to provide technical assistance to
   property owners, perform data entry, and ensure quality control.

3. Collecting data annually versus on a multi-year cycle: There are more than 1 million rental homes in
   Washington. Instead of requiring annual registration for every unit, a rental registry could, for example,
   require registration every three years, so that approximately one-third of rental units must register each
   year. This would significantly reduce the costs of running the program and the impacts on property owners.

Requiring more detailed data makes compliance burdensome and is likely to create inconsistency and
inaccuracy in reporting. This further suggests that a rental registry should only be as complex as is necessary
for the purpose it serves.

Minimizing costs to property owners – and by extension renters –
should be a design objective
Rental registries typically charge a registration fee to cover the costs of program administration. Rental
registration fees for existing city-level registries in Washington range from about $10 to $50 per unit per year,
excluding the cost of inspections. Housing providers could potentially pass registration fees on to their
tenants, either directly as a fee or indirectly as an increase in rent, though some studies suggest this is not a
common practice. Increasing costs or regulatory burdens for property owners could also lead to some of them
removing housing from the rental market, such as by operating the home as a short-term rental instead of
permanent housing. Because of these risks, a program with a high registration fee has the potential to
exacerbate affordability challenges for renters. Renters in Washington are disproportionately low-income and
people of color. This means that minimizing registration fees, particularly if the registry is not furthering
additional tenant protections, will be a critical component of ensuring that the program does not exacerbate
existing inequity.

In addition, the state would either require property owners that already pay city registration fees to pay a state
registration fee as well, or exempt property owners who pay city registration fees, which could create cost
imbalances between property owners in different districts.

To address these concerns, the state could minimize the registration fees as much as possible.




WASHINGTON RENTAL REGISTRY STUDY                                                                                 12
Creating a registry requires design decisions with implications for
cost and effectiveness
Below we outline the major design elements that form the scope of work to design a rental registry program,
as well as the preliminary approach to meet the proviso requirements and produce relevant and useful market
data. Appendix A provides a more detailed summary of the relevant considerations, tradeoffs, and alternative
approaches for each design element.

Table 1: Applicability and scale of the rental registry
Design element               Preliminary approach

                             Statewide implementation, or implementation limited to the six largest counties by population (Clark,
Implementation geography
                             King, Pierce, Snohomish, Spokane, and Thurston)

                             All types of residential rental housing, regardless of the property type or ownership type, including
                             mobile homes on a leased pad. Limited exceptions, including:
                                   Owner-occupied homes, including owner-occupied single-family homes, owner-occupied units in
                                   multifamily rental properties, and room rentals in owner-occupied homes.
Rental homes subject to
                                   Short-term rentals, which the state already requires to obtain a business license through the
registration
                                   Department of Revenue.

                             The registry should allow fee waivers for some properties, such as nonprofit-owned subsidized housing
                             and government-owned rental properties.



Table 2: Data collection
Design element      Preliminary approach

                          Physical address
Property                  Property type (Single-family, Single-family with ADU, 2- to 4-unit property, 5+ unit property, mobile home)
information               (categories subject to change)
                          Total number of rental units in the property (excluding owner-occupied units)

                          Property owner name, mailing address, email address, phone number
Owner identity
                          Property manager name, mailing address, email address, phone number (if different from owner)

                    For each unit:
                         Number of bedrooms
                         Occupancy status
                         Monthly base rent
Rent and vacancy         Utilities included in rent
information              Additional monthly/annual charges (or, total effective monthly cost)

                    Note: Collecting detailed data at the unit level will be a major driver of program cost and a potential barrier to
                    compliance, as complex data requirements could deter property owners or cause them to provide estimates or
                    incomplete information.

Inspection
                    None
requirement




WASHINGTON RENTAL REGISTRY STUDY                                                                                                        13
Table 3: Program administration
Design element    Preliminary approach

Program
                  Department of Commerce
administrator

                  Charge a small per-unit registration fee of approximately $10 to $15. Provide a 50% discount for early registration.
Fee schedule
                  Note: Minimizing costs to property owners should be a design objective.

                  Create a secure online portal that allows easy registration and fee payment. Consider providing alternative
Registration
                  registration options (such as a paper form) for property owners with digital access barriers. Online and paper
process
                  materials should be available in multiple languages.

                  Annual registration of properties by a set date (e.g., March 1) without additional updates at the sale of a property or
Re-registration   change in tenancy. Consider requiring re-registration on a multi-year registration cycle, such as every three years.
schedule
                  Note: Re-registration schedule will be a driver of program cost.

                  Pursue a multi-pronged approach to compliance, including:
                      Reducing regulatory barriers to registration as much as possible, through user-friendly registration, extensive
                      outreach and technical assistance, and enabling tenant reporting.
                      Providing financial incentives for compliance, by waiving fees during the startup period and providing early-
                      bird registration discounts (e.g., 50% discount for registration prior to the due date).
                      Making non-compliance expensive by setting and enforcing clear financial or regulatory penalties.
                      •    Regulatory penalties: The state could disqualify non-compliant property owners from receiving state
                           assistance through Landlord Mitigation Programs. However, these programs have limited scale (for
                           instance, the tenancy preservation program is currently on hold due to insufficient funding, and the
                           landlord damage relief program applies only to tenants that receive a rental subsidy) and therefore this
                           type of penalty could have limited impact. The state would need to create a regulatory mechanism to
Compliance
                           compel registration, for example, by putting liens on properties, preventing property owners from
mechanisms
                           operating their rental properties, or working with Counties to attach fees and penalties to property tax
                           bills.
                      •    Financial penalties: The state could charge a penalty fee that significantly increases the longer that a
                           property remains out of compliance. To enforce these penalties, the state would need to create a legal
                           framework for enforcement and pursue legal actions (including lawsuits) to compel payment of penalties
                           and registration of noncompliant properties. An alternative approach would be to work with County
                           governments to attach penalty fees to property tax bills to secure payment.

                  Note: Setting and enforcing clear penalties for non-compliance that make non-compliance expensive and
                  burdensome for property owners is the most impactful way to encourage participation. This will be a primary driver
                  of program cost.

                  Conduct early and ongoing outreach and education from the program’s pre-launch through implementation.
                  Include:
                       Partnering with rental and tenant associations to increase program awareness
                       Reaching housing providers directly through email and mail campaigns
                       Advertising the rental registry through online and print media
Outreach and
                       Providing in-person, online, and phone assistance to providers who need additional support
education
                       Technical assistance for housing providers to support compliance requirements

                  Note: Extensive outreach to property owners will be critical to raise awareness of any rental registry put in place
                  and its requirements and to encourage and reduce barriers to participation. This will be a primary driver of program
                  cost.

                  The purpose of the rental registry program should define the metrics for its success. Some metrics are likely to
                  include:
                       Program impacts and effectiveness
Metrics for
                       Number of properties and rental units registered, total and by submarket (e.g., city, county)
success
                       Estimated compliance rate, total and by submarket (e.g., city, county)
                       Annual increases in number of registered properties or rental units
                       Number of individuals accessing portal data, reports, or other data sources




WASHINGTON RENTAL REGISTRY STUDY                                                                                                       14
Design element    Preliminary approach

                      Improved availability and visibility and of rental market data to stakeholders including local policymakers,
                      renters, and housing providers

                  Operational and financial efficiency:
                      Total Full-Time Equivalent (FTE) staff positions
                      Number of technical assistance inquiries
                      Average time to resolve inquiries
                      Program revenues, total and per unit registered
                      Operating cost, total and per unit registered



Table 4: Database requirements and data availability
Design element                    Preliminary approach

                                  Based on the design approach above, the registry will have software requirements including:
                                      The ability to collect, store, and track unit-level and property-level data
Database design and
                                      A secure online portal capable of handling financial payments
information infrastructure
                                      The ability to produce standardized data reports, and to develop new custom reports as
                                      needed

                                  Data availability could include:
                                      Property owners and managers: Full property information for their property or properties via a
                                      secure online portal
Data access and reporting             Program administrators: Full database and data reports
                                      Other public sector users: Anonymized data reports or aggregated data reports
                                      General public: Online dashboard that allows access to partial rental registration information
                                      (e.g., owner name and compliance) and market-level rental trends



Appendix H includes more detail on database requirements and data availability.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                     15
Integration with existing registries
Existing rental registries in Washington all have similar purpose and
structure
Many of Washington’s largest cities already have residential rental registry programs. There are 17 cities in
Washington with existing rental registries, covering approximately 436,000 rental homes (about 40% of rental
homes in the state). The primary stated purpose of most of these registries is ensuring that rental housing
meets basic safety standards. Some programs state secondary purposes such as data collection, support for
property owners and tenants, support for first responders, and housing preservation. Cities with rental
registries include:

   Aberdeen
   Auburn
   Bellingham
   Bremerton
   Burien
   Kent
   Lacey
   Lakewood
   Mountlake Terrace
   Olympia
   Pasco
   Prosser
   Renton
   Seattle
   Spokane
   Tacoma
   Tukwila

Integrating data from existing rental registries will be possible, but
incomplete
Excluding rental properties subject to local rental registries from a state rental registry program would result
in a significant loss of data. Existing rental registries cover approximately 40% of rental homes in the state, or
49% of homes in the six largest counties.

Existing rental registries focus on housing quality and most do not collect unit-level data or track market
data such as rent or vacancy rates. Only two registries – Olympia and Tacoma – collect rent data, and Olympia
makes rent data voluntary. Making changes to existing registries to accommodate unit-level data collection
and to collect data on rent and unit occupancy would not be feasible, according to interviews with operators of
existing registries. This means that if the state were able to access and integrate all existing registry data, it
would exclude a significant amount of rent and occupancy data.

The state could work with local governments to gather and integrate property address and owner information
to support outreach. To use existing registry data, a statewide program will require the capacity to work with
differences in data collection and storage. Each city has its own online web portal or other system for



WASHINGTON RENTAL REGISTRY STUDY                                                                                16
recording registry information and accepting fee payments. Cities have various practices regarding the storage
of this data, and very little data is available publicly, either at the property level or through reporting. The lack of
transparency makes it difficult to understand the compliance rates and scale of existing programs. It could
also make it difficult to collect and aggregate data from existing rental registries into a statewide registry.
Nonetheless, most city programs collect data via a digital portal and could likely provide data for integration
into a statewide database with some adjustments. The state should focus its integration efforts on Seattle,
Spokane, and Tacoma to minimize cost and data loss.

Because a state rental registry could impose a second registry on property owners in some cities, it will be
important to minimize the cost associated with the state program. Compliance with existing registries can be
costly and burdensome, particularly for owners with properties in multiple cities. The state should avoid adding
additional barriers for property owners as much as possible.




WASHINGTON RENTAL REGISTRY STUDY                                                                                     17
Implementation timeline
Implementation of the rental registry program will require several
years to build staff capacity, program infrastructure, and public
awareness
Operational and administrative needs for the rental registry will vary across multiple phases of
implementation. The estimated timeframe to implement a rental registry will depend on the program’s
geographic focus. Based on our research, we anticipate that many of the steps needed to implement the
program are independent of the registry’s geographic focus (statewide implementation versus implementation
limited to the six most populous counties).

Table 5: Primary implementation activities by phase
Program design (year 0)      Pre-launch (years 1 to 2)        Launch (years 3 to 4)             Stabilization (year 5 and ongoing)

                                 Develop major data and
                                 management systems               Continue extensive outreach
                                                                                                    Provide ongoing data
    Finalize program             Integrate data from              and marketing
                                                                                                    management, analysis, and
    design                       county assessors and             Manage program launch,
                                                                                                    reporting
    Enact legislative            existing registries              with technical assistance,
                                                                                                    Provide ongoing outreach
    measures to create and       Develop informational            data quality assurance, and
                                                                                                    through direct mail and other
    fund the program             and marketing materials          initial reporting
                                                                                                    avenues
    Prepare to hire a            Conduct extensive                Begin robust compliance
                                                                                                    Continue robust compliance
    program coordinator          outreach and marketing           efforts
                                                                                                    activities
                                 Hire staff and prepare for       Grow operational capacity
                                 launch




Implementation limited to the six largest counties provides some
timing efficiencies
Most implementation activities are independent of the program’s geographic scope, but a smaller geography
will reduce the timeline of some of implementation activities. A six-county program will involve a smaller set of
stakeholders in a contained number of locations. The state will have to collect and integrate data from six
county assessors instead of 39, which will reduce time. A six-county geography will also require less time to
conduct outreach. Because a six-county program will require slightly fewer staff, hiring during pre-launch and
launch will also take less time than hiring for a statewide implementation. We estimate that a six-county
approach will reduce the pre-launch and launch timelines by a total of approximately 3 to 6 months.

Appendix F contains additional details about program implementation timelines.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                    18
Cost estimates
Operating this program would require significant staffing,
infrastructure, and investment
We conducted analysis that offers high-level cost estimates for a statewide rental registry with annual re-
registration requirements based on projected staff and material needs of such a program. We divided program
implementation into three phases: pre-launch, launch, and post-launch to stabilization. We assumed that this
rental registry will reach its maximum compliance rate of 75% after 10 years. Though Seattle’s registry
achieves over 90% compliance, we chose to assume a lower compliance rate due to the complexities of a
statewide registry, the significant increase in the number of units, and the much broader geographic scope.
Clear regulatory incentives and extensive outreach and enforcement efforts will be critical to achieve this
compliance. We present cost estimates as a range to account for different program design and resource
sharing decisions that might impact costs, and we test alternative options, like three-year re-registration cycles
and implementation limited to only the six largest counties, to explore strategies to reduce costs. We show all
costs in 2024 dollars.

A statewide program such as the one the proviso describes will require significant cost to implement and
operate effectively and with high compliance. We estimate that the program will cost approximately $2.5 to
$4.7 million per year for a four-year pre-launch and launch phase, and $3.9 to $6.4 million per year during post-
launch to stabilization. Major categories of program cost include:

   Management and oversight of the program
   Research and information technology (IT) requirements, including data storage, data management and
   analysis, data input for paper registry applications, and reporting
   Outreach, marketing, and compliance to educate renters and property owners about the program, provide
   technical support, and pursue enforcement of non-compliant properties
   Program overhead or the external costs to Commerce and other state agencies such as human resources,
   payroll, and administrative costs.

Notably, these costs exclude potential legal costs incurred from collaboration with the state Attorney
General’s office for efforts to pursue enforcement through lawsuits.

Our cost estimates reflect a range of potential program design decisions, compliance rates, and outreach
methods, which will have impacts on program cost. One of the primary differences between the higher and
lower cost estimates is the potential to use existing county and city outreach and data functions to reduce
costs to the state. If the state can easily integrate county assessor’s data into its database, and partner with
cities with existing rental registries both to incorporate data where possible and to use existing city outreach
methods, this could reduce staff and marketing costs to the state. The high end of the cost estimates
assumes that the state’s program uses no city or county resources to operate its registry. Appendix G contains
additional detail about program cost projections.


Self-sufficiency at stabilization depends on fees and compliance
At stabilization, the rental registry could achieve self-sufficiency if it can achieve sufficient compliance
based on the per-unit registration fee. Compliance drives both program costs and revenues. Higher
compliance means more property owners pay registration fees, but it also means that there are more
applications that require more staff to review. While higher fees generate more revenue, they also impact



WASHINGTON RENTAL REGISTRY STUDY                                                                                19
costs. Our model assumes a 2.5% payment-processing fee, which means that higher fees incur higher
payment processing costs. Because of these variables, there is not a single point for fee or compliance at
which this program will become self-sufficient. Instead, different fees require different levels of compliance to
achieve self-sufficiency, as shown in the following matrix.

Table 6: Estimated annual deficit or surplus by unit fee and compliance rate
Per unit fee   Compliance rate

               10%      20%           30%        40%           50%           60%           70%           80%           90%           100%

$5             -$4.2M     -$4.0M        -$3.8M     -$3.6M        -$3.4M        -$3.2M        -$3.0M        -$2.7M        -$2.5M        -$2.3M

$10            -$3.8M     -$3.2M        -$2.6M     -$2.0M        -$1.4M        -$801K        -$201K        $399K             $1.0M      $1.6M

$15            -$3.4M     -$2.4M        -$1.4M     -$428K        $565K             $1.6M         $2.6M         $3.5M         $4.5M      $5.5M

$20            -$3.0M     -$1.6M        -$242K         $1.1M         $2.5M         $3.9M         $5.3M         $6.7M         $8.1M      $9.5M

$25            -$2.6M     -$842K        $938K          $2.7M         $4.5M         $6.3M         $8.1M         $9.8M     $11.6M        $13.4M

$30            -$2.2M         -$55K     $2.1M          $4.3M         $6.5M         $8.6M     $10.8M        $13.0M        $15.2M        $17.3M



This matrix reflects the assumptions below. Any changes to these assumptions change the breakeven point
at which this program becomes self-sufficient.

     This analysis reflects staffing at stabilization (year 6 and ongoing), not during the “launch” or “pre-launch”
     periods. It excludes one-time software costs and other startup costs.
     The program allows a 50% discount for early registration; we assume that 50% of units qualify for this early
     registration discount each year.
     The analysis assumes enforcement costs are fixed – i.e., enforcement costs do not increase if compliance
     is lower than expected.
     The analysis assumes an annual payment-processing fee of 2.5% multiplied by the number of units
     renewing and the per-unit fee, including discounts.
     The analysis assumes that some other operating costs – such as data analysis – scale with compliance.
     The program is statewide.
     The program requires annual re-registration.

With these assumptions, the program could produce enough revenue to cover most of its costs with a
minimal per-unit registration fee. With a $10 fee, the registry will be self-sufficient if it achieves 80%
compliance. With a $15 fee, the registry will be self-sufficient at 50% compliance. Our cost analysis assumes
75% compliance at stabilization, meaning a $15 fee will make the registry self-sufficient under these
assumptions. This fee is greater than the actual stabilized per-unit cost of about $8 at 75% compliance
because of the assumptions regarding discounts for early registration, which reduce per-unit revenue to $7.50
for those units that take advantage. If this registry were to apply only to the six largest counties, this breakeven
point remains comparable, requiring about 80% compliance with a $10 per-unit fee and 50% compliance with a
$15 per-unit fee. This is because the reduction in units associated with the six-county scenario reduces costs
and revenue proportionally. The additional efficiencies gained in the six-county scenario that do not scale with
compliance are not enough to shift the breakeven point.


WASHINGTON RENTAL REGISTRY STUDY                                                                                                            20
Importantly, actual compliance rates and uptake of incentives for early registration make actual program
revenue uncertain. The state must develop clear regulatory incentives and pursue extensive outreach and
enforcement to achieve the revenues we project, though outreach and enforcement beyond our projections will
further increase costs. The state should keep fees consistent most years to ensure predictability and consider
increasing costs every few years to account for increased program operating expenses due to enforcement
requirements, inflation, or other factors.


Implementation limited to the six largest counties creates notable
efficiencies
Limiting implementation to the six largest counties creates notable operating efficiencies but will exclude
many rural rental homes. The six largest counties (Clark, King, Pierce, Snohomish, Spokane, and Thurston)
together account for approximately 74% of renter-occupied homes in the state. A registry limited to these
counties would therefore cover almost three quarters of rental homes, while providing a significant reduction
in the geography required for outreach and marketing, and the number of counties the state would need to
coordinate with to incorporate assessor data and potentially to pursue enforcement measures. Together, the
reduced application volume, geographic focus, and staff efficiencies result in a 20% to 25% reduction in cost.
However, this option would exclude many parts of the state, including much of central and western
Washington and many rural areas.

Table 7: Summary of program cost by scenario
Timeframe                                           Statewide                  Six counties

Pre-launch (years 1 to 2)                           $2.5 - $4.4 million        $2.0 - $3.4 million

Launch (years 3 to 4)                               $3.0 - $4.7 million        $2.4 - $3.7 million

Post-launch to stabilization (year 5 and ongoing)   $3.9 – $6.4 million        $3.1 - $4.8 million




To reduce costs, the state could consider several options
In the preceding sections, we outlined a design scope and cost estimates to provide the state with detailed
rental information by creating a rental registry program and conducting extensive outreach and enforcement to
achieve compliance. The state would require significant cost and effort to create this program and make it
effective. This investment will have the greatest value to the state if it advances clear policy goals.

There are a few options to creating a rental registry and gathering data about rental housing that could have
moderate to large impacts on costs to the state. These each require tradeoffs in effectiveness and the quality,
timeliness, and granularity of data.

Reduce costs by requiring registration on a multi-year cycle
The state could require re-registration every three years instead of annually, though this approach reduces
the timeliness of data. Requiring annual re-registration means that, at stabilization, every property owner will
need to re-submit unit data each year. This leads to a high volume of applications each year, and will require
ongoing data management, quality control, data entry for paper applications, and enforcement actions. By only
requiring re-registration every three years the state reduces annual applications to one-third of the volume.
This approach requires fewer program staff and results in an approximate 25% reduction in cost. However,



WASHINGTON RENTAL REGISTRY STUDY                                                                              21
with this approach some unit data, such as rents and vacancy, could be one or two years out of date. In
addition, a multi-year registration cycle might require higher fees to achieve self-sufficiency.

Reduce costs by minimizing outreach and enforcement activities
Reduce outreach and compliance functions. Depending on phase of implementation, outreach, marketing, and
compliance activities account for between 34% and 51% of total program cost. With limited outreach and
compliance, Commerce can reduce the rental registry’s cost significantly. However, this approach will result in
much lower compliance, which will make the rental registry significantly less effective and could reduce the
program’s financial sustainability.

Minimize costs by pursuing a data collection initiative
The state could focus on aggregating and analyzing existing rental market data or could develop a third-party
survey of rental housing. A rental registry might not be the most efficient approach to help the state and local
governments to better understand the rental market. Drawing on public and third-party data sources and
surveys, the state could produce market reports, dashboards, or other tools to help local governments
understand rental housing in their communities.

There is a range of available public and third-party market data, including property records from county
assessors throughout the state, data from the U.S. Census Bureau’s American Community Survey, databases
of subsidized and HUD-insured properties, and property listing services, as well as existing market data and
reports from the Washington Center for Real Estate Research (WCRER) that can support this initiative. Data is
likely to be statistically significant, particularly for sources like the American Community Survey (which relies
on large sample size surveys and statistical methods to produce estimates about income, housing type and
cost, and other market factors). Rather than having access to unit- or property-level information, this approach
would primarily provide data at the market level (e.g., zip code, census tract, city or county). Using County
Assessor data, the state could identify owner information for many rental properties. Some data is available in
real-time, while other data is available a year or two after sampling occurs. The state could develop an online
data dashboard or other tool for public users and local government partners.

To supplement existing data sources, the state could engage a third party to conduct a survey of rental
housing. This survey would likely occur on a multi-year cycle and could integrate existing data sources and
supplement them with survey methods. A survey would be a large undertaking but would provide statistically
significant sampling data for rental housing throughout the state. It would allow the state to specify particular
data for collection and analysis. The New York City Housing and Vacancy Survey, which the city conducts in
partnership with the U.S. Census Bureau, is an example of this model.

The primary reason to pursue a data collection initiative would be to develop specific data analysis and
reporting tools for market trends, which might otherwise be difficult to quantify. Compared to a rental
registry, a market study tool or dashboard is more straightforward to administer and is lower cost. It does not
require any direct outreach to property owners to collect information or ensure compliance. It would require
the state or a third party to develop new market analysis tools or refine existing analysis (such as the WCRER
reports) to meet policy needs, but would not require providing outreach, assistance, data hosting, and other
services to reach over 1 million rental homes. It would have minimal impact on property owners or renters.
Some of the data would be one or two years out of date but compared to a rental registry with low compliance,
it could provide a more accurate or complete picture of rental market trends.




WASHINGTON RENTAL REGISTRY STUDY                                                                                22
Stakeholder engagement
Facilitating broad stakeholder engagement was a core objective
Through interviews and listening sessions, we solicited input on the need for and potential design of a rental
registry from stakeholders including property owners and apartment industry representatives, tenants and
advocates, and local governments. This work included two primary activities:

      Individual and small group interviews: We conducted 14 interviews with intermediary organizations,
      including rental housing associations and other industry representatives (3 interviews), tenant advocacy
      groups (2 interviews), local government staff (7 interviews), and housing authorities (2 interviews).
      These interviews served two main purposes: they helped quickly survey stakeholders familiar with a
      broad cross-section of perspectives on the proposed rental registry and allowed us to reach a broader
      network of stakeholders.

      Stakeholder listening sessions: To reach a broader audience of renters, housing providers, and
      advocates across the state, we held five virtual listening sessions. Our listening sessions provided a
      platform for housing providers, tenants, and advocates to learn more about rental registries, provide
      input about the design and purpose of a statewide rental registry, and share concerns about potential or
      perceived negative impacts of a rental registry program. In advance of each listening session, we
      conducted outreach and sent flyers to potential participants through a range of partner organizations,
      local governments, and other intermediaries. We facilitated two listening sessions with housing
      providers and industry representatives, with 203 attendees in 21 counties, and three listening sessions
      with renters and tenant advocates with 26 attendees. In each session, we provided a brief informational
      presentation, conducted polling both to capture participant information and to gather input, and heard
      comments from attendees.

Appendix B provides a detailed summary of engagement activities and stakeholder input.

State and local government staff might be the primary users of a
statewide rental registry
Public entities are interested in up-to-date housing data for policymaking and improved communication with
housing providers. Aside from state-level entities and tenant organizations, the biggest proponents and
primary users of a statewide rental registry are likely to be local (city and county) staff without an existing
registry. Such interviewees noted that having access to up-to-date information about their local rental housing
market would help them to make better-informed policy and investment decisions. Representatives of cities
with existing registries noted that the registry has led to better relationships with housing providers, as city
staff can contact them directly regarding any housing issues or programs. Interviewees of cities without
registries also voiced their interest in a registry as a tool to improve communication with housing providers.

Local governments with rent registries prefer to retain their existing registries but are open to sharing data
with the state. Most local registries implement policies to improve housing quality of public safety and include
requirements for housing inspections. Multiple interviewees said that unless a statewide registry had the same
requirements as their existing local ones, they would prefer to continue with their own requirements. Multiple
interviewees were reluctant to layer their existing registry with additional statewide requirements and thought




WASHINGTON RENTAL REGISTRY STUDY                                                                                 23
it would lead to a regulatory burden for housing providers. City representatives were willing to share their data
with the state if it supported a statewide registry.


Renters’ most pressing challenges include rental affordability and
housing quality
A standalone statewide rental registry would not directly support rental affordability, which remains a priority
for tenants and tenant advocates. Rental affordability challenges throughout the state include high and rising
rents, low housing quality, and housing instability. Many existing local rental registries in Washington directly
address housing quality by mandating a housing inspection. A statewide rental registry could negatively
impact existing challenges if property owners pass fees on to their tenants or if owners remove their units
from the rental stock to avoid further regulation. It would be difficult for a rental registry to provide continuous
tracking and analysis of tenant-level information (such as income and loss of housing). This means that the
registry would provide limited visibility into housing affordability at the unit level.

Tenants and advocates find merit in a rental registry if it results in better housing quality and/or
transparency. Some local rental registries allow property owners to choose their own inspectors, and tenant
advocates expressed concern that these programs might not be effective at improving the quality and livability
of rental homes. One interviewee also mentioned the need to ensure housing quality statewide, particularly in
rural areas where inspections are less common. Some advocates were also hesitant about inspections, stating
that renters can be reluctant to allow unknown people into their home. Interviewees and some listening
session participants voiced interest in a statewide registry that improved real-time data on rental costs and
provided contact information of housing providers. Tenants felt that access to information about the
ownership of rental properties would give them more agency when looking for apartments to rent or raising
issues about their apartments.


Property owners and managers oppose a state rental registry
Housing providers believe that “no program is the best program.” Housing providers feel that their industry is
already highly regulated and expressed frustration with existing local registries, many of which require
inspections and annual fees. Providers oppose increased regulation and additional fees at the state level.
Commenters oppose a new statewide program, which many view as an overreach by the government.
Repeatedly in interviews and listening sessions, we heard from housing providers that the state should not
create a rental registry and that having one would create added expense or burden on them and tenants
without providing a benefit. Multiple providers thought that conducting a housing survey or using existing
public and private data would provide information on rents without adding more regulations on their
operations.

Housing providers suggested that a rent registry could increase housing costs and remove units from the
market, negatively impacting tenants. Multiple commenters said that further regulation would cause them or
other housing providers, particularly owners-managers with small rental properties, to sell their properties.
Providers said that increased regulation would reduce the availability of rental housing as some owners
choose to leave the market. Interviewees and listening session participants also said tenants would bear the
cost of any fees associated with the registry, leading to higher rental costs.




WASHINGTON RENTAL REGISTRY STUDY                                                                                  24
Appendix A: Detailed program design considerations
Purpose of this document
This document summarizes the major considerations that will inform the design of a state rental registry,
including design options, tradeoffs, and relevant findings from background research.


Methodology
We conducted background research to develop an overview of design features of rental registries and
considerations for the design of a state rental registry program in Washington. This work included: producing
case studies of four existing rental registry programs; creating an overview of existing local rental registry
programs in Washington; conducting a scan of rental housing market conditions in Washington; and engaging
with stakeholders through interviews and listening sessions.

Rental registry goals
Potential policy goals
Rental registries can advance several potential policy goals or purposes. Rental registries collect information
about rental housing. This can include information about the number and location of rental homes; market
data including housing type and cost; and information about the quality of homes. In addition, a rental registry
can support regulation of one or all of these.

Potential goals for a rental registry include:
      Inform policy decisions for state and local governments by providing up-to-date data on rental housing

      Help state and local governments monitor compliance with state policies, such as monitoring progress
      toward accommodating housing needs for all incomes, or tracking evictions

      Ensure housing quality and strategic code enforcement by identifying and addressing health, safety, and
      other hazards in housing, or by identifying owners of rental properties with persistent code violations,
      and working with property owners to make needed repairs

      Reduce or minimize regulatory burdens for housing providers (property owners and managers) working
      in multiple cities by streamlining compliance requirements with multiple local registries

      Improve and enable communication with housing providers to conduct outreach, provide resources,
      build trust and improve relationships between the industry and government regulators

Existing state-level rental registries meet a range of goals, from tracking rent-stabilized properties (New York),
to addressing environmental hazards in older homes (Maryland), to identifying property owners to support
local services such as code compliance and first responders (Ohio). In Washington, local rental registry
programs focus on ensuring housing quality.

The goal or goals for a statewide rental registry in Washington will be critical to informing the program’s
design. The proviso does not specify a purpose for the proposed rental registry. Based on conversations with
Commerce, we understand that one of the state’s goals is to help state lawmakers and local governments



WASHINGTON RENTAL REGISTRY STUDY                                                                                25
understand their rental housing markets to make informed decisions, meet growth and affordability
requirements, and track housing affordability.


 Study Question:
 What are the equity concerns for this project? Where is the burden placed and what may be unintended
 impacts from the implementation of the registry?

Equity considerations
The most essential equity consideration for a state rental registry is to ensure the program does not worsen
challenges of affordability and stability for renters in Washington. Renters throughout Washington make less
money and face higher housing cost burdens, which means they have fewer resources to withstand
unforeseen costs or loss of income. Increasing housing costs will make housing cost burden worse for many
renters. Renters are also disproportionately nonwhite, due to historic and ongoing exclusionary policies and
practices that limit access to homeownership. Any policy that impacts renters will disproportionately affect
low-income residents as well as nonwhite households.

A rental registry program could place added cost burdens on renters. Housing providers could pass
registration fees on to renters, either directly in the form of fees or indirectly in the form of increased rents,
though studies suggest this is not a common practice. Increasing cost or regulatory burden for property
owners could also lead to some of them to remove housing from the rental market, such as by operating the
home as a Short-Term Rental instead of permanent housing. Because of these risks, it will be essential to
minimize registration fees and the costs of compliance with a rental registry.

The fee structure should not create excessive charges for owners with only a few rental properties. Small
rental properties, such as single-family homes, are more likely than larger properties to have small, private and
self-managed property owners. These owners are more likely to rent to lower-income or more vulnerable
renters. Some exiting rental registries charge a larger registration fee for the first unit in a rental property, and a
smaller per-unit fee for each additional unit. This structure results in a high fee per unit for smaller properties,
and therefore creates higher cost impacts to these owners and their renters.

The rental registry program should accommodate registration through online and paper forms. A user-
friendly online portal that can collect registration information and fees will be critical to minimize compliance
costs for many property owners in the state. However, access to reliable high-speed internet varies across the
state. To ensure that differences in access do not create barriers to compliance, the state should allow
property owners to provide registration forms and payments by mail.

Applicability
Subject geography
The design of the program will consider the potential tradeoffs and implications of implementation across two
different geographies:

1. Statewide implementation
2. Implementation limited to the six largest counties (Clark, King, Pierce, Snohomish, Spokane, and
   Thurston), which together account for approximately 74% of renter-occupied homes in
   Washington


WASHINGTON RENTAL REGISTRY STUDY                                                                                     26
A statewide implementation would give the state the best opportunity for a full understanding of rental housing
in different types of markets. However, the six largest counties account for almost three quarters of rental
housing in the state. It will be an important cost/benefit decision to consider the benefits of gathering this data
compared to additional costs associated with compiling and managing it.

Rental homes subject to registration
 Study Question:
 Analyze different types/groups of units that could be included and or excluded from the registry and
 discuss the potential impacts of excluding those groups including data loss that might result from these
 exclusions.




The inclusion or exclusion of different property types is likely to impact fees collected as well as the
complexity of administration, impacts to property owners, and strength of data collection. Most existing rental
registries in Washington apply to all residential rental property with limited exceptions.

Properties by size and type:
      Renter-occupied single-family homes: Most city-level rental registries in Washington require all rental
      homes, including single-family homes, to comply with registry requirements, though a few exempt these
      properties from inspection requirements. Single-family homes account for over one-third of all rental
      housing in the state, and they are the largest category of rental housing across each region. Single-family
      homes are more likely than larger multifamily properties to have small, private owners.

       •   Excluding single-family homes from a rental registry would result in a significant loss of data. There
           is not a compelling reason to exclude or exempt renter-occupied single-family homes from
           compliance with a rental registry program.

      Duplexes (or ADUs) in which one unit is owner-occupied: Most city-level rental registries in Washington,
      which are focused on maintaining housing quality, require all rental homes, including single-family
      homes, to comply with registry requirements, though a few exempt these properties from inspection
      requirements. Owner-occupancy of small properties could indicate that the property has a small, private
      owner. We do not know how many of these homes exist in Washington. Properties with 2 to 9 units
      account for the second largest number of rental homes in each region after single-family homes.

       •   Excluding duplexes or properties with Accessory Dwelling Units in which one unit is owner-occupied
           is likely to result in a significant loss of data. If the state is interested in collecting rental market
           data, there is not a compelling reason to exclude or exempt owner-occupied duplexes from
           compliance with a rental registry program, though the owner-occupied units in each duplex would
           not be subject to the registry.

      Mobile homes (owner-occupied and renter-occupied): Mobile homes, unlike non-manufactured rental
      units, have divided ownership. Mobile homeowners pay for their own gas and electricity, while the
      landowners pay for sewer and refuse collection costs. Mobile home park operating costs could include
      more infrastructure expenses than apartment buildings, but much fewer maintenance costs. There are
      approximately 165,000 occupied mobile homes statewide (127,000 owner-occupied and 38,000 renter-
      occupied). This represents approximately 13.7% of homes that would be subject to a rental registry.


WASHINGTON RENTAL REGISTRY STUDY                                                                                 27
      •   There is not a compelling reason to exclude or exempt mobile home parks from compliance with a
          rental registry program. The state could provide exemptions to mobile home occupants who own
          both the mobile home and the property on which it sits.

    Subsidized affordable housing: Many existing rental registries require owners of subsidized affordable
    housing to register their properties. In Washington, most registries waive inspection requirements for
    homes with federal subsidies, such as Low-Income Housing Tax Credit (LIHTC)-financed properties,
    because these properties are already subject to inspection through HUD requirements. Some also
    provide fee waivers for nonprofit-owned affordable housing to reduce the financial burden.

      •   Pending confirmation of the legal restrictions, the state should require registration but waive fees
          for government-owned and operated rental properties.

    Institution and commercial properties including group homes, dormitories, and hotels: Most existing
    rental registries exempt these non-rental housing property types from rental registry compliance.

      •   The state should exempt non-rental housing property types such as institutions and hotels because
          their operations, furnishings, zoning, and other factors are distinct from permanent rental housing.

Properties by ownership:
    Ownership type (e.g., individual, LLC, corporation) or number of units owned: To protect small, private
    housing providers (“mom and pops”) a rental registry could allow exemptions for owners with fewer than
    a certain number of rental units or individual owners (as opposed to a corporate owner). This can be
    complicated for a number of reasons. First, many renters do not consider the legal structure of the
    property’s ownership in selecting a rental home but would receive different types of protection or
    regulation based on ownership. Second, through establishment of multiple LLCs it is easy for owners to
    obscure the number of properties they own. Finally, identifying contact information to enable
    communication with property owners, including small private owners, is likely to be a critical output of
    any rental registry program.

      •   To gather useful data on rental markets and enable communications with property owners, the
          state should not exempt properties based on ownership.

    Government-owned properties: Our research indicates state law exempts government-owned, operated
    or managed rental properties from paying registration fees. This includes housing authority properties.

      •   Pending confirmation of the legal restrictions, the state should require registration but waive fees
          for government-owned and operated rental properties.

    Tribal-owned properties: Some tribal governments own rental properties outside of tribal lands. We are
    not aware of any legal barriers that would prevent the state from requiring registration of these
    properties, however the state’s attorney general should confirm this.

      •   Pending confirmation of the legal restrictions, the state could consider making registration of tribal-
          owned properties on non-tribal lands voluntary, by waiving any fees or fines associated with
          compliance.




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Other cases:
    Vacant properties not available for rent: Several existing rental registries in Washington allow
    exceptions for properties that are vacant and not available for rent. The goal of these programs is to
    ensure that rental housing meets life and safety standards for residents, so homes that are not available
    for rent and would not have occupants are exempt from compliance. However, capturing information
    about these properties would be helpful to understand market conditions and housing supply, or to
    identify property owners of abandoned or chronically vacant properties in support of code enforcement.
    Vacant properties not available for rent would be unable to provide information on monthly rents.

      •   If one of the state’s goals is to gather data on rental markets and housing supply, the state should
          not exempt properties based on vacancy status.

    Room rentals in owner-occupied homes: Most existing rental registries in Washington offer exemptions
    for room rentals, or rentals for which the lease applies only to a portion of an owner-occupied home. It
    would be difficult to track and enforce compliance of these properties, and it would be difficult to
    compare monthly rents of these rentals with rents that apply to an entire home.

      •   Because of the complexity of enforcement and because rooms are not comparable with units for
          data gathering purposes, the state should exempt room rentals in owner-occupied homes.

    Short-term rentals:

      Study question:
      What are the potential impacts, including costs, of including or excluding short term or vacation
      rentals in the registry?


    At the state level, property owners who rent out homes, rooms, condos, time shares, cabins, camping
    sites, or RV sites on a short-term basis (less than 30 days in a row) for overnight accommodations need
    to register with the Department of Revenue and get a business license if they meet certain criteria.
    Qualifying short-term rental businesses must apply for a business license, pay associated fees, and,
    depending on the type of ownership entity, sometimes register with the Washington Secretary of State.
    The Department of Revenue business license application requires information on the owner, business
    location, estimated income, products or services sold, and number of employees. At the city level, the
    way cities with registries manage short-term rentals varies significantly—some exempt them from their
    registries, some include them, and some govern them under a separate ordinance. Including short-term
    rentals in a registry at the state level would make it easier to understand what portion of rental housing
    stock is not available to traditional renters to get a more accurate sense of the available rental housing
    supply. However, since the state already governs short-term rentals via business licenses, requiring
    registration of short-term rentals could result in overly bureaucratic processes and a lack of clarity about
    government oversight. In addition, short-term rentals are not part of the supply of permanent rental
    housing and do not charge monthly rents or calculate vacancy status in the same way that permanent
    rental homes do.

      •   The state could require short-term rental properties to comply with a rental registry, but there are
          two primary reasons not to: first, because the state already requires owners of these properties to
          obtain a business license, and therefore already has information about the number and location of



WASHINGTON RENTAL REGISTRY STUDY                                                                              29
           these properties; and second, because data about short-term rentals will not be comparable to data
           about long-term housing.

Data capture
 Study question
 Conduct an analysis to determine the potential benefits of collecting additional data beyond the
 requirements stipulated in the proviso. Consider the potential impact of collecting additional data on the
 overall functionality and effectiveness of the registry. Propose modifications to the data fields that could
 enhance the utility of the registry and the impacts of each of those specific proposed modifications.



Types of data
The proviso specifies the collection of the following data:
   Physical address
   Property owner identity
   Monthly rent charged
   Vacancy status

There are fundamental tradeoffs between the level of detail or granularity of data, its value in informing
market assessments, the cost and complexity of gathering and storing data, and the likelihood of getting
reliable compliance. The most basic tradeoff is between collecting data at the property level (simple) and at
the unit level (complex), however, there are other important nuances.

      Value of market data: It can be difficult to get meaningful data on costs to renters without asking for
      multiple data points. At the most basic, the number of bedrooms in each unit will impact the rent (as will
      other property-level specifics such as the floorplan, placement in the building, etc.). Asking housing
      providers to provide monthly rent without also asking for the number of bedrooms in each unit will make
      it difficult to understand the actual cost and availability of rental housing. Rental units also differ in which
      utilities or services monthly rent includes, and which the tenant pays directly. This can also make it
      difficult to understand the true cost of rental housing. Some rental properties offer incentives (e.g., free
      month of rent) or charge amenity or service fees in addition to monthly rents. To capture useful data to
      analyze actual cost of housing at the market level, the registry would need to collect data on the number
      of bedrooms and the total of all monthly charges to the tenant, adjusted for annual incentives or fees,
      and identify any utilities not included in rent.

      Program cost and complexity: Collecting and storing property-level information is less complex than
      collecting and storing unit-level information. There are two primary components to the added complexity:
      first, the database and data security infrastructure would need to be more complex to store more
      records (there are approximately 1 million rental homes in Washington in about 450,000 rental
      properties), to store data at both the unit and the property level, and to maintain security of more
      sensitive industry data. Artesia can help estimate the increased complexity and cost of this requirement.
      Second, the state would require added staff time to oversee compliance efforts and assist property
      owners, enter data from paper registration forms (if applicable), and analyze data.

      Compliance impacts: The longer and more complex the registration process, the more likely it is to
      produce incomplete or inaccurate data. Property owners or managers might not have full and accurate


WASHINGTON RENTAL REGISTRY STUDY                                                                                   30
      data organized in a way that they can easily reference it, and they could provide guesses rather than
      confirm details. A complex registration process could discourage compliance or lead to partial
      compliance (property owners provide some but not all of the data requested). About 30% of rental
      housing in Washington is in single-family homes (more when adjusting to include owner-occupied mobile
      homes), and for those homes collecting unit-level and property-level data would be the same. However,
      for a multifamily housing provider with multiple properties, a property level registration process could
      require only a few entries, whereas unit-level could require them to enter information for hundreds or
      thousands of rental units.

Of the data points in the proviso, physical address and property owner identity are property-level data points,
while vacancy and monthly rent would typically be unit-level. A registry could collect data on vacancy status at
either the unit level (for each unit, is it occupied or vacant?), or the property level (what number or what percent
of units are vacant?). Collecting full and accurate rent data at the property level would be difficult and costly.
As a potential alternative, the registry could ask for the number of units and “typical” monthly costs (inclusive
of all fees) by size (e.g., studio, 1 bedroom, 2 bedroom, etc.). This would produce less detailed and complete
market data, but it would simplify the registration program.

Below is a broad summary of potential data types a rental registry could collect, and relevant considerations
for their inclusion or exclusion:

Table A1: Data types a rental registry could collect and considerations
Type of data       Potential data points                          Considerations

                       Physical address
                                                                  Physical address is the most universal property identifier and
                       Other property identifier (e.g., parcel
                                                                  therefore likely to serve as the basis for the inventory of rental
                       number)
                                                                  properties. Other property identifiers (e.g., parcel numbers) will vary
                       Property type (e.g., Single-family, ADU,
                                                                  in length by County but might be helpful to track for verification
                       2-to-4-unit property, 5+ unit property,
                                                                  purposes when addresses are similar, or when sharing data with
                       mobile home)
                                                                  local governments.
Property               Total number of rental units in the
information            property (excluding owner-occupied
                                                                  Information about the property type and total number of rental units
                       units)
                                                                  will provide helpful context and information about the rental market.
                       Number or percent of units that are
                       vacant
                                                                  The year built could be a useful data point but not all registrants will
                       Assessment data (e.g., year built, total
                                                                  have access to that data. The state could potentially work with
                       square footage, receipt of homeowner
                                                                  County assessors to track year built or other assessment data.
                       exemption, assessed value)

                                                                  In order to enable full communications with housing providers
                       Property owner name, mailing               including property owners and third-party managers, the rental
                       address, email address, phone              registry should collect names and contact information for property
                       number                                     owners and managers.
                       Property manager name, mailing
Ownership and          address, email address, phone              If the state is interested in better understanding the nature and type
contact                number (if different from owner)           of property owners in Washington, it could also ask for information
information            Ownership type (e.g., individual or        about the ownership structure or total number of units owned.
                       trust, limited partnership, LLC,
                       corporation) or other data (e.g.,          Some code enforcement-focused rental registries require
                       number of units owned)                     registrants to identify a local contact when the owner does not live
                       Local contact/individual contact           locally, or an individual contact for properties with a corporate, LLC,
                                                                  or other legal entity for an owner.

                       Lease type (long-term or short-term,
                                                                  Unit-level data will help give detailed information about the supply of
                       i.e., less than 1 month)
Unit information                                                  rental housing.
                       Occupancy status (occupied or
                       vacant)



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Type of data         Potential data points                        Considerations

                         Unit size (number of bedrooms or         The more complex the data the state tracks, the more onerous the
                         square footage) or other details such    burden on property owners and the more complex the data
                         as number of bathrooms                   management and analysis will need to be. At the most basic, the
                         Monthly rent                             state could track lease type, vacancy status, number of bedrooms,
                         Utilities included in rent               and monthly rent. The status of utilities and additional fees could
                         Additional fees (e.g., Amenity fee,      help give a more complete view of housing costs.
                         HOA fee for mobile homes)

                                                                  There are several ways to track subsidized affordable homes. At the
                                                                  most basic, the state could track whether each unit receives a
                                                                  subsidy in exchange for income restriction, and the affordability
                                                                  level of the restriction based on Area Median Income (e.g., 30% AMI,
                         Income-restricted status
                                                                  50% AMI, 60% AMI, 80% AMI). A more complex approach would be
                         Subsidy type (LIHTC, Project-Based
                                                                  to also track the type of subsidy (e.g., Low-Income Housing Tax
                         Vouchers, other)
Unit affordability                                                Credits (LIHTC), HUD 202 financing, Project-Based Vouchers, etc.).
                         Affordability level (based on Area
information
                         Median Income, e.g., 30% AMI, 60%
                                                                  The use of tenant-based vouchers provides another data point
                         AMI)
                                                                  related to affordability, though it is subsidy for the tenant rather than
                         Use of Tenant-Based Vouchers
                                                                  the property owner.

                                                                  Most federal subsidy programs already require detailed reporting to
                                                                  track compliance of these properties.

                                                                  Tenant data (which could include demographic information such as
                                                                  age, household size, and race or ethnicity as well as income, length
                         Tenant data (demographics, income,       of tenure in the home, and source of income such as vouchers)
Tenant                   length of tenure)                        could provide an additional dimension of rental market data.
information              Source of Income (e.g., use of tenant-   However, collecting this data would significantly increase the
                         based vouchers)                          complexity of the data collection process, creating a burden for
                                                                  registrants to update data on their tenants’ income annually. It could
                                                                  pose a privacy risk for tenants.

                                                                  Data on property management policies and could provide additional
Property                 Tenant screening criteria (e.g.,         information on housing access and displacement rates. However,
management               required income, credit score)           requesting this data would increase the complexity of the data
policies                 Unit eviction history                    collection process and housing providers could be unwilling to
                                                                  share the information.




Inspection requirement
Most existing local rental registries in Washington require inspections.

Overseeing an inspection program would be costly and would duplicate local efforts. A state registry should
not include an inspection requirement unless improving housing quality is an explicit goal of the program.


Program administration

 Study question:
 Should the Rental Registry Program be managed by the Department of Commerce or is it more efficient and
 effective for another agency to manage the registry based on their existing capabilities?



Program administrator
A new state rental registry program will require a program administrator to manage operations, including:


WASHINGTON RENTAL REGISTRY STUDY                                                                                                         32
   Providing outreach, information, and technical assistance to property owners and other stakeholders about
   the program, both to increase compliance and to educate the public
   Hosting and managing an online platform to collect, store, and disseminate data and collect fees (either
   directly or with a third-party vendor)
   Conducting data entry for paper submissions (if applicable)
   Conducting quality control for registration data
   Monitoring and reporting on compliance and other metrics of success
   Analyzing and reporting on rental market data, or responding to requests for data
   Providing other oversight as needed depending on the program’s goals

A state agency such as Commerce could serve as the administrator or could hire a third-party contractor to
administer the program. Ohio’s model requires no state-level administration, and instead puts the
administrative burden on participating County Auditors. However, this approach both creates new
administrative burdens for County staff and limits the value of the program at the state level.

Commerce works with a range of stakeholders statewide including local governments, businesses, and
community organizations. It oversees state-level housing programs including the Housing Trust Fund and
provides technical assistance and education.

Commerce is likely to be a suitable administrator.

Fee schedule
 Study question:
 Provide an analysis of the various registration fee structures with detailed projections of how different fee
 levels would impact the rates of landlord participation. Identify and detail any potential tipping points for
 dramatically decreased or increased participation.


Most rental registry programs charge a registration fee. The registration fee typically helps offset the costs to
administer the program. In some of the cases we reviewed, administrators found that registration fees were
not sufficient to cover program operating costs, and either raised registration fees or were considering raising
fees.

Fee structure:
      Fee by size: Registration fees often vary according to the size of the property, either as a flat per-unit fee
      or a tiered fee based on ranges of units. Many existing registries charge a larger amount for the first unit
      in a property, and a smaller per-unit fee for each additional unit. This structure results in a
      disproportionately high fee per unit for smaller properties, which are more likely than larger properties to
      have small, private and self-managed property owners.

       •   A flat per-unit fee ensures that the scale of revenue tracks the scale of registrations, without
           creating disproportionate burdens on small property owners and their tenants.

      Fees by property condition: Minneapolis charges rental registration fees based on property size and
      condition, to incentivize owners and managers to keep their properties in good condition, and to ensure
      that property owners that create more compliance costs (i.e. require more frequent inspections and take
      longer to address problems) pay a higher fee to cover those costs.



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       •   Because housing quality and inspections are not a focus of the state program, a fee structure tied
           to property condition is not advisable.

Fee levels:
     Scale to program size: Ohio’s statewide registry, which has no cost to the state, does not include a
     registration fee at the state or the county level. Los Angeles County charges $90 per unit for properties
     that are subject to rent stabilization (and require additional oversight) and only $30 per unit for properties
     that are not rent-stabilized. Minneapolis charges a broad range of fees depending on property size and
     condition, but even a single-family home in good condition would have registration fees above $100 per
     year. However, Minneapolis’s program has compliance incentives that reduce costs. Rental registration
     fees for existing city-level registries in Washington typically range from about $10 to $50 per unit per
     year, excluding the cost of inspections.

     Financial burden and compliance: Added cost for property owners, particularly those who already pay
     local registration fees and inspection fees, could serve as a deterrent to compliance. Minneapolis’s
     program, which has a compliance rate of over 90%, has compliance incentives that reduce costs.

       •   The state should explore the possibility of not charging a fee for registration. The state should also
           explore compliance mechanisms that reduce costs, such as discounts for early registration.

     Tenant impacts and equity implications: It is possible that property owners would pass any fees
     associated with registration on to tenants, either directly as a rent surcharge or indirectly through
     increased rent or decreased services. Renters in Washington are more likely to have lower incomes and
     to be non-white than homeowners. High registration fees could have a disproportionate impact on
     Washington’s most vulnerable residents.

       •   A state rental registry should minimize registration fees to the extent possible.

     In addition, the state would either require property owners that already pay city registration fees to pay a
     state registration fee as well, or exempt property owners who pay city registration fees, which could
     cause imbalances to the impacts of a state program on property owners in different cities.

       •   To minimize unintended consequences, maximize compliance, and limit regulatory burdens for
           property owners, the state should minimize the registration fees as much as possible, such as
           charging a low, flat per-unit fee of $10 to $30. The state should also explore the possibility of
           operating a program without a fee. This means that the program might not produce enough revenue
           to cover its operating costs. The state will need to pay for most or all of the program’s
           administrative costs to avoid passing them on to property owners and, potentially, renters.

Tipping points
Outreach and enforcement mechanisms will create the primary “tipping points” in participation. If the state
creates a voluntary program or a program with no fees and no penalties for non-compliance, compliance will
be low. The primary ways to increase participation will be first, to conduct extensive outreach and marketing to
property owners, and second, to make non-compliance burdensome and expensive.

Registration process
The registration process and timing should be as easy as possible to maximize compliance, while allowing
flexibility.


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      Online portal for registration: The best practice for a registration process is to provide a secure online
      portal where property owners or managers can submit information and pay fees.

      Paper option: Property owners in some parts of the state could have barriers to using an online platform,
      so the state could also consider providing a static form that owners can download or receive by mail, as
      well as allowing payment of fees by check. Seattle estimates that 30% of its property owners opted to
      provide a paper form and check instead of using the online system. Providing a mail-in option would add
      to the administrative cost of the program to provide data entry but could help to increase compliance as
      well as the accessibility of the program.

Re-registration schedule
 Study question:
 Determine whether re-registration for every new vacancy is required or if an annual requirement is sufficient
 to gather impactful state data.


Most existing registries have a set date on which all registrations are due each year. This approach is
straightforward and predictable, both for owners and for program administrators. Some registries require
registration at other times, such as the sale of the property or a change in tenancy. This approach adds
complication and cost to the program but could be valuable for programs such as San Francisco’s where the
purpose is to track compliance with rent stabilization. Housing providers that operate multiple units would find
it burdensome to track turnover of every rental unit each time it occurs.

Collecting point-in-time data on a predictable schedule provides useful data for analysis and is and more
cost effective than requiring updates based on property changes.

There are over 1 million rental homes in Washington. Instead of requiring annual registration for every unit, a
rental registry could, for example, require registration every 3 years, so that approximately one-third of rental
units must provide updated registration information each year. There are precedents for this approach in
Seattle and in Minneapolis. This would reduce the timeliness of market data. However, using a multi-year cycle
for registration would significantly reduce the costs to operate the program as well as the impacts to property
owners.

The state should consider adopting a multi-year registration cycle, such as a 3-year cycle.

Compliance mechanisms
 Study question:
 Deliver a comprehensive analysis of the current participation rates in existing registries in jurisdictions in
 Washington and in other states.

 Based on comprehensive literature review and case studies, assess the expected level of landlord
 participation in the registry over both the short and long term. Provide insights into potential challenges and
 opportunities for sustaining or increasing participation rates over time.




WASHINGTON RENTAL REGISTRY STUDY                                                                                   35
It is difficult to comprehensively analyze and report on rental registry compliance. This is partly because most
rental registries either do not report compliance or lack historical compliance data. Additionally, administrators
of these programs do not know the exact number of rental homes subject to registration requirements and can
only estimate compliance.

      New rent registries have low compliance rates. Based on case study research, Los Angeles County and
      San Francisco, which both implemented rental registry programs in 2020, have compliance rates below
      5%. In Washington, the cities of Kent and Olympia established rental registries in recent years and
      estimate compliance is currently below 10%. Challenges arising from the COVID-19 pandemic, including
      limited stakeholder engagement, rent freezes, and other pandemic-era policies could partly explain these
      low compliance rates.

      Some longer-operating registries have higher compliance rates. For example, Minneapolis' long-
      standing program, now in its 26th year, boasts over 90% compliance. Similarly, Seattle, which established
      its registry in 2014, estimates a compliance rate of about 90%. Both cities employ outreach and
      compliance measures similar to newer programs, such as mailers, online applications, late fees, and
      early registry fee waivers. It is possible that their higher compliance rates are due in part to their longer
      operations, as well as to other factors such as compliance mechanisms.

The level of compliance and participation in a statewide rental registry will depend on a number of factors
including the cost and complexity of the registration process, outreach measures, and incentives and penalties
for compliance. It is likely that the program will have low compliance (below 10%) for the first 3 years. This is
due to the challenges of rolling out a program in a large geographic area, and challenges in identifying,
contacting, and incentivizing property owners. Pairing effective incentives and consequences to increase
compliance with extensive ongoing outreach and enforcement campaigns will be critical to improving
participation in a statewide rental registry program.

There are three primary approaches to encourage compliance. Programs with high compliance use all three.


 Study question:
 Provide a comprehensive overview and analysis of strategies to encourage property registration. Provide
 recommendations on the most effective approaches for implementing consequences or incentives to
 increase compliance rates. Special focus should be given to addressing registration challenges among
 hard-to-reach landlords and unconventional unit types, including owner-occupied multifamily properties,
 accessory dwelling units, and mobile home rentals.


Approach 1: Reduce regulatory barriers to compliance:
      Provide user-friendly registration options. An easy-to-use secure online portal can make it easy for
      property owners to register and pay fees. In addition, providing an option for paper submissions is
      important for property owners who prefer to mail their form and payment. Registration forms should be
      as straightforward as possible and minimize the time required for data entry.

      Provide extensive outreach, marketing, and technical assistance. An effective outreach and educational
      campaign will be critical in the pre-launch and startup phases to raise awareness among property
      owners and tenants. After startup, ongoing outreach and marketing are important to continue to




WASHINGTON RENTAL REGISTRY STUDY                                                                                36
     encourage registration. To further reduce regulatory barriers, programs can also provide technical
     assistance for property owners and tenants with questions about the registration process.

     Engage with tenants as well as property owners. Some rental registries allow tenants to provide
     information about their rentals, such as the property location and owner or manager information, to
     support outreach efforts. Some rental registries that support broader policies such as housing quality
     also allow tenants to report violations.

Approach 2: Provide financial incentives for compliance:
     Waive initial registration fees. Some newer registry programs, such as Los Angeles County’s registry,
     waive the registration fees for an initial compliance period (e.g., one year) to encourage early
     participation.

     Provide annual discounts for early registration. Minneapolis, which has over 90% compliance, provides a
     discount of 50% of the registration fee for property owners that submit registrations before the annual
     deadline. Olympia’s rental registry offers tax rebates for early compliance.

     Provide other mechanisms for owners to reduce fees. Some registry programs, including Minneapolis,
     enable property owners to lower their registration fees if they attend “good landlord” workshops or other
     educational initiatives that advance program goals.

Approach 3: Make non-compliance expensive
A rental registry program without financial or regulatory consequences for non-compliance will be voluntary,
and compliance will be low. Setting and enforcing clear penalties for non-compliance will be the most critical
way to encourage participation.

     Create financial penalties for late compliance. LA County imposes an annual 10% late fee on any unpaid
     balance for already-registered property owners who fail to pay their units’ fees by the annual deadline.
     Staff noted that the fee was too low to increase compliance significantly. San Francisco charges
     property owners a monthly 5% late fee, collected through the Bureau of Delinquent Revenue. In
     Minneapolis, rental license renewals 15 days after the yearly deadline are subject to an annual penalty
     charge of 25% of the license fee up to $3,000, charged through the annual real estate tax payment.

     Create financial penalties that dis-incentivize unwanted practices. Minneapolis’ progressive fee
     structure includes higher fee amounts for properties that have code violations, as well as a progressive
     supplemental Property Management fee that the city applies if they must conduct multiple property
     inspections. This fee structure ensures that unresponsive property managers offset the cost of added
     oversight.

     Create regulatory penalties for non-compliance. Registries that support broader housing programs or
     policies tie non-compliance penalties to these policies. In San Francisco and LA County, non-compliant
     properties are not eligible to raise rents of rent-stabilized properties. If a non-compliant property owner
     increases rents without a license in San Francisco, the tenant has the right to file a civil proceeding
     against the property owner. Tenants and mobile homeowners in LA County can submit an online form if
     their home unregistered or if their housing provider is raising rents above allowable limits. Minneapolis
     requires owners to have an up-to-date rental license to rent a unit, enforced by reporting from tenants or
     their advocates.


WASHINGTON RENTAL REGISTRY STUDY                                                                               37
        •   A multi-pronged approach that combines clear incentives and penalties, streamlined registration
            processes, and robust outreach efforts will improve initial registration and ongoing program
            compliance.

Addressing the registration challenges among hard-to-reach landlords and unconventional unit types
requires tailored outreach and support programs. For owner-occupied multifamily properties, accessory
dwelling units (ADUs), and mobile home rentals, personalized communication and technical assistance can
enhance participation. The City of Burien exempts these property types from certain inspection requirements
while offering technical assistance and financial incentives to encourage compliance. Olympia’s new rent
registry exempts ADUs and duplexes with an owner-occupied unit from inspections. Targeted mail campaigns,
online portals, and in-person assistance can also facilitate the registration process. Offering workshops and
training sessions, as seen in Minneapolis, can also educate property owners on the benefits and requirements
of registration, ensuring higher compliance rates across diverse property types.

Outreach and education
 Study question:
 Compile an analysis of the most effective strategies observed in various jurisdictions for outreach and
 educational campaigns aimed at improving participation accompanied by cost estimates for these efforts.


An effective outreach and educational campaign is essential for improving participation in a statewide rental
registry program. Our case study review and interviews with program administrators highlight the need for
ongoing engagement with housing providers from the initial registry design and rollout through startup and
ongoing operations. The state should conduct outreach from pre-launch through startup and continue
throughout the program's operation. Implementing statewide engagement approaches like mass mailers and
technical assistance will require significant time and funding. Additionally, the state needs to couple outreach
with compliance mechanisms over an extended period to increase registration rates.

Table A2: Engagement approaches and considerations
Engagement approach                                                  Phase      Advantages              Disadvantages

                                                                                                        Unlikely to reach disengaged
                                                                                                        property owners
                                                                                Boost initial program
                                                                                awareness               Virtual sessions might not
Informational sessions                                                                                  be accessible to owners
Most registries engaged housing providers and their advocate                    Virtual sessions are    with internet access barriers
                                                                     Pre-
associations in informational sessions prior to launching the                   low-cost and can have
                                                                     launch,
rental registry. The sessions, which can be virtual, in-person, or              a wide reach          Hosting in-person sessions
                                                                     startup
hybrid, allow housing providers to familiarize themselves with the                                    across the state could be
program, ask questions, and plan for registration.                              The state can record  costly
                                                                                sessions webinars for
                                                                                later viewing         Housing providers can use
                                                                                                      sessions to air grievances
                                                                                                      about the program

                                                                                Access to
Partnerships with associations
                                                                     Pre-       associations’           Unlikely to reach disengaged
Most registries engage rental housing associations and tenant
                                                                     launch,    extensive network of    property owners
advocacy groups to co-host events and distribute materials,
                                                                     startup,   housing providers
increasing awareness to a large number and variety of housing
                                                                     ongoing                            High cost if in person
providers.
                                                                                Low cost if remote



WASHINGTON RENTAL REGISTRY STUDY                                                                                                   38
Engagement approach                                                       Phase      Advantages               Disadvantages

Meeting with neighborhood groups                                                                              High cost if in person
                                                                          Pre-       Targets hard to reach
Organizing neighborhood meetings in urban, suburban, and rural
                                                                          launch,    property owners in
areas can reach property owners who might be less likely to                                                   Challenging to accomplish
                                                                          startup    specific geographies
respond to mail or online communications.                                                                     across the state

                                                                                                              Data collection will be time-
                                                                                                              consuming and expensive
                                                                                                              without a central state
Mass paper mailing
                                                                                                              address repository
Direct mailer campaigns increase awareness of the program
                                                                                     Boost initial program
before registration begins. Commerce needs to assess how to
                                                                                     awareness                Direct mail costs to reach all
collect contact information (e.g., address, owner’s name) for all
                                                                                                              property owners or likely
residential properties across the state. The state can collaborate
                                                                                     Cover a high number      rental properties across the
with county assessors, utility companies, or local governments to         Pre-
                                                                                     of properties            state could be very
secure these contact details. Outreach materials should include           launch,
                                                                                                              expensive
information about the program, as well as contact information for         startup,
                                                                                     More likely to reach
questions and website links for further information.                      ongoing
                                                                                     small-scale housing      Could result in a high
                                                                                     providers and other      number of calls from
As a starting point, mass mailing can cover all residential property
                                                                                     difficult to reach       housing providers and
or focus on “likely rental properties,” multiunit residential
                                                                                     owners                   single-family homeowners
properties plus any single-family residential properties for which
the tax billing or utility billing address is not the property address.
                                                                                                              Requires staff capacity to
                                                                                                              answer phone and email
                                                                                                              inquiries

                                                                                     Boost program
Transaction-driven mailing                                                Pre-       awareness of new
                                                                                                              Requires coordination with
Coordinate with property registries to receive up-to-date                 launch,    property owners
                                                                                                              local and/or state property
information on new property sales. Send rent registry information         startup,
                                                                                                              registries
to new property owners based on sales transaction records.                ongoing    Engage new property
                                                                                     owners

                                                                                     Boost initial program
                                                                                     awareness
Mass emailing                                                                                                 Data collection will be time-
Direct email campaigns increase awareness of the program                                                      consuming and expensive
                                                                                     Cover a high number
before registration begins. Commerce would need to assess how
                                                                                     of properties
to collect contact information (e.g., email address, owner’s name)                                            Could result in a high
                                                                          Pre-
for property owners across the state. This would involve working                                              number of calls from
                                                                          launch,    Lower cost than a
with operators of existing rental registries, local governments,                                              housing providers and
                                                                          startup,   paper mail campaign
utility companies, and industry associations to support an online                                             single-family homeowners
                                                                          ongoing
outreach campaign and develop a distribution list. The state
                                                                                     More likely to reach
should include information about the program as well as contact                                               Requires staff capacity to
                                                                                     small-scale housing
information for questions or links to information sessions on the                                             answer phone and email
                                                                                     providers and other
outreach materials.                                                                                           inquiries
                                                                                     difficult to reach
                                                                                     owners

                                                                                                              Could result in a high
                                                                                     Boost initial program    number of calls from
                                                                          Pre-       awareness                housing providers and
Advertising and social media
                                                                          launch,                             single-family owners
Posts on state social media accounts, paid social media
                                                                          startup,   Cover a high number
advertisements, and advertisements in local media outlets
                                                                          ongoing    of properties at a low   Requires staff capacity to
                                                                                     cost                     answer phone and email
                                                                                                              inquiries

                                                                                     Online and phone
Technical assistance
                                                                                     system is accessible
Providing one-on-one technical assistance through a dedicated             Startup,                            High implementation and
                                                                                     regardless of users’
helpline and online chat support to help property owners with the         ongoing                             operating cost
                                                                                     location
registration process.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                            39
Engagement approach                                                   Phase        Advantages               Disadvantages

                                                                                   Small scale owners
                                                                                   can receive focused
                                                                                   support

                                                                                                            Dependent on a user-friendly
                                                                                                            online website or mobile
                                                                                   Low cost                 application, as well as
Citizen reporting
                                                                      Startup,                              outreach to tenants and
Allows renters and their advocates to pro-actively report
                                                                      ongoing      Engages renters and      tenant advocates
properties they know or believe to be rental properties.
                                                                                   advocacy groups
                                                                                                            Process to verify rental unit
                                                                                                            can be lengthy and high cost




Metrics for success
 Study question:
 Develop a comprehensive plan outlining the metrics and data sources to be used for assessing compliance
 and evaluating the effectiveness of the registry.


The policy goals of a rental registry program should define the metrics for its success. The state can measure
success both in terms of the program’s outputs (measurements related to the program’s operations) and
outcomes (measurements in changes to underlying societal or housing market trends).

Table A4: Evaluation themes, outputs and outcomes
                                                                                   Outcomes:
                         Outputs:
                                                                                   Program administrators and policymakers track
Evaluation theme         Program administrators track directly through
                                                                                   through outreach with users, analyzing trends in
                         program budgets and registry data
                                                                                   market data, and other sources as needed

                              Number of properties and rental units
                              registered, total and by submarket (e.g., city,
                              county)                                                  Improved investment and policy decision-
                              Estimated compliance rate, total and by                  making by state and local governments to
                              submarket (e.g., city, county)                           address rental market challenges
Program impacts and           Annual increases in number of registered                 Other metrics tied to program policy goals or
effectiveness                 properties or rental units                               compliance with a broader state policy (if
                              Number of individuals accessing portal data,             applicable), such as reduced evictions,
                              reports, or other data sources                           increased rental affordability, reduced renter
                              Improved availability and visibility and of rental       housing cost burden, etc.
                              market data to stakeholders including local
                              policymakers, renters, and housing providers

                              Total Full-Time Equivalent (FTE) staff positions
                              Number of technical assistance inquiries
                              Average time to resolve inquiries                    Increased ability to enforce or track a broader state
Operational and
                              Program revenues, total and per unit registered      policy, if applicable
Financial Efficiency
                              Operating cost, total and per unit registered
                              Program operating losses (or revenues), total
                              and per unit registered




WASHINGTON RENTAL REGISTRY STUDY                                                                                                           40
Integration with existing registries
 Study question:
 If the statewide, or six largest jurisdictions registry, did not include information for those units already
 registered in local programs, how much data loss would occur?

 In collaboration with Commerce staff and Artesia Systems, evaluate the feasibility of working with local
 government personnel to incorporate the necessary data elements into their current registries. Determine
 the potential costs and timeframe required for all jurisdictions with registries to align their data fields with
 the proposed statewide registry.

 Provide an analysis of alternative methods that could be used to gather the required data for units in areas
 that have current registries and assess how the effectiveness of those alternatives compares to a full
 integration strategy.


There are 17 cities in Washington with existing rental registries, covering approximately 436,000 rental homes
in the state (about 40% of rental homes statewide, and 49% of rental homes in the six largest counties).

If a statewide registry or one limited to the six largest counties excluded rental properties already subject to
city-level registries it would result in a significant loss of data, either 40% or 49% of total rental housing
depending on the subject geography.

Existing city-level rental registry programs in Washington primarily focus on ensuring housing quality; most do
not collect unit-level data including rent or vacancy (only Olympia and Tacoma collect data on monthly rents;
Seattle collects data on vacancy indirectly by collecting tenant contact information). Most or all existing rental
registries in Washington collect and store data at the property level; converting the programs to collect and
store data at the unit level would increase program costs substantially and require significant changes to the
data infrastructure for each of the 17 existing registries. We do not know in precisely what format cities store
registry data at the property level (e.g., property address and owner information) or how easy it would be for
the state to access back-end data for integration with a statewide registry database. Most city programs
collect data via a digital portal and could provide data for integration into a statewide database with some
adjustments.

It is likely cost prohibitive to convert existing local registries to fully integrate into a state registry that meets
the requirements of the proviso. However, the state could work with local governments to gather property
address and owner information to support outreach. This would require imposing a second registration on
property owners subject to local registries or accepting a loss of data on property rents and vacancy status
for rental properties in cities with local registries.

There are several basic approaches to gathering the required data for rental units in areas that have existing
local rental registries:
      Full integration of local registries into a state program: As stated above, modifying existing local rental
      registries to collect unit-level data on monthly rents and vacancy would add significant complexity to the
      cost, compliance and administrative needs, and IT infrastructure required to operate existing local
      registries.

       •   This approach is likely not feasible.



WASHINGTON RENTAL REGISTRY STUDY                                                                                    41
     Partial integration of local registries into a state program with exemption: The state could work with
     operators of local rental registries to integrate property address and owner contact information at the
     property level into a state program, and exempt property owners in cities with local rental registries from
     compliance with a state program. This would require the state to forego data on rents and vacancy for
     the majority of integrated data.

       •   This approach would result in a loss of monthly rent and vacancy data for either 40% or 49% of total
           rental housing depending on the subject geography.

     Partial integration of local registries into a state program without exemption: The state could work with
     operators of local rental registries to integrate property address and owner contact information at the
     property level into a state program and use that information to support outreach efforts to property
     owners to comply with a state rental registry.

       •   This approach would incur costs to pursue both the integration work and the outreach but could
           improve initial compliance for property owners in cities with existing rental registries. It would
           involve requiring a second registration for property owners in cities with rental registries.

     No integration: The state could make no effort to integrate existing local registration data. It could ask
     operators of existing local registries to support outreach efforts to property owners in their cities without
     providing property information to the state.

       •   This approach would be less costly to the state and less costly to local governments than partial
           integration, though it could result in lower compliance. It would involve requiring a second
           registration for property owners in cities with rental registries.

For each of these approaches, to minimize costs and potential data loss, the state could focus data collection
and integration on three cities: Seattle, Spokane, and Tacoma, which together account for approximately 70%
of homes currently subject to rental registries.

Data security, availability, and IT requirements
Database Design and Information Infrastructure
The complexity of data collection and reporting requirements will impact the design of the database. Primary
drivers of database design, online portal, and IT infrastructure are likely to include:

     The level at which the database collects and stores data: E.g., by property, by unit, or both.

     The complexity of the online portal, including whether it needs to collect registration fees (and the scale
     of these fees), and the number and type of users (e.g., creating a separate portal for tenants to access or
     report data on their homes would add substantial complexity).

     The process for exporting data from the database: E.g., developing a list of pre-formatted data reports

     As the state evaluates a custom platform and third-party vendors to host the rental registry, it should
     consider the cost and complexity of the database and its reporting features alongside program goals,
     data capture, and other design choices.



WASHINGTON RENTAL REGISTRY STUDY                                                                                42
As part of the design of the database and online portal for the rental registry, Commerce and its partners will
also need to take steps to ensure the security of the database and online portal against cyberattacks.

Data access and reporting
 Study question:
 In collaboration with Commerce Staff and Artesia Systems, provide an analysis of how to address data
 privacy concerns, especially regarding sensitive information such as property owner identity and monthly
 rent charged. Based on these concerns, offer recommendations on which stakeholders should have access
 to the data collected through the registry and to what extent of detail the data should be available.

To provide useful rental market information to a range of users including local governments, it will be critical to
ensure a level of data transparency while also safeguarding sensitive information, such as property owner
identity and monthly rents. To achieve this balance, the program should make different levels of data available
to different potential users or audiences.

      Property owners and managers: Property owners and managers should have access to information
      related to their property or properties via the online portal but should not be able to view information
      related to other properties.

      Tenants: Some rental registries include tenant portals, where tenants can access information related to
      their rental homes or file complaints about violations related to policies (such as housing quality) the
      rental registry supports. A tenant portal would add complexity to the IT requirements of the program. The
      baseline rental registry design does not require a tenant portal.

      Program administrators: Program administrators are likely to need access to the full database as well as
      any data reports in order to track compliance and analyze market data. Commerce has systems to
      regulate access to secure databases.

      Other public sector users: If one of the state’s goals is to support state and local governments by
      providing rental market data, it could provide this data in the form of full property data records, specific
      data reports (which could remove identifying fields such as owner name and street address), or
      aggregated data (such as a summary of rental units by zip code or another market area). The state
      would need to balance the utility of various data formats against privacy concerns.

       •   Due to privacy concerns it is not advisable to share full property records with other public sector
           users. Anonymized data reports or aggregated data could be valuable tools for state and local
           governments.

      General public: Some rental registries, such as Minneapolis, have open data portals that allow public
      users to view, and download select data related to all properties. Some, like San Francisco, provide some
      data to the public but require users to look up specific properties individually. The state could publish
      some rental data on an online data portal for the public. It could also publish aggregated data and
      market analysis, in the form of a public dashboard or market report, for public users to view market
      trends.




WASHINGTON RENTAL REGISTRY STUDY                                                                                  43
      •   An online dashboard of registration trends and market-level rental trends, which can update
          automatically as new data becomes available, is likely to provide the most value to the public for
          the lowest cost.




WASHINGTON RENTAL REGISTRY STUDY                                                                               44
Appendix B: Stakeholder engagement summary
Summary of relevant takeaways
HR&A conducted fourteen interviews with intermediary organizations, including rental housing associations
and other industry representatives, tenant advocacy groups, local government staff, and housing authorities,
as well as five listening sessions with tenants, housing providers (property owners and property managers),
and their advocates. Several themes emerged from the interviews and listening sessions which can directly
inform the design of a rental registry.

State and local government staff might be the primary users of a
statewide rental registry:
     Public entities are interested in up-to-date housing data for policymaking and improved
     communication with housing providers. Aside from state-level entities and tenant organizations, the
     biggest proponents and primary users of a statewide rental registry are likely to be local (city and county)
     staff without an existing registry. Such interviewees noted that having access to up-to-date information
     about their local rental housing market would help them to make better-informed policy and investment
     decisions. Representatives of cities with existing registries noted that the registry has led to better
     relationships with housing providers, as city staff can contact them directly regarding any housing issues
     or programs. Interviewees of cities without registries also voiced their interest in a registry as a tool to
     improve communication with housing providers.

     Local governments with rent registries prefer to retain their existing registries but are open to sharing
     data with the state. Most local registries implement policies to improve housing quality of public safety
     and include requirements for housing inspections. Multiple interviewees said that unless a statewide
     registry had the same requirements as their existing local ones, they would prefer to continue with their
     own requirements. Multiple interviewees were reluctant to layer their existing registry with additional
     statewide requirements and thought it would lead to a regulatory burden for housing providers. City
     representatives were willing to share their data with the state if it supported a statewide registry.

A state rental registry might not directly address renters’ most pressing
challenges:
     As described in the proviso, a statewide rental registry would not directly support rental affordability,
     which remains a priority for tenants and tenant advocates. Rental affordability challenges throughout
     the state include high and rising rents, low housing quality, and housing instability. Many existing local
     rental registries in Washington directly address housing quality by mandating a housing inspection. A
     statewide rental registry could negatively impact existing challenges if property owners pass fees on to
     their tenants or if owners remove their units from the rental stock to avoid further regulation. It would be
     difficult for a rental registry to provide continuous tracking and analysis of tenant-level information (such
     as income and loss of housing). This means that the registry would provide limited visibility into housing
     affordability at the unit level.

     Tenants and advocates find merit in a rental registry if it results in better housing quality or
     transparency. Some local rental registries allow property owners to choose their own inspectors, and
     tenant advocates expressed concern that these programs might not be effective at improving the quality


WASHINGTON RENTAL REGISTRY STUDY                                                                                45
    and livability of rental homes. One interviewee also mentioned the need to ensure housing quality
    statewide, particularly in rural areas where inspections are less common. Some advocates were also
    hesitant about inspections, stating that renters can be reluctant to allow unknown people into their
    home. Interviewees and some listening session participants voiced interest in a statewide registry that
    improved real-time data on rental costs and provided contact information of housing providers. Tenants
    felt that access to information about the ownership of rental properties would give them more agency
    when looking for apartments to rent or raising issues about their apartments.

Property owners and managers oppose a state rental registry:
    Housing providers believe that “no program is the best program.” Housing providers feel that their
    industry is already highly regulated and expressed frustration with existing local registries, many of
    which require inspections and annual fees. Providers oppose increased regulation and additional fees at
    the state level. Commenters oppose a new statewide program, which many view as an overreach by the
    government. Repeatedly in interviews and listening sessions, we heard from housing providers that the
    state should not create a rental registry, and that having one would create added expense or burden on
    them and tenants without providing a benefit. Multiple providers thought that conducting a housing
    survey or using existing public and private data would provide information on rents without adding more
    regulations on their operations.

    Housing providers stated that a rent registry could increase housing costs and remove units from the
    market, negatively impacting tenants. Multiple commenters said that further regulation would cause
    them or other housing providers, particularly owners-managers with small rental properties, to sell their
    properties. Providers stated that increased regulation would reduce the availability of rental housing as
    some owners choose to leave the market. Interviewees and listening session participants also said
    tenants would bear the cost of any fees associated with the registry, leading to higher rental costs.

A limited-scope program is likely to have broader support than a larger
and more complex program:
    Despite housing quality concerns, requiring inspections could pose challenges for a statewide
    program. Many existing local registry programs in Washington require property inspections. Property
    owners reported that inspection procedures and findings can vary even within a particular city. Owners
    of deed-restricted affordable rentals expressed concern about the costs and paperwork associated with
    an additional inspection, as those units are already highly regulated by local and federal subsidy
    providers. Requiring inspections for a statewide registry would be duplicative of or add complexity to
    existing local registry requirements.

    Some housing providers note that a statewide registry could be useful and more cost-effective if it
    replaced local registries. There is a growing patchwork of local registries throughout Washington, many
    of which are understaffed or under-resourced. Compliance with these registries adds cost and
    complication to owners and managers, who must keep track of varying regulations, fees, and inspection
    processes. Housing providers were amenable to a statewide program that could somehow replace local
    registries, particularly those with properties across the state.




WASHINGTON RENTAL REGISTRY STUDY                                                                            46
Introduction
HR&A Advisors, working in partnership with the Washington State Department of Commerce (Commerce), is
leading efforts to study and design a proposed rental registry program for the Washington. One objective of
this project is to facilitate engagement to collect input from a range of stakeholders. The purpose of this
stakeholder engagement is to:

   Understand how a rental registry might impact various stakeholders, including property owners, property
   managers, tenants, and local governments
   Understand the interests, concerns, and needs of these potentially impacted stakeholders
   Assess perceptions of the proposed rental registry
   Solicit input on the potential design of a rental registry program

Recognizing that a rental registry would impact stakeholders across the housing ecosystem, we conducted
strategic engagement with a variety of groups, including:

     Housing providers (property owners and property managers) own and manage buildings and will be
     directly impacted by a rental registry program as they would need to provide information for the registry
     and be responsible for any fees and additional registry requirements.

     Apartment associations and other industry organizations represent property owners and property
     managers and lobby for policies that benefit housing providers. These associations are important
     intermediaries to understand housing providers’ concerns.

     Renters and tenant advocates can help to inform a rental registry’s design by providing insight into the
     rental market challenges that tenants face and providing alternate perspectives to housing providers.

     Local government staff understand local rental market trends and can provide input on the program
     design and its potential impacts on local government capacity.

     Housing authorities frequently have broad networks of property owners they work with through voucher
     programs and can provide helpful context about the pressures facing both property owners and low-
     income renters.

Summary of engagement activities and participants
Key informant interviews
We conducted 14 interviews with intermediary organizations, including:

   Local governments (7)
   Local housing authorities (2)
   Tenant advocates (2)
   Housing provider industry associations (3)

These interviews served two main purposes: they helped quickly survey stakeholders familiar with a broad
cross-section of perspectives on the proposed rental registry and allowed us to reach a broader network of
stakeholders. We designed interview questions to further understand the Washington rental housing




WASHINGTON RENTAL REGISTRY STUDY                                                                                47
landscape, identify challenges of existing rental registry programs and gather feedback on potential registry
components.

Stakeholder listening sessions
We conducted listening sessions to gather input from a broader audience of property owners, property
managers, and tenants, as well as their advocates. We reached out to potential attendees through intermediary
organizations and local government staff. Three listening sessions focused on gathering input from tenants
and tenant advocates, and two focused on gathering input from property owners and managers. Each session
lasted for 60-minutes; however, we remained after each session to hear all comments. In each session, we
provided a brief informational presentation, conducted polling both to capture participant information and to
gather input, and heard comments from attendees.

Renter and tenant advocate listening sessions
We convened three listening sessions for renters and advocates: one on June 18, 2024, one on August 6, 2024,
and the third on August 9, 2024. In total, 80 renters and tenant advocates registered to attend the sessions, but
only 26 participants attended. Despite low attendance, we had participants including renters and advocates
with experience in urban, rural, and suburban markets, a variety of housing types, and a range of familiarity
with rental registries. We did not reach renters from the eastern part of the state, although we did have input
from advocates that work statewide.

Question: What best describes you?
   Renter: 1
   Tenant Advocate: 6
   Both: 7
   No Response: 12

Question: Where do you live or provide advocacy?
   Whatcom County: 2
   Pierce County: 1
   Snohomish County: 2
   King County: 5
   Spokane County: 1
   Statewide advocacy: 1
   No response: 15

Question: What type of building do you live in?
   Single-family: 6
   2-4 units/building: 1
   5-19 units/building: 1
   20-99 units/building: 2
   100+ units/building: 4
   Mobile home: 2
   No response: 9

Question: What type of market do you live in or provide advocacy in?
   Urban: 12
   Suburban: 5
   Rural: 2



WASHINGTON RENTAL REGISTRY STUDY                                                                                48
   No response: 8

Question: On a scale of 1-5 (least to most), how familiar are you with rental registries?
   1: 8
   2: 0
   3: 3
   4: 5
   5: 3
   No response: 7

Housing provider listening sessions
We convened two listening sessions for housing providers: one on June 18, 2024, and one on June 21, 2024.
We had a total of 203 participants across these two sessions. Overall, we heard from property owners in
western and eastern parts of the state. The geographic distribution of participants matched the distribution of
rental housing throughout the state, though participation from housing providers with property in Spokane is
high compared to the percentage of rental housing in that county. The largest group of participants identified
themselves as owners of single-family rental homes, consistent with statewide trends.

Question: What best describes you?
   Property owner: 86
   Property manager: 52
   Trade association representative: 7
   No response: 86

Table B1: Question: What counties do you own or manage property in?
Response        Participant count        Percent of responses         Percent of Renter-Occupied Homes (2022 ACS data)

King                                64                          32%                                                  37%

Pierce                              24                          12%                                                  11%

Snohomish                           24                          12%                                                      9%

Spokane                             42                          21%                                                      7%

Clark                                5                          3%                                                       6%

Thurston                            17                          9%                                                       4%

Whatcom                              0                          0%                                                       3%

Yakima                               2                          1%                                                       3%

Kitsap                              10                          5%                                                       3%

Benton                               0                          0%                                                       2%

Skagit                               0                          0%                                                       1%

Cowlitz                              0                          0%                                                       1%

Grant                                1                          1%                                                       1%

Chelan                               0                          0%                                                       1%

Kittitas                             4                          2%                                           Less than 1%

Jefferson                            2                          1%                                           Less than 1%

Grays Harbor                         1                          1%                                           Less than 1%



WASHINGTON RENTAL REGISTRY STUDY                                                                                         49
 Response             Participant count            Percent of responses              Percent of Renter-Occupied Homes (2022 ACS data)

 Island                                        1                                1%                                                   Less than 1%

 Mason                                         1                                1%                                                   Less than 1%

 Pend Oreille                                  1                                1%                                                   Less than 1%

 Whitman                                       1                                1%                                                   Less than 1%

 No response                                 82                                N/A                                                             N/A

Note: The table above excludes counties for which we had no poll respondents that also have less than 1% of the statewide renter-occupied homes.

Question: What residential property types do you own/manage?
   Single-family: 69
   2-4 units/building: 53
   5-19 units/building: 31
   20-99 units/building: 25
   100+ units/building: 16
   Mobile homes: 8
   No response: 90

Question: How many residential units do you own or manage across Washington state?
   1-25: 65
   25-50: 8
   50-100: 7
   100-200: 9
   200-500: 7
   500-1,000: 6
   1,000-5,000: 3
   5,000-10,000: 2
   10,000+: 6
   No response: 94

Question: On a scale of 1-5 (least to most), how familiar are you with rental registries?
   1 - Not at all familiar: 30
   2 - Slightly familiar: 8
   3 - Somewhat familiar: 19
   4 - Moderately familiar: 14
   5 - Extremely familiar: 34
   No response: 98

Stakeholder Input
Below is a full summary of stakeholder input by stakeholder group.

Tenants and tenant advocates:
          Renters and advocates had concerns about the effectiveness of existing rental registry programs.
          Some existing local registries allow housing providers to choose their own inspectors, which raised
          questions about the integrity of housing standards. One commenter who lives in Bellingham felt that the
          city made too many concessions to property owners in the design of its program, including allowing
          independent contractors. They hoped that a statewide program could add accountability.


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    Renters and advocates want a housing registry that increases transparency and applies to all rental
    units across the state to ensure equal protection for all tenants. Stakeholders voiced interest in a
    transparent registry that captures and openly displays housing information and stressed the importance
    of tracking changes in affordability year to year. Representatives of tenant organizations mentioned that
    an open-source registry could support tenant organization efforts, assess renters’ rental burdens, and
    even drive voter engagement. Tenants and advocates think that a registry will increase transparency by
    allowing tenants to know who owns and manages their property or properties they are interested in
    moving into. A few mentioned an interest in avoiding large corporate owners with whom they had already
    had negative tenant experiences. A registry that displays housing providers’ contact information will also
    let tenants contact their providers directly - one commenter who lives in Spokane expressed how difficult
    it is for tenant protections to be effective when it is unclear on how to reach your landlord directly - a
    registry could make this process easier and more transparent.

    Renters and advocates voiced concerns that a state rental registry might have limited effectiveness or
    create new costs for tenants. Listening session participants mentioned concerns that compliance and
    enforcement of a rental registry program would be low, that fees would be too high for smaller property
    owners, or that owners would evade payment. Advocates also acknowledged concerns that housing
    providers would pass registry on to renters, exacerbating affordability challenges. One stakeholder
    recommended that registry fees (and whether the property owner passed fees directly to the tenant)
    should be transparent.

    Commenters and interviewees preferred a statewide registry over a six-county strategy. Advocates
    noted that housing quality challenges are more prevalent in rural areas which do not have housing
    inspection policies. Advocates also said that surging rental prices are a concern across the state, not
    only in more populous counties.

    Renters and advocates are concerned about a statewide registry’s data privacy. Tenants and advocates
    raised data privacy concerns in every listening session. Tenants questioned whether a registry should
    capture inhabitants’ names or other personal information, and expressed concern that the state could
    protect their privacy from data breaches. Listening session attendees were also concerned about
    retribution from housing providers if tenants reported unregistered units.

    Rising rents and housing quality are major concerns for renters and tenant advocacy groups across the
    state. Other challenges included housing insecurity and difficulty finding or affording suitable rental
    housing. Costs for utilities, garbage removal, and other monthly bills contribute to affordability
    challenges even when rents appear low. Advocates indicated that homes in coastal areas often have
    moisture and mold, while those in eastern areas are older and less likely to be subject to inspections.

    Renters report difficult relationships with property owners. There is a lack of trust between tenants and
    property owners. Multiple commenters mentioned rent gouging and concerns that housing providers
    engage in predatory practices or allow unsafe property conditions. This concern also extends to
    operators of mobile home parks. Several commenters expressed concern about tenant selection
    practices including required income, credit score, and tenant rules. Renters and advocates stressed the
    need for transparency and accountability in the rental housing market.




WASHINGTON RENTAL REGISTRY STUDY                                                                              51
Property owners and managers:
    Most housing providers we spoke with believe that "no registry is the best registry." Approximately 160
    housing providers and advocates attended HR&A’s listening sessions held on June 2024. Out of 91
    commenters in the listening sessions, 88, or 96%, voiced skepticism, expressed doubt, or otherwise
    opposed a statewide registry. 77% clearly stated that the state should not create a rental registry. About
    48% of commenters expressed concern about the additional costs and administrative burden associated
    with a rental registry and believed it would “only drive up rental rates.” Most housing providers strongly
    oppose any effort to further regulate their industry – at least 39% of commenters saw a statewide
    registry as a form of government overreach and interference in the private sector. About 33% of
    respondents commented that the proposed regulations do not provide any clear benefits to housing
    providers or tenants. They view a registry as unnecessary and ineffective. One commenter stated, "Still
    unclear about what problem we are trying to solve. Why would we pay the state to gather our data?"
    Multiple interviewees and commenters at the listening sessions stated that housing providers will pass
    fees associated with a registry to tenants, which would drive up rental costs and contribute to the state’s
    affordability crisis.

    Housing providers have had negative experiences with existing registries. When asked about their
    experience with existing registries, 47% of respondents expressed concerns about the additional costs
    associated with existing registries. Others mentioned inspection and accountability issues. One
    commenter stated, “Their inspector fails to submit his report and I have to hassle and have it done all
    over again and they want to charge fees for their mistake.” Housing providers and industry
    representatives that work across the state noted the challenge of complying with different regulations
    across multiple localities. Several listening session participants noted that they were considering or
    would consider selling property due to regulatory requirements.

    Housing providers feel that their industry is already highly regulated and oppose additional regulation.
    About 44% of commenters mentioned feeling overwhelmed by the existing regulations and dreading the
    addition of more rules. One commenter stated, "Everything seems set up to discourage and complicate
    the ability to provide housing, not to help." Owners and managers of deed-restricted affordable units
    oppose a housing inspection requirement, because they are already subject to inspections through
    federal and state subsidy providers. Smaller property owners feel that added regulations will
    disproportionately affect them and could force them out of the market. One commenter stated that, "the
    cost associated with fees just to be a landlord is pushing the mom & pop landlords out of the market."
    They fear that a more complex regulatory environment might force them to hire a property manager or
    sell their rental units, which they noted would impact tenants, either by driving up rental prices or
    eliminating units from the market. Some stakeholders worried that a rental registry would be a precursor
    to additional state regulations.

    Skepticism about registries extends to data collection and sharing. Housing providers argue that
    market data is available elsewhere, and that availability of registration data would be of little use to them
    or to tenants. Multiple commenters viewed a statewide registry as a step towards surveillance and
    control by the state, and about 14% of commenters expressed concerns about data security, one stating
    the registry has “potential for a massive security breach, increased spam and potential scams.” Several
    stakeholders suggested that the program should ensure anonymity or be voluntary to address privacy
    concerns.




WASHINGTON RENTAL REGISTRY STUDY                                                                               52
    If the state pursues a rental registry, providers believe it should be as simple as possible and should
    create tangible value for property owners. Housing providers stated that a statewide registry would only
    be valuable if it replaced the patchwork of existing local registries with one, streamlined, application. The
    worst outcome, according to housing providers, would be for Commerce to add further regulations to
    local registries, leading to complex and costly regulations. Industry representatives suggest that
    incentives, such as a low cost registration fee, risk mitigation fund waivers for smaller buildings, or
    waivers for affordable housing providers could increase the likelihood of a registry's success.

    A few providers indicated that a registry could be useful if it connected housing providers, particularly
    small housing providers, with resources to reduce costs. Technical assistance and support in
    compliance with regulations, particularly for small housing providers, would help reduce costs. Financial
    resources such as rental assistance or risk reduction could also be valuable to housing providers.

Local government and public entities:
    Interviewed municipalities with existing registries saw limited value in a new statewide initiative. Local
    government staff we interviewed questioned the purpose of a statewide registry and its benefits over
    existing local initiatives. Municipalities that require building inspections with their registry were reluctant
    to replace it with a statewide option that did not have an inspection component. They were also hesitant
    of increased fees and regulations on housing providers already paying local registration fees. Staff
    reiterated that housing providers tend to pass fees down to tenants and that these new requirements
    could also cause further tension between municipalities, housing providers, and tenants. Interviewed
    municipalities were open to sharing their existing registry data with the state to support a statewide
    data-gathering effort but noted that they do not capture unit-specific rental information.

    Interviewees acknowledged challenges with local registries and suggested improvements for a
    statewide registry. Existing city-level registries do not track market data, and many undercount units due
    to low compliance. Municipalities with local registries often do not share data with other public entities,
    limiting their value for local and state policymaking and research. Staff in cities and counties without
    registries expressed interest in a statewide program if they could access data. Interviewees
    recommended making the registration free or adding clear programmatic incentives to garner more
    support from housing providers and prevent costs from trickling down to renters.

    Local governments would benefit from a statewide rental registry that captures real-time data but
    expressed uncertainty about the policy goals behind a statewide solution. Current data from the Census
    and local collections have delays and gaps, making it difficult to compare trends across municipalities or
    counties. Some local governments and housing authorities would welcome a registry that provides data
    on unit sizes, rent variations, and long-term trends. Two interviewees noted that the registry could
    support county housing needs assessments and comprehensive plan updates. Others are skeptical that
    the state can capture useful market data through a rental registry. Interviewed staff from two
    municipalities noted that housing providers already track their portfolios and provide this data to third-
    party real estate information companies such as CoStar. They doubted that a statewide registry would
    capture better information. They proposed that a statewide housing survey could provide information
    about the rental market without adding more paperwork and fees for housing providers.

    Interviewees think that rental registries can improve communication between municipalities and
    housing providers. Interviewed staff from cities with registries highlighted that communication with



WASHINGTON RENTAL REGISTRY STUDY                                                                                 53
     providers has improved because of the registry. They mentioned that collecting providers’ contact
     information and regularly interacting with them has led to more open communication, leading providers
     to reach out directly for housing concerns or programs. Interviewees from cities without a registry also
     mentioned that a registry would help improve their communication with providers.


Attachment: listening session presentation
Listening session presentation available on Box (PDF)




WASHINGTON RENTAL REGISTRY STUDY                                                                            54
Appendix C: Rental registry case studies
Summary of relevant takeaways
It is likely that a statewide rental registry in Washington would not exactly follow any of the models in the four
cases we studied. However, each offers lessons on the design of a suitable program.

On the whole, the case studies point to two potential models for a statewide rental registry in Washington:
1. Registry as a policy enforcement tool: Three of the four cases we studied (Los Angeles County,
   Minneapolis, and San Francisco) are relatively large, complex registry programs. This is because their
   primary purpose is to support compliance for other housing programs. In the case of Minneapolis, the
   rental registry supports an inspection program to ensure that rental housing meets habitability standards.
   In Los Angeles County and San Francisco, the rental registries are designed to track compliance with rent
   stabilization programs.

2. Registry as data gathering tool: Ohio’s property registry has data gathering as a primary goal. In particular,
   the goal is for county governments to be able to identify property owners in the case of property damage,
   emergency, or code violations. The state does not incur any costs to oversee this program because the
   administration occurs at the County level. However, the program does not generate funding to pay for
   County administrative costs, and the state does not aggregate or report any data. If Washington wants to
   pursue a data gathering registry it should design a program that has the minimum costs and administrative
   needs to produce useful data.

Clear compliance mechanisms are important to program design, but it is also likely that rental registry
compliance will be low in the first few years:
      Minneapolis has clear mechanisms to incentivize compliance. These include opportunities both to
      reduce fees by registering early or participating in a good landlord program, and penalties for
      noncompliance (25% penalty). Minneapolis has over 90% compliance with its rental registry. By contrast,
      Los Angeles County and San Francisco charge only a 5% to 10% penalty, and do not offer incentives for
      compliance. Those rental registries also prevent non-compliant property owners from raising rents on
      rent-stabilized properties.

      Los Angeles and San Francisco have seen low compliance in their first years of operations. Both
      programs started in the last few years and have had low (around 5%) compliance to date. This may be
      due in part to ongoing complications from the COVID-19 pandemic and related impacts to the housing
      market (such as temporary rent freezes). Los Angeles County waived rental fees for its first year as a
      way to incentivize early compliance.

Summary by case study
Ohio’s Residential Rental Property Registry program provides helpful insight for Washington both into how a
state can design a limited rental registry and the challenges to doing so effectively. Due to the difficulties that
Ohio’s approach creates for Counties and the challenges to aggregate data for a disaggregated program, this
model is not likely to be successful for Washington.

LA County’s Rent Registry program showcases the initial challenges of implementing a registry, creating
specific requirements for mobile homeowners, and the merits of an online portal for tenants and housing
providers. The program includes specific regulations and fees for mobile homes. The primary goal of the Rent



WASHINGTON RENTAL REGISTRY STUDY                                                                                 55
Registry is to support the implementation and monitoring of the County’s rent stabilization and just cause
eviction ordinances for rental units and mobile homes. Because of this focus, LA County’s model may be less
relevant to Washington.

The Minneapolis Rental License Program demonstrates how incentives and technical assistance can improve
compliance and help meet program goals. The city’s open data portal promotes transparency, while its
inspection requirements ensure safety and quality. The program has had consistently high compliance. The
primary goal of the Minneapolis Rental License Program is to ensure that the city’s rental housing stock is
code compliant and livable. A statewide rental registry in Washington is unlikely to include an inspection
requirement, so those aspects of Minneapolis’s program are not relevant. However, Minneapolis structures its
fees to encourage property maintenance and the prompt resolution of any issues and provides opportunities
for owners to reduce their fees through early compliance, demonstrating how fees and compliance
mechanisms can produce high compliance. In addition, Minneapolis shows how a rental registry can promote
transparency through an open data portal.

San Francisco’s Housing Inventory has had low compliance in its first years of operations, highlighting the
importance of adequate outreach and compliance strategies. The goal of the program is to enhance the Rent
Board’s ability to oversee the city’s rent stabilization policy. Because of this focus, and because the primary
compliance mechanism relates to allowable rental increases, San Francisco’s model is less relevant to
Washington. However, Washington should consider using a range of outreach approaches to encourage early
compliance.


Introduction
We developed case studies of four rental registry programs to understand a range of policy goals and designs
for rental registry programs, as well as potential mechanisms for compliance and lessons for Washington as it
considers creating a statewide rental registry. We chose these case studies for their ability to illustrate a range
of purposes, structures, and geographies, with a focus on West Coast models:

   Ohio Residential Rental Property Registry, State of Ohio
   Los Angeles County Rent Registry, Los Angeles County, CA
   Minneapolis Rental License Program, City of Minneapolis, MN
   San Francisco Rent Board Housing Inventory, City of San Francisco, CA

The original intention was to develop case studies for four state-level rental registries. However, we
determined that of the limited number of existing state rental registries, only Ohio offered relevant insight for
Washington. There are a few other state-level rental registries, including in New York, Maryland, and Rhode
Island, but these rental registries apply to only specific properties and have a narrow focus (tracking rent
stabilization or environmental hazards in older housing) that were not relevant for Washington.




WASHINGTON RENTAL REGISTRY STUDY                                                                                    56
Case studies
 Case study | Ohio's Residential Rental Property Registry
 State of Ohio

Ohio’s Residential Rental Property Registry program provides helpful insight for Washington both into how a
state can design a limited rental registry and the challenges to doing so effectively.
In 2006, the State of Ohio passed legislation establishing a residential rental property registration for counties
with populations over 200,000 residents. The stated goal of the program was to support first responders in
identifying the ownership of properties when they are damaged, such as in the case of natural disaster or fire,
however Counties mostly use registry data for code enforcement (Interview with Program Staff). Property
owners must register rental properties with their county auditor, but the registries typically collect minimal data
(Ohio Department of Taxation). While the law only requires counties with more than 200,000 residents to
establish a registry, other cities or counties can establish a rental registry. The state does not administer the
program; County Auditors within each county oversee administration. The program carries no cost for the
state but also produces no state-level data. Counties have limited enforcement mechanisms and no revenue to
support administration, which creates challenges to effective implementation (Greater Ohio Policy Center).

Key facts
Year created                          2006

                                      All residential rental property owners in counties with more than 200,000 residents per the most
                                      recent decennial census (Currently 15 counties: Franklin, Cuyahoga, Hamilton, Summit,
Coverage
                                      Montgomery, Lucas, Butler, Stark, Lorain, Warren, Lake, Delaware, Mahoning, Clermont, Trumbull).
                                      The program treats mobile homes as residential rental property. (Approximately 1,120,000 units)

                                      Local determination (state requires registration within sixty days of a change in the ownership
Re-registration
                                      information)

Fee                                   None

                                          Property Owner Name, Address and Phone Number
                                          Property Street Address and Permanent Parcel Number
Data captured
                                          Other data (local determination)
                                          Rent data is not required by the state. No counties collect rent data.

Property inspection                   Local determination

                                      Varies by county. Some counties do not publish data. Others provide a comprehensive list of
Online portal and data availability
                                      registered properties. Montgomery County organizes data by tax district.

Compliance                            Varies by county, generally unknown. State does not collect data or track compliance.

Short-term rental considerations      Yes, the program treats STRs as rental properties (Ohio Department of Commerce)



Background
History and context
Ohio created the Residential Rental Property Registry in 2006 to help first responders identify the true
ownership of residential properties in case of damage. The state initially required every county to develop a
rental registry. However, after pushback from smaller counties, the state amended the law in 2007 to apply
only to counties with populations over 200,000 residents (Greater Ohio Policy Center).



WASHINGTON RENTAL REGISTRY STUDY                                                                                                        57
Legal authority
H.B. 294 of the 126th General Assembly created the Residential Rental Registry. H.B. 294 required all counties
to create a registry. As a result of backlash, H.B. 119 of the 127th General Assembly amended the law to only
require counties with over 200,000 residents to create a registry.

Initial implementation
There is limited documentation about what if any stakeholder engagement occurred prior to approval of H.B.
294.

Because of the decentralized nature of the program, outreach practices to property owners vary by county
according to local priorities and capacity. Some counties send notifications via mail to alert property owners
that they are not listed in the rental registry. Others might conduct minimal to no outreach depending on the
priorities of elected officials (Interview with Program Staff).

Startup costs also varied by County, but the state incurred minimal costs for the initial implementation.

Program operations, administration and costs
Program administration occurs exclusively at the local level. The state does not provide oversight into the
program beyond ensuring that counties that meet the population threshold have a rental property registry.
There are no reporting requirements from the counties to the state, and the state does not publish a record of
existing registries or registration data (Greater Ohio Policy Center). The costs to the state are therefore
minimal.

Counties have broad ability to set local program requirements, such as whether to administer the non-
compliance fee, requirements regarding inspections, and additional information to collect (Interview with
Program Staff). Program costs therefore vary by county. The state does not provide any funding to the
counties to administer the program. State law authorizes a non-compliance penalty fee which could help fund
program administration at the county level, but most counties do not enforce this fee, so funding often
originates from each county’s general fund. According to program staff, one county, which is currently focused
on maintaining the minimum requirements, has four staff members in the department overseeing the program,
among other responsibilities in the county. We were not able to identify a specify number of full-time
employees (FTE) necessary to administer the program. However, the cited county has a population of over
500,000.

Program features
The program establishes the minimum standard of information for county auditors to collect, and the penalty
for non-compliance (Ohio Department of Taxation). County governments make their own determinations about
program administration and specific features.

Compliance mechanisms
Non-compliant property owners can be subject to a $50 to $150 fine per property and a minor misdemeanor
charge. County Auditors decide whether to enforce compliance, but according to program staff, many do not.
Only Franklin County appears to assess fines. Program staff for a different county recalled sending mail
notifications of the registration requirement to property owners, but that did not result in assessing fines.
Rather, the county decided to discontinue mail notifications due to backlash.




WASHINGTON RENTAL REGISTRY STUDY                                                                                 58
Data availability
The state does not maintain an online portal as all registration occurs through local governments and county
auditors. Several localities use an online portal to facilitate the registration process. Counties differ in how they
provide data on registered properties, ranging from a comprehensive database of all registered properties to
listings of all filed registrations.

Impacts and lessons learned
Program impacts and effectiveness
Program effectiveness is limited due to the lack of enforcement mechanisms available to the counties, and the
decision of many counties not to impose fines or misdemeanor charges on noncompliant property owners.
One county program staff member estimated that their registry included 20%-25% of all properties in the
county.

Currently, while first responders still use the registries, the program is often more targeted towards identifying
absentee landlords. Several counties use registries as part of their code enforcement strategies, however the
lack of statewide data collection or sharing makes it difficult to track “bad actors” with rental properties in
multiple counties (rental property owners with persistent code violations or blighted or unsafe conditions).

Implementation and participation challenges
The state law created an unfunded mandate for the counties to create and administer rental registry programs
(Greater Ohio Policy Center). It appears that the primary ways in which most counties have addressed this
challenge is by creating rental registries with limited scope and enforcement. Counties experience challenges
in administering the program, both from a design standpoint and an enforcement perspective. The state does
not provide any assistance when a new county needs to set up its registry. Further, the state has not specified
counties’ enforcement rights. As one county official stated, “we are not the police.”

Counties are often working to engage local property owners to increase participation, to varying degrees of
success. State law requires county auditors to include a statement on property tax bills about the registration
requirement, and to provide notice at the sale of a residential rental property. Counties identify non-compliant
property owners through approaches including complaints from tenants, by notifying new property owners of
the registry program, and by researching whether registered property owners own other properties in the
County. However, because many county auditors do not enforce compliance, outreach does not often lead to
new registrations. It is unclear if registrations have increased or decreased over time.

Equity Considerations
The state law does not provide any direction to the counties on how to incorporate racial equity
considerations. Stakeholders indicated that counties focus on increasing overall compliance to the extent they
are able, and do not pursue more equity-oriented efforts.

Lessons Learned
Ohio’s Residential Rental Property Registry program provides helpful insight for Washington both into how a
state can design a limited rental registry and the challenges to doing so effectively.

      State law can establish registries at the local government levels but should consider the administrative
      impacts to local governments. All the largest counties in Ohio manage rental registries. The program
      also set a precedent for other localities to develop their own registries. However, the program creates an
      administrative burden for Counties without providing revenue to pay for administrative costs, leading to
      high variability in enforcement and impacts.


WASHINGTON RENTAL REGISTRY STUDY                                                                                  59
      Program design should reflect program goals and provide the necessary structures to produce impacts.
      Ohio’s program lacks a clear purpose. In addition, the state does not provide oversight or data gathering,
      which limits the program’s effectiveness at both the County and state level. Without developing the
      infrastructure for a state-level registry, it can be challenging to aggregate the county-level data into a
      comprehensive database. The state could theoretically collect the minimum required data from each
      county related to property location and ownership, but there is variation between counties not just in the
      type of information collected but also in the way that counties collect and store information. Any effort
      by the state to consolidate information would require lengthy efforts by staff to re-organize county data
      into a statewide database, and data availability would be inconsistent.

Due to the difficulties that Ohio’s approach creates for counties and the challenges to aggregate data for a
disaggregated program, this model is not likely to be successful for Washington.


 Case study | Los Angeles County rent registry
 Los Angeles County, CA


LA County’s Rent Registry program showcases the initial challenges of implementing a registry, the
importance of adequate outreach and the need to provide incentives for registration.
Los Angeles County established the Rent Registry program in 2020 to track rental rates in unincorporated
areas of LA County. The program was created to assist the implementation and monitoring of the County’s
rent stabilization and just cause eviction policies. LA County’s Registry has a simple, flat-fee structure, which
includes a set fee for mobile homes. The online portal allows property owners to submit necessary rental
housing information to comply with the County’s rent stabilization ordinances. This includes details on tenancy
changes, rental rates, and amenities, as well as the payment of annual registration fees for program
administration and enforcement. Tenants can also log into the online portal to review information about their
rental unit or dispute a rent increase.

Key facts
Year created                          2020

Coverage                              All rental homes in unincorporated areas of the County (Approximately 107,500 units)

Re-registration                       Annual

Fee                                   Annual fee based on unit type (rent stabilized and/or just cause eviction)

                                           Owner information
                                           Property manager information
                                           Unit number
                                           Number of bedrooms
                                           Occupant name
Data captured                              Occupant type (tenant, family member, other)
                                           Occupant characteristics (senior, children, disability, low-income)
                                           Amenities in unit
                                           Rent amount
                                           Date of occupancy
                                           Date of last rent increase

Property inspection                   No

Online portal and data availability   Yes, open to property owners and tenants. Unit-level data available.




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                                   Low (4%). Low compliance during initial years of implementation could be due in part to roll-
Compliance
                                   out complications and rent freezes during the COVID-19 pandemic.


Short-term rental considerations   No




Background
History and context
The County launched the online Rent Registry in late 2021 to supporting implementation and monitoring of
their rent stabilization program. The Registry provides the County with a tool to regulate rent increases and
safeguard tenants and mobile homeowners from excessive rents and evictions

In 2018, the County implemented an interim Rent Stabilization Ordinance in unincorporated areas to stem rent
hikes and mitigate evictions, which were rising in the area. From 2018 to 2020, when the interim ordinance was
in place, property owners sought an average rent increase of 28%, or $313 per month per unit (LA County Rent
Stabilization Ordinance, 2021). Renters, attorneys and activists urged the County Board to extend the
ordinance, saying it would help keep residents in their homes. This successful tenant advocacy prompted the
County to pass new, permanent ordinances. Landlord groups opposed the rent stabilization ordinance, saying
it would force them to raise rents where they otherwise wouldn’t. They also argued that the measure would
disproportionately impact small apartment owners who may be unable to cover building and operating
expenses if they’re unable to adequately raise rents.

In parallel, the County also enacted a mobile home rent stabilization ordinance. The ordinance was spurred by
the number of mobile homes in the county and their owners’ demographics. There are approximately 6,000
mobile homeowners in the unincorporated County. About 79% of mobile homeowners are over 45 years old,
more likely to rely on public subsidies, and often have disabilities (LA County Mobile Home Rent Stabilization
Ordinance, 2021). These vulnerabilities leave mobile homeowners with little leverage in negotiating space
rents with park owners. High moving costs, potential damage, installation requirements, lack of alternative
spaces, and significant investments in their homes further disadvantage them. By enacting a rent stabilization
ordinance focused on mobile homes and supporting it with a rent registry, the County aims to keep this
vulnerable population housed.

Legal authority
The County created the Registry through two rent stabilization ordinances: the Rent Stabilization and Tenant
Protections Ordinance (RSTPO) and the Mobilehome Rent Stabilization and Mobilehome Owners Protections
Ordinance (MRSMOPO).

Initial implementation
According to an interview with Los Angeles County Department of Consumer and Business Affairs staff,
COVID-19 pandemic delayed the program’s rollout, which started soon after the ordinances’ approval in early
2020. Limits to in-person meetings and pauses in the County services limited stakeholder engagement prior to
program launch. The County engaged property owners and advocacy groups through social media and mailing
lists. To support property owners who missed tenant payments during the pandemic, the County waived fees
for the first year of operations. The County sends annual mailers to all property owners in unincorporated
areas to remind them to register their property.




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Program operations, administration and costs
The Department of Consumer and Business Affairs (DCBA) hosts the County's Rent Registry program. The
DCBA received $1.79 million from Consumer Protection Settlement funds to create the Rent Stabilization Unit,
which included the cost of 12 full-time staff as well as services and supplies. At implementation, DCBA
estimated an annual budget of $5.6 million to implement the program, accounting for 29 full-time staff,
operation expenses, and relocation support. The County expects these costs to be covered by registration and
application fees as the program matures. 3Di Systems, a third-party vendor, supplies the software for the
online registry portal.

Table C1: LA County's Registry fee schedule
 Property type                 Fee/unit Description

                                          Multifamily properties built before 1995 which are subject to rent stabilization as well as “Just
 Fully covered rental units         $90
                                          Cause” eviction protections

                                          Rental properties that are not subject to rent stabilization, but are subject to “Just Cause”
 Partially covered units            $30
                                          eviction protections (single-family rentals and

 Mobile homes                       $90 Mobile home parks and “pad” rentals

Source: LA County’s Rent Registry

Compliance mechanisms
The County imposes a 10% late fee on already-registered property owners who fail to pay their units’ fees by
the annual deadline. The County has no way of tracking unregistered property owners, and therefore cannot
impose late fees on them. Property owners who do not register their units face restrictions on increasing their
tenants’ rents. Tenants and mobile homeowners can submit an online form to the County if their home is
unregistered or if their housing provider is raising rents higher than what is allowed by law.

Online portal
LA County launched the online portal in 2021. The portal allows property owners to register their rental units
online and pay registration fees. Tenants can also use the portal to look up reported rents for their unit.

Impacts and lessons learned
Program impacts and effectiveness
The County estimates that 4% of all rental units have been registered since registration became mandatory
and the portal began operating in 2020.

Implementation and participation challenges
To date, the program has had limited success with rental registrations. The County estimates that 4% of all
rental units are registered in the three years of the Registry’s operations. Restrictions to in-person meetings
and pauses in the County services limited stakeholder engagement prior to program launch, which likely
deterred initial program participation. To improve program success, the County conducts annual outreach
through mailers to property owners. The County is also exploring further compliance mechanisms because the
10% late fee has not been effective at improving registration rates.

The program’s revenues do not currently cover its operating costs. The County is currently reviewing a new fee
structure which would increase fees to help pay for the program’s costs and add nuance of fee amounts based
on housing and owner type. The County is also pursuing other strategies to improve its operations by
expanding its contract with 3Di Systems to subcontract parts of the program’s operations, including



WASHINGTON RENTAL REGISTRY STUDY                                                                                                          62
monitoring compliance and supporting online portal users. The Department of Consumer and Business Affairs’
staff would oversee designing further program upgrades.

Equity considerations
The County is reviewing an alternative fee structure for small property owners who could be unable to pay
registry fees and increasing support for those who face challenges with online applications. The County is
separately working to address rental unit livability and property improvements through the Rental Housing
Habitability Ordinance and the Rent Escrow Account Program (REAP).

Lessons learned
LA County’s Rent Registry program showcases the initial challenges of implementing a registry, the
importance of adequate outreach and the need to provide incentives for registration.

     Successfully registering rental units takes time and continuous effort. The County chose to waive
     registration fees the first year of operations to encourage housing providers to register. Despite this
     initial effort and continuous outreach to property owners through physical flyers. To date, only 4% of
     eligible units are registered, although registration rates have increased with each annual cycle.

     The fee structure is affordable to housing providers and has specific fees for mobile homes but fails to
     finance the registry’s annual costs. Unlike other registries, LA County charges a flat fee to housing
     providers based on the unit’s rent stabilization provisions and whether the unit is a rental apartment or a
     mobile home. However, the fee is too low to cover all program costs and fails to make special
     considerations for small housing providers.

An online rent registry portal can be used by housing providers and tenants. The online portal allows both
housing providers and tenants to review information about their rental unit. Tenants can also use the online
portal to report their unit’s registered status and any unauthorized rent increases.


 Case study | Minneapolis Rental License Program
 Minneapolis, MN

The Minneapolis Rental License Program demonstrates how incentives and technical assistance can improve
compliance and help meet program goals.
The Minneapolis Rental License Program supports the city’s goal of promoting health and safety of homes for
renters. The program combines a registry with a property inspection program and has a fee structure based on
property condition that incentivizes proper repair and upkeep. The city provides workshops to help property
owners and managers meet regulatory requirements, address code violations, and lower fees. In addition, the
program has open data dashboards that allow users to track active rental licenses, housing violations, and
property conditions, with fees assigned based on property quality. The city takes a renter-centered approach by
pairing its Rental License Program with a Renters Rights Office, which provides support to tenants living in
unfit rental homes. The city’s open data portal promotes transparency, while its inspection requirements
ensure safety and quality. Minneapolis has had consistently high compliance rates.




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Key facts
Year created                          1998

Coverage                              All rental homes (Approximately 112,000 units in 25,000 properties)

Re-registration                       Annual

Fee                                   Annual fee based on property condition tier and building size

                                          Rental property address
                                          Property owner information
                                          Building location
Data captured
                                          Total building units and total rental units
                                          Number of bedrooms per unit
                                          The program does not collect data on monthly rents

Property inspection                   Yes, frequency varies

                                      Yes, open source data portal allows visitors to view or download all data at the unit level as
Online portal and data availability
                                      well as summary data.

Compliance                            High (92%). Historical trends not available.


Short-term rental considerations      Yes, additional requirements




Background
History and context
The city established its Rental License Program in 1998 to support tenant health and safety through
standardized monitoring and quality improvement. Most Minneapolis residents rent their homes and lack the
authority to undertake repairs. The majority of rental homes in Minneapolis were built prior to 1970. Older
housing is more likely to need maintenance and repairs. The program aims to address these issues by
enforcing housing standards and ensuring property owners maintain their properties.

Legal authority
Minneapolis has a home rule charter which gives it broad authority. The Minneapolis Code of Ordinances, Title
12. Chapter 244. Article XVI. Rental Dwelling Licenses codifies the program. The article includes applicability
and exceptions of the ordinance, the application process, additional requirements for short-term rental
dwellings, minimum inspection standards, license fees, and procedures for property owners and tenants.

Initial implementation
Due to the age of the program, current city staff lack insight into the program’s initial implementation and
stakeholder engagement.

Program operations, administration and costs
The city’s Regulatory Services Department oversees the Rental License Program. The Department has over
120 Full-Time Equivalent (FTE) staff and includes program administrators, clerks, and inspectors who work on
the housing inspections and registry program in addition to other related tasks. The 2024 budget for housing
inspections was just under $7.0 million.

Property owners can apply for a rental license, pay annual license bills, and provide unit updates online through
the Minneapolis’ Rental Licenses website. Property owners can book appointments online or visit a Service


WASHINGTON RENTAL REGISTRY STUDY                                                                                                       64
Center to receive additional assistance submitting or updating a rental license. Property owners and tenants
can also call the city’s 311 number to receive assistance on specific questions regarding a unit’s rental license
and inspections.

The Rental License Program has four main components: the registry, an inspection program, training for
property owners, and an online portal. Each of these works to advance the city’s goal of ensuring that rental
homes meet health and safety standards.

Registry fees
The registry fee is comprised of two separate components: a license fee and a supplemental fee. The license
fee includes a base building fee and an additional per-unit fee. The city uses a tiered fee structure under which
the fee increases based on the number of rental units and the property conditions tier, based on two years of
data on property conditions including inspections and violations.

Table C3: Minneapolis rental license fee, based on property condition tier
                              Building fee, 1-3 unit   Fee per unit, 1-3 unit      Building fee, 4+ unit        Fee per unit, 4+ unit
 Property condition tier
                              buildings                buildings                   buildings                    buildings

 Tier 1 (default tier)        $85                      $35                         $145                         $10

 Tier 2                       $90                      $65                         $170                         $25

 Tier 3                       $105                     $165                        $200                         $85

Source: City of Minneapolis

The supplemental fee is based on a combination of the property conditions tier and the property management
score. The Property Management Score reflects how long it takes a property owner to comply with rental
licensing standards. This allows the city to focus inspections on the buildings that need them most. Property
Management Score elements include the number of re-inspections conducted to address property condition
violations, the number of administrative citations to gain compliance, late payment on rental licenses, any
special assessments incurred for grass or trash removal, and actions taken to revoke a rental license.

If the Fee Level is higher than the Property Conditions Tier, it means that the city spent additional resources
making sure that the issues found during inspection were addressed and fixed.

Table C4: Property Conditions Tiers, Minneapolis Rental License Program
 Property conditions tier      Inspection frequency    Description

 Tier 1 (default tier)         8 years                 Property is well-maintained and meets minimum housing code.

                                                       Property is well-maintained but has a few violations that could have an urgent
 Tier 2                        5 years
                                                       impact on renter safety and habitability.

                                                       Property is poorly maintained. There are several violations, and it is likely that
 Tier 3                        1 year
                                                       more than one has an urgent impact on renter health and safety.

Source: City of Minneapolis

Rental property owner workshops
The city hosts workshops (also available online as “on-demand” trainings) for rental property owners and
managers. The training covers an overview of the rental license program, fees, and renewal requirements; the
inspection process; common code violations; and property owner responsibilities to renters.



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Compliance mechanisms
In addition to using a fee structure that incentivizes keeping properties in good conditions, the city uses a
combination of incentives and penalties to encourage property owners to comply with registration. City staff
interviewed noted that compliance is primarily driven by calls to 311 from tenants or advocacy groups
reporting unregistered units.

Incentives:
   The city reduces the annual license fee by 50% for applications submitted between September 1 and the
   end of February each year (license fees are due March 1).
   Owners and managers of single-family homes who attend a city-hosted workshop receive a $250 discount
   on their annual fees for a period of five years.

Penalties:
   Rental license renewals received 15 days after the annual deadline are subject to a penalty charge of 25%
   of the license fee up to $3,000.
   Property owners can’t rent a unit unless they have an up-to-date license for the building.

Online portal
The City of Minneapolis has several open data tools available on their website for the Rental License Program.
The dashboards are publicly available, and the public has free access to view and download data. Users,
including housing providers, renters, advocacy groups and policymakers can check information about a
specific unit or building, as well as identify city-wide trends. Available dashboards include:

   Regulatory Services Violations Dashboard: An interactive, citywide list of locations of Housing Maintenance
   Code and Fire Code violations.
   Active Rental Licenses Dashboard: A list of all rental licenses in the city, which includes the rental property
   address, the property's tier score, and contact information for each property.
   Rental Tiering Dashboard: A report on property condition scores, tier assignments, and fee levels.

Treatment of Short-Term Rental Properties (STR)
The city licenses STRs under a separate program. STR licenses follow the same fee structure and inspection
cycle as regular rental licenses. STRs have additional requirements including insurance requirements, neighbor
notification, and ownership limits.

Impacts and lessons learned
Program impacts and effectiveness
The Rental License Program currently has over 92% of rental units registered and in compliance. Of the
112,150 units in the rental registry, over 103,000 (92%) are Property Condition Tier 1, and only about 3,300 (3%)
are Property Condition Tier 3. Compliance and property condition data from previous years is unavailable.

Implementation and participation challenges
The Program was initially implemented in 1998, more than 25 years ago. City staff who presently work on the
program are unfamiliar with initial implementation challenges.

Equity considerations
The city takes a person-centered and renter-first approach to code enforcement and inspection to reduce the
impacts of housing instability on Minneapolis’s most vulnerable residents. Renters are a majority of the city’s
residents and also disproportionately residents of color. The Inspection Services Division pays particular
attention to the impacts of its programs in BIPOC communities.


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Lessons learned
Minneapolis’s approach to its rental registry promotes transparency, safety and quality in rental housing and
centers the needs of tenants while providing guidance for housing providers to reduce the costs of
compliance. A statewide rental registry in Washington is unlikely to focus primarily on housing quality and
inspections as Minneapolis’s program does. However, Minneapolis’s emphasis on data collection and
strategic enforcement, strong incentive and penalty structures, and adequate implementation for capacity can
be applicable to Washington.

      Incentives, fee structures, strategic enforcement, and technical assistance can increase compliance. The
      program has achieved a high compliance rate. Approximately 92% of rental units have a license and are
      compliant with inspection requirements. This achievement is partly due to the program’s tenure (over 25
      years) and the city’s capacity for implementation. City staff have also stressed the importance of
      prioritizing data collection and management in order to be strategic in their interventions and to monitor
      progress toward compliance. Incentives for compliance with quality standards, such as reduced
      inspection frequency and reduced fees, have also contributed to the program’s success.

Adequate fees can support program operations. The city’s comprehensive fee structure rewards housing
providers that responsibly manage and maintain their units. However, fees escalate for owners of properties
with multiple, recurring violations. These fees help support the program’s costs.


 Case study | San Francisco's Rent Board Housing Inventory
 San Francisco, CA

San Francisco’s Housing Inventory has had implementation challenges in its first years of operations,
highlighting the importance of adequate outreach and compliance strategies.
In 2020, the San Francisco Board of Supervisors amended the City’s Rent Ordinance to establish a Housing
Inventory. The purpose of this inventory was to enhance the Rent Board’s ability to oversee the city’s rent
stabilization policy by maintaining an accurate inventory of the city’s residential rental housing. Through the
program, property owners pay an annual fee and maintain accurate information on their properties (updated
annually) to qualify for the annual allowable rent increases (Rent Board). The program is still new, and
compliance rates are low to date. The Housing Inventory demonstrates how a rental registry can operate
alongside a rent stabilization program to track detailed property information.

Key facts
Year created                      2020

                                  All property owners are required to report certain information about their residential
Coverage
                                  properties. Approximately 406,000 units.

Re-registration                   Annual

                                  $59 per dwelling unit, $29.50 per guest room (e.g., SROs). 50% of the fee can be passed on to
Fee
                                  the tenant under the city’s rent stabilization policy.

                                  Owner-occupied units:
                                     Name
                                     Confirmation that unit is owner-occupied.
Data captured
                                  Non-owner-occupied units
                                      Name and business contact information of property owner or property manager




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                                           Business registration number
                                           Square footage of unit (in 250 square foot increments)
                                           Number of bedrooms
                                           Number of bathrooms
                                           Date current occupancy began
                                           Rent paid by tenant (in $250 increments)
                                           Utilities included in rent

                                      Vacant units:
                                          Name and business contact information of property owner or property manager
                                          Business registration number
                                          Square footage of unit (in 250 square foot increments)
                                          Number of bedrooms
                                          Number of bathrooms
                                          Date current vacancy began
                                          Start and end dates of any other vacancies or occupancies that have occurred during the
                                          past 12 months

Property inspection                   No

                                      Yes. Public users can search properties by address or parcel number to view the registration
                                      fee amount, how much has been paid, which units have been registered, and which units
Online portal and data availability   received a rent increase license. The portal only provides data on the searched property.
                                      Users can not view or export the full database in a single query. Tenants and Property owners
                                      can submit information through the online portal.

                                      Low (5%). The city’s primary compliance mechanism is withholding rent increase licenses for
Compliance                            non-compliant property owners. COVID-era rent freezes and other pandemic-era
                                      complications could have limited early compliance.

Short-term rental considerations      No




Background
History and context
San Francisco passed a Rent Ordinance in 1979 to limit rent increases on units built before June 13, 1979. The
Ordinance established the San Francisco Rent Board to administer the Ordinance. For many decades, the city
managed tenant-landlord relationships without a formal inventory for tracking units governed by the Rent
Ordinance.

In 2020, the city passed an amendment to the Rent Ordinance that established the Housing Inventory. The
Inventory requires all properties subject to the Rent Ordinance to be registered with the San Francisco Rent
Board. Additionally, the amendment requires property owners to obtain a license to increase rents, including
increases within the allowable range under the Rent Ordinance. These changes went into effect Jan. 18, 2021.

According to a report from the Budget and Legislative Analyst’s Office, the purpose of the program was to
provide information for the Rent Board in order to investigate housing services provided to tenants, analyze
rents and vacancies, monitor compliance with the rent ordinance, generate reports, and provide assistance to
landlords, tenants, and other city departments.

Legal authority
The San Francisco Board of Supervisors passed Residential Rent Stabilization and Arbitration Ordinance
(Chapter 37 of the San Francisco Administrative Code) in 1979. In 2020, the Board of Supervisors passed
Ordinance 265-20, an amendment to the Rent Ordinance which created the Housing Inventory.



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Initial implementation
It is unknown how the city conducted stakeholder engagement in advance of creating the Housing Inventory.
The city created the Housing Inventory during the height of the COVID-19 pandemic which might have
complicated engagement. The city held a public hearing to approve the Ordinance.

The Housing Inventory is new, and implementation is underway. The rent board already had a history of
oversight of residential rental properties in San Francisco. During the initial rollout, the Rent Board sent two
notifications via mail and one press release reminding all residential property owners of the registration
requirement. Property owners of owner-occupied units only have to report their mailing address and that the
unit is owner-occupied.

Program operations, administration and costs
A 2020 report from the city’s Budget and Legislative Analyst’s Office estimated year one costs for the program
of between $1.3 and $3.3 million and ongoing annual costs between $1.2 and $2.8 million to maintain the
inventory. The primary cost is for staffing of between seven and 14 Full-Time Equivalent (FTE) staff positions.
It is not likely that the program revenues are currently sufficient to cover its costs, due to low compliance.

The Rent Board administers the Housing Inventory. The city established a special revenue fund to fund the
Rent Board. Charges for services, including registration fees, provide the Board’s operating funds. The city
does not seem to have a targeted outreach strategy to identify and incentivize non-compliant property owners

In addition to maintaining the Housing Inventory, the Rent Board conducts hearings and mediations of rent
disputes, investigates wrongful conviction claims, provides counseling on the Rent Board, and provide
Alternative Dispute Resolution (ADR) meditation to tenants, roommates, landlords, and property owners. San
Francisco’s 311 Customer Service team also supports operation of the Housing Inventory, helping users
navigate challenges with the online portal.

Program features
The design of the Housing Inventory supports the operations of the city’s rent stabilization program.

Registry fees
The city uses a flat per-unit annual registration fee (Rent Board). The registration cost differs for dwelling units
and guest units (e.g., SROs or residential hotel rooms). The property owner can pass through up to 50% of the
registry fee to tenants.

Table C5: San Francisco's Rent Board Housing Inventory registration fees
Property type                                                  Total fee/unit

Dwelling unit                                                            $59

Guest unit (single-room occupancy or residential hotel room)          $29.50
Prior to the creation of the Housing Inventory, property owners paid a fee through their property tax bill. Now,
property owners pay the same fee (plus a surcharge which covers the cost of operating the Housing Inventory)
directly to the Rent Board through the online portal.

Compliance mechanisms
Property owners that fail to pay the registry fee are subject to a 5% late fee for every month beyond March 1st.
Any unpaid fees on or after June 1st incur penalties through the Bureau of Delinquent Revenue. Non-compliant
properties cannot receive a rent increase license under the city’s rent stabilization law. If a non-compliant


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property owner increases rents without a license, the tenant has the right to file a civil proceeding against the
property owner. It is not clear if the Rent Board has assessed penalties at this point.

While the city provided a funding mechanism to administer the inventory, there remain few actions the Rent
Board can proactively take to ensure compliance. Compliance depends on tenants and non-profits filing civil
proceedings against non-compliant landlords. Meanwhile, the Rent Board continues annually notifying property
owners of the registration requirement.

Online portal
The city maintains a registry for property owners and for tenants. The property owner portal allows owners to
submit their registration, file for a rent increase license, pay the registry fee, and upkeep information on their
business and properties. The tenant portal enables tenants to provide their information and to identify whether
a property has received a rent increase license.

Impacts and lessons learned
Program impacts and effectiveness
The registration requirement officially launched on January 18, 2021. As of February 2023, the Rent Board
reported 12,000 registered properties, less than 5% the overall inventory of rental units subject to the Rental
Ordinance.

The Rent Board also measures the program’s effectiveness in terms of compliance with rent stabilization
requirements. However, data is not available about the impact of the housing inventory on rent stabilization
compliance.

Implementation and participation challenges
San Francisco’s Rent Board Housing Inventory benefited from existing organizational capacity designed to
support rent stabilization efforts. The Rent Board has been in existence for over four decades, which provided
a natural governance structure to implement the Housing Inventory.

The city began its rollout of the program by mailing notices to all property owners of the registry program.
Additionally, the city used press releases to increase awareness of the requirement.

So far, the city has experienced limited success with rental registrations in the first few years of operations.
COVID-era rent freezes might have contributed to low registration compliance. To improve registration
compliance, the Rent Board sends mail notifications to all residential property owners, regardless of
registration status or tenure. However, written notifications alone might not sufficiently increase registrations,
and the city does not currently have a more focused compliance strategy.

Equity considerations
The Rent Board offers exemptions for units regulated by a government agency, such as Housing Choice
Vouchers, units that are an accommodation in a hospital, monastery, extended care facility, licensed home for
the elderly, or dormitories, and units manage by nonprofit cooperative.

The city has also taken intentional steps to avoid burdening mission-driven property managers and subsidized
properties. The city allows exemptions for non-profit organizations, subsidized units, and homes for the elderly
to avoid negatively impacting properties with lower profit margins.




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Lessons learned
The San Francisco Rent Board’s Housing Inventory demonstrates how a rental registry can work alongside a
rent stabilization program to track detailed property information:

     Limited data transparency is possible. The city tracks detailed unit-level data including changes in rents
     and has a secure online portal where anyone view limited unit-level data such as registration fees and
     status of the rent increase license. Public users cannot access information on unit rent or size.

     Early compliance is challenging, and mailed notices have not had high success rates. The city has relied
     primarily on written notices to property owners to encourage compliance. The Housing Inventory has
     only been in operation a few years, and compliance is still low. The city’s primary compliance
     mechanism is withholding rent increase licenses, but this has not been effective at incentivizing
     registration.

Washington does not have rent stabilization laws, so a statewide rental registry would not use rent increases
to encourage compliance. Washington should use multiple means of outreach and explore relevant
compliance mechanisms. Washington can consider how best to balance




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Appendix D: Overview of existing rental registries
Summary of relevant takeaways
We found several trends in existing rental registries that are likely to make integration with a proposed
statewide rental registry difficult:

      Excluding rental properties subject to local rental registries from a state rental registry program would
      result in a significant loss of data. Existing rental registries already cover approximately 40% of rental
      homes in the state, or 49% of homes in the six largest counties.

      If the state were able to access and integrate all existing registry data, it would be missing rent and
      occupancy data. Most existing rental registry programs focus on ensuring that rental housing meets
      basic safety, habitability, and other quality standards. Very few collect information about rent or
      occupancy. This will pose a challenge to integrating existing rental registry data into a state registry.

      Existing rental registry data could be valuable as a starting point for outreach for a state registry. Most
      existing rental registry programs in Washington collect owner contact information. The state could use
      this data to conduct focused outreach to those property owners to encourage compliance with a state
      program.

      To leverage existing registry data, a statewide program will require the capacity to work with data that
      is collected and stored differently. Each city has its own online web portal or other system for recording
      registry information and accepting fee payments. Cities have various practices regarding the storage of
      this data, and very little data is available publicly, either at the property level or through reporting. The
      lack of transparency makes it difficult to understand the compliance rates and scale of existing
      programs. It could also make it difficult to collect and aggregate data from existing rental registries into
      a statewide registry.

      A state program should not increase registration fees and regulatory requirements more than is
      necessary to meet its goals. Compliance with existing registries can be costly and burdensome,
      particularly for owners with properties in multiple cities. Most existing rental registry programs require
      inspections, with slightly different requirements for business licenses, subject and exempt rental
      properties, qualified inspectors, and inspection criteria. Property owners in most locations must pay a
      registration fee as well as a fee for inspection. Some must also pay a business license fee. For housing
      providers that own or manage properties in multiple cities with registries, varying standards, processes,
      and portals could make compliance difficult. The state should avoid adding additional barriers for
      property owners as much as possible.


Introduction
Purpose
Many of Washington’s largest cities already have residential rental registry programs. We compiled a summary
of these programs in order to understand how these local registries might interact with or inform the design of
a statewide rental registry program. Our review includes a summary of major program elements, fees, and data
collection practices.



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Existing rental registries in Washington
We identified 17 cities in Washington with existing rental registries. We did not identify any county-level rental
registries in Washington.

Table D1: Rental registry programs in Washington

                                                                                            Year    Total         Renter-occupied
 City                  County         Program name
                                                                                            begun   population    homes

 Aberdeen              Grays Harbor   Rental Registration and Inspection Program            2019         17,013             2,860

 Auburn                King           Rental Housing License Program                        2019         87,256            12,381

                                      Rental Registration and Safety Inspection Program
 Bellingham            Whatcom                                                              2015         91,482            23,131
                                      (RR&SIP)

                                      Landlord License Program, Landlord Notification
 Bremerton             Kitsap                                                               2014         43,505             9,480
                                      Program

 Burien                King           Rental Housing Inspection Program                     2021         52,066             8,623

 Kent                  King           Rental Housing Inspection Program                     2021        136,588            20,433

 Lacey                 Thurston       Residential Rental Registration Program               1999         53,526             9,375

 Lakewood              Pierce         Rental Housing Safety Program                         2015         63,612            14,878

 Mountlake Terrace Snohomish          Rental Housing License & Safety Inspection Program    2012         21,286             3,735

 Olympia               Thurston       Rental Registry and Inspection Program                2024         55,605            12,709

 Pasco                 Franklin       Rental License Program                                1997         77,108             7,277

                                      Crime Free Rental Housing & Inspection Program
 Prosser               Benton                                                               2012          6,062             1,008
                                      (CFRHIP)

 Renton                King           Rental Registration Program                           2019        106,785            18,022

 Seattle               King           Rental Registration and Inspection Ordinance (RRIO)   2014        737,015           206,391

 Spokane               Spokane        Long-Term Rental Registry                             2023        228,989            40,699

 Tacoma                Pierce         Rental Business License                               2019        219,346            40,263

 Tukwila               King           Rental Housing Program                                2011         21,798             4,663

Source: 2022 ACS 5-Year Estimates


Purpose and structure of existing registries
Existing rental registries in Washington all have similar purpose and structure. The primary stated purpose of
all of these registries is ensuring that rental housing meets basic safety standards. Some programs state
secondary purposes such as data collection, support for property owners and tenants, support for first
responders, and housing preservation.




WASHINGTON RENTAL REGISTRY STUDY                                                                                               73
Inspections
Inspections are a central part of most of the existing rental registries in Washington. Of the 17 rental registry
programs, 11 require inspections on a recurring schedule (typically every 3 to 5 years), 3 programs allow
property owners to self-certify the condition of the property without an inspection, and 3 programs have no
inspection requirements at all. Some cities provide inspections at no cost to the property owner. Others allow
property owners to hire either a city inspector or a qualified or pre-approved private inspector.

Table D2: Inspection requirements for rental registry programs
City              Policy focus     Inspection requirement

Aberdeen          Housing quality Yes

Auburn            Housing quality No

Bellingham        Housing quality Yes

Bremerton         Housing quality Self-certification

Burien            Housing quality Yes

Kent              Housing quality Yes

Lacey             Public safety    No

Lakewood          Housing quality Yes

Mountlake Terrace Housing quality Yes

Olympia           Housing quality Yes

Pasco             Housing quality Yes

Prosser           Public safety    Yes

Renton            Housing quality Self-certification

Seattle           Housing quality Yes

Spokane           Housing quality No

Tacoma            Housing quality Self-certification

Tukwila           Housing quality Yes




Exemptions
Most registries cover all rental properties, including single-family homes, accessory dwelling units (ADUs), and
smaller rental properties. Some programs offer exceptions from inspection requirements for ADUs or duplexes
where one unit is owner-occupied, though these typically still have to register. Other exceptions include
government-owned property or subsidized properties that have federal inspection requirements. Registries
vary in their treatment of Short-Term Rentals. Some are subject to the same inspection and registration
requirements as longer-term rentals. Some have additional compliance standards, while some are exempt
from registration. In several cities STRs are governed under different legislation, as described in the Existing
Rental Registries – Additional Details table.




WASHINGTON RENTAL REGISTRY STUDY                                                                                74
Fees
We found that fees and fee structures vary, though most rental registries charge either a simple per-unit
registration fee or a fee for the first unit plus a smaller per-unit fee for each additional unit. Some programs
also require owners to pay a business license fee, and to pay for inspections either to the city, a private
inspector, or both. On average, most programs charge annual fees between about $10 and $50 per unit.
Programs with different approaches include:

   Seattle, which charges a base registration fee of $115.50, plus $21 per unit for each additional unit. This
   does not include fees for city inspections. It also requires re-registration every two years instead of annual
   re-registration which is more common.
   Renton, which does not charge a fee for registration.
   Prosser, which charges a $10 fee for initial registration and a $5 annual renewal.
   Tacoma, which bases fees on estimated rental revenue.

Fees are intended to offset or cover the costs of program administration; however, we do not have access to
detailed information about program costs and revenues. We did find that Seattle increased its registration fees
slightly in recent years because the program revenue was not sufficient to cover the program costs.

Data collected
We found that most rental registries have an online portal for property owners to submit required information
and documents to comply with the rental registry. Because of the emphasis on inspection compliance and
property condition, data collection focuses on property address and owner information. Most registries also
record the number of units in the building because this typically determines the registration fees. Some
registries request property manager contact information or a local agent. Only two registries collect
information on monthly rents or vacancy status, as required in the state’s proviso: Tacoma and Olympia. These
cities take two different approaches:

       Olympia requires property owners to submit their complete rent roll, with fields for property address, unit
       number, unit floor area, number of bedrooms, number of bathrooms, and rent for each individual unit.
       The rent field is not required, however.

       Tacoma requires property owners to provide information on rents at the property level. For single units,
       Tacoma requires monthly rent for the unit. For multi-unit properties, Tacoma requires property owners to
       quantify the number of units by type (i.e., studio, 1-bedroom, and 2-bedroom) and rent range (i.e., $1,501-
       $1,750; $1,751-$2,000). Tacoma’s fees are based on gross rental income.

A few also collect information about utilities, tenancy, and other data points, including accessibility features
and use of Housing Choice Vouchers.

Table D3: Rental registry data collection

                     Property    Number of                Manager   Rent and
City                                         Owner info                          Unit size   Tenant info   Other
                     address     units                    info      utilities

Aberdeen             Yes         Yes         Yes          No        No           Yes         No            No

Auburn               Yes         Yes         Yes          Yes       No           No          No            No

Bellingham           Yes         Yes         Yes          No        No           No          No            No



WASHINGTON RENTAL REGISTRY STUDY                                                                                   75
                    Property    Number of                Manager   Rent and
City                                        Owner info                         Unit size   Tenant info   Other
                    address     units                    info      utilities

Bremerton           Yes         Yes         Yes          No        No          No          No            No

Burien              Yes         Yes         Yes          No        No          No          No            No

Kent                Yes         Yes         Yes          No        No          No          No            No

Lacey               Yes         Yes         Yes          Yes       No          Yes         No            Yes

Lakewood            Yes         Yes         Yes          Yes       No          No          No            No

Mountlake Terrace   Yes         Yes         Yes          Yes       No          No          No            No

Olympia             Yes         Yes         Yes          No        Yes         No          Yes           Yes

Pasco               Yes         Yes         Yes          Yes       No          No          No            No

Prosser             Yes         Yes         Yes          No        No          No          No            No

Renton              Yes         Yes         Yes          Yes       No          No          No            No

Seattle             Yes         Yes         Yes          Yes       No          No          Yes           No

Spokane             Yes         Yes         Yes          Yes       No          No          No            No

Tacoma              Yes         Yes         Yes          Yes       Yes         No          No            No

Tukwila             Yes         Yes         Yes          No        No          No          No            No




Compliance rates
Compliance rates of existing registries
We were unable to get reliable data on compliance rates of existing rental registries. Most cities do not report
compliance rates or other registration figures publicly. Almost no data is available through open data portals
or other public reporting systems. We found limited registration data for a few existing registries, including
Seattle and Bellingham. Estimating compliance is also difficult for program administrators because it is
difficult to determine the exact number of rental properties or units subject to registration requirements. In
some cities, incomplete data could leave some properties in partial compliance.


Scale of existing registries and integration of data
Scale of existing registries
The best estimate we have of the scale of homes subject to existing rental registries is through the U.S.
Census Bureau’s American Community Survey, which reports the number of renter-occupied homes. This does
not include vacant rental homes. Based on available estimates, approximately 40% of rental homes statewide
may be currently subject to rental registries at the city level. Together, Seattle, Spokane, and Tacoma make up
70% of the rental units currently subject to local registries.




WASHINGTON RENTAL REGISTRY STUDY                                                                                 76
Table D4: Estimated scale of existing rental registries, six largest counties

                      Cities in county with existing rental     Renter-occupied homes in            Total renter-      Approximate % subject
 County
                      registries                                cities with rental registries       occupied homes     to rental registry

 Clark                None identified                                                           0            62,839                     0.0%

                      Auburn, Burien, Kent, Renton,
 King                                                                                 270,513               401,313                    67.4%
                      Seattle, Tukwila

 Pierce               Lakewood, Tacoma                                                 55,141               121,139                    45.5%

 Snohomish            Mountlake Terrace                                                 3,735                96,712                     3.9%

 Spokane              Spokane                                                          40,699                77,399                    52.6%

 Thurston             Lacey, Olympia                                                   22,084                37,865                    58.3%

                      Aberdeen, Bellingham, Bremerton,
 All other counties                                                                    43,756               281,753                    15.5%
                      Pasco, Prosser

 Statewide total                                                                     435,928               1,079,020                   40.4%

Source: 2022 ACS 5-Year Estimates


Data storage and format
Most existing rental registries use an online portal for property owners or managers to pay fees, submit
inspections, and update registration information. Some also allow tenants to access data related to their
homes through these portals. However, each city has its own online portal system, which is sometimes tied to
other city functions. We are conducting additional outreach to operators of larger registries to understand in
what format registry data is stored and how easy it would be for the state to access back-end data for
integration with a statewide registry database.

Estimated data loss
If the state were able to access and integrate registry data for all existing registries (so as to not require
duplicate registration by owners in those cities), it would have some ownership and property information, but it
would only have monthly rent data for homes in Olympia and Tacoma. We do not know current compliance
rates for these existing registries. If the state were not able to access and integrate registry data for any
existing registries, it would result in a loss of data for up to 436,000 homes or 40% of the total for statewide
implementation, or 392,000 homes or 49% of the total for implementation limited to the six largest counties.

To minimize potential data loss, the state could focus data collection and integration on three cities: Seattle,
Spokane, and Tacoma, which together account for approximately 67% of homes currently subject to rental
registries statewide and 73% of homes currently subject to rent registries in the six largest counties. Seattle
and Spokane do not collect rent data, so this strategy would only capture Tacoma’s rent data.

Table D5: Existing rental registries – program overview

                                        Year    Policy
 City           Program name                                  Overview
                                        begun   focus

                                                              The City of Aberdeen's rental registration and inspection program requires
                Residential Rental
                                                Housing       registration and inspection to protect tenants from living in poorly
 Aberdeen       Registration and   2019
                                                quality       maintained homes. The program covers all rental homes, with exceptions
                Inspection Program
                                                              only for housing owned by government entities and for commercial lodging.



WASHINGTON RENTAL REGISTRY STUDY                                                                                                           77
                                  Year    Policy
City         Program name                           Overview
                                  begun   focus

                                                    Registrations must be renewed annually. In addition to registration the
                                                    property owner must obtain a business license and have an inspection every
                                                    3 years. The city's inspection fee is $75 and covers one follow-up inspection.
                                                    The city estimates that 1,000 units are registered through the program.

                                                    Auburn requires a city rental license for all rental homes to ensure proper
                                                    management and maintenance of rental properties and to keep up to date
             Rental Housing               Housing
Auburn                            2019              contact information for property owners and managers to respond to
             License Program              quality
                                                    complaints. Nonprofit-owned properties do not pay a fee for registration.
                                                    Most homes do not require an inspection.

                                                    The purpose of the City of Bellingham's RR&SIP is to ensure that rental
                                                    housing meets basic safety standards. The program covers all residential
             Rental Registration
                                                    rental properties. The city publishes a list of registered properties, which
             and Safety                   Housing
Bellingham                       2015               includes approximately 20,600 rental units in 5,300 properties. Properties
             Inspection Program           quality
                                                    that must register but are exempt from inspection requirements include
             (RR&SIP)
                                                    owner-occupied properties with two units and government-owned properties
                                                    or subsidized properties subject to inspection under HUD requirements.

                                                    Bremerton requires property owners to obtain a landlord business license
             Landlord License
                                                    and to provide the city's police department with a listing of all rental
             Program, Landlord            Housing
Bremerton                         2014              properties inside city limits. Property owners must sign a declaration of
             Notification                 quality
                                                    compliance related to adherence to certain building codes and can receive
             Program
                                                    property inspection checklists to do a self-inspection.

                                                    Burien's program aims to protect tenants' health and safety and encourage
                                                    proper maintenance of rental housing. The city requires an annual housing
                                                    business license for each residential property and a health and safety
             Rental Housing               Housing
Burien                          2021                inspection every three years for rental properties with two or more units.
             Inspection Program           quality
                                                    Single-family homes, mobile homes, ADUs, condominiums, and properties
                                                    that received a certificate of occupancy within the past 4 years are exempt.
                                                    Government owned properties are also exempt.

                                                    Kent's program arose from tenant concerns about health and safety and
                                                    requires inspection of rental properties with two or more units. Single-family
                                                    homes, owner-occupied mobile homes, government-owned rental properties,
             Rental Housing               Housing   and properties that received a certificate of occupancy within the last 4 years
Kent                            2021
             Inspection Program           quality   are exempt. Notably, Kent allows tenants to register their apartment building
                                                    to help build the city's database of rental housing and to support outreach to
                                                    property owners. The city has cited low (less than 10%) registration rate and
                                                    delays due to COVID.

                                                    Lacey's residential rental registration program requires rental properties with
                                                    5 or more units to register annually with the city. The city does not require
                                                    inspections and charges a minimal fee of $5 per unit per year for
             Residential Rental
                                          Public    registration. The program appears to be tied to public safety and crime
Lacey        Registration         1999
                                          safety    prevention, as a portion of registration fees go to crime prevention programs
             Program
                                                    and registration forms ask for security officer contact information.
                                                    Registration fees are waived for property owners who participate in a crime
                                                    free housing program.

                                                    Lakewood's rental housing safety program focuses on ensuring that rental
                                                    housing meets specific life and fire safety standards through annual
             Rental Housing               Housing
Lakewood                          2015              registration and inspections every 5 years. It allows exemptions for owner-
             Safety Program               quality
                                                    occupied units, government-owned and subsidized homes, units in
                                                    condominiums, mobile homes, and homes that are less than 10 years old.

             Rental Housing                         Mountlake Terrace's program requires property owners to obtain a business
Mountlake                                 Housing
             License & Safety   2012                license which they must renew annually. The program requires inspections
Terrace                                   quality
             Inspection Program                     for all residential rental properties to ensure that housing meets safety




WASHINGTON RENTAL REGISTRY STUDY                                                                                                   78
                                Year    Policy
City      Program name                            Overview
                                begun   focus

                                                  standards. City and county inspectors conduct inspections at no cost to the
                                                  owner.

                                                  Olympia is in the process of implementing a rental housing registration
                                                  program similar to those in other cities. The goals of the program include
                                                  ensuring health and safety for tenants, housing preservation, data collection,
                                                  and support for housing providers. Property owners are required to register
                                                  annually, obtain a business license from the state, and undergo inspection
                                                  every 5 years. ADUs and duplexes in which one unit is owner-occupied must
          Rental Registry and           Housing   comply with the registry but are exempt from inspections. The same is true
Olympia                       2024
          Inspection Program            quality   for homes that are less than 10 years old and affordable housing that is
                                                  subject to inspections under HUD requirements. Olympia's ordinance
                                                  prohibits passing registration fees, inspection fees, or other compliance
                                                  costs on to tenants. Notably, Olympia's program is tied to funding for
                                                  housing providers with low-income tenants that allows them to make repairs
                                                  in order to ensure that the program does not contribute to displacement.
                                                  Registration began on March 1, 2024.

                                                  The City of Pasco established the first rental registry program in Washington,
                                                  with the stated goals of assisting first responders and ensuring that rental
          Rental License                Housing   housing meets minimum code standards. The program is operated by the
Pasco                           1997
          Program                       quality   Sheriff's office and code enforcement department. Property owners must
                                                  obtain a business license and submit a certificate of inspection every 2
                                                  years.

                                                  The stated purpose of Prosser's CFRHIP is to create better, safer, crime-free
                                                  rental housing. The city describes a two-sided approach involving both the
          Crime Free Rental
                                                  police department and the building department, focused on information,
          Housing &                     Public
Prosser                      2012                 training, assistance, and inspections to improve rental property conditions.
          Inspection Program            safety
                                                  All rental property owners must obtain a rental license and an inspection.
          (CFRHIP)
                                                  Participation in the Crime Free Rental program is voluntary unless a property
                                                  has two or more violations.

                                                  Renton's rental registration program is a limited-scope program focused on
                                                  ensuring housing quality. Renton requires registration for all rental
                                                  properties, though only owners of apartment complexes with 5 or more units
                                                  require a business license. The program has exemptions for room rentals in
          Rental Registration           Housing
Renton                          2019              owner-occupied housing, short-term rentals, state-licensed facilities, and
          Program                       quality
                                                  government-owned housing. Registration must be renewed annually, and
                                                  housing providers must self-certify the condition of the property annually
                                                  through a declaration of compliance with various codes and housing safety
                                                  requirements.

                                                  Seattle's program is designed to ensure that rental housing meets basic
                                                  maintenance and safety requirements, and to educate property owners,
                                                  managers, and renters. Registration is required every 2 years for all rental
                                                  housing. The city suspended inspection operations during the COVID-19
                                                  pandemic and registrations fell during this time, though it is unknown if this
                                                  is due to lower compliance or loss of housing. At the end of 2022, the city
          Rental Registration                     had approximately 26,500 registered properties representing 161,000 rental
                                        Housing
Seattle   and Inspection        2014              units. About 7.3% of properties completed and passed inspections,
                                        quality
          Ordinance (RRIO)                        somewhat short of the city's 10% target. The city estimates that
                                                  approximately 90% of rental properties are registered. Registration and
                                                  inspection fees provide the bulk of operating revenue for the program,
                                                  however in 2022 that revenue was only about $1.8 million compared to total
                                                  program operating costs of $2.3 million. Outreach activities include the city's
                                                  website, direct mail to likely rental property owners, brochures, and
                                                  partnerships with property owner associations.

          Long-Term Rental              Housing   Spokane's registry program is focused on maintaining safe living conditions,
Spokane                         2023
          Registry                      quality   preserving housing stock, and tracking rental units. Property owners must



WASHINGTON RENTAL REGISTRY STUDY                                                                                               79
                                   Year       Policy
City         Program name                                Overview
                                   begun      focus

                                                         obtain business licenses. Tenants can submit complaints via the city's 311
                                                         system.

                                                         Tacoma requires a business license for all rental housing to support first
             Rental Business                  Housing
Tacoma                             2019                  responders and address blighted property conditions. Property owners must
             License                          quality
                                                         self-certify that properties meet basic habitability and code standards.

                                                         Tukwila requires a license and inspection for all rental units to ensure that
                                                         rental homes are safe and suitable for occupancy. The requirement applies
             Rental Housing                   Housing    to short-term rental properties, though the city does not allow short-term
Tukwila                            2011
             Program                          quality    rentals in multi-family dwellings or Accessory Dwelling Units. Owners must
                                                         renew their licenses annually. The city maintains a user-friendly website and
                                                         holds virtual office hours for anyone to meet with staff.



Table D6: Existing rental registries – additional details
            Registry                                                 Business Short-term                        Online        Public
City                           Fees               Inspections                                  Enforcement
            information                                              license  rentals                           portal        data

                                                  Yes, required
            Property
                                                  every 3 years.
            address, owner
                                                  Property
            information,
                               $50 plus $2 per    owners can use               Unclear, likely                  Yes
Aberdeen    number of                                                Yes                       Late fee                    No
                               additional unit    a city inspector             required                         (SmartGov)
            units, number
                                                  or a qualified
            of bedrooms,
                                                  private
            square footage
                                                  inspector.

                               $30 to $500 per
            Property
                               year (nonprofit
            address, owner
                               owners pay no
            information,
                               fee. $30 per unit
            number of
                               for single-
            units, manager
                               family; $75 per                                                                  No (PDF
            information,                                                       Unclear, likely
Auburn                         building per      No                  Yes                       Unknown          application   No
            local contact.                                                     required
                               year for 2-4                                                                     )
            Additional
                               units, $150 per
            information
                               year for 5 to 24
            required for
                               units, $500 per
            single-family
                               year for 25 or
            residences.
                               more units)

                                                  Yes, required
                                                  every 3 to 3.5
                           $8 to $10 per          years. Property
                           unit per year          owners can use
                                                                                               Financial
           Property        (properties with       a city inspector
                                                                               Governed by     penalties
           address, owner up to 20 units          or a private                                                Yes             Property
Bellingham                                                           No        separate        based on
           information,    on a single            inspector (use                                              (eTRAKit)       list (PDF)
                                                                               requirements    length of non-
           number of units parcel pay the         of a private
                                                                                               compliance
                           higher rate per        inspector
                           unit)                  requires an
                                                  additional $45
                                                  fee to the city)

            Property           $75 per year
                                                  Self-                                        Civil penalty,
Bremerton   address, owner     business                              Yes       Unknown                          No            No
                                                  certification                                revocation of
            or manager         license fee



WASHINGTON RENTAL REGISTRY STUDY                                                                                                       80
            Registry                                                 Business Short-term                     Online        Public
City                           Fees               Inspections                              Enforcement
            information                                              license  rentals                        portal        data

            contact                                                                        business
            information,                                                                   license
            number of units

                               $303.75 to
                                                                                           Late fee
                               $911.24 per
                                                                                           incurred
                               year per           Yes, required
                                                                                           every day the
                               property based     every 3 years
            Unknown                                                                        unit operates
                               on number of       (at least 20% of
            (assume                                                                        without a
                               units ($303.75     total units in the
            minimum                                                                        certificate of
                               for properties     property).
            property                                                                       inspection.
Burien                         with up to 10      Property owner Yes          Unknown                     No               No
            address, owner                                                                 Property will
                               units. $759.36     must hire a
            information,                                                                   be deemed
                               for properties     private
            number of                                                                      uninhabitable
                               with 11 to 50      inspector from
            units)                                                                         after 30 days
                               units. $911.24     a pre-approved
                                                                                           of
                               for properties     list.
                                                                                           noncomplian
                               with 51 or more
                                                                                           ce.
                               units)

                                                  Yes, required
                                                  every 3 years
            Property           No fee for         for 20% of the
                                                                                           Inability to
            address,           registration,      total units in the
                                                                                           renew
            number of          $15 for            property.
Kent                                                                 Yes      Unknown      multifamily       No            No
            units, owner       submission of      Property
                                                                                           business
            name and           inspection         owners must
                                                                                           license
            information        report             hire a qualified
                                                  private
                                                  inspector.

            Property
            address, owner
            information,
                                                                                           Registration
            number of units
                                                                                           fee is waived
            with gross floor
                               $5 per unit per                                             for owners
            area, number
                               year with a                                                 who
            and size of
Lacey                          maximum fee        No                 No       Unknown      voluntary         No            No
            bedrooms; use
                               of $500 per                                                 participate in
            of tenant-
                               complex.                                                    a crime free
            screening
                                                                                           housing
            agency,
                                                                                           program.
            manager and
            security contact
            information

                                                  Yes, required
            Property                              every 5 years.
                               $12 per unit per                                            Penalties of
            information,                          Property
                               year (additional                                            $150 per day,
            owner                                 owners can use                                             Yes
Lakewood                       fee for re-                           No       Unknown      $500 per day                    No
            information,                          a city inspector                                           (Tolemi)
                               inspection of                                               after first ten
            manager                               or a qualified
                               failed unit)                                                days
            information                           private
                                                  inspector.

                                                  Yes, required
            Property
                                                  every 3 years.
            Address, owner     $40 plus $1.50                                                                No (PDF
Mountlake                                         City or county
            information,       per additional                        Yes      Unknown      Unknown           application   No
Terrace                                           inspectors
            property           unit                                                                          )
                                                  conduct
            manager
                                                  inspections.



WASHINGTON RENTAL REGISTRY STUDY                                                                                                    81
          Registry                                                  Business Short-term                 Online        Public
City                           Fees               Inspections                             Enforcement
          information                                               license  rentals                    portal        data

          information,
          number of units

          Property                                                                        The city is
          address,                                                                        working
          business                                                                        toward
          license number,                                                                 voluntary
          property owner                                                                  compliance
          name and                                                                        through
          contact                                                                         education
          information,                                                                    and outreach.
          property name,                                                                  Penalties
          rental property                                                                 may include
                                                  Yes, required
          type, total                                                                     denial or
                               $35 per unit per   every 5 years.
          number of                                                                       suspension
                               year (plus         Property
          rental units and                                                   Exempt       of business
                               business           owners select a                                         Yes
Olympia   buildings,                                                Yes      (permit      licenses,                  No
                               license fees       private                                                 (SmartGov)
          presence of fee                                                    required)    penalty fees,
                               and third-party    inspector from
          waivers or                                                                      or the loss of
                               inspection fees)   a pre-approved
          tenants with                                                                    occupancy
                                                  list.
          Housing Choice                                                                  certificate. If
          Vouchers and                                                                    the rental unit
          other tenancy                                                                   does not
          and                                                                             pass
          accessibility                                                                   inspection,
          information,                                                                    the property
          rent per unit,                                                                  owner is
          inclusion of                                                                    prohibited
          utilities in rent,                                                              from raising
          local contact                                                                   rents.

          Property
          address,                                Yes, required
          number of                               every 2 years.
          units, owner's                          City inspectors
          name and             $50 plus $10       conduct
                                                                                                        Yes
          contact              per additional     inspections at
Pasco                                                               Yes      Prohibited   Unknown       (Citizen      No
          information,         unit (one-time     no cost to
                                                                                                        Connect)
          ownership type,      cost)              owner, or owner
          manager's                               may choose a
          name and                                qualified private
          contact                                 inspector.
          information

                                                  Yes, required
          Property             $10 per unit to    every 5 years.
                                                                                                        No (PDF
          address, owner       register, $5 per   Property
Prosser                                                             Yes      Unknown      Unknown       application   No
          information,         unit annual        owners select a
                                                                                                        )
          number of units      renewal            qualified private
                                                  inspector.

          Property
                                                  Self-
          address, owner
                                                  certification.
          contact
                                                  Inspection not
Renton    information,    No fee                                    No       Exempt       Misdemeanor No              No
                                                  required except
          manager
                                                  in cases of
          contact info,
                                                  violations.
          number of units




WASHINGTON RENTAL REGISTRY STUDY                                                                                               82
          Registry                                                Business Short-term                     Online        Public
City                        Fees               Inspections                                Enforcement
          information                                             license  rentals                        portal        data

          Property
          address, owner
                                               Yes, required
          contact
                                               every 5 to 10
          information,      $115.50 base
                                               years. Property
          tenant contact    fee + $21 per                                  Some are       Late
                                               owners can use                                             Yes           Annual
Seattle   information,      additional unit                       No       subject to     registration
                                               a city inspector                                           (Accela)      report
          manager           (re-registration                               RRIO           fee of $31.50
                                               or a qualified
          contact           every 2 years)
                                               private
          information,
                                               inspector.
          number of units
          and type

                                               Inspections for
          Property                             code
          address,                             compliance
                            $127 annual
          ownership and                        only if there is            Governed by
                            business                                                                      Yes
Spokane   management                           cause. No fee    Yes        separate       Unknown                       No
                            license fee plus                                                              (Accela)
          information,                         for inspections             requirements
                            $15 per unit
          business                             unless there are
          license number                       repeat
                                               offences.

          Property
          address,
          dwelling type,
          owner
                            $37 to $2,000
          information,
                            based on           Self-                                                      Yes
Tacoma    property                                                Yes      Unknown        Unknown                       No
                            anticipated        certification                                              (FileLocal)
          management
                            gross income
          information,
          ownership type,
          monthly rent,
          number of units

                            $84-$340 based
                            on number of
                            units ($84 for
                                               Yes, required
                            properties with
          Unknown                              before renting
                            up to 4 units,
          (assume                              and then every
                            $218 for
          minimum                              4 years.                    Included,
                            properties with                                               Late fees of
          property                             Property                    limitations on
Tukwila                     5 to 20 units,                       Yes                      $10 per         Yes           No
          address, owner                       owners can use              STR
                            $273 for                                                      month
          information,                         a city inspector            allowance
                            properties with
          number of                            or choose a
                            21 to 50 units,
          units)                               qualified private
                            $340 for
                                               inspector.
                            properties with
                            51 or more
                            units)




WASHINGTON RENTAL REGISTRY STUDY                                                                                                 83
Appendix E: Rental housing market scan
Summary of relevant takeaways
The housing scan reveals several important considerations which might guide the design of the proposed
rental registry program.

There are tradeoffs between implementation cost, administrative burden, and coverage associated with both
a statewide rental registry and a registry with implementation limited to the six largest counties. The state
has approximately 1,076,000 renter-occupied homes, and the six largest counties together have approximately
797,000. Because the six largest counties account for 74% of total renter-occupied homes in the state, there
might not be an order-of-magnitude difference in the marginal costs to implement the more geographically
focused implementation, and the difference in data collection will be proportional to the difference in the
amount of rental housing. That said, the administrative burden associated with coordinating 40 counties
versus 6 counties could result in significant cost and time differences. The other potential downside to a more
focused approach is the exclusion of more rural counties that may benefit most from certain aspects of a rent
registry, like housing quality standards.

Cost of housing appears to be the primary difference in the housing market between regions. Though there
are many differences between the regions in the state, trends in housing type and age are similar across the
state. Smaller rental buildings and homes built in the 1970s through 1990s are the most common in each
region. The greatest difference between regions is in the distribution of rents. Western regions have higher
rents on average, while there are more homes with lower rents in Eastern regions. While each region has also
seen a loss of affordable housing, the Central Puget Sound region has experienced the most substantial losses
in both percent decline and number of affordable housing units lost. The design of the registry should consider
what market data and trends the state is most interested in understanding, both within and across each region
or county.

Residents of color are disproportionately likely to be renters. Renters also generally have lower incomes. This
means that rising rents, loss of naturally occurring affordable housing, and programs that impact the supply,
quality and cost of rental housing have a disproportionate impact on low-income residents and BIPOC
residents. While renters in the state tend to be younger, there is also a significant population of renters over 65.
The design of the registry should consider how it might support vulnerable renters’ needs and improve
equitable outcomes for Washington’s residents.


Purpose
The following overview describes HR&A’s analysis of trends in both the supply of rental housing and the
demographics of renters throughout Washington. This analysis provides important context for the design and
development of a rental registry. With a better understanding of the amount, type and location of rental
housing, and the characteristics of renters, the state can ensure that the rental registry addresses the specific
challenges associated with rental properties in Washington. In addition, the housing market scan will help to
inform cost estimates and planning for implementation under either a statewide program or a program limited
to the six largest counties.


Methodology
To conduct this analysis, we first categorized counties into regions based on important distinctions across the
state, particularly distinctions that exist between the western, central, and eastern parts of the state. We


WASHINGTON RENTAL REGISTRY STUDY                                                                                 84
aggregated county-level data to show trends across regions. The analysis relies on data from 2017-2022
American Community Survey 5-Year Estimates (from the U.S. Census Bureau), American Community Survey
Public Use Microdata Sample (PUMS), and Zillow Observed Rent Index.1

        US Census 2017-2022 American Community Survey 5 Year Estimates: The American Community
        Survey (ACS) produces a wide range of demographic, socioeconomic, and housing data at many
        geographic levels. This analysis uses county level data aggregated by region. This analysis uses the
        2022 5-Year ACS data (the most current reporting year), which represents the average of data collected
        between 2017 and 2022. With more years of data, the 5-year estimates provide a more detailed and
        reliable picture at more geographic levels than ACS 1-year estimates. This analysis primarily uses data
        on race, income, and renter-occupied units. Data is not available for room rentals, partial unit rentals, or
        vacation rentals.

        US Census American Community Survey Public Use Microdata Sample: The ACS Public Use Microdata
        Sample (PUMS) is a set of individual records with detailed information about the characteristics of a
        subset of individual people and housing units reached in the survey. This data does not include
        personalized information and is aggregated to an area of at least 100,000 people. This data allows for
        more complex research techniques and is reported in 1- and 5-year estimates like other ACS data.

        Zillow Observed Rent Index: The Zillow Observed Rent Index (ZORI) measures the typical observed
        market rate rent across a given region. ZORI is a repeat-rent index that is weighted to the rental housing
        stock to ensure it is representative across the entire market, not just those homes currently listed for-
        rent. The index calculates the mean of listed rents that fall into the 35th to 65th percentile range for all
        homes and apartments in a given region, which is weighted to reflect the total rental housing stock.

Definitions
This analysis primarily pertains to Washington’s rental housing stock and the renters who live in it. ACS data
uses the term “Renter-Occupied Units” to denote housing units where renters (i.e., not owners) currently reside
(i.e., units are not vacant). Renter-Occupied Homes do not include mobile homes, which are treated differently.
Owner-Occupied Units, Vacant Units, and Mobile Home Units are other classifications for unit occupancy. This
analysis refers to renter-occupied units, rental homes, and rental homes interchangeably.

Table E1: Definition of regions
 Region                    County

 Peninsula/Coastal         Clallam, Grays Harbor, Jefferson, Pacific

 Northwest                 San Juan, Skagit, Whatcom

 Central Puget Sound King, Snohomish, Island, Kitsap, Pierce

 South Puget Sound         Lewis, Mason, Thurston

 Southwest                 Clark, Cowlitz, Skamania, Wahkiakum

 North Central             Chelan, Douglas, Grant, Okanogan

 South Central             Benton, Franklin, Kittitas, Klickitat, Walla Walla, Yakima



1 The housing scan does not include data from CoStar commercial listing service, because this data typically does not capture single-family homes or

smaller rental properties, which make up a significant amount of the rental housing in the state.



WASHINGTON RENTAL REGISTRY STUDY                                                                                                                   85
Region             County

Northeast          Ferry, Lincoln, Pend Oreille, Spokane, Stevens

Southeast          Adams, Asotin, Columbia, Garfield, Whitman



Figure E1: Map of regions




Housing supply trends
The number, distribution, type, and other characteristics of renter-occupied housing in Washington will impact
the costs of the program and might provide additional context to guide design. As of 2022, there were over
1.08 million renter-occupied homes in Washington (ACS 2022 5 Year Estimates). Renter-occupied homes
account for approximately 36% of homes statewide.

Geographic distribution
Determining where renter-occupied homes are located will help inform the design and implementation of the
rental registry program. Renter-occupied homes are highly concentrated in the Central Puget Sound region,
which accounts for 61% of all rental homes in the state. Central and Eastern regions have just 214,000 renter-
occupied homes, or about 20% of the statewide total. The six largest counties by population (King, Pierce,
Snohomish, Spokane, Clark, and Thurston) have a total of approximately 797,000 renter-occupied homes, or
74% of the statewide total. This indicates that the difference in data collected between a statewide program



WASHINGTON RENTAL REGISTRY STUDY                                                                             86
and one with implementation limited to only the six largest counties would only be approximately 26% of the
statewide total.

Table E2: 2022 Renter-occupied homes by region
 Region                 Number of renter-occupied homes Percent of total

 Peninsula/Coastal                                22,580             2%

 Northwest                                        50,540             5%

 Central Puget Sound                             659,270            61%

 South Puget Sound                                51,410             5%

 Southwest                                        78,070             7%

 North Central                                    32,590             3%

 South Central                                    82,040             8%

 Northeast                                        83,940             8%

 Southeast                                        15,270             1%

 Total                                         1,075,710           100%

Source: 2022 ACS 5-Year Estimates


Table E3: Renter-occupied homes in the six largest counties, 2022
 Region                Number of renter-occupied homes Percent of total

 King County                                   401,313             37%

 Pierce County                                 121,139             11%

 Snohomish County                               96,712              9%

 Spokane County                                 77,399              7%

 Clark County                                   62,839              6%

 Thurston County                                37,865              4%

 All other counties                            281,753             26%

 Total                                       1,075,710           100%

Source: 2022 ACS 5-Year Estimates


Renter-occupied homes by type and age
The types of renter-occupied homes that exist in Washington can impact rental registry administration. Single-
family homes make up the largest share of renter-occupied homes within each region. Fifty-eight percent of
renter-occupied homes are in buildings with fewer than 10 units statewide, with single-family homes
accounting for 34% and units in buildings with 2-9 units accounting for 24%. There are approximately 184,700
mobile homes in Washington (including both renter- and owner-occupied homes). About 55,000 of these have
renter occupants. Owner-occupied mobile homes share some qualities with rentals, because the owners often
rent the land on which the mobile home is located. According to the Urban Institute article “Owners and
Renters of 6.2 Million Units in Small Buildings Are Particularly Vulnerable during the Pandemic,” smaller
properties are more likely to have small, private property owners, so this may indicate a high percentage of



WASHINGTON RENTAL REGISTRY STUDY                                                                              87
these “mom and pop” housing providers across the state. This suggests that small scale, mom and pop
property owners may be most burdened by the costs and hurdles associated with a rental registry.

Table E4: Renter-occupied homes by building type, 2022
 Building typology           Number of renter-occupied homes Percent of total

 Single-family homes                                   367,750                 34%

 2-9 Units                                             260,930                 24%

 10-49 Units                                           224,890                 21%

 50+ Units                                             167,130                 16%

 Mobile homes                                           55,010                 5%

Source: 2022 ACS 5-Year Estimates


Figure E2. Renter-occupied homes by building type, 2022


                Southeast



                Northeast



             South Central



             North Central



               Southwest



      South Puget Sound



     Central Puget Sound



               Northwest



       Peninsula/Coastal


                              0               50,000                 100,000                150,000              200,000   250,000


                                     Mobile Homes      50+       10-49 Units    2-9 Units      Single Family Units


Source: 2022 ACS 5-Year Estimates



WASHINGTON RENTAL REGISTRY STUDY                                                                                                     88
If a rental registry program includes inspecting and enforcing housing quality standards, housing quality may
improve but older housing stock that has not been well maintained may be costly to bring into compliance.
Across regions, housing built in the 1970s is most common, and the distribution of homes by age is similar
across regions. Statewide, the median year built of renter-occupied homes is 1984, the same as owner-
occupied homes. By comparison, the national median year built for renter-occupied homes is 1978. Central
Puget Sound housing trends slightly newer than other regions, with more proportionally more homes built
during the 1980s and later.


Rental cost trends
Though each region has rental homes with a range of rents, rents are higher on average in Western regions.
Statewide, average rents range from about $1,450 to about $2,100, which means they are affordable to
households with incomes up to about $60,000 to $85,000 (assuming households pay no more than 30% of
their income on rent). Rents in Western Washington submarkets are most commonly between $1,500 and
$3,000, whereas Central and Eastern submarket rents are most commonly between $800 and $1,250. Rents
are highest in the Central Puget Sound region and lowest in the Southeast region.

Both income and rent determine affordability. Renter incomes tend to be lower in regions with lower rents, and
higher in regions with higher rents. This means that even though rents are lower in Central and Eastern regions,
rental homes may not actually be more affordable to the people that live there than in other regions.

Rising rents are one of the primary challenges to housing affordability and stability for renters. In recent years,
rents have increased across the state—by 45% since 2015, from an average of $1,124 to an average of $1,634
per home in 2022 (a compound annual growth rate of 5.5%). This trend holds across all regions with data,
though at different scales. Rents in the Northwest have increased most, rising 93% since 2015. The Northeast
follows closely, where rents have increased 85% since 2015. Rents in the Southwest have increased least in
that time at 32%. Rents in other regions have increased between 41% and 68% since 2015.

Figure E3: Change in rent from 2015 to 2022
                                                                       South Puget Sound,          Central Puget Sound,
   $1,900                                                                    $1,950                       $1,900
                                                                                                     Northwest, $1,864

   $1,700                                                                                            Southwest, $1,535

                                                                                                   North Central, $1,485
   $1,500
                                                                                                   South Central, $1,458

   $1,300                                                                                            Northeast, $1,456


   $1,100


     $900


     $700


     $500
         2015            2016           2017           2018   2019   2020       2021        2022


Source: Zillow ZORI; Note labels show 2022 values by region



WASHINGTON RENTAL REGISTRY STUDY                                                                                      89
The number of affordable units with rent less than $1,000, whether subsidized or not, has decreased
significantly across all regions since 2016. These units may be more affordable due to their age, size, location,
or, commonly, public subsidy. The National Housing Preservation Database lists 134,480 units in properties
with active public subsidies statewide compared to 198,040 total units with rent less than $1,000. It should be
noted that not all units that receive public subsidy have rents below $1,000, meaning some of these units are
affordable without public subsidy.

Table E5 shows the prevalence and change of these rental homes by region. There are 56% fewer rental homes
with rents less than $1,000 now than in 2016. The number of these units has decreased in every region,
decreasing most in the Central Puget Sound region (by 68% since 2016) and least in the Southeast region (by
25% since 2016). While the Central Puget Sound region has the most units with rents below $1,000, its units
with rents below $1,000 make up the smallest proportion of total renter-occupied homes in any region. These
units make up the highest proportion of rental homes in the Southeast, Peninsula/Coastal, and North Central
regions. The Southeast and the Peninsula/Coastal regions have the lowest renter median incomes, meaning
that these affordable rental homes are especially critical in these regions.

Table E5: Rental homes with rent less than $1,000 by region, 2022
                                                                                                Change in number of rental homes
                        Number of rental homes with rent    Percent of total renter-occupied
Region                                                                                          with rent less than $1,000 from
                        less than $1,000 (2022)             homes
                                                                                                2016 to 2022

Peninsula/Coastal                                   9,860                                 44%                               -39%

Northwest                                          10,790                                 21%                               -58%

Central Puget Sound                                65,270                                 10%                               -68%

South Puget Sound                                  11,320                                 22%                               -53%

Southwest                                          13,370                                 17%                               -65%

North Central                                      13,900                                 43%                               -35%

South Central                                      32,090                                 39%                               -39%

Northeast                                          32,980                                 39%                               -40%

Southeast                                           8,460                                 55%                               -25%

Source: 2022 ACS 5-Year Estimates, PUMS Data




WASHINGTON RENTAL REGISTRY STUDY                                                                                              90
Figure E4: Rental homes with rent less than $1,000


           Southeast



           Northeast



        South Central



        North Central



           Southwest



   South Puget Sound



 Central Puget Sound



           Northwest



    Peninsula/Coastal


                        0                 50,000                100,000          150,000   200,000   250,000

                                                                 2016     2022


Source: 2022 ACS 5-Year Estimates, 2016 ACS 5-Year Estimates, PUMS Data


Renter demographic trends
Rentership rates and renter profile
There are significant disparities in rentership by race and income, underscoring the extent to which programs
for renters are critical to addressing racial equity in housing. Across all regions, Washington residents are
more likely to own their homes than to rent. However, the majority of Black and Hispanic or Latino residents
are renters, and across the state BIPOC households are more likely to be renters than white households. Asian
households are about as likely to rent their homes as white households except in the Southeast, where they are
twice as likely to rent their homes.

Across regions, renters’ incomes are significantly lower than the median. Renter median household incomes
range from 57% of the overall median household income in the Southeast region to 71% of overall median
household income in the North Central region. Except for the Peninsula/Coastal region, renter incomes tend to
be lower in the Central and Eastern regions. This trend mirrors trends in rent, which suggests that lower
incomes combined with lower rents could result in similar levels of affordability.



WASHINGTON RENTAL REGISTRY STUDY                                                                           91
Figure E5: Median household income by region


           Southeast




           Northeast




        South Central




        North Central




          Southwest




   South Puget Sound




 Central Puget Sound




           Northwest




    Peninsula/Coastal



                        $0          $20,000   $40,000    $60,000      $80,000      $100,000   $120,000   $140,000   $160,000

                                                        Owners     Renters   All


Source: 2022 ACS 5-Year Estimates

Renter households tend to be younger than owner households. Statewide, 60% of renter householders are
under 45 years old and 40% are under 35 years old. In every region except for the Peninsula/Coastal region,
over 50% of renter householders are under 45. Renters in the Southeast region trend youngest, with 70% of
renter householders under 45 years old and 56% under 35. That said, there is a significant population of senior
renter householders over 65 years old—over 162,000 statewide, accounting for 15% of renter homes. The
Peninsula/Coastal region has the highest proportion of renter householders over 65 years old (24%).


WASHINGTON RENTAL REGISTRY STUDY                                                                                           92
Renter housing cost burden
Renters are more likely than homeowners to pay more than 30% of their income for housing, which undermines
their housing stability. A household that pays over 30% of income toward housing costs is housing cost
burdened according to the U.S. Department of Housing and Urban Development (HUD). HUD classifies a
household that pays over 50% of its income toward housing costs as severely housing cost burdened. When
households pay too much income on rent, they have fewer resources to pay for other necessary costs. This
means they are more likely to struggle if they face loss of employment or unanticipated expenses. Housing
cost burden can therefore put renters at risk of housing instability and loss of housing. In Washington, 43% of
renters are housing cost burdened, and renters are more than twice as likely as homeowners to be severely
housing cost burdened.

Figure E3: Statewide cost burden
 100%

                                       8%

  90%
                                                                                                   20%
                                       14%
  80%



  70%
                                                                                                   23%


  60%



  50%



  40%
                                       77%


  30%
                                                                                                   56%


  20%



  10%



   0%
                                      Owners                                                      Renters

          Not Housing Cost Burdened      Housing Cost Burdened   Severely Housing Cost Burdened   Cost Burden Data not available


Source: 2020 HUD CHAS Data




WASHINGTON RENTAL REGISTRY STUDY                                                                                                   93
Appendix F: Program implementation timeline
Summary of relevant findings
Operational and administrative needs for the rental registry will vary across multiple phases of
implementation. While the estimated timeframe to implement a rent will depend on the program’s geographic
focus, we do not anticipate major timeline differences between a statewide implementation and
implementation limited to the six most populous counties.

Table F1: Primary implementation activities by phase
Program design                  Pre-launch                         Launch                            Stabilization
(Year 0)                        (Years 1 to 2)                     (Years 3 to 4)                    (Year 5 and ongoing)

                                    Develop major data and
                                                                       Continue extensive
                                    management systems                                                   Provide ongoing data
                                                                       outreach and marketing
    Finalize program design         Integrate county assessor                                            management, analysis, and
                                                                       Manage program launch,
    Take legislative measures       data and existing registries                                         reporting
                                                                       with technical assistance,
    to create and fund the          Develop informational and                                            Provide ongoing outreach
                                                                       data quality assurance, and
    program                         marketing materials                                                  through direct mail and
                                                                       initial reporting
    Prepare to hire a program       Conduct extensive                                                    other avenues
                                                                       Begin robust compliance
    coordinator                     outreach and marketing                                               Continue robust
                                                                       efforts
                                    Hire staff and prepare for                                           compliance activities
                                                                       Grow operational capacity
                                    launch




Introduction
Purpose
We are working with the Washington State Department of Commerce (Commerce) to study and design a
proposed rental registry program for the Washington. This memorandum outlines the anticipated costs to
launch and operate a state rental registry as well as the potential for registration fees to offset the cost of the
program.


Implementation timing estimates
The estimated timeframe to implement a rental registry will depend on the program’s geographic focus. Based
on our research, we anticipate that many of the steps needed to implement the program are independent of
the registry’s geographic focus (six-county versus statewide). Pre-launch tasks such as identifying and rolling
out software and creating an outreach plan will take the same amount of time regardless of the program’s
geographic focus, while others like hiring staff, working with county Assessors to integrate local data and
conducting outreach will take longer if the state chooses a statewide program. HR&A estimates that a six-
county program will lower the pre-launch and launch timelines by 3 to 6 months.

Program design (Year 0)
The state needs to take several pre-implementation steps:

1. Refine and finalize key elements of the program design and budget
2. Take legislative action to establish the registry and allocate funding



WASHINGTON RENTAL REGISTRY STUDY                                                                                                94
3. Create software or select an existing software product that meets the requirements for the
   registry
4. Create a job description, launch a search, hire and onboard a program coordinator to lead
   implementation

   Key actors: Commerce, state Legislature
   Timing: Within one year, subject to the requirements and timing of the legislative process

Pre-launch (Years 1 to 2)
Table F2: Management and oversight
                                                                                                         Geographic
Implementation step                                                   Key actors             Timing
                                                                                                         considerations

Hire and onboard staff for program implementation and ongoing
operations. Staff includes two FTEs for program management,
                                                                     Program                 Months 0    Time may be reduced by
coordination and oversight, 6 to 18 FTEs for marketing, outreach and
                                                                     Coordinator,            to 6 and    3 months for a six-county
technical assistance, and 3 to 16 FTEs for IT and research
                                                                     Commerce                ongoing     program
management, depending on implementation geography, phase, and
county coordination.

                                                                                                         The overall length of the
Oversee pre-launch process, ensuring that implementation meets        Program                Months 0    pre-launch process will
project milestones.                                                   Coordinator            to 24       be based on its
                                                                                                         geographic focus

                                                                      Program
                                                                      Coordinator, users of Months 7
Plan for uses of rental registry data.
                                                                      data e.g. local       to 12
                                                                      government partners

                                                                      Program
Work with Commerce to grow capacity external to the program as                               Months 13
                                                                      Coordinator,
needed.                                                                                      to 24
                                                                      Commerce



Table F3: Outreach, marketing and compliance
                                                                                                         Geographic
Implementation step                                                   Key actors              Timing
                                                                                                         considerations

                                                                      Engagement
Develop informational materials for direct mailing, online                                    Months 3
                                                                      coordinator and
advertising, listening sessions, and other engagement methods.                                to 12
                                                                      support staff

Build relationships with partner organizations including tenant
advocacy organizations, housing industry associations, local          Engagement                       Time may be reduced by
                                                                                              Months 3
government partners. A six-county approach is likely to require a     coordinator and                  3 to 5 months for a six-
                                                                                              to 12
two-thirds to half the time for engagement than a statewide           support staff                    county program
program.

                                                                      Engagement
                                                                      coordinator, support    Months 6
Finalize outreach and marketing approach.
                                                                      staff, partner          to 9
                                                                      organizations

Begin marketing campaign, circulating informational materials                                          Time may be reduced by
                                                                      Engagement              Months 9
through online and print media, partner organizations. A six-county                                    8 to 4 months for a six-
                                                                      coordinator, support    to 24
approach is likely to require two-thirds to half the time for                                          county program




WASHINGTON RENTAL REGISTRY STUDY                                                                                                 95
                                                                                                               Geographic
Implementation step                                                    Key actors                   Timing
                                                                                                               considerations

engagement than a statewide program due to the smaller geography staff, partner
covered.                                                         organizations

Host virtual and in-person informational sessions around the state.    Engagement                              Time may be reduced by
                                                                                                    Months
Information sessions for a statewide program will require more time    coordinator and                         6 to 4 months for a six-
                                                                                                    13 to 24
due to the larger geography.                                           support staff                           county program

Begin direct mailing to likely rental property owners. The length of   Engagement
                                                                                                    Months
time for this step may be dependent on the program’s geographic        coordinator and
                                                                                                    18 to 24
focus and local mailing times.                                         support staff



Table F6: Research and information technology
                                                                                                               Geographic
Implementation Step                                                            Key actors           Timing
                                                                                                               considerations

                                                                               Database and
                                                                                                    Months
Roll out software, data hosting, and other IT requirements.                    portal specialist,
                                                                                                    3 to 12
                                                                               data analyst

Work with county assessors to integrate assessor data into database. Time
                                                                          Database and                         Time may be reduced by
considerations for this step will vary based on the program’s geographic                            Months
                                                                          portal specialist,                   3 to 6 months for a six-
focus. Data sharing and integration for a six-county approach will likely                           6 to 24
                                                                          data analyst                         county program
take two-thirds to half the time of a statewide effort.

Work with cities with existing registries and/or rental business licenses to
integrate data into database. Time considerations for this step will vary      Database and                    Time may be reduced by
                                                                                                    Months
based on the program’s geographic focus. Data sharing and integration for      portal specialist,              3 to 6 months for a six-
                                                                                                    6 to 24
a six-county approach will likely take two-thirds to half the time of a        data analyst                    county program
statewide effort.

                                                                               Database and
                                                                                                    Months
Test and refine reporting and data management functions.                       portal specialist,
                                                                                                    13 to 24
                                                                               data analyst




Launch (Years 3 to 4)
Table F7: Management and oversight
Implementation step                                                      Key actors                              Timing

Track early program impacts and effectiveness, adjust approaches as      Program coordinator and support         Years 3 to 4 and
needed.                                                                  staff                                   ongoing

                                                                         Program coordinator and support         Years 3 to 4 and
Develop reporting processes and begin reporting.
                                                                         staff                                   ongoing

                                                                                                                 Years 3 to 4 and
Review and approve public materials.                                     Program coordinator
                                                                                                                 ongoing




WASHINGTON RENTAL REGISTRY STUDY                                                                                                      96
Table F8: Outreach, marketing and compliance
Implementation step                                                                    Key actors                  Timing

Conduct large outreach campaigns to inform housing providers about the rental          Engagement coordinator
                                                                                                                   Years 1 to 4
registry program.                                                                      and support staff

                                                                                       Engagement coordinator      Year 1 and
Conduct direct mailing and online advertising to likely rental property owners.
                                                                                       and support staff           ongoing

                                                                                       Engagement coordinator
Provide technical assistance by phone and email to help housing providers register,                                Year 3 to 4
                                                                                       and technical assistance
allow tenants to report rental properties, and respond to other inquiries.                                         and ongoing
                                                                                       staff

Work with data analysts to continuously update outreach list with noncompliant         Engagement coordinator      Year 3 to 4
properties. Continue regular outreach efforts to those properties.                     and support staff           and ongoing

Pursue thorough compliance efforts in markets throughout the state, including          Engagement coordinator
                                                                                                                   Year 4 and
identifying likely noncompliant property owners, incurring and collecting penalties,   and technical assistance
                                                                                                                   ongoing
and pursuing legal action as necessary.                                                staff



Table F9: Research and information technology
Implementation step                                                                    Key actors                  Timing

Manage the program’s database, conduct regular data analysis and reporting as          Database and portal         Year 3 to 4
required, regularly check for quality control.                                         specialist, data analyst    and ongoing

Work with county assessors to integrate assessor data annually or according to         Database and portal
                                                                                                                   Years 3 to 4
assessment schedules. The length of time required to obtain, clean, and upload data    specialist, data analyst,
                                                                                                                   and ongoing
will vary based on the geographic focus of program.                                    County partners

                                                                                       Database and portal
Analyze and review data regularly to identify unregistered units, incomplete                                       Year 3 to 4
                                                                                       specialist, data analyst,
registrations, or unpaid fees and flag for review by permit specialists.                                           and ongoing
                                                                                       permit specialist

Review flagged permit applications to determine information required to reach                                      Year 3 to 4
                                                                                       Permit Specialist
compliance.                                                                                                        and ongoing

                                                                                                                   Year 4 and
Produce data reports                                                                   Data analyst
                                                                                                                   ongoing




Stabilization (Year 5 and ongoing)
Ongoing operations at stabilization will continue similar to operations during the launch period, with more
emphasis on ongoing quality control and data management. Outreach and enforcement activities will continue,
with a focus on identifying major gaps in compliance and conducting outreach and enforcement as needed to
fill those gaps. Research and IT efforts will also continue throughout the program’s operations, with more time
dedicated to application and renewal review.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                  97
Appendix G. Rental registry financial requirements
Summary of relevant takeaways
This analysis offers high-level cost estimates for a statewide rental registry with annual re-registration
requirements based on projected staff and material needs of such a program. We divided program
implementation into three phases: pre-launch, launch, and post-launch to stabilization. We assume that this
rental registry will reach its maximum compliance rate of 75% after 10 years. Though Seattle’s registry
achieves over 90% compliance, we chose to assume a lower compliance rate due to the complexities of a
statewide registry, the significant increase in the number of units, and the much broader geographic scope.
Clear regulatory incentives and extensive outreach and enforcement efforts will be critical to achieve this
compliance. We present cost estimates as a range to account for different program design and resource
sharing decisions which might impact costs, and we test alternative options, like three-year re-registration
cycles and implementation limited to only the six largest counties, to explore strategies to reduce costs. We
show all costs in 2024 dollars.

A statewide program such as the one the proviso describes will require significant cost to implement and
operate effectively and with high compliance. We estimate that the program will cost approximately $2.5 to
$4.7 million per year for a four-year pre-launch and launch phase, and $3.9 to $6.4 million per year during post-
launch to stabilization. Major categories of program cost include:

   Management and oversight of the program
   Research and information technology (IT) requirements, including data storage, data management and
   analysis, data input for paper registry applications, and reporting
   Outreach, marketing, and compliance to educate renters and property owners about the program, provide
   technical support, and pursue enforcement of non-compliant properties
   Program overhead, or the external costs to Commerce and other state agencies such as human resources,
   payroll, and administrative costs.

Notably, these costs exclude potential legal costs incurred from collaboration with the state Attorney
General’s office for efforts to pursue enforcement through lawsuits.

Assuming the high cost range, the rental registry could achieve self-sufficiency at stabilization if it can
achieve sufficient compliance based on the per-unit registration fee. Compliance drives both program costs
and revenues. Higher compliance means more property owners pay registration fees, but it also means that
there are more applications that require more staff to review. While higher fees generate more revenue, they
also impact costs. Our model assumes a 2.5% payment processing fee, which means that higher fees incur
higher payment processing costs. Because of these variables, there is not a single point for fee or compliance
at which this program will become self-sufficient. Instead, different fees require different levels of compliance
to achieve self-sufficiency, as shown in the following matrix.




WASHINGTON RENTAL REGISTRY STUDY                                                                                98
Table G1: Estimated annual deficit or surplus
Per unit fee   Compliance rate

               10%      20%           30%        40%           50%           60%           70%           80%           90%           100%

$5             -$4.2M     -$4.0M        -$3.8M     -$3.6M        -$3.4M        -$3.2M        -$3.0M        -$2.7M        -$2.5M        -$2.3M

$10            -$3.8M     -$3.2M        -$2.6M     -$2.0M        -$1.4M        -$801K        -$201K        $399K             $1.0M      $1.6M

$15            -$3.4M     -$2.4M        -$1.4M     -$428K        $565K             $1.6M         $2.6M         $3.5M         $4.5M      $5.5M

$20            -$3.0M     -$1.6M        -$242K         $1.1M         $2.5M         $3.9M         $5.3M         $6.7M         $8.1M      $9.5M

$25            -$2.6M     -$842K        $938K          $2.7M         $4.5M         $6.3M         $8.1M         $9.8M     $11.6M        $13.4M

$30            -$2.2M         -$55K     $2.1M          $4.3M         $6.5M         $8.6M     $10.8M        $13.0M        $15.2M        $17.3M



This matrix reflects the assumptions below. Any changes to these assumptions change the breakeven point
at which this program becomes self-sufficient.

Assumptions:
   This analysis reflects staffing at stabilization, not during the “launch” or “pre-launch” periods. It excludes
   one-time software costs and other startup costs.
   The program allows a 50% discount for early registration; we assume that 50% of units qualify for this early
   registration discount each year.
   The analysis assumes enforcement costs are fixed – i.e. enforcement costs do not increase if compliance
   is lower than expected.
   The analysis assumes annual payment processing fee of 2.5% multiplied by the number of units renewing
   and the per unit fee, including discounts.
   The analysis assumes that some other operating costs – such as data analysis – scale with compliance.
   The program is statewide.
   The program requires annual reregistration and uses high cost estimates.

With these assumptions, the program could produce enough revenue to cover most of its costs with a
minimal per-unit registration fee. With a $10 fee, the registry will be self-sufficient if it achieves 80%
compliance. With a $15 fee, the registry will be self-sufficient at 50% compliance. Our cost analysis assumes
75% compliance at stabilization, meaning a $15 fee will make the registry self-sufficient under these
assumptions. This fee is greater than the actual stabilized per-unit cost of about $8 at 75% compliance
because of the assumptions regarding discounts for early registration, which reduce per-unit revenue to $7.50
for those units that take advantage. If this registry were to apply only to the six largest counties, this breakeven
point remains comparable, requiring about 80% compliance with a $10 per unit fee and 50% compliance with a
$15 per unit fee. This is because the reduction in units associated with the six county scenario reduces costs
and revenue proportionally. The additional efficiencies gained in the six county scenario that do not scale with
compliance are not enough to shift the breakeven point.

Importantly, actual compliance rates and uptake of incentives for early registration make actual program
revenue uncertain. The state must develop clear regulatory incentives and pursue extensive outreach and
enforcement to achieve the revenues we project, though outreach and enforcement beyond our projections will


WASHINGTON RENTAL REGISTRY STUDY                                                                                                            99
further increase costs. The state should keep fees consistent most years to ensure predictability, but can
increase costs every few years to account for increased program operating expenses due to enforcement
requirement, inflation, or other factors

Limiting implementation to the six largest counties creates notable operating efficiencies but will exclude
many rural rental homes. The six largest counties (Clark, King, Pierce, Snohomish, Spokane, and Thurston)
together account for approximately 74% of renter-occupied homes in the state. A registry limited to these
counties would therefore cover almost three quarters of rental homes, while providing a significant reduction
in the geography required for outreach and marketing, and the number of counties the state would need to
coordinate with to incorporate assessor data and potentially to pursue enforcement measures. Together, the
reduced application volume, geographic focus, and bureaucratic efficiencies result in a 20% to 25% reduction
in cost. However, this option would exclude many parts of the state, including much of central and western
Washington and many rural areas.

Table G2: Summary of program cost by scenario
Annual cost range                                   Annual re-registration cycle

Pre-launch (Years 1 to 2)                           Statewide: $2.5 - $4.4 million; Six counties: $2.0 - $3.4 million

Launch (Years 3 to 4)                               Statewide: $3.0 - $4.7 million; Six counties: $2.4 - $3.7 million

Post-launch to stabilization (Year 5 and ongoing) Statewide: $3.9 - $6.4 million; Six counties: $3.1 - $4.8 million



Other design changes could reduce program costs but would reduce the amount or timeliness of data
available through the rental registry. To reduce costs, the state could require re-registration every three years
instead of annually. This would reduce the annual volume of applications and require fewer staff to oversee
the program, but rental market data would be less timely. The state could also reduce the outreach and
compliance functions of the program to limit costs, but this would likely result in much lower compliance rates
which will make the program less effective and could reduce the program’s financial sustainability.

Our cost estimates reflect a range of potential program design decisions, compliance rates, and outreach
methods which will have impacts on program cost. One of the primary differences between the higher and
lower cost estimates is the potential to use existing county and city outreach and data functions to reduce
costs to the state. If the state can easily integrate county assessor’s data into its database, and partner with
cities with existing rental registries both to incorporate data where possible and to use existing city outreach
methods, this could reduce staff and marketing costs to the state. The high end of the cost estimates
assumes that the state’s program uses no city or county resources to operate its registry.


Introduction
Purpose
The following outlines the anticipated costs to launch and operate a state rental registry as well as the
potential for registration fees to offset the cost of the program.

Methods
Existing programs are much smaller than a state program would be, so none are exactly comparable in scale
to the proposed statewide program. Scaling the cost per unit of these programs to the state level does not



WASHINGTON RENTAL REGISTRY STUDY                                                                                        100
account for possible operating efficiencies of a larger program. Based on cost data from city-level rental
registries in Washington per-unit costs are between $16 and $25 for localities with fewer than 200,000 rental
units. Applying these per unit costs to all renter occupied units in the state leads to annual costs between $17
and $27 million, however we estimate that a statewide program would have some operating efficiencies that
would keep costs lower. We used our understanding of the operating functions of other registries to outline the
types of roles required to implement this registry and to estimate how certain roles do or do not scale to
impact staffing levels, using staffing benchmarks from existing rental registry programs. We detail
assumptions on operating functions, staff positions, and their scaling in the Operating Functions, Key Staff,
and Staff Scaling table. We used salaries from comparable positions in the Department of Commerce to
calculate staff costs, adding allowances for benefits and overhead.

For non-staff costs, we priced the costs of printing and mailing materials using the retail costs of stamps,
envelopes, and printed pages. We used estimates from Artesia Systems for the cost of establishing a
database and online portal, licensing software, hosting data, and processing payments.

We show all costs in 2024 dollars.

Table G3: Operating functions, key staff and staff scaling
Function                                     Position                      Scaling

                                             Program Coordinator           Fixed
Management and oversight
                                             Program Coordinator Support   Fixed

                                             Engagement Coordinator        Fixed

Outreach, marketing and compliance           Engagement Support            Scales by number of counties subject to rental registry

                                             Public Technical Assistance   Scales by phase of implementation

                                             Permit Specialist             Scales by number of applications

                                             Database and Portal Specialist Fixed
Research and information technologies (IT)
                                                                           Scales by phase of implementation and number of
                                             Data Analyst
                                                                           counties subject to rental registry

                                             HR and Payroll                Scales by staffing costs

Overhead related to staffing                 Legal                         Scales by staffing costs

                                             Other Interagency Support     Scales by staffing costs




Cost estimates
Phases of implementation
Operational and administrative needs for the rental registry, and the respective costs, will vary across various
phases of the program rollout.




WASHINGTON RENTAL REGISTRY STUDY                                                                                              101
Table G4: Implementation activities by phase
              Pre-launch                       Launch                                        Post-launch to stabilization
              (Years 1 to 2)                   (Years 3 to 4)                                (Year 5 and ongoing)

                  Develop major data and                                                         Provide ongoing data
                                                   Continue extensive outreach and
                  management systems                                                             management, analysis, and
                                                   marketing
                  Develop informational                                                          reporting
                                                   Manage program launch, with technical
Primary           and marketing materials                                                        Provide ongoing outreach
                                                   assistance, data quality assurance, and
activities        Conduct extensive                                                              through direct mail and other
                                                   initial reporting
                  outreach and marketing                                                         avenues
                                                   Begin robust compliance efforts
                  Hire staff and prepare for                                                     Continue robust compliance
                                                   Grow operational capacity
                  launch                                                                         activities

Estimated
              $2.5 to $4.4 million             $3.0 to $4.7 million                          $3.9 to $6.4 million
annual cost




Operational needs and associated costs
There are four primary categories of cost associated with the operations of the rental registry program.

Management and oversight
The program will require management and oversight functions, including management of personnel,
monitoring all activities, and reporting on compliance and other metrics of success:

Personnel requirements: Two full-time equivalent (FTE) positions during pre-launch, launch, and post-launch to
stabilization, including a program coordinator and a program coordinator support staff person.

Estimated cost: About $309,000 per year during pre-launch, launch, and post-launch to stabilization.

Outreach, marketing and compliance
The rental registry will not achieve compliance without significant investment in outreach, marketing, and
compliance efforts. Primary activities will include:

      Conducting a large, outreach campaign in markets throughout the state, with informational materials,
      meetings, direct mailings, and marketing (such as online advertising) to inform housing providers about
      the rental registry program during pre-launch and launch

      Conducting ongoing outreach and marketing annually to likely rental property owners, including direct
      mailing and online advertising,

      Providing technical assistance by phone and email to help housing providers register, allow tenants to
      report rental properties, and respond to other inquiries

      Pursuing thorough compliance efforts in markets throughout the state, including identifying likely
      noncompliant property owners, incurring and collecting penalties, and pursuing legal action as necessary

Personnel requirements: 6 to 18 full-time equivalent (FTE) positions during pre-launch and launch and 6 to 16
FTE positions during post-launch to stabilization, including engagement and enforcement coordinators,
engagement and enforcement support staff, and public facing technical assistance staff. The low end of this


WASHINGTON RENTAL REGISTRY STUDY                                                                                             102
range reflects the possibility that this registry can leverage existing engagement infrastructure in cities with
existing rent registries, and that if not it will require a significant investment in outreach staff to achieve
meaningful compliance.

Estimated cost: $1.3 million to $2.3 million per year during pre-launch and launch; $1.1 million to $2.1 million
per year during post-launch to stabilization

Research and Information Technology (IT)
Operating the rental registry program will require a number of activities related to data, research, and IT to
create and host a database and ensure its accuracy. Primary activities will include:

   Creating or purchasing software to perform major online portal and database functions
   Data hosting
   Database management, data analysis, reporting, and quality control
   Data integration (e.g. regular integration of county assessors’ property records) and data entry (for paper
   registration forms)
   Data review and flagging incomplete registrations for review by a permit specialist
   Review of flagged permit applications to determine compliance

Personnel requirements: 3 to 8 full-time equivalent (FTE) positions during pre-launch and launch and 14 to 16
during post-launch to stabilization, including database and online portal specialists, data analysts, and permit
specialists. The number of employees required changes by phase and compliance – for instance, the number
of data analysts required increases as they receive, process, and integrate assessor data from counties, enter
data from mail-in registrations, and flag incomplete data for permit specialists. The number of permit
specialists increases as compliance increases because more applications and renewals require review.

The low end of this range represents lower workloads during pre-launch and launch, as well as potential
collaboration with county assessors if they can prepare data for integration with the state’s system instead of
the state taking on that function. The state could also choose to outsource many of these responsibilities,
which would reduce the FTE requirements associated with the Research and Information Technology (IT)
function of a rental registry even further but would require a vendor purchase at a similar price scale.

Estimated cost: $419,000 to $1.1 million per year during pre-launch and launch; $1.4 million to $2.1 million per
year during post-launch to stabilization.

Overhead
Operating a rental registry program will create overhead expenses. Commerce will incur costs related to hiring
and management, office space, supplies, and technology for new staff, and added demands for other services
such as legal services, reporting, payroll, etc.

Estimated cost: $428,000 to $1.1 million per year during pre-launch and launch; $1.1 million to $1.9 million per
year during post-launch to stabilization




WASHINGTON RENTAL REGISTRY STUDY                                                                                   103
Table G5: Program operating costs, statewide implementation
                                    Year 1               Year 2                                    Year 4
                                                                             Year 3 (launch)                            Year 5*         Year 6*        Year 7*           Year 8*        Year 9*           Year 10*
                                    (pre-launch)         (pre-launch)                              (launch)

 Est. compliance rate                              0%                   0%                  5%                  20%             50%              55%            60%             65%              70%             75%

 Management and oversight                  $309,150             $309,150             $309,150           $309,150         $309,150         $309,150          $309,150       $309,150       $309,150          $309,150

 Outreach, marketing and                                                                                                       $1.1 -         $1.3 -           $1.3 -          $1.3 -           $1.3 -          $1.3 -
                                        $1.3 - $2.2M         $1.3 - $2.2M        $1.5 - $2.3M       $1.4 - $2.2M
 compliance                                                                                                                   $1.9M          $2.1M            $2.1M           $2.1M            $2.1M           $2.1M

                                          $885,489 -           $419,255 -          $612,641 -         $822,631 -               $1.4 -         $1.4 -           $1.5 -          $1.6 -           $1.6-           $1.7 -
 Research and IT
                                             $1.1M              $666,035            $859,421             $1.1M                $1.7M          $1.8M            $1.9M           $1.9M            $2.0M           $2.1M

                                          $428,220 -           $428,220 -          $590,801 -         $781,815 -               $1.1 -         $1.2 -           $1.3 -          $1.3 -           $1.4 -          $1.5 -
 Overhead
                                           $780,480             $780,480            $943,061             $1.1M                $1.5M          $1.6M            $1.7M           $1.7M            $1.8M           $1.9M

                                                                                                                              $3.9 -         $4.3 -           $4.4 -          $4.5 -           $4.7 -         $4.8 -
 Total costs                           $3.0 - $4.4M         $2.5 - $3.9M        $3.0 - $4.4M        $3.3 - $4.7M
                                                                                                                              $5.5M          $5.8M            $6.0M           $6.1M            $6.2M          $6.4M

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.


Table G6: Program operating costs, six largest counties implementation
                               Year 1             Year 2             Year 3             Year 4
                                                                                                              Year 5*          Year 6*            Year 7*          Year 8*           Year 9*             Year 10*
                               (pre-launch)       (pre-launch)       (launch)           (launch)

 Est. compliance rate                       0%                 0%                 5%                20%                 50%               55%                60%              65%              70%               75%

 Management and
                                     $309,150            $309,150          $309,150           $309,150           $309,150          $309,150          $309,150            $309,150        $309,150           $309,150
 oversight

 Outreach, marketing                $987,815 -          $987,815 -                                              $846,719 -        $964,299 -        $964,299 -          $964,299 -      $964,299 -         $964,299 -
                                                                        $1.1 - $1.8M      $1.1 - $1.7M
 and compliance                        $1.6M               $1.6M                                                   $1.5M             $1.6M             $1.6M               $1.6M           $1.6M              $1.6M

                                    $762,099-           $295,865-         $471,133-         $626,768 -
 Research and IT                                                                                              $1.1 - $1.2M     $1.1 - $1.2M       $1.2 - $1.3M     $1.2 - $1.3M      $1.3 - $1.4M        $1.3 - $1.4M
                                    $885,489            $419,255          $594,523           $750,158

                                    $360,090 -          $360,090 -        $506,190 -        $647,761 -          $914,252 -        $961,443 -
 Overhead                                                                                                                                         $1.0 - $1.3M     $1.1 - $1.3M      $1.1 - $1.4M        $1.2 - $1.4M
                                     $617,220            $617,220          $763,320          $904,891              $1.2M             $1.2M

                                                                                                                    $3.1 -              $3.3 -          $3.4 -             $3.5 -          $3.6 -             $3.7 -
 Total costs                     $2.4 - $3.4M       $2.0 - $3.0M       $2.4 - $3.5M      $2.7 - $3.7M
                                                                                                                    $4.2M               $4.4M           $4.5M              $4.6M           $4.7M              $4.8M

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                                                                    104
Approaches to cost reduction
There are three main approaches that Washington can pursue to reduce the costs of a rental registry:
1. Limiting implementation to the six largest counties creates notable operating efficiencies but will exclude
   many rural rental homes. The six largest counties (Clark, King, Pierce, Snohomish, Spokane, and Thurston)
   together account for approximately 74% of renter-occupied homes in the state. A registry limited to these
   counties would therefore cover almost three quarters of rental homes, while providing a significant
   reduction in the geography required for outreach and marketing, and the number of counties the state
   would need to coordinate with to incorporate assessor data and potentially to pursue enforcement
   measures. Together, the reduced application volume, geographic focus, and bureaucratic efficiencies
   result in an approximate 20% to 25% reduction in cost. However, this option would exclude many parts of
   the state, including much of central and western Washington and many rural areas, and would overlap
   significantly with existing registries, which cover 49% of units in the six largest counties.

2. To reduce program costs, the state could require re-registration every three years instead of annually,
   though this approach reduces the timeliness of data. Requiring annual re-registration means that at
   stabilization, every property owner will need to re-submit unit data each year. This leads to a high volume of
   applications each year, and will require ongoing data management, quality control, data entry for paper
   applications, and enforcement actions. By only requiring re-registration every three years the state reduces
   annual applications to one-third of the volume. This approach requires fewer program staff and results in
   an approximate 25% reduction in cost. However, with this approach some unit data, such as rents and
   vacancy, could be one or two years out of date. In addition, this approach could reduce revenue if its fees
   do not reflect a three-year renewal period. A registry taking this approach would need to adjust its fee
   structure to ensure the same revenues in order to achieve cost savings.

3. Reduce outreach and compliance functions. Depending on the implementation phase, outreach, marketing,
   and compliance activities account for between 34% and 51% of total program cost. With limited outreach
   and compliance, Commerce can significantly reduce the cost of rental registries. However, this approach
   will result in much lower compliance, which will make the rental registry significantly less effective and
   could reduce the program’s financial sustainability.

Program revenue potential
Most rental registries charge a registration fee. To limit the potential for unintended consequences and
burdens to both property owners and renters, the state should minimize fees. At stabilization, the rental
registry could achieve self-sufficiency if it can achieve sufficient compliance based on the per-unit registration
fee. Compliance drives both program costs and revenues. Higher compliance means more property owners
pay registration fees, but it also means that there are more applications that require more staff to review. While
higher fees generate more revenue, they also impact costs. Our model assumes a 2.5% payment processing
fee, which means that higher fees incur higher payment processing costs. Because of these variables, there is
not a single point for fee or compliance at which this program will become self-sufficient. Instead, different
fees require different levels of compliance to achieve self-sufficiency, as shown in the following matrix.




WASHINGTON RENTAL REGISTRY STUDY                                                                              105
Table G7: Estimated annual deficit or surplus of statewide program
Per unit fee   Compliance rate

               10%      20%           30%        40%           50%           60%           70%           80%           90%           100%

$5             -$4.2M     -$4.0M        -$3.8M     -$3.6M        -$3.4M        -$3.2M        -$3.0M        -$2.7M        -$2.5M        -$2.3M

$10            -$3.8M     -$3.2M        -$2.6M     -$2.0M        -$1.4M        -$801K        -$201K        $399K             $1.0M      $1.6M

$15            -$3.4M     -$2.4M        -$1.4M     -$428K        $565K             $1.6M         $2.6M         $3.5M         $4.5M      $5.5M

$20            -$3.0M     -$1.6M        -$242K         $1.1M         $2.5M         $3.9M         $5.3M         $6.7M         $8.1M      $9.5M

$25            -$2.6M     -$842K        $938K          $2.7M         $4.5M         $6.3M         $8.1M         $9.8M     $11.6M        $13.4M

$30            -$2.2M         -$55K     $2.1M          $4.3M         $6.5M         $8.6M     $10.8M        $13.0M        $15.2M        $17.3M



This matrix reflects the assumptions below. Any changes to these assumptions change the breakeven point
at which this program becomes self-sufficient.

Assumptions
   This analysis reflects staffing at stabilization, not during the “launch” or “pre-launch” periods. It excludes
   one-time software costs and other startup costs.
   The program allows a 50% discount for early registration; we assume that 50% of units qualify for this early
   registration discount each year.
   The analysis assumes enforcement costs are fixed – i.e. enforcement costs do not increase if compliance
   is lower than expected.
   The analysis assumes annual payment processing fee of 2.5% multiplied by the number of units renewing
   and the per unit fee, including discounts.
   The analysis assumes that some other operating costs – such as data analysis – scale with compliance.
   The program is statewide.
   The program requires annual reregistration.

With these assumptions, the program could produce enough revenue to cover most of its costs with a
minimal per-unit registration fee. With a $10 fee, the registry will be self-sufficient if it achieves 80%
compliance. With a $15 fee, the registry will be self-sufficient at 50% compliance. Our cost analysis assumes
75% compliance at stabilization, meaning a $15 fee will make the registry self-sufficient under these
assumptions. This fee is greater than the actual stabilized per-unit cost of about $8 at 75% compliance
because of the assumptions regarding discounts for early registration, which reduce per-unit revenue to $7.50
for those units that take advantage. If this registry were to apply only to the six largest counties, this breakeven
point remains comparable, requiring about 80% compliance with a $10 per unit fee and 50% compliance with a
$15 per unit fee. This is because the reduction in units associated with the six county scenario reduces costs
and revenue proportionally. The additional efficiencies gained in the six county scenario that do not scale with
compliance are not enough to shift the breakeven point.

Importantly, actual compliance rates and uptake of incentives for early registration make actual program
revenue uncertain. The state must develop clear regulatory incentives and pursue extensive outreach and
enforcement to achieve the revenues we project, though outreach and enforcement beyond our projections will


WASHINGTON RENTAL REGISTRY STUDY                                                                                                            106
further increase costs. The state should keep fees consistent most years to ensure predictability and can
increase costs every few years to account for increased program operating expenses due to enforcement
requirement, inflation, or other factors.

Detailed assumptions
We used the staffing assumptions shown in the following tables to determine staffing costs. The range of FTE represents
decisions the state could make to reduce staffing needs, namely using existing county and city outreach and data
functions to reduce the need for more staff at the state. We assume benefits increase staff costs by 35% of salary, and
that the state incurs an additional cost of 45% of salary costs related to overhead, like payroll and HR, legal, building rent,
and other overhead expenses. We show salaries and all other costs in 2024 dollars.

Table G8: Staffing assumptions - statewide implementation
Staff positions                Salary      Pre-launch FTE six largest counties Launch FTE       Post-launch to stabilization FTE

Program Coordinator            $128,200                                    1                1                                 1

Program Coordinator Support    $100,800                                    1                1                                 1

Permit Specialist                $96,400                                   0 0.00001/Unit                          0.00001/Unit

Database and Portal Specialist $111,800                                    1                1                                 1

Data Analyst                     $91,400                                2-4           3-5                                  4-7

Engagement Coordinator           $89,800                                   2                2                                 2

Engagement Support               $60,000                               2 - 12        2 - 12                               2 - 12

Public Technical Assistance      $64,200                                   2                4                                 2



Table G9: Staffing assumptions - statewide implementation
Staff positions                Salary      Pre-launch FTE six largest counties Launch FTE       Post-launch to stabilization FTE

Program Coordinator            $128,200                                    1                1                                 1

Program Coordinator Support    $100,800                                    1                1                                 1

Permit Specialist                $96,400                                   0 0.00001/Unit                          0.00001/Unit

Database and Portal Specialist $111,800                                    1                1                                 1

Data Analyst                     $91,400                                1-2           2-3                                  3-4

Engagement Coordinator           $89,800                                   2                2                                 2

Engagement Support               $60,000                                1-9           1-9                                  1-9

Public Technical Assistance      $64,200                                   2                4                                 2



We base non-staff costs on retail costs of basic materials for physical outreach mailers (i.e., the cost of stamps,
envelopes, and printed pages) and estimates from Commerce on the costs of building a database, licensing software, and
storing data. We list these assumptions in the following tables. We also assume a payment processing fee of 1.5%.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                   107
Table G10: Non-staff outreach and data costs
Outreach material expenses              Cost    Database expenses                 Cost

Cost per stamp                          $0.73   One-time database and portal costs $466,234

Cost per envelope                       $0.02   Annual licensing                    $1,545

Cost per page printed                   $0.05   Data storage                       $20,000

Average mailers per property per year      2




WASHINGTON RENTAL REGISTRY STUDY                                                              108
Detailed budgets
High cost estimates
Table G11: Statewide implementation with annual reregistration
                                      Year 1            Year 2 (pre-           Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                      (pre-launch)      launch)                (launch)           (launch)

 Est. compliance rate                              0%                     0%                 5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                   $309,150              $309,150           $309,150           $309,150      $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                          $2,153,521            $2,153,521         $2,290,188         $2,216,731    $1,933,036   $2,115,723   $2,115,611   $2,115,498   $2,115,386   $2,115,273
 compliance

 Research and IT                          $1,132,269              $666,035           $859,421         $1,069,411    $1,736,169   $1,806,166   $1,876,162   $1,946,159   $2,016,155   $2,086,152

 Overhead                                   $780,480              $780,480           $943,061         $1,134,075    $1,540,583   $1,604,254   $1,667,925   $1,731,597   $1,795,268   $1,858,939

 Total costs                             $4,375,420             $3,909,186         $4,401,821         $4,729,367 $5,518,938 $5,835,293 $5,968,849 $6,102,404 $6,235,959 $6,369,514

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.


Table G12: Six largest counties implementation with annual reregistration
                                      Year 1            Year 2 (pre-           Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                      (pre-launch)      launch)                (launch)           (launch)

 Est. compliance rate                              0%                     0%                 5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                   $309,150              $309,150           $309,150           $309,150      $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                          $1,635,815            $1,635,815         $1,785,639         $1,738,607    $1,494,719   $1,612,299   $1,612,299   $1,612,299   $1,612,299   $1,612,299
 compliance

 Research and IT                            $885,489              $419,255           $594,523           $750,158    $1,184,817   $1,236,695   $1,288,573   $1,340,451   $1,392,329   $1,444,207

 Overhead                                   $617,220              $617,220           $763,320           $904,891    $1,171,382   $1,218,573   $1,265,763   $1,312,953   $1,360,143   $1,407,334

 Total costs                             $3,447,674             $2,981,440         $3,452,632         $3,702,806 $4,160,068 $4,376,716 $4,475,785 $4,574,853 $4,673,922 $4,772,990

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                                            109
Table G13: Statewide implementation with three-year reregistration
                                     Year 1 (pre-         Year 2 (pre-          Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                     launch)              launch)               (launch)           (launch)

 Est. compliance rate                                0%                    0%                5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                     $309,150             $309,150           $309,150          $309,150      $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                            $2,153,521           $2,153,521         $2,290,188        $2,180,171    $1,786,796   $1,786,684   $1,823,131   $1,896,139   $1,713,226   $1,749,674
 compliance

 Research and IT                            $1,132,269             $666,035           $859,421          $999,414    $1,456,184   $1,176,198   $1,316,191   $1,526,180   $1,246,194   $1,386,187

 Overhead                                     $780,480             $780,480           $943,061        $1,070,404    $1,285,898   $1,031,213   $1,158,555   $1,349,569   $1,094,884   $1,222,226

 Total costs                               $4,375,420            $3,909,186        $4,401,821         $4,559,139 $4,838,028 $4,303,244 $4,607,027 $5,081,038 $4,363,455 $4,667,237

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.


Table G14: Six largest counties implementation with three-year reregistration
                                     Year 1 (pre-         Year 2 (pre-          Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                     launch)              launch)               (launch)           (launch)

 Est. compliance rate                                0%                    0%                5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                     $309,150             $309,150           $309,150          $309,150      $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                            $1,635,815           $1,635,815         $1,785,639        $1,715,091    $1,400,655   $1,400,655   $1,424,171   $1,471,203   $1,353,623   $1,377,139
 compliance

 Research and IT                              $885,489             $419,255           $594,523          $698,279      $977,304     $769,791     $873,548   $1,029,182     $821,669    $925,426

 Overhead                                     $617,220             $617,220           $763,320          $857,701      $982,621     $793,860     $888,241   $1,029,812     $841,051    $935,431

 Total costs                               $3,447,674            $2,981,440        $3,452,632         $3,580,221 $3,669,730 $3,273,456 $3,495,109 $3,839,347 $3,325,493 $3,547,146

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                                            110
Low cost estimates
Table G15: Statewide implementation with annual reregistration
                                     Year 1 (pre-         Year 2 (pre-          Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                     launch)              launch)               (launch)           (launch)

 Est. compliance rate                                0%                    0%                5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                     $309,150             $309,150           $309,150          $309,150      $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                            $1,343,521           $1,343,521         $1,480,188        $1,406,731    $1,123,036   $1,305,723   $1,305,611   $1,305,498   $1,305,386   $1,305,273
 compliance

 Research and IT                              $885,489             $419,255           $612,641          $822,631    $1,365,999   $1,435,996   $1,505,992   $1,575,989   $1,645,985   $1,715,982

 Overhead                                     $428,220             $428,220           $590,801          $781,815    $1,147,193   $1,210,864   $1,274,535   $1,338,207   $1,401,878   $1,465,549

 Total costs                               $2,966,380            $2,500,146        $2,992,781         $3,320,327 $3,945,378 $4,261,733 $4,395,289 $4,528,844 $4,662,399 $4,795,954

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.


Table G16: Six largest counties implementation with annual reregistration
                                     Year 1 (pre-         Year 2 (pre-          Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                     launch)              launch)               (launch)           (launch)

 Est. compliance rate                                0%                    0%                5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                     $309,150             $309,150           $309,150          $309,150      $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                              $987,815             $987,815         $1,137,639        $1,090,607      $846,719     $964,299     $964,299     $964,299     $964,299    $964,299
 compliance

 Research and IT                              $762,099             $295,865           $471,133          $626,768    $1,061,427   $1,113,305   $1,165,183   $1,217,061   $1,268,939   $1,320,817

 Overhead                                     $360,090             $360,090           $506,190          $647,761      $914,252     $961,443   $1,008,633   $1,055,823   $1,103,013   $1,150,204

 Total costs                               $2,419,154            $1,952,920        $2,424,112         $2,674,286 $3,131,548 $3,348,196 $3,447,265 $3,546,333 $3,645,402 $3,744,470

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                                            111
Table G17: Statewide implementation with three-year reregistration
                                     Year 1 (pre-         Year 2 (pre-          Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                     launch)              launch)               (launch)           (launch)

 Est. compliance rate                0%                   0%                    5%                 20%              50%          55%          60%          65%          70%          75%

 Management and oversight            $309,150             $309,150              $309,150           $309,150         $309,150     $309,150     $309,150     $309,150     $309,150     $309,150

 Outreach, marketing and
                                     $1,343,521           $1,343,521            $1,480,188         $1,370,171       $976,796     $976,684     $1,013,131   $1,086,139   $903,226     $939,674
 compliance

 Research and IT                     $885,489             $419,255              $612,641           $752,634         $1,086,014   $806,028     $946,021     $1,156,010   $876,024     $1,016,017

 Overhead                            $428,220             $428,220              $590,801           $718,144         $892,508     $637,823     $765,165     $956,179     $701,494     $828,836

 Total costs                         $2,966,380           $2,500,146            $2,992,781         $3,150,099       $3,264,468 $2,729,684 $3,033,467 $3,507,478 $2,789,895 $3,093,677

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.


Table G18: Six largest counties implementation with three-year reregistration
                                     Year 1 (pre-         Year 2 (pre-          Year 3             Year 4
                                                                                                                    Year 5*      Year 6*      Year 7*      Year 8*      Year 9*      Year 10*
                                     launch)              launch)               (launch)           (launch)

 Est. compliance rate                                0%                    0%                5%               20%         50%          55%          60%          65%          70%          75%

 Management and oversight                     $309,150             $309,150           $309,150           $309,150     $309,150     $309,150     $309,150     $309,150     $309,150    $309,150

 Outreach, marketing and
                                              $987,815             $987,815          $1,137,639       $1,067,091      $752,655     $752,655     $776,171     $823,203     $705,623    $729,139
 compliance

 Research and IT                              $762,099             $295,865           $471,133           $574,889     $853,914     $646,401     $750,158     $905,792     $698,279    $802,036

 Overhead                                     $360,090             $360,090           $506,190           $600,571     $725,491     $536,730     $631,111     $772,682     $583,921    $678,301

 Total costs                               $2,419,154            $1,952,920        $2,424,112         $2,551,701 $2,641,210 $2,244,936 $2,466,589 $2,810,827 $2,296,973 $2,518,626

*Year six to ten are in the post launch phase. The program is estimated to reach stabilization at year ten.




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                                            112
Appendix H: Artesia report on technical requirements
and considerations
Executive summary
Overview
Commerce partnered with Artesia Systems to assess the technical requirements for developing a statewide
rental registry portal that complies with legislative mandates. Artesia's analysis focused on key functional
elements, including system design, and implementation. The technical evaluation detailed in this appendix laid
the groundwork for understanding the system's complexity, which in turn informed the financial requirements
detailed in Appendix G: Rental Registry Financial Requirements. This appendix outlines the methodology used
to generate accurate cost estimates for both building the portal in-house and procuring an external vendor
solution. It also provides a timeline for the portal's technical deployment. The timeline estimates helped
determine the length of the pre-launch phase.

Please note: The costs of an internal system and the ongoing operation costs identified in this appendix have
been incorporated into the financial requirements detailed in Appendix G: Rental registry financial
requirements of this report, ensuring a comprehensive understanding of the financial costs required to
support the program.

Key findings
Internal build cost analysis and comparison with external solutions
The estimated cost for developing the rental registry system internally is approximately $466,234, which
includes a 20% contingency for unforeseen challenges and $100,800 for integrating assessor data. An internal
build offers Commerce full control over system design, customization, and updates, ensuring the platform
aligns with Washington's specific needs and regulatory requirements. Ongoing operational costs for the
internal system are projected at $184,545 per year, with only marginal increases tied to general factors such as
cost-of-living adjustments, rather than the number of registered units.

A key advantage of an internal build is its flexibility for customization. As requirements evolve, the internal
system can be easily updated to accommodate new features without relying on an external vendor. This ability
to adapt ensures Commerce can meet future program needs efficiently, without the delays or extra fees
associated with vendor modifications.

In contrast, external vendor solutions offer lower upfront costs, ranging from $20,000 to $75,000, depending
on the number of registered units. However, ongoing costs for vendor-managed systems increase as the
registry grows, since vendors typically charge based on the number of registrations. This can lead to
significant long-term expenses, especially for large-scale systems. Over time, the internal system becomes
more cost-effective, with the breakeven point occurring between years 10 and 18, depending on the growth
trajectory of the registry.

Additionally, because external vendors charge for system modifications, any customization needs would likely
move the breakeven point even earlier than the initial estimate. Vendor systems lack the inherent flexibility of
internal builds, as future customizations would require additional time and fees, further driving up costs.


WASHINGTON RENTAL REGISTRY STUDY                                                                             113
Ultimately, an internal build offers long-term financial stability, greater flexibility, and the ability to efficiently
adapt to changing needs, making it the more sustainable and economical choice for a large-scale, statewide
rental registry, both cost-efficiency and the ability to meet Washington’s evolving needs.

Implementation timeline
The timeline for developing the rental registry portal, whether through internal development or vendor
solutions, is estimated to take approximately nine months. While external vendors estimate a shorter
deployment time of three to six months, neither vendor includes the collection or processing of assessor data,
a task that is expected to take around nine months. As a result, both vendor solutions and the internal build will
ultimately follow a similar overall timeline, making any potential time savings negligible when comparing these
options.

Integration with existing local registries
Integrating data from local rental registries presents challenges due to differences in data types and system
architectures. Rather than attempting full integration, it is more practical for local registries to upload their
data via a standardized Excel template, reducing complexity and costs while ensuring the state system can
incorporate essential data from multiple sources.

Statewide implementation versus six largest counties
From a technical perspective, the costs to develop a system to support rental registry for all counties in the
state versus the six largest counties is relatively similar. Whether creating a system for one county or 39
counties, the system itself would be the same. The cost for the data storage would also be relatively similar.
The difference would be in the time and cost to incorporate assessor data from the additional 33 counties.

Introduction
During the 2023 legislative session, the Washington State Legislature included a proviso in the operating
budget to allocate resources for the Department of Commerce (Commerce) to develop a comprehensive
report on the creation or procurement of an online registry for rental units in Washington.

To meet the legislative mandate, Commerce engaged Artesia Systems, a firm with extensive experience in
similar projects, including the development of the Clean Buildings Registry Program and a current project on
tracking and registering supportive housing units funded by Commerce. Artesia Systems was tasked with
detailing the scope of work, producing detailed cost estimates and outlining an implementation timeline for a
portal that would be built and operated by Commerce. Additionally, Artesia Systems completed an analysis of
existing systems available for adoption, comparing the efficiency of building the portal internally versus
purchasing and adopting an external vendor-operated system.

This report is structured to address two portions of the proviso requirements:
1. A detailed definition of the scope of work required to create or procure the online rental registry

2. An in-depth analysis of the costs associated with both internal development and external procurement,
   including potential timelines for each option


Defining a rental registry technical scope of work
To establish the scope of work for the online rental unit registry, we began by analyzing the details specified in
the proviso. The proviso mandates that “the online rental unit registry must have the capacity to collect and



WASHINGTON RENTAL REGISTRY STUDY                                                                                      114
report out timely information on each rental unit in the state.” Additionally, “the scope of work must assume
integration with existing rental registries operated by local governments.”

Assumptions for initial rental registry portal design
To effectively scope the project and provide accurate cost estimates and timelines, the following assumptions
were established as a starting point, drawing on expected requirements and experiences from previous
registries:

      Exclusion of tenant portal: The initial implementation will not include a tenant portal.

      Fee collection: A fee structure will be implemented as part of the system.

      Batch data upload: The system will allow landlords to upload data for multiple units simultaneously.

      Exemption identification: Functionality will be included to identify and manage units that are exempt
      from registration or payment requirements.

      Integration with local registries: The system will support the upload and integration of data from
      existing local government rental registries.

      Property manager/owner access: Property managers and owners will be able to login, register their
      properties, and view property status, including the date of the last update.

      Change history tracking: The system will maintain a detailed history of key changes, such as rent
      adjustments, transitions to owner-occupied status, or property sales.

      Vacancy updates: The system will collect data regarding vacant units.

      Data security via SecureAccess Washington (SAW): The system will utilize SecureAccess Washington to
      ensure the security and confidentiality of the data

      Comprehensive reporting capabilities: The system will feature a dedicated reporting portal, allowing
      authorized users to generate reports on all data elements collected within the registry. This portal will
      provide flexible access to data, enabling users to pull customized reports as needed. Permissions and
      access levels will be carefully defined and configured to ensure that users can only access the
      information relevant to their roles, maintaining data security and integrity throughout the reporting
      process.

These assumptions were necessary to define the boundaries of the work, ensuring that the system's
functionality remains focused on meeting the proviso’s requirements while providing a clear framework for the
initial implementation. These design features were included in the cost estimates for the base system. More
analysis will be needed to identify the features required in the final system design.

Data element requirements
To identify best practices for rental registries, we conducted a thorough review of existing rental registry
portals, including both portals operated my municipalities and those available for purchase registries. This



WASHINGTON RENTAL REGISTRY STUDY                                                                                115
review allowed us to outline the system’s requirements, focusing on the data to be collected and the scope of
the initial system. While specific data elements were explicitly identified in the proviso, additional data points
were recommended to better align the system with the objectives of the proviso. The system's design and
associated costs were based on these foundational elements. Additional components, such as tenant access,
could be incorporated as needed, but these are not included in the current timeline or cost estimates. Further
decisions would be required depending on the broader purposes and goals of the registry, which are not fully
defined within the legislative intent of the proviso.

Core data elements
The initial step in determining the scope of work, cost and implementation timeline for the rental registry
system involved identifying the specific information that must be collected from property owners. Based on
the proviso language, the following core data elements were identified as essential to achieving the program's
objectives:

   Physical address of rental unit
   Identity information of the property owner
   Monthly rent charged
   Vacancy status

Additional data elements
In addition to the core elements, the following supplementary data elements were identified as essential to
support and enhance the core data. These elements were determined through a comprehensive review of
existing systems and collaborative discussions with stakeholders within the Commerce. By integrating these
additional data points, the system will be more robust and better positioned to achieve its goals, delivering a
more comprehensive and effective rental registry portal:

   Property details:

   •   Name of housing complex (if applicable)
   •   Type of Rental (ADU, Duplex, Multi-Family)
   •   Parcel #/Property ID Number

   Unit details:

   •   Unit size (number of bedrooms)
   •   If it is owner occupied
   •   Utilities and fees included in rent
   •   Vacancy date
   •   Date originally rented by the current tenant
   •   Date of last rent adjustment

   Property owner:

   •   Physical address
   •   Mailing address
   •   Phone number
   •   Business name and Unified Business Identifier (if applicable)
   •   Type of ownership (partnership, LLC, corporation)
   •   Unified Business Identifier (optional)



WASHINGTON RENTAL REGISTRY STUDY                                                                               116
   Local contact or property manager

Building an initial dataset from assessor data
A key component of the scope of work for developing the rental registry portal will be the collection and
analysis of assessor data. Using parcel information from assessor data for potential rental properties offers
two significant benefits. First, it enables targeted outreach to property owners identified as likely rentals,
informing them about the program and their obligation to participate. Second, it aids in compliance—once the
program is established, we can identify parcels that appear to be rentals and notify owners who have not
complied.

Without this base of assessor data, targeted outreach for the rental registry would be difficult, and
participation rates would likely be low. Incorporating assessor data from the start is essential to ensuring the
program's effectiveness and compliance.

Process to collect assessor data
Per WAC 458-53-030, counties in Washington are required to identify land use through a standardized two-digit
land use code. The most relevant codes for our purposes are the residential ones:

   11: Household, single-family units
   12: Household, 2-4 units
   13: Household, multi-family units (5 or more)
   14: Residential condominiums
   15: Mobile home parks or courts

For single-family units, rental properties can potentially be identified by comparing the taxpayer's address to
the parcel address—if they differ, it may indicate a rental. However, this method isn’t foolproof, as it could also
capture cases where a tax preparer handles the taxes for the owner.

Using assessor data provides a starting point of parcels that may be rental units. While this data does not offer
100% certainty, it will give us a solid foundation for further analysis. The assessor data includes parcel and
land use information, but landlords will need to provide detailed unit-level data, such as the number of units,
type, rent, etc.

In order to estimate the time duration for this work we interviewed members of the Commerce Clean Buildings
project team. Their project required them to use assessor data from all 39 counties in Washington. The
gathering and processing for their project took approximately 18 months. The team faced delays as they
encountered challenges in identifying unique buildings across parcels. This would not be a challenge for
collecting data for the rental registry project. As such, we anticipate a shorter duration if this work were done in
support of the rental registry. Based on conversations with this team and knowledge of existing systems, we
estimate that this work would take approximately nine months

Data security considerations
When defining a scope of work for a new system, a critical consideration is the type and classification of data
that will be stored. In Washington, data is classified in the Data Classification Standard managed by WaTech.
Proper data classification is crucial to applying the correct cybersecurity and privacy protocols. Category 2 –
Sensitive Information is intended for official use only and is not legally protected from disclosure, though it is
generally not released to the public unless requested. Category 3 – Confidential Information, on the other hand,
is legally protected from both release and disclosure.


WASHINGTON RENTAL REGISTRY STUDY                                                                                117
For a rental registry, most data—such as landlord names, addresses, phone numbers, emails and rental
history—will likely fall under Category 2 – Sensitive Information. However, debit/credit card data used to pay
rental registry fees would be classified as Category 3 – Confidential Information, as it requires a higher level of
protection. This payment information will not be stored within Commerce systems but will be managed
through a third-party payment processor.

Commerce staff will have access to the rental registry system, but the specific data view will depend on the
user’s access role, which will be customized within the reporting portal. This role-based access ensures that
staff members can only view data relevant to their responsibilities, providing flexibility and enhanced security.

Commerce will have full access to reporting from the rental registry system, and any disclosed data will be
anonymized or aggregated to ensure privacy. Additionally, all data entered into the system will remain the
property of Commerce.

Integrating data from existing registries
Incorporating data from existing rental registries is a component in defining the scope of work for the Rental
Registry project. At present, no existing registries collect all of the data mandated by the legislative proviso, nor
do they adhere to the proposed timelines for the Statewide Rental Registry. Only Tacoma and Olympia actively
collect monthly rent amounts as part of their rental information. Other cities in Washington primarily focus on
property inspections and housing quality rather than comprehensive rental data collection.

Full integration of data from all existing registries is not feasible due to several challenges:
      Data inconsistency: Each city collects different types of data, often focused on specific aspects like
      property inspections or housing quality, rather than rental-specific information such as rent amounts.
      These data sets are not standardized, making it difficult to merge them into a system without extensive
      reformatting and customization.

      Diverse system architectures: The technological infrastructure supporting each city's registry system
      varies significantly. Developing custom integration solutions for each system would require specialized
      work for every city, greatly increasing the complexity, time, and cost of the project.

      Varied data collection timelines: Existing registries operate on different timelines for collecting and
      updating data, which further complicates integration. For the Statewide Rental Registry to maintain up-to-
      date information, constant synchronization would be necessary, and this would be difficult with
      registries that are not designed to update data on a common schedule.

Given these challenges, the more feasible and efficient approach is to have existing registries download their
data into a standardized Commerce Excel template and upload it to the rental registry. Commerce will provide
an Excel template for existing registries to submit the data for the Statewide Rental Registry. Staff from these
registries will download their currently collected data and upload it to our system using this template. For data
they do not currently collect, registries can either update their own systems to capture the missing information
and then upload it to ours, or housing providers can manually enter the required details directly into the rental
registry.

This method allows for a practical transfer process and has been incorporated into our cost estimates. Initial
data from these registries will provide a valuable foundation for outreach and the analysis of compliance rates
across the state. This approach will enable the Statewide Rental Registry to identify gaps in data collection and
help inform future enhancements to the system.


WASHINGTON RENTAL REGISTRY STUDY                                                                                 118
This approach has been successfully used in several existing Commerce applications, proving it to be a
reliable solution. While it facilitates the transfer of essential base information, fully integrating all systems
would require extensive custom development, significant costs, and extended timelines, making it an
impractical solution.


Statewide implementation versus six largest counties
From a technical perspective, the cost to develop a system that supports a rental registry for all counties in the
state versus just the six largest counties is largely the same. Building the portal itself incurs similar expenses
whether it's designed to collect data from one county or all 39 counties. The same data fields will be collected
on the portal screens, the reporting system will display the same types of information, and data storage costs
will increase only marginally as additional counties are included. Moreover, data storage represents a small
portion of the overall ongoing costs of maintaining the system.

The primary differences in cost and time arise from incorporating assessor data from the additional 33
counties and the program support required for a statewide rollout. As more than 70% of rental units are
estimated to be in the six most populous counties, we do not anticipate a large increase in cost for this work.
With more counties included, the system will also need to process a higher volume of payments, which would
add some additional ongoing costs. However, ongoing data maintenance costs will remain marginal.


Process flow of a potential online rental unit registry
Based on the data requirements, our analysis and discussions we developed prototypes of the potential online
rental unit registry. Following are details of the proposed process flow.

Setting up and accessing via SecureAccess Washington
The Landlord will access the rental registry through the existing SecureAccess Washington (SAW) system,
which restricts access to each housing provider’s specific property data. This SAW integration will be
completed in partnership with state IT staff, utilizing a process Commerce has successfully implemented in
previous projects. As a known and reliable process, the SAW integration and its associated costs are already
factored into the project’s cost estimates.

SecureAccess Washington (SAW) is Washington’s method of keeping access and data secure. SAW is used by
Washington residents and businesses to apply for a range of services from state agencies, update and report
information, and complete secure transactions. For the Rental Registry landlords and property managers will
need to create a SAW username and password (if they don’t already have one) to have secure access to the
Rental Registry portal.

The Commerce website will be updated to have a page explaining the Washington State Rental Registry and
will include instructions on signing up for a SAW account, and a link to the SAW Login page. Following are the
steps to set up a SAW account:

1) From the SAW Login page, you will select to go to the Sign Up page if you do not already have an account.
   Once you fill in the required information, a confirmation email will be sent to the email address entered.
2) Click on the link in the email to activate the account. You will receive a message on this page that the
   Account has been activated.
3) Click on the button to Login. You will be asked to login using the username and password you created.
4) Once logged in, the screen displays ‘Good Morning! What can we help you access today?’ Click on the
   button to Add a New Service.


WASHINGTON RENTAL REGISTRY STUDY                                                                                    119
5) Select to Browse by Agency. You will be presented a list of Agencies. Click on Department of Commerce.
6) The next page will display the list of applications for the Department of Commerce. Find Rental Registry
   SAW and click on the Apply button.
7) You will see the Registration Complete page. Click on the OK button.
8) The next page will show the new service on your page. Click Access Now.
9) Your display will show Now Accessing with a message. Click Continue to go to the Rental Registry
   Landlord Home Page.




WASHINGTON RENTAL REGISTRY STUDY                                                                          120
Figure H1: Setting up SecureAccess Washington (SAW) access
    Commerce Website          SAW Login page       SAW Sign Up Page
    for Rental Registry




    Confirmation Email       Account Activated     SAW Login Page
                                  Page



    Add a New Service        Browse by Agency       List of Agencies




   SAW Rental Registry     Registration Complete     Access Now
         Apply



                             Accessing Rental
                                 Registry




WASHINGTON RENTAL REGISTRY STUDY                                       121
Landlord landing page and property update
Once the landlord has successfully logged in via SecureAccess Washington (SAW), they will be taken to the
Landlord Landing Page. Figure 2 shows the process flow from that point. The Landlord Landing Page will
display any rental property that they have previously added to their account and will allow the landlord to add a
property and add unit details and contact information for a specific property.

Figure H2 - Rental registry landlord process flow

      Landlord Landing                    Add Property                   Add Property Details
           Page


                                         Add Unit Details



                                           Add Property                 Owner Contact Details
                                            Contacts


                                                                        Local Contact Details



Additional landlord functions
The following functions will be available to landlords in this system as identified in Figure H3:
      Remove a property from their portal: The landlord will be asked why the property is being removed
      (associated in error or sold for example) and the date the property was removed.

      View past properties: This function displays those properties for the landlord that have been removed.

      Request a unit exemption: This function allows the landlord to identify a unit exemption - for example, a
      unit is owner-occupied.

      Property history: This function displays the activities that have occurred related to a property such as
      the date the registration was submitted.

      Upload data for multiple units: This function allows a landlord to use a template to upload multiple units’
      data rather than keying each unit individually.

      Property geo view: This function shows a map view of the property location.

      Review, submit and pay: This function allows the landlord to review the information they entered
      regarding a property and unit, to submit their registration, and to pay the fees associated with the
      property.




WASHINGTON RENTAL REGISTRY STUDY                                                                                 122
Figure H3: Additional landlord functions

        Landlord Home Page                   Past Properties




           Property Detail                  Remove Property



           Upload Data for                Property Case History
            Multiple Units


                                               Request Unit
                                                Exemption


                                           Review and Submit                   Pay Now




Upload from existing registry
There are municipalities in Washington that have their own version of a rental registry. Our goal is to be able to
incorporate their data into the statewide rental registry. This custom system will have a template that can be
downloaded by the municipalities. They would update with their data and upload to the statewide rental
registry.

Figure H4: Upload from existing registry

           Existing Registry                  Existing Registry Data
            Template Data                             Upload


Commerce staff exemption review
Commerce staff managing the rental registry will have a function to review and approve unit exemptions.
Housing providers will submit information regarding units they believe should be exempt from fees (for
example, an owner-occupied unit). Commerce will have the ability to approve or reject these exemptions.

Standard security user roles will be used to limit access to the portal and for data security purposes.

Figure H5: Commerce staff exemption review

         Staff Exemption                    Approve Unit
              Review                         Exemption



WASHINGTON RENTAL REGISTRY STUDY                                                                               123
Commerce staff report portal
Commerce staff managing the rental registry will have a report portal focused on the rental registry data. The
report portal will have the ability to create pre-defined reports, as well as ad hoc reports selecting which data
fields would display on the report and what selection criteria will be used. This type of report portal has been
successfully developed and implemented for several Commerce systems.

Figure H6: Commerce report portal
           Report Selection                     Report Review




Rental registry internal build cost estimates
This following section describes the estimated costs for implementation and ongoing support of the rental
registry from a technical perspective. Additional detail which incorporates these costs please review the
methodology for producing system cost estimates.

Please note: These ongoing costs have been incorporated into the financial requirements detailed in
Appendix G: Rental registry financial requirements of this report, ensuring a comprehensive understanding of
the financial costs required to support the program.

Rental registry internal design and build
One approach to implementing the Rental Registry portal is to design and develop the portal internally. To
assess the costs involved in this effort, the project team conducted a thorough analysis of the application
requirements, drawing from the specific details provided in the proviso. These requirements are further
detailed in the scope of work section of this report.

As part of the planning process, we developed mockups of the key screens and pages that will be required to
capture and manage data within the portal. These mockups served as a blueprint for understanding the user
interface and user experience design, as well as the technical functionalities that the portal must support, this
is shown in Table H1.

Table H1: Custom system functions and components
Function                                     Components

Housing provider entry and update of property 18 screens

Existing registry data upload                One screen/one upload template

Staff review and approval of exemptions      Two screens/one notification

Reporting portal                             One screen for launchpad/10 reports/extracts

Administration and security                  Eight screens



Using these mockups, and the corresponding analysis, the team developed a comprehensive estimate of the
time and costs required to build the portal internally. This estimate offers a detailed breakdown of the
resources needed to complete each development phase, ensuring that all critical tasks are accounted for.


WASHINGTON RENTAL REGISTRY STUDY                                                                               124
The cost estimate for developing the custom system is based on an internal Commerce IT rate of $70 per hour
for development resources. This rate reflects the standard cost used for estimating software development
projects within the organization. As with any project estimate, there is inherent uncertainty regarding the
precise scope and details of all tasks included. To address this, we applied a 20% contingency to account for
potential inaccuracies due to uncertainties in the project definition. This approach aligns with best practices
based on our experience with projects that require further detailed scoping.

The estimate also includes an allowance for integrating assessor data. This figure is informed by discussions
with other programs and their experiences incorporating similar data. Adjustments were made to account for
the reduced complexity of handling assessor data for this specific project.

The methodology for developing the custom system estimate section at the end of this report provides a
breakdown of the estimated hours and associated costs for each task included in Table H2.

Table H2: Estimate for building and deploying an online registry portal
Task                                     Hours Cost

Initial analysis and planning             160    $11,200

Analysis and specification                261    $18,256

Coding and implementation                3,168 $221,760

Portal testing                            522    $36,512

Gathering and processing assessor data   1,440 $100,800

Total without contingency                5,550 $388,528

Contingency (20%)                        1,110   $77,706

Total with contingency                   6,660 $466,234




Commerce registry ongoing technical costs
In addition to the initial implementation costs, there will be ongoing expenses associated with maintaining the
Rental Registry. These ongoing costs fall into two categories: variable costs that change based on the number
of registrations, and fixed costs that remain constant regardless of registration volume. The following tables
outlines the types of costs required to support the Rental Registry portal on an ongoing basis.

Please note: The costs of an internal system and the ongoing operation costs identified in this appendix have
been incorporated into the financial requirements detailed in Appendix G: Rental registry financial
requirements of this report, ensuring a comprehensive understanding of the financial costs required to
support the program.

Table H3 shows costs that remain unaffected by the number of registrations. The estimated cost for
Enterprise Data Storage is $20,000 annually. Technical licensing for system components is estimated at
$1,545 per year, based on the assumption of three developers maintaining the system. The final three lines of
the table reflect technical support costs.




WASHINGTON RENTAL REGISTRY STUDY                                                                            125
To accurately estimate ongoing support needs, we consulted with Commerce Information Services, which
provided estimates for the required support based on different skillsets. The following are the estimated
portions of Full-Time Employees (FTE) and the associated costs for each required skill:

        Ongoing application support and maintenance:

         •     0.3 FTE Developer (Journey level) – $34,000 per year
         •     0.2 FTE Business Analyst (Journey level) – $23,000 per year
         •     0.2 FTE Data Management Analyst – $23,000 per year

        Geographic Information System (GIS) support:

         •     0.2 FTE Business Analyst/GIS Specialist (Journey level) – $23,000 per year

        System administration (managing servers, users, security, etc.):

         •     0.5 FTE System Administrator (Journey level) – $60,000 per year

Table H3: Estimated ongoing costs for operational support not affected by number of
registrations
Type of cost                                              Annual cost

Enterprise data storage                                      $20,000

Technical licensing for components                            $1,545

Business analysis/Geographic Information System support      $23,000

Ongoing system administration support                        $60,000

Ongoing application support and maintenance                  $80,000

Total                                                       $184,545



Payment processing costs will vary by the number of registrations. Following are estimates based on number
of registrations and the fee charged per unit. There are 2 lines for Payment Processing Transactions. One line
assumes that Commerce will charge $10 per unit, and the other assumes $30 per unit. Both assume a 2.5%
transaction fee, the current rate that Commerce is charged.

Table H4: Estimated ongoing costs for operational support impacted by number of
registrations
Payment Processing            10,000              50,000                100,000             200,000             500,000
Transactions cost assumptions registrations       registrations         registrations       registrations       registrations

$10 per unit                             $2,500             $12,500               $25,000             $50,000            $125,000

$30 per unit                             $7,500             $37,500               $75,000            $150,000            $375,000




WASHINGTON RENTAL REGISTRY STUDY                                                                                                126
Rental registry implementation timeline
The rental registry portal costs section of this report outlines the estimated hours required to build and deploy
the online registry portal. With a team of three developers, the projected timeline is nine months. As illustrated
in Figure H7, some development phases can overlap; however, based on our experience with similar projects,
adding more staff would result in diminishing returns and would not significantly accelerate the timeline.

Initial analysis and planning will take place during the first month. Portal analysis and specification
development will be conducted in months 2 and 3. Coding and implementation will span months 3 through 8,
while portal testing will be carried out over three months, beginning in month 7 and continuing through the end
of month 9. Throughout the project timeline, a data analyst will manage the processing of assessor data in
parallel with other activities, which will require the full nine months to complete.

Whether the system is designed for the entire state of Washington or just the six most populous counties, the
overall development timeline remains the same at nine months. While collecting data from fewer counties
would reduce the workload, this task is not the primary factor influencing the project's timeline.

Figure H7: Timeline to build and deploy an online registry portal




Existing software procurement analysis
We employed a two-pronged approach to system evaluation: first, by creating mockups of a potential internal
system based on these requirements and developing detailed cost estimates based on these designs, and
second, by assessing existing rental registry software options for adoption section also discusses the benefits
and challenges of building an internal system, along with the methodology used to evaluate the existing rental
registry software solutions.

Internal registry management versus using existing software provider
When evaluating the best approach for implementing a Rental Registry software portal, it is essential to
consider the benefits and challenges of two main options: building a custom internal system or utilizing an
existing software provider. Each option has its own advantages and potential obstacles, which are outlined
below.



WASHINGTON RENTAL REGISTRY STUDY                                                                               127
Developing a custom internal commerce system
Building an internal Rental Registry system offers several compelling benefits that align with program needs
and long-term goals. However, there are also challenges to consider.

Key benefits:
      Enhanced customization: Developing the system internally allows for complete control over its design
      and functionality. This means the application can be tailored to the Rental Registry program's unique
      requirements, regulatory compliance, and data management practices. This is especially important if
      regulations and purpose of the rental registry were to change over time.

      Greater control over features and updates: With an internally developed system, Commerce has the
      flexibility to determine the timing and scope of updates, new features, and enhancements. This
      eliminates reliance on an external vendor’s schedule.

      Alignment with internal standards: An in-house solution will be built by internal staff who are well versed
      in Washington and Commerce policies. This ensures compatibility with existing systems, compliance
      with security protocols, and Commerce policies.

      Integration with existing systems: Utilizing core framework components from within the agency
      facilitates easy integration with other internal systems and databases. This approach streamlines
      maintenance efforts and promotes efficient data sharing across common enterprise resources, such as
      user authentication, role management, and access to agency data.

Key challenges:
      Higher initial development costs: One of the primary challenges of an internal solution is the higher
      initial cost of development. This includes expenses related to specialized development, design, testing,
      and quality assurance, which can be substantial compared to purchasing an off-the-shelf solution.

      Demand for skilled staff: Successfully building and maintaining a custom in-house system requires
      access to a team of skilled developers, designers, and IT professionals.

Procuring an existing software solution
Alternatively, leveraging an existing software provider offers a different set of benefits challenges to be
considered.

Key benefits:
      Lower initial investment and upfront costs: The external software providers identified often involves a
      subscription-based model, which requires a lower initial investment compared to building a custom
      system.

      Outsourced maintenance and updates: With a vendor-provided solution, the software provider is
      responsible for ongoing updates and system maintenance. This reduces the internal IT team's workload.




WASHINGTON RENTAL REGISTRY STUDY                                                                              128
Key challenges:
      Limited ability to customize: As one of many users on a software platform, there may be limits on
      customizing the software to fully align with its specific program. This could impact the effectiveness of
      the Rental Registry in meeting all needs.

      Dependency on vendor for support and updates: When using an external provider, the organization relies
      on them to deliver support and updates promptly. Even though vendors are carefully selected, there is
      always a chance they might not meet expectations or might delay essential updates. Such issues could
      negatively affect interactions with the public.

      Data security: The external vendor needs to update their system to work with Secure Access Washington
      (SAW). This means we depend on the vendor to complete this integration correctly and ensure it meets
      our security requirements. If there are problems with this process, it could compromise data security and
      compliance, and it might also lead to delays in deployment and higher costs.

      Higher total cost of ownership over time: While the initial cost of using an external provider may be
      lower, the total cost of ownership over time, including recurring subscription fees, customization
      expenses, and potential increases in service charges, is generally higher. This can result in a more
      expensive solution over time.

External existing software evaluation process
We reviewed numerous existing rental registry software systems and selected four that most closely align with
our identified requirements. The rental registry market is niche, with a limited number of specialized vendors.
Many municipalities have developed their own rental registry systems, and some software solutions are
geared more towards permitting and inspections, which are outside the scope of our current project.

Issuing a formal Request for Information was considered, however these requests often yield responses from
vendors whose solutions not directly relevant to our needs and can skew estimates. We focused on four
vendors whose software closely matches our requirements and reached out to them directly; three of the four
vendors responded to our initial inquiry.

To gain a clearer understanding of their companies and software applications, we provided each vendor with a
comprehensive questionnaire. This questionnaire was designed to gather detailed information on several key
areas, including the vendor's background, experience in developing rental registry systems, and their software's
specific features, functionality, and scalability. We also shared a list of our specific requirements, allowing the
vendors to understand how their software could meet our needs. The questions covered topics such as
system architecture, data security, integration capabilities, support and maintenance plans, and the flexibility
to customize the software for future needs.

Vendors were asked to provide information on their pricing models, licensing terms, and any additional costs
associated with implementation, support, and updates. The questionnaire also sought to understand the
vendors' experience working with other municipalities or government agencies and to assess their ability to
comply with local, state, and federal regulations.




WASHINGTON RENTAL REGISTRY STUDY                                                                               129
Existing software cost and timeline estimates
Two vendors provided a full response to our request for information. We made it clear from the outset that the
information provided would not be used to award any contract; instead, it would inform a report for the
Washington State Legislature.

Vendor A estimate
Vendor A provided estimates for the initial implementation of their system based on differing numbers of
registrations. The implementation costs range from $20,000 at a level of 10,000 registrations to $50,000 at a
level of 500,000 registrations. They have two different pricing scenarios for ongoing use of their application.
One is an annual flat rate, and the other is an annual rate per registration. Both of these increase in cost as the
number of registrations increase. See the following table with the details.

Table H5: Vendor A implementation and annual costs

Registrations Implementation Annual flat rate Annual price per registration rate Annual price per registration

10,000                $20,000          $50,000                             $6.00                   $60,000.00

50,000                $30,000          $75,000                             $1.80                   $90,000.00

100,000               $50,000        $100,000                              $1.20                  $120,000.00

200,000               $50,000        $200,000                              $1.20                  $240,000.00

500,000               $50,000        $250,000                              $0.60                  $300,000.00



Vendor A listed a number of factors and functionality that may impact the price. The one item that was listed
in our requirements, that is in Vendor A’s list that may impact the price is a process for bulk uploads for large
landlords. We have also identified that users would need to sign on through SecureAccess Washington (SAW).

Timeline: Vendor A has estimated six months for projects similar to ours. As the assessor data work would
need to be done by Commerce, which is estimated to take approximately nine months itself, this project would
take at least the same amount of time as an internal system.

Vendor B estimate
The one-time cost of implementing a rental registry for Vendor B typically ranges from $35,000 to $75,000.
This is not based on number of registrations and includes configuration of their rent registry solution to meet
customer requirements, including branding, reports, notice templates, workflows, intake forms, etc. This also
includes standard integrations (if required). Their estimate assumes that Commerce will provide a base
inventory of property and property owners from property tax data.

Vendor B also has an annual rate based on number of registrations ranging from $36,000 for 10,000
registrations to $325,000 for 500,000 registrations. See the following table for more details.




WASHINGTON RENTAL REGISTRY STUDY                                                                                 130
Table H6: Vendor B annual costs
 Registrations Annual rate

 10,000              $36,000

 50,000              $60,000

 100,000             $85,000

 200,000            $150,000

 500,000            $325,000



Timeline: Per Vendor B, if we are primarily interested in implementing just the Rent Registry, without additional
features such as eviction tracking, they can complete the implementation within three to six months. As the
assessor data would work would need to be done by Commerce, which is estimated to take approximately
nine months itself, this project would take at least the same amount of time as an internal system.

Comparison of options
The initial implementation costs for a custom-built Commerce Rental Registry system versus using an existing
Rental Registry system vary widely. For a custom-built system, the bulk of the costs are front-loaded. A
Commerce custom system is estimated at $466,234, which includes $100,800 for assessor data processing
and analysis, plus 20% contingency. The Vendor A and Vendor B systems will still require obtaining assessor
data. That has not been included in their cost in the table below, but it is included in the cumulative costs in the
next section. The Vendor A cost ranges from $20,000 to $50,000 depending on how many registrations are
expected. The initial costs for these systems are low – the companies have already built their software and as
long as Commerce uses the software as designed, without changes, the initial implementation will remain low.

Table H7: Implementation costs – Commerce vs vendors
 Provider      Implementation costs

 Commerce                   $466,234

 Vendor A            $20,000-50,000*

 Vendor B             $35,000-75,000

* Dependent on number of registrations

The ongoing costs of a vendor-based system vary depending on the number of registrations. Vendor A offers
either a flat rate or an annual price per registration, while Vendor B operates solely on an annual price per
registration. In contrast, for an internally built system by Commerce, the ongoing cost remains constant,
regardless of the number of registrations. The table below illustrates how annual costs increase rapidly as the
number of registrations grows.

Although the initial cost of a custom-built system is higher than that of vendor systems, the ongoing expenses
become lower as the number of registrations increases. The table outlines the cumulative costs for each
scenario (Commerce vs. vendors), starting with the implementation cost and extending through the first seven




WASHINGTON RENTAL REGISTRY STUDY                                                                                131
years. To ensure a fair comparison, $100,800 has been added to the vendor implementation costs to account
for the assessor data processing.

We assumed that registrations would increase over the first five years and then stabilize. Since one vendor’s
estimate caps out at 500,000 registrations, we used that as the maximum number to evaluate break-even
points. Commerce’s ongoing costs are projected to rise by 3% annually, and we assume vendors will follow a
similar pattern starting in year 6, with a 3% annual increase in their costs.

With these assumptions in mind, the custom-built system is expected to break even with Vendor B between
years nine and ten and will remain the cheaper option thereafter. For Vendor A, the custom system is projected
to break even between years seventeen and eighteen.

Table H8: Ongoing costs – commerce vs vendors
Registration     Vendor A: annual     Vendor A: annual price Vendor A: price per                              Commerce: annual
                                                                                      Vendor B: annual rate
s                flat rate            per registration rate  registration                                     expenses

10,000                      $50,000                   $6.00                 $60,000                 $36,000               $184,545

50,000                      $75,000                   $1.80                 $90,000                 $60,000               $184,545

100,000                    $100,000                   $1.20              $120,000                   $85,000               $184,545

200,000                    $200,000                   $1.20              $240,000                  $150,000               $184,545

500,000                    $250,000                   $0.60              $300,000                  $325,000               $184,545



Table H10: Cumulative Costs – commerce vs vendors as registrations increase
                                        Commerce                            Vendor A                               Vendor B
Year                  Commerce                            Vendor A                               Vendor B
                                        cumulative cost                     cumulative cost                        cumulative cost

Year 0                    $466,234.00       $466,234.00       $120,800.00          $150,800.00       $175,800.00       $175,800.00

year 1 -10,000            $184,545.00       $650,779.00        $50,000.00          $170,800.00        $36,000.00       $211,800.00

year 2 -50,000            $190,081.00       $840,860.00        $75,000.00          $245,800.00        $60,000.00       $271,800.00

year 3 -100,000           $195,784.00     $1,036,644.00       $100,000.00          $345,800.00        $85,000.00       $356,800.00

year 4 -200,000           $201,657.00     $1,238,301.00       $200,000.00          $545,800.00       $150,000.00       $506,800.00

year 5 -500,000           $207,707.00     $1,446,008.00       $250,000.00          $795,800.00       $325,000.00       $831,800.00

year 6 -500,000           $213,938.00     $1,659,947.00       $257,500.00      $1,053,300.00         $334,750.00     $1,166,550.00

year 7 -500,000           $220,356.00     $1,880,303.00       $265,225.00      $1,318,525.00         $344,793.00     $1,511,343.00

year 8 -500,000           $226,967.00     $2,107,270.00       $273,182.00      $1,591,707.00         $355,136.00     $1,866,479.00

year 9 -500,000           $233,776.00     $2,341,046.00       $281,377.00      $1,873,084.00         $365,790.00     $2,232,269.00

year 10 -500,000          $240,789.00     $2,581,836.00       $289,819.00      $2,162,902.00         $376,764.00     $2,609,033.00

year 11 -500,000          $248,013.00     $2,829,849.00       $298,513.00      $2,461,416.00         $388,067.00     $2,997,100.00

year 12 -500,000          $255,453.00     $3,085,302.00       $307,468.00      $2,768,884.00         $399,709.00     $3,396,809.00

year 13 -500,000          $263,117.00     $3,348,419.00       $316,693.00      $3,085,577.00         $411,700.00     $3,808,509.00

year 14 -500,000          $271,011.00     $3,619,430.00       $326,193.00      $3,411,770.00         $424,051.00     $4,232,561.00




WASHINGTON RENTAL REGISTRY STUDY                                                                                               132
                                                      Commerce                                                            Vendor A                                                           Vendor B
Year                   Commerce                                                           Vendor A                                                           Vendor B
                                                      cumulative cost                                                     cumulative cost                                                    cumulative cost

year 15 -500,000                $279,141.00                 $3,898,571.00                      $335,979.00                    $3,747,749.00                            $436,773.00                    $4,669,334.00

year 16 -500,000                $287,515.00                 $4,186,086.00                      $346,058.00                    $4,093,807.00                            $449,876.00                    $5,119,210.00

year 17 -500,000                $296,141.00                 $4,482,226.00                      $356,440.00                    $4,450,248.00                            $463,372.00                    $5,582,582.00

year 18 -500,000                $305,025.00                 $4,787,251.00                      $367,133.00                    $4,817,381.00                            $477,273.00                    $6,059,855.00

year 19 -500,000                $314,176.00                 $5,101,426.00                      $378,147.00                    $5,195,528.00                            $491,592.00                    $6,551,447.00



Figure H7: Cumulative costs – commerce vs vendors as registrations increase
 $7,000,000




 $6,000,000




 $5,000,000




 $4,000,000




 $3,000,000




 $2,000,000




 $1,000,000




        $0

              Year 0   Year 1    Year 2   Year 3   Year 4               Year 6   Year 7     Year 8     Year 9   Year 10     Year 11      Year 12   Year 13   Year 14              Year 16   Year 17     Year 18   Year 19
                                                             Year 5                                                                                                     Year 15

                                                                      Commerce                       Vendor A                         Vendor B




WASHINGTON RENTAL REGISTRY STUDY                                                                                                                                                                                            133
Methodology for developing detailed custom system estimate
To estimate the costs for a system built internally by Commerce, the project was divided into five major types of hours:
Initial project startup, Analysis and specifications, Coding and implementation, and gathering and processing assessor's
data. Each task for this project was broken down into its subcomponents where necessary, these components and
subcomponents were assigned a complexity factor and an estimated number of hours for completion. These estimates
were based on defined requirements and detailed mockup screens. A 20% contingency was also added to the total
estimate to account for unforeseen challenges, as our experience shows that unexpected issues often arise during
projects. Including this contingency ensures the budget can accommodate any additional work that may be needed.

Table H11: Initial project analysis estimate
Task                   Component name                Hours

Initial project analysis Project planning and startup 160

                       Total hours                   160

                       Total cost                    $11,600




Table H12: Estimates for components of portal build by type of hour
                                                                                  Analysis and          Coding and            Portal
                                                                     Complexity
Task                  Group                  Component name                       specification         implementation        testing
                                                                     factor
                                                                                  hours                 hours                 hours

Screen development Property                  Landlord home page              20                   9.2                    92        18.4

                                             Past properties                 10                   5.2                    52        10.4

                                             Property detail                 10                   5.2                    52        10.4

                                             Remove property                 10                   5.2                    52        10.4

                                             Add property                    10                   5.2                    52        10.4


                                             Add property details            10                   5.2                    52        10.4


                                             Add unit details                10                   5.2                    52        10.4


                                             Case history                    10                   5.2                    52        10.4

                                             Apply for unit
                                                                             20                   9.2                    92        18.4
                                             exemption

                                             Contacts                        10                   5.2                    52        10.4

                                             Owner contact
                                                                             10                   5.2                    52        10.4
                                             details


                                             Local contact details           10                   5.2                    52        10.4


                                             Upload multiple units           50              21.2                    212           42.4

                                             Unit upload template            20                   9.2                    92        18.4




WASHINGTON RENTAL REGISTRY STUDY                                                                                                        134
                                                                              Analysis and          Coding and            Portal
                                                                 Complexity
Task            Group                    Component name                       specification         implementation        testing
                                                                 factor
                                                                              hours                 hours                 hours

                                         Geo view                        10                   5.2                    52        10.4


                                         Review and submit               10                   5.6                    56        11.2


                                         Pay now                         10                   5.2                    52        10.4

                                         Payment data                    30              13.2                    132           26.4

                                         Upload data from
                Existing registry data                                  100              41.2                    412           82.4
                                         existing registry

                                         Existing registry
                                                                         50              21.2                    212           42.4
                                         template

                                         Staff exemption
                Staff review/approval                                    10                   5.2                    52        10.4
                                         review

                                         Approve unit
                                                                         10                   5.2                    52        10.4
                                         exemption

                                         Notify landlord
                                                                         10                   5.2                    52        10.4
                                         regarding exemption

                Reporting                Reporting LaunchPad             20                   8.8                    88        17.6


                Administration           Admin - user search             10                   5.2                    52        10.4

                                         Admin - user details            10                   5.2                    52        10.4

                                         Admin - security role           10                   5.2                    52        10.4

                                         Admin - security
                                         role/component                  10                   5.2                    52        10.4
                                         access

                                         Admin - user/role
                                                                         10                   5.2                    52        10.4
                                         assignment

                                         SAW authentication              10                    4                     40              8


                                         SAW/WaTech audit                20                    8                     80             16

                                         Workflow
                                                                         15                    6                     60             12
                                         emails/database mail

Reporting       Extracts                 Extract report 2                 1                                           8

                                         Extract report 2                 1                                           8

                                         Extract report 3                 1                                           8

                                         Extract report 4                 1                                           8

                                         Extract report 5                 1                                           8

                Formatted reports        Formatted report 1               5                                          24




WASHINGTON RENTAL REGISTRY STUDY                                                                                                    135
                                                                                    Analysis and       Coding and            Portal
                                                                    Complexity
Task                Group                   Component name                          specification      implementation        testing
                                                                    factor
                                                                                    hours              hours                 hours

                                            Formatted report 2                  5                                       24

                                            Formatted report 3                  5                                       24

                                            Formatted report 4                  5                                       24

                                            Formatted report 5                  5                                       24


DataBase            SQL server              Create SQL Objects                 50                                    200

                                            Data
                                                                               25                                    100
                                            auditing/retention

                                            Data warehouse
                                                                               25                                    100
                                            provisioning

Total hours                                                                                     261                 1440           522

Task cost                                                                                   $18,256             $100,800       $36,512




Table H11: Estimates for incorporating in assessor data
                                                                                          Complexity        Gathering and Processing
Task            Group/view       Component name
                                                                                          factor            assessor data hours

Assessor data   Assessor data    Build a base for a rental registry using assessor data                50                        1440

Total hours                                                                                                                       1440

Total cost                                                                                                                   $100,800




Questionnaire for software vendors:
1) Company name, address, contact name, phone and email address.
2) Provide a brief history of the company including number of years in business and experience in the
   industry.
3) What is the name of the Rental Registry software?
4) Approximately how many customer implementations of this Rental Registry software solution has your
   company conducted over the past 3 years?
5) How many customers currently use this software?
6) What percentage of current customers are government agencies?
7) Please provide one or more government clients that we could talk to regarding the Rental Registry
8) Functional and Technical Requirements – identify whether each requirement is covered or not by your
   software product. Software business features:
   a) Capacity to collect information on each rental unit in the state
   b) Data to collect:
       i) Rental unit details:
          (1) Address, Unit, City, State, Zip, Name of complex (if applicable)
          (2) Unit size (2 BR, 1 BR, Studio, etc.)


WASHINGTON RENTAL REGISTRY STUDY                                                                                                       136
             (3) Owner occupied property?
             (4) Type of rental – ADU, Detached ADU, Duplex, Multi-Family 5+ units
             (5) Parcel #/Property ID Number
             (6) GIS – captured from address, not from data entry
             (7) Verify that address is in USPS format
       ii) Identity of the property owner:
             (1) Owner Name(s)
             (2) Physical Address
             (3) Mailing Address (if different from Physical Address)
             (4) Phone
             (5) Business Name (if available)
             (6) Type of Ownership (Corp, LLC, Partnership, etc.)
             (7) Business license/UBI (not required)
       iii) Local Contact/Property Manager info
       iv) Monthly rent charged (by unit). Are utilities and all fees included? Identify what is included:
             (1) Electricity
             (2) Water
             (3) Sewer garbage
             (4) Parking
       v) Vacancy Status – system will be updated any time there is a vacancy
       vi) When was unit originally rented by the current tenant and when did the rent last change?
       vii) Is this property part of an existing rental registry? If so, which one(s)?
       viii) History of changes – particularly rent changes, when a unit goes off market (convert to just owner
             occupied, sold into home ownership). Need way to deregister a unit and track what happened.
    c) Technical Requirements:
       i) Need the ability to collect the fee as part of the portal
       ii) Allow upload from existing rental registries
       iii) Manager or owner can log in and register. View their own property status. Capture the date last
             updated.
9) Technical questions:
    a) Is your solution a Software as a Service (SaaS) solution?
    b) Is your solution web-based or web-enabled?
    c) Is your solution responsive in design? Adaptable to various devices including mobile devices?
    d) Does the system allow for single sign-on for internal Commerce users?
    e) Describe the technologies/platforms used to build your solution.
    f) Which database management systems can your solution be hosted on? Which are preferred?
    g) Does your product use/require SQL Server authentication, Windows authentication or both?
    h) What kind(s) of database-level customization does your product allow?
    i) Does each client have a separate version of the software, or do they all share one version? How is that
       managed?
10) Data retention, security, access requirements:
    a) At what geographic location is your data physically stored?
    b) Do you use multi-factor authentication? And if so, what kind do you use?
    c) Washington users would need to sign on through SecureAccess Washington (SAW). Is that feasible
       with your product?
    d) Do you have a data privacy agreement or policy?
    e) Do you follow a specific security standard (Examples: NIST, ISO 27001, FIPS).



WASHINGTON RENTAL REGISTRY STUDY                                                                             137
    f) System must meet or exceed the Web Accessibility Policy set forth by the WA ST Office of the Chief
        Information Officer (OCIO). These standards are consistent with the digital access sections of Web
        Content Accessibility Guidelines (WCAG) 2.0 and Section 508.
11) Reporting requirements – Provide reporting functions for Commerce to answer questions regarding rentals
    in the state:
    a) Does your software have a function for creating ad hoc reports?
12) Additional features:
    a) What additional rental registry features are part of your solution?
        i) Inspection tracking
        ii) Business license tracking
13) Which companies/solutions are your biggest competitors in this market? Why is your product superior?
14) Pricing and cost structure:
15) What is your pricing model for the rental registry?
16) What are your standard fees and costs associated with implementation, training and ongoing support?
17) Implementation and support:
    a) What is your implementation timeline for projects similar to ours?
    b) What kind of training and support do you provide during and after implementation?
    c) What is your customer support process for resolving issues and addressing concerns?
    d) What is your SLA (Service Level Agreement) for response times and resolution of critical issues?




WASHINGTON RENTAL REGISTRY STUDY                                                                       138


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