The ordinance we’ve been carefully watching since August 2024 has come to pass.
On June 23, 2025, the Bellingham City Council passed an ordinance, effective August 1, 2025, adding BMC Chapter 6.16, "Prohibiting Landlords From Charging Tenants Unfair or Excessive Fees," to the Bellingham Municipal Code.
This ordinance addresses fees in residential rental agreements, responding to a tight rental market (2-3% vacancy rate) and the financial strain on over 20,000 cost-burdened renters.
For landlords, compliance requires immediate action to revise leases, fee structures, and tenant communications.
We've put together a summary to provide a detailed overview of the changes.
Key Changes in BMC 6.16
The ordinance regulates permissible fees, mandates transparent disclosures, and strengthens tenant protections.
Fee Disclosure Requirements (BMC 6.16.020)
Landlords must disclose monthly rent, tenant-responsible utilities, included utilities in monthly rent, and all mandatory/optional fees.
They must be disclosed in all advertisements, listings, and application forms.
These must also appear prominently on the first page of the rental agreement.
Permitted Fees (BMC 6.16.030)
The ordinance outlines allowable fees with strict limits, overriding state caps in some cases.
Application Fee: Does not exceed $50.
Security Deposit: Capped at one month’s rent. Or two months if paid by a nonprofit organization for their client.
Pet Damage Deposit: Limited to 30% of monthly rent.
Utility Fees: Must reflect actual costs or be equitably apportioned with a clear methodology provided to tenants.
Optional Fees: Allowed for non-mandatory services if tenants opt in writing after receiving a disclosure detailing the service, cost, opt-out process, and their right to rent without the service.
Late Fee: Capped at 2% of the tenant’s portion of outstanding monthly rent not including rent owed by a housing subsidy program.
Insufficient Funds Fee: Limited to actual bank charges.
Lease Violation Fee: Up to $75/month, requiring a prior written warning, a chance to cure, and lease disclosure.
Prohibited Fees (BMC 6.16.040)
Any mandatory or optional fees not listed in BMC 6.16.030 or RCW 59.18 are prohibited. Specific bans include fees for:
In-unit appliance use.
Common area access.
Payment methods if the landlord opts to pass third-party fees to tenants.
Mail/package services.
Pet fees exceeding 2% of monthly rent if a pet deposit is collected.
Landlord duties under RCW 59.18.060.
Partial tenancy changes; adding or removing a tenant from the rental agreement.
Tenant Protections and Enforcement (BMC 6.16.050–080, 110)
Lease terms violating BMC 6.16 entered or renewed after the effective date are unenforceable and void.
Landlords cannot retaliate against tenants exercising rights, with a 120-day presumption of retaliation.
Tenants can sue for violations, recovering triple damages, double unlawfully charged deposits, attorney fees, and other relief.
Non-payment evictions can be defended if the landlord violates the ordinance or retaliates.
Tenants cannot waive these protections; attempts to do so are void.
Additional Notes
Effective Date: August 1, 2025, applies to new or renewed leases.
State Law Harmony: Aligns with RCW 59.18 but prevails locally unless conflicting with state law.
Severability: Invalid provisions don’t affect the rest of the ordinance.
BMC 6.16 changes landlord-tenant relations in Bellingham, prioritizing transparency.
By updating leases, disclosures, and fee practices now, landlords can comply by August 1, 2025.
Engage with city resources and stay proactive to thrive in this evolving rental landscape.
We will continue to bring you updates as change continues.
