Olympia City Council Considering Tenant Screening Restrictions

Over the past few months, the Olympia City Council has been considering potential legislation aimed at regulating aspects of the tenant screening process.

At a September 16th meeting, the City Council reviewed results of a survey, including feedback from landlords on potential legislative efforts. According to a staff memo, landlords noted they conduct background checks on potential tenants as they want to ensure tenants “can pay the rent, take care of the property and be a good neighbor/respectful to other tenants.” To accomplish this goal, many landlords reported conducting a variety of background screens, including income or employment verification, credit checks, rental history information (including housing and eviction records), and criminal history.

From a criminal history standpoint, Olympia is proposing policy elements that would mirror other jurisdictions, such as Tacoma, Minneapolis, Portland, and Colorado. Potential limitations would be placed on the ability of landlords to consider arrests or charges that did not result in a conviction, convictions that occurred 5 years or more before the application (with some exceptions), and convictions that have been vacated, expunged or sealed.

From a rental history standpoint, Olympia looked to Philadelphia, Colorado, Minneapolis, and Portland for inspiration. The proposed policy would prevent landlords from taking adverse action based on evictions where the tenant prevailed, evictions that were withdrawn, settled or dismissed, evictions where an order of limited dissemination was entered and no-fault evictions.

The proposal also looked at topics such as rent-to-income ratios and prohibiting landlords from rejecting applicants if they do not provide a Social Security Number. The staff memo concluded advising the Council to consider alternative approaches to the issue as well, including education and outreach, or regional collaboration.

Currently, there does not appear to be a formal draft of a proposed tenant screening ordinance, but the City Council is considering a draft of an income-to-rent ordinance. Landlords, property managers, and tenant screeners should continue to monitor the ongoing discussions the Olympia City Council will have regarding a potential tenant screening ordinance in the future.