TACOMA MEASURE 1 - (Landlord Fairness Code) Survey: Year 2

Summary of RHAWA Landlord Fairness Code Data

The Rental Housing Association of Washington is conducting periodic surveys of housing providers in the City of Tacoma to determine the ongoing impact of Measure 1, also known as the Landlord Fairness Code Initiative (LFCI), to understand how these provisions are changing the rental housing landscape.

When comparing our initial 2024 results to the most recent 2025 responses, it is clear that while the concerns about these policies remain largely the same, we are already seeing a shift in the operational procedures of rental housing providers in the City of Tacoma.

Key findings from this effort and an analysis of what this means for rental housing providers and residents in the City of Tacoma are below.

Demographic Shift from Owner-Operator to Property Managers

From 2024 to 2025, the proportion of respondents who are property managers—rather than owner operators—doubled, reflecting the difficulty small owners are facing in complying with new regulations. Hiring a property management company typically helps reduce the administrative burden on the owner, as they leave the most difficult operational aspects of rental housing to a group that specializes in this kind of work.

Hiring a property management company increases the cost of providing rental housing. A typical property management company will charge around 10% of monthly rent as their management fee, leading to a direct 10% increase in administrative costs when running a rental business. Additionally, a property management company may be more likely to increase rents regularly, both to increase their revenues and because they typically have a more impersonal relationship with their residents.

A Staggering Increase in Tenants Behind on Rent

In 2024, 33% of respondents reported that they currently had tenants who were behind on rent payments. In 2025, this has increased to over half; 54% of respondents in 2025 report they currently have a tenant who is behind on rent. Reduced incentives to pay rent—such as a hard cap on late fees at $10 and a winter/school year eviction ban—were likely major factors in this significant increase in just one year.

Higher Likelihood to Increase Rent Linked to Increased Administrative Burden

In the 2024 data, 36% of respondents reported that they did not increase rent in the last year. This has plummeted to just 17% of respondents in the 2025 data.

These more frequent rent increases are also attributed to administrative and regulatory burden in larger numbers, with 53% of respondents in 2025 reporting their rent increase was due to more restrictive regulations—up from 40% in the previous year’s data. Some of this may also be linked to HB 1217, implementing statewide rent control.

Rental Units Are Being Taken Off the Market

In our survey, we ask a series of follow-up questions regarding:

    1. Have you sold any of your rental properties?
    2. Did the new owner continue to rent out your rental property?

From this, if a respondent answers yes to question 1 and no to question 2, it is fair to assume that these rental units have left the rental market, reducing housing supply in the City of Tacoma.

The proportion of owners who sold or are considering selling remained about the same at approximately 77%.

The proportion of those sales where respondents reported the rental unit being removed from the market doubled from 17% in 2024 to 32% in 2025.

Increased housing supply is crucial for abundant, affordable housing. It is clear that Measure 1 is leading to an observable reduction in rental housing stock in just the last year.

Rental Housing Providers Need Additional Help to Comply with Measure 1

The number of respondents reporting a need for additional compliance assistance doubled from 2024 to 2025. This assistance may come from a trade organization, a property manager, or an attorney, showing that even the most savvy rental housing providers in the City of Tacoma have realized how difficult it is to navigate the multitude of restrictions Measure 1 imposed.

Conclusion

In 2024, it was clear that Measure 1 made it more burdensome to own and operate rental housing in the City of Tacoma. The 2025 data drives this point home, clearly showing why Measure 1 has hurt the residents of Tacoma. Costs have increased substantially for rental housing providers, rental units are being taken off the market, and more tenants are falling behind on rent. It is crucial to make significant revisions to the LFCI if we wish to make housing more affordable in the City of Tacoma.