Whatcom Owners: You May Need to Update Leases and Renewals to Avoid Penalties

The City of Ferndale’s voter initiative, Consumer Protections from Unfair and Excessive Fees in Housing Tenancies The City of Ferndale’s voter initiative, Consumer Protections from Unfair and Excessive Fees in Housing Tenancies is now codified under FMC 5.44. Following in the footsteps of Bellingham, this code specifies that landlords will be in violation of the law if they renew a lease with prohibited terms, even if you do not enforce them. These new laws restrict charges and outright prohibit many common fees that are likely to be included in rental agreements, so it is important that housing providers update their leases.

This law states that any provision in a rental agreement or renewal entered into on or after November 25, 2025, in violation of the following is void and unenforceable. Inclusion of a prohibited provision in an agreement or renewal entered into on or after November 25, 2025, is a violation and can lead to the following:

• Liable to tenant in private right of action: the greater of up to three times actual damages or $1000; double the amount of an unlawfully charged or withheld deposit; costs of suit and attorneys' fees. Effective 1/1/2027, $250 for any provision prohibited by this chapter in a new or renewed rental agreement.
• Additional affirmative defense for tenant: in an eviction for default on rent payment; action to enforce a rental agreement, impose penalties, or forfeit a deposit contrary to the requirements in this chapter.
• Citation from the City of Ferndale: Up to $500 for first violation, up to $1000 for subsequent violations or those involving retaliation. It is considered a separate violation for each affected tenant, and for each day where any violation of any provision of this chapter is committed, continued, or permitted by the landlord.

These regulations apply to both residential rentals under RCW 59.18 and manufactured/mobile housing communities (MHC) under RCW 59.20.

RECOMMENDED ACTIONS

• To remedy a non-compliant rental agreement that was entered into or renewed on or after November 25, 2025, serve the RHAWA Rules Change in Terms of Tenancy Notice (rhawa.org login required) to update all non-compliant terms in your rental agreement, and refund any deposit amount held in excess of the limits defined in this chapter.
• For all lease renewals entered into on or after November 25, 2025, change any terms necessary to comply with this chapter, and refund any deposit amount held in excess of the limits defined in this chapter.
• For any automatically renewing MHC Rental Agreement or Month-to-Month Residential Rental Agreement that was entered into prior to November 25, 2025, give 30-day notice to change any non-compliant terms.
• For all new rental agreements entered into on or after November 25, 2025, ensure that all terms are in compliance with this chapter.

What are the New Rules?

Disclosure of Fees Required

Include the following in any advertisement, listing, or application form: monthly rent, utilities tenant pays separately from the rent, utilities included in rent, and the amount of any optional or mandatory fees.

Reasonable Fees Permitted - Only the following fees are permitted:

• Applicant screening fee that does not exceed $50.
• Refundable security deposit that does not exceed one month's rent. Exception: A non-profit organization may pay up to two months' rent on behalf of the tenant.
• Pet damage deposit that does not exceed 25% of one month's rent. (Residential Rentals Only, does not apply to MHC).
• Fee for utilities not included in rent that does not exceed the actual cost of used utilities; or if individual usage is not available, is based on an equitable method for splitting the charge that is disclosed to the tenants.
• Late rent fee that does not exceed 1.5% of the portion of rent that is past due. If receiving a subsidy, only charge a fee on the tenant's portion of rent that is past due.
• Insufficient Funds Fee on the tenant's payment that does not exceed the actual charge from the financial institution.
•  A reasonable fee for any optional good or service. Tenant must opt in (in writing) after receiving written disclosure, including: concise description of good/service, fee amount, how to opt out, and a clear statement describing tenant's right to continue renting dwelling unit if they opt out.

Unfair or Excessive Fees Prohibited

The following fees are prohibited:

• Fees other than those identified in FMC 5.44.030, unless expressly permitted under state law for residential rentals and MHC.
• Any unlawful fees under any local, state, or federal law.

Unreasonable Optional Fees Prohibited

The following fees are prohibited, even if they are optional…

Both Residential Rentals and MHCs:

1. 1. Fee to accept payments by personal check, money order, cashier's check, or ACH. If using a third-party payment vendor where there is an option for the landlord to pay fee, the landlord cannot opt to impose fee on tenant.
   2. Fee for use of any in-unit appliance by tenant. If you previously charged a fee for the use of an in-unit appliance, such as a washer-dryer, you shall not deprive the tenant of the use of an in-unit appliance without payment of fee after the effective date of this chapter.
   3. Fee for mail/package collection and distribution.
   4. Early termination where the tenant has victim protection rights under state law.

MHCs:

1. 1. For the performance of any landlord duty under RCW 59.20.130.
   2. For a service/amenity previously included in monthly rent or provided to current or immediately prior tenants at no additional cost.
   3. For temporary guests not in compliance with RCW 59.20.060 or where charges exceed actual cost.
   4. For a family member to occupy the unit. No occupancy restrictions more restrictive than the actual law.
   5. To park within the tenant's lot. No limit on safely parked vehicles.
   6. Any appliance installation fee.
   7. Any pet deposit or pet fee.
   8. Fee for use of common area. Exception: rental of space for exclusive temporary use by the tenant.
   9. For not signing a new agreement.

Residential Rentals:

1. 1. For the performance of any landlord duty under RCW 59.18.
   2. Fee (single time or periodic) for pets.
   3. Fee for adding or removing tenants on a rental agreement. Exception: application fee for new tenant is permitted (subject to the above limits).

Retaliation Prohibited

There is a rebuttable presumption of retaliation if a landlord takes any of the following actions within 150 days of a tenant exercising their rights under this chapter:

• Refusing to provide, accept, or approve a rental application, agreement, or renewal.
•  Applying more onerous terms, conditions, or privileges to the application process or agreement, including increased rent.
• Misrepresenting any material fact on a rental reference against the tenant.
• Threatening to report unlawful presence in the U.S.

Similar Law in Bellingham…

Bellingham passed a very similar law (BMC 6.16) back in August of 2025. The similarities and differences are noted in this chart.

If you have property in Bellingham or Ferndale, make sure to review the full details of the laws as follows:

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