Like most things newfangled, the problem seems to be first hitting the young renters of Seattle’s University District. But judging by other cities in the West Coast archipelago of tech economy driven urban boomtowns, the early effects of the new revenue models are probably already rippling through Capitol Hill’s rental market.
Thursday morning, Seattle City Council member Teresa Mosqueda’s Housing, Health, Energy, and Workers’ Rights Committee will be discussing a new trend threatening to add to the city’s affordability crisis: landlords using online services for “rent bidding.”
According to the session set to be presented Thursday, the ASUW Student Senate is calling for a moratorium on “Rent Bidding Services.” One report on the Rentberry service quoted the company’s founder taking credit for raising rents 5% above listing prices in the already ultra-expensive San Francisco and San Jose markets.
CHS could find only one Rentberry listing on Capitol Hill — a “cozy Capitol Hill home” listed at a starting rent of $7,500 per month. How does the service work? Here’s the marketing pitch:
Tired of secretive bids? Rentberry is the only platform that provides a transparent rental auction with the ability to submit custom offers. See the current highest proposal and the number of people who applied for the property, so you can make an informed decision.
What could the city council do about the new services? Check out Seattle’s plans to regulate the Airbnb-driven short-term rental market here. Meanwhile, this 12th Ave building stands alone thanks to a very special exception in the rules.
The full presentation document from Thursday’s planned briefing on rent bidding services is below.