Thinking about becoming a landlord in Seattle? It’s easy to see the appeal. The city’s strong job market, constant flow of tech workers, and overall housing demand make rental property ownership look like a straightforward path to profit. With the average two-bedroom renting for around $2,800 a month and property values still climbing, many investors see dollar signs.
But here’s the reality: owning a rental in Seattle isn’t just about collecting rent checks and watching property values rise. There are expenses—some obvious, others not so obvious—that can eat into your cash flow if you’re not prepared. If you want your investment to truly pay off, it’s important to understand these “hidden” costs upfront.
Below, we’ll walk through the biggest expenses Seattle landlords need to budget for, so you can plan smarter and protect your bottom line.
1. Seattle Property Taxes Add Up Quickly
Property taxes are part of the deal no matter where you own, but in Seattle they hit harder than in many parts of the country. Taxes are collected at the King County level, and the rates are consistently above the national average.
In 2025, the levy rate is about $9.19 per $1,000 of assessed value. On a property valued at $875,000, that’s more than $8,000 a year. And since King County can raise revenue by up to 1% annually without a public vote, your bill will likely grow year after year. That makes property taxes a moving target, not a fixed cost, which is why smart investors work them into their long-term cash flow planning.
2. Why Landlord Insurance Isn’t Optional
A common mistake new landlords make is assuming a standard homeowners insurance policy will cover their rental. Unfortunately, it won’t. Rental properties require landlord insurance—sometimes called a rental dwelling policy—because the risks are different.
A solid landlord policy usually includes:
- Loss of rental income if your property is uninhabitable after a fire or other covered damage.
- Property damage to the structure itself, plus appliances and fixtures you own.
- Liability protection, which covers legal and medical costs if a tenant or guest is injured on the property.
Yes, landlord insurance costs more than a homeowners policy, but skipping it leaves you wide open to lawsuits or expensive repairs. In Seattle’s legal environment, that’s a risk most investors can’t afford to take.
3. Maintenance Costs in Seattle’s Climate
Seattle’s damp, gray climate creates its own set of maintenance challenges that go beyond the usual broken dishwasher or clogged sink. Moisture is the big culprit here, and it can quietly cause problems that get expensive fast.
- Mold and mildew thrive in basements, attics, and poorly ventilated areas. Removing them can cost thousands, not to mention the health concerns for tenants.
- Roofing and siding take a beating from moss, algae, and wood rot. Skipping regular cleanings and inspections often leads to major repairs later.
- Foundation and crawl space issues can develop from poor drainage, leading to cracks and structural problems.
A good rule of thumb is to set aside 1% of your property’s value annually for upkeep—but in Seattle, you may want to budget a little higher. Addressing small issues quickly saves far more than waiting until they turn into major projects.
4. Navigating Seattle’s Complex Landlord-Tenant Laws
Seattle is known for having some of the strongest renter protections in the country. While these laws provide stability for tenants, they also add layers of complexity for landlords.
A few key rules include:
- Just Cause Eviction Ordinance – Landlords can’t simply end a lease at will; they must have one of the city’s approved “just causes.”
- First-in-Time rule – You’re required to rent to the first qualified applicant who meets your screening criteria.
- Security deposit rules – There are limits on how much you can charge and strict timelines for returning funds when a tenant moves out.
Failing to follow these laws can result in fines, legal fees, or delays in removing a problem tenant. That’s why many investors hire property managers who know the rules inside and out and keep everything compliant.
5. Tenant Turnover Is More Expensive Than You Think
Vacancies are the silent profit-killers of rental ownership. Each time a tenant leaves, you’re faced with a string of costs, including:
- Professional cleaning and sanitization.
- Repairs and touch-ups, like painting and carpet replacement.
- Marketing and advertising for new tenants.
- Weeks of lost rent while the unit sits empty.
Turnover expenses can easily climb into the thousands. The best way to keep them down? Keep tenants happy so they stay longer. Being responsive with maintenance requests and treating tenants fairly goes a long way in reducing turnover costs.
6. The Price of Professional Property Management
If you don’t live in Seattle—or simply don’t want to deal with the day-to-day—property management companies can be a huge help. They handle tenant screening, rent collection, repairs, and legal compliance.
But the convenience comes at a cost. In Seattle, property management fees usually run 8–12% of monthly rent, plus possible add-ons like leasing fees or renewal charges. The key is to know exactly what’s included in the agreement so you can compare providers fairly.
While the expense may sting at first, good management often pays for itself by reducing vacancies, keeping properties in top shape, and avoiding costly legal mistakes.
Is a Seattle Rental Worth It?
Owning a rental in Seattle can still be a strong investment, but it’s not the passive, hands-off income stream people sometimes imagine. Taxes, insurance, repairs, turnover, and management all eat into the bottom line.
If you plan for those costs upfront, the numbers can still work out in your favor. And if you’d rather not handle everything yourself, a professional property manager can take the pressure off while helping you get the most out of your property.
Thinking about renting out a home in Seattle?
The Joseph Group helps local landlords handle the challenges we just covered — from maintenance and compliance to tenant relations and steady cash flow. If you’d like a clearer picture of what your property can earn (and how to avoid the headaches), reach out to our team today.
