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.
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.
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:
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.
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.
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.
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:
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.
Vacancies are the silent profit-killers of rental ownership. Each time a tenant leaves, you’re faced with a string of costs, including:
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.
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.
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.