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Desirable school districts have an impact on the rental market. We show you where to find the best school districts in the Seattle area to own rental property.

6 of the Best Seattle School Districts To Own a Rental Home

Finding a great school is a top priority for most parents — especially those on the rental market. Whether they’re relocating for work, saving for a house deposit, or even renting to be closer to better schools, parents are doing their homework on well-rated school districts before choosing where to rent. 

If you own or are considering a home on the Seattle rental market the proximity of the home to good schools will have a big impact on the return you can expect. 

So where are Seattle’s most-desirable school districts and how do you decide if it’s the right place to own a rental home? Each year, organizations such as Niche.com and U.S. News analyze statistics, reviews, and data from the U.S. Department of Education. They take into account test scores, college readiness, graduation rates, SAT/ACT scores, teacher quality, public school district ratings and more. 

This article highlights six of the best-rated school districts in the Seattle area, as well as the top-20 neighborhoods with the best public schools, according to their 2022 rankings. 

Read More: How Your Property's School District Affects Rental Pricing

Best school districts in the Seattle area to own rental property

Mercer Island is Niche.com’s top-ranked school district for the Seattle area, with four elementary schools, one middle school and one high school. This school district is also considered to be the best for athletes and the safest — another big drawcard for young families. 

For families with older children, U.S. News rankings puts Mercer Island High School at #6 in Seattle, with a graduation rate of over 95%. 

In addition to being a great school district, neighborhoods in the Mercer Island District enjoy access to more than 475 acres of parks and open space for families to enjoy sports, nature walks, picnics and playgrounds. 

Coming in at #2 on the Niche.com rankings is the Bellevue School District. Bellevue School District serves the communities of Bellevue, Clyde Hill, Medina, Hunts Point, Yarrow Point, Beaux Arts Village, and portions of Newcastle, Kirkland and Redmond. The district offers 31 schools in total, with 19 elementary schools, eight middle schools and eight high schools. 

Bellevue has not one, but two top-five rated high schools in the area, with U.S. News ranking International School at #2 and Newport Senior High School at #4.

It’s not a cheap area to secure property, however according to areavibes.com it’s considered an exceptional place to live and attracts rental prices 54% higher than the Washington average.

Bainbridge Island isn’t just for day trips, it’s also a great place to live and ranks third in Seattle’s best school districts. Just a short ferry ride across the Puget Sound, Bainbridge Island School District contains 10 schools; six elementary schools, five middle schools and three high schools. 

It’s worth noting that Bainbridge Island ranks #1 for places to teach, making it an attractive location for families and teaching professionals alike. Bainbridge Island is also considered to be a safe area for families, with crime rates 66% lower than the Washington average.

The residents within the Lake Washington School District are spoilt for choice when it comes to accessing great schools, with 34 elementary schools, 15 middle schools and 10 high schools servicing the area — including the top-ranked high school in Seattle.

Eastlake, Lake Washington, and Redmond High Schools all enjoy a 94%+ graduation rate and are positioned within the top 20 high schools in Seattle. But for parents looking to alternative education opportunities, Tesla STEM High School is ranked #1 in Seattle and #12 nationally, making it a big drawcard to this district for families looking for a modern STEM-focused education and Advanced Placement programs. 

Being a magnet school, Tesla STEM High School accepts applications from outside of the district, but homes within the district make for an easier commute. 

Lake Washington School District is located between Lake Washington and the Cascade Mountains, to the east of Seattle. Covering 76 square miles, LWSD is the public school district for the cities of Kirkland and Redmond, as well as about half of Sammamish. On the north end of the district, some Bothell and Woodinville residents also attend schools in this area. 

The Issaquah School District has grown considerably in recent times, transforming over the past 100 years from a sleepy mining town to a vibrant neighborhood that attracts residents for its great living and employment opportunities. Retail giant, Costco, is headquartered within this district, so there is no shortage of working parents looking for homes. 

This school district contains 28 schools; 16 elementary schools, seven middle schools and six high schools — including Issaquah High School, which ranks ninth in the Seattle area. 

The Northshore School District is the 10th largest school district in Washington state, serving the cities of Bothell, Woodinville, Kenmore, and surrounding unincorporated areas in King and Snohomish counties.

In 1959, Woodinville and Bothell School Districts were consolidated to create the Northshore School District. Today, it offers 39 schools in total; 24 elementary schools, nine middle schools and nine high schools. Woodinville and North Creek High Schools are ranked among the top 20 high schools in the Seattle area (18 and 20 respectively).

Outside of the schools, there’s lots of reasons why residents are drawn to the neighborhoods along the Sammamish River. From waterfront parks and dense woodlands, to wineries and festivals, this region is fast-growing with plenty of interest in property. 

Top 20 suburbs with the best public schools in the Seattle area

If you already own a home that you have (or are considering putting) on the rental market, you can look up nearby K-12 schools and their performance on the Washington State Report Card. 

If you’re looking to purchase a rental home in one of Seattle’s best school districts, here is a shortlist of 20 top-ranked suburbs with the best public schools, according to Niche.com in 2022: 

Belong’s average time to rent in Washington is an industry-leading 12 days

Owning a rental home in a great area is one thing. Making sure it’s priced accurately, marketed, well-maintained, and guaranteed to bring you rent every month is another. 

Before you consider local property management to market your home, consider Belong. 

We manage everything about rental homes, so you don’t need to lift a finger. Belong trumps the property management industry with an average time to rent of just 12 days in Washington (as of May 2022). 

From finding a great family who will care for your Seattle home to providing them 24/7 support and in-house repairs and maintenance, you can rest easy knowing that Belong will handle it all.

If you own a Seattle or Washington property on the rental market, find out if you’re eligible here. 

California Rent Control Laws changed with the Tenant Protection Act of 2019 (AB-1482). This is an overview of changes to local rental control law in CA.

Everything You Need to Know About California’s Rent Control Laws

California Rent Control Laws changed with the Tenant Protection Act of 2019 (the bill also known as AB-1482). Read on for an overview of changes to local rental control law in the State of California. 

Enacted on January 1, 2020, California’s statewide rent control law made it illegal for residential landlords to raise rent more than 5%, plus the local rate of inflation in a year. Called the “Tenant Protection Act of 2019,” or AB 1482, the law is designed to prevent the most “egregious” rent increases in the state, especially as many renters have had extreme difficulty paying for housing in the midst of the COVID-19 pandemic.

California Governor Gavin Newsom remarked that with the implementation of the Act (AB 1482), the state will enjoy the “nation’s strongest statewide renter protections.” The statewide law is retroactive to March 15, 2019, and expires on January 1, 2030.

Note that the rental caps limit how much a landlord can increase a tenant’s rent, not the amount of the initial rental price. That amount is determined as it always has been: the homeowner and the tenant come to an agreement that is ratified through a signed lease. To help homeowners determine the optimum price embodied in that agreement, Belong offers a Pricing Optimization Model which takes into account a variety of factors, including market conditions and location.

Exemptions for the Statewide Rent Control Law

The Tenant Protection Act applies broadly to all housing, however there are some exemptions, including which can be found here. The statute does not apply to California condos, and single-family homes, unless they’re owned by a corporation or real estate investment trust. Local rent control ordinances currently in effect will still apply.

Duplexes, where the owner lives in one of the units, are also exempt. In addition, the law provides for these exemptions:

Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner;

Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including an accessory dwelling unit or a junior accessory dwelling unit;

Units already subject to a local ordinance that is more protective than state law, and that requires “just cause” to terminate a tenancy (for example, the eviction protections of the San Francisco Rent Ordinance) – see below for a further description of “just cause;”  and

Residential real property that’s separately alienable from the title to any other dwelling unit – meaning, it can be sold separately from any other dwelling, as is typically the case with single-family residences and condominiums – as long as both A and B apply:


(A) The owner is not any of the following:

(i)  A real estate investment trust, as defined in Section 856 of the federal tax code;

(iii)  An LLC (limited liability company) where at least one member is a corporation

(B) The tenants have been given written notice that the residential property is exempt from this section.

Homeowners should note that the state law exempting buildings constructed in the last 15 years is a rolling date. Thus, units built in 2006 will be covered by the exemption in 2021, but not thereafter. Similarly, units built in 2007 will be covered up through 2022,  but not thereafter. And so on.

Updates to evictions and lease terminations: the “just cause” requirement

AB-1482 has a protection for tenants that prevents landlords from attempting to circumvent the law by evicting current tenants to set new, higher rents for future tenants. The law requires landlords to show “just cause,” such as failure to pay rent, when terminating a lease. Other examples of just cause include violating the terms of a lease agreement, assigning or subletting the premises, refusing to provide reasonable access, refusing to vacate, and committing a crime on the property.

The just cause protection applies to renters who have resided in the unit for 12 months or more. If another renter is added to the lease before an existing renter has continuously resided in the unit for 24 months, the just cause provisions only apply if everyone on the lease has continuously resided in the unit for 12 months or more, or if one of the renters has continuously resided in the unit for 24 months or more.

For those residents who’ve lived in a unit for at least a year, landlords must provide the tenant with an opportunity to cure the violation.

The law exempts certain housing types from the tenant protections (like the rent control provision), requiring a just cause showing prior to terminating a residential tenancy.

Furthermore, AB 1482 sets out some “no fault” just causes, which means that a homeowner can end a lease if the unit is removed from the rental market or is being provided to an immediate relative. Additional “no fault” just causes include: if the homeowner is substantially remodeling the unit; if it needs to be vacated to remedy habitability issues; or if the homeowner is responding to an administrative or court order. 

Where local rent control laws are already in place

The following California communities have local rent control laws on the books, meaning the statewide rent control rules won’t apply – other than for mobile homes:

In addition, several other communities have measures short of rent control, and we advise you to look at the provisions that apply:

Campbell (starting Ch 6.09 mediation only)

San Diego (98.0730 just cause eviction, only)

San Leandro (non-binding review & mediation only)

Plus, the unincorporated neighborhoods of Los Angeles County have local rent control laws.

Rent Control Ordinances in Large California Cities

In LA, the local rent control law only applies to buildings constructed prior to 1978. However, with the statewide rental control law, many thousands of newer units built between 1978 and 2005 will be required to comply with AB 1482.

The municipal code says that only one rent increase is allowed every 12 months based upon the regional CPI (Consumer Price Index). Effective July 1, 2020, the annual allowable increase is 3.0%. To be clear, in the City of Los Angeles, if a tenant resides in a building that was built before 1978, rent increases are to be capped under the provisions of the city’s rent control ordinance, and rent in that building can’t exceed a 5% increase (plus inflation). The rate by which landlords can up the rent is calculated as a percentage of the annual Consumer Price Index (CPI).

California Rent Control Laws: An Overview

We cover the ins and outs of tenant screening, from how to do it yourself to the best tenant screening services to find the right people to occupy your home.

How To Find Great Tenants: The Best Tenant Screening Services

When you place a tenant in your home, who you choose can make or break your rental experience. Someone who is late on their rent or damages your home can be a costly nightmare for landlords. What you want is a person or family who is reliable with rent and trustworthy, treating the place as they would their own. 

Finding that perfect fit is a big deal, it’s why tenant screening services and property managers are so popular, helping to take the burden off landlords. 

There are four approaches you can take to finding great tenants:

1. Do your own vetting of tenant applications with a mix of research and screening services

2. Outsource background checks to a tenant screening service

3. Hire a property management company to manage applications and tenant screening

4. Hire Belong to take a human approach to tenant screening, pairing all the necessary checks with interviewing potential residents for the perfect long-term fit

Before we dive into the ins and outs of each approach, the best advice we can give is to remember that tenants are more than a financial transaction. They are people looking for a place to call home. If you want reliable people who will treat your home as their own, you need to treat them as such. 

This is why Belong refers to renters as ‘residents’, not tenants. By treating everyone in our residential network with mutual respect, combining best-in-class technology with a human-centered approach, we can foster a feeling of belonging that attracts the kind of people you want to live in your home. 

Approach #1: Conduct your own tenant screening

If you want to go it alone and manage your own rental applications, you will need to conduct a series of necessary checks manually and with a bit of help from some screening services. You should also brush up on Fair Housing Laws to ensure your ads and questions don't discriminate against any potential applicants.

Your tenant screening process should examine the following:

Financial stability/ability to service the asking rent

References from employees and previous landlords or property managers

Tenant identify and past experiences in the rental market can be verified using online tenant screening services including:

Don’t forget to ask for and contact references to verify any information received and be on the lookout for any accidental or willful omissions/deceit.

Approach #2: Hire a tenant screening service to manage the process

If you want to manage part of the process yourself but need some help, you can enlist the help of a tenant screening service that will provide you with a background check and necessary reports for review. 

Background checks, criminal record and credit rating checks are typically covered by tenant screening services. Keep in mind that these checks are just the basics of tenant screening to rule out financial red flags. The rest of the process still needs to be performed by you or your property manager.

To help you do the best screening, you’ll want a service that offers a these 5 services:

1. Consumer credit report (from any of Experian, Equifax or Transunion)

Here are a few tenant screening services to consider:

Approach #3: Hire a property manager to manage applicants and tenant screening

A run-down on what 1031 Exchange Rules mean to landlords and homeowners considering putting their home on the rental market.

What Landlords Should Know About 1031 Exchange Rules

If you own an investment property and are considering selling, it's time to get up to speed with a tax benefit known as a 1031 exchange. A 1031 exchange (sometimes called a "like-kind" exchange) will allow the homeowner to defer paying capital gains tax on the sale of an investment property, as long as the proceeds from the sale are reinvested into a similar home (of equal or greater value, within a certain timeframe). 

What is the advantage of a 1031 exchange?

If you own an investment property that has appreciated in value, you will pay capital gains tax on the sale. The advantage of a 1031 exchange is that it lets you defer capital gains tax, so you have more net cash to invest in a replacement property.

Owners of rental homes use a 1031 exchange for a number of reasons, including:

Buying a property that promises to offer a better rental return;

When selling an investment home, owners have 45 days to identify a replacement property for the sold asset. You're given 180 days in total to complete the 1031 exchange (inclusive of the time you took to identify the replacement). 

You must also satisfy one of the following requirements: 

1. The Three-Property Rule lets you identify three properties as potential purchases regardless of their market value;

2. The 200% Rule allows you to identify unlimited replacement properties, provided the properties’ cumulative value doesn’t exceed 200% of the value of the property sold; or

3. The 95% Rule permits a homeowner to identify as many properties as they like, provided the homeowner acquires properties valued at 95% of their total or more.


The identification must be in writing, signed by the taxpayer, and delivered to the replacement property seller. It’s customary for the identification to be delivered to the qualified intermediary, but a written statement in a contract to purchase the replacement property stating that the buyer is identifying the subject property as his replacement meets the requirements. Note that there’s no licensing or other formal eligibility for intermediaries. However, the tax code disqualifies anyone who’s acted as a taxpayer’s agent and those who are related. The term “agent” includes accountants, attorneys, and realtors who’ve worked on behalf of the taxpayer in the last two years.

There are also a few other requirements to keep in mind:

The proceeds received from the sale of properties must be used to buy the new properties

An intermediary is required to hold all the cash from the sales in escrow, in a segregated account, until it’s used for the new purchases; and

You don’t pay taxes on the recapture of depreciation, but your depreciation schedule doesn’t start over. We will explain that below.

Based on the current tax code, you can make as many exchanges as you want; but when the property is finally sold and the proceeds aren’t reinvested in a new property, any capital gains and depreciation recapture tax liability kick in.

Depreciation is the percentage of the cost of an investment property that’s declared as an expense, such as the effects of wear and tear on the home. Expenditures of that kind can be claimed as a tax deduction when they occur.

When a property is sold, any capital gains taxes are determined based on the property’s net-adjusted value, which is the property’s original purchase price, plus any capital improvements, minus depreciation. 

If an investment property is sold for more than its depreciated value, a homeowner may be required to “recapture” the depreciation, which means the amount of depreciation will be included in his or her taxable income from the eventual sale of the property.

The rules for 1031 exchanges state that properties are of like-kind if they’re of the same nature or character, even if they differ in grade or quality. In general, real estate properties are like-kind properties, no matter if they’ve been improved or not. But note that property in the United States and property outside the U.S. aren't like-kind properties.

The IRS states that if you make a like-kind exchange, you aren’t required to recognize a gain or loss under Internal Revenue Code Section 1031. However, if as part of the exchange, the owner also receives other (not like-kind) property or money, that not like-kind portion of the transaction must be reported to the IRS as a gain when measured against the other property and money received (The IRS says that a homeowner can’t recognize a loss.).

For homeowners to receive the full benefit of a 1031 exchange, the replacement property must be of equal or greater value.

Are there different kinds of like-kind exchanges?

Yes. There are three types of 1031 exchanges that vary by their timing and other details. Each has its own requirements and procedures:

1031 exchanges that are carried out within 180 days get this name because in the past, exchanges had to be performed simultaneously.  In a delayed exchange, the homeowner relinquishes property before he acquires a new property. The “relinquished” property is transferred first, and the property the homeowner wants to purchase is acquired second.

This type of 1031 exchange permits the replacement property to be renovated or newly constructed. Note that because these exchanges are still subject to the 180-day rule,  all improvements and construction on the exchanged property must be completed by the time the transaction is executed.

If a homeowner makes any improvements after this point, they won’t qualify as part of the exchange.

This is when a homeowner acquires the replacement property prior to selling the property to be exchanged. Here, the property must be transferred to what is called an exchange accommodation titleholder (which can be the qualified intermediary) and a qualified exchange accommodation agreement must be signed. With this type of exchange, a third party temporarily holds a homeowner's relinquished or replacement property.

A property for exchange must be identified within 45 days of the transfer of the property, and the transaction must be carried out within the same 180 days.

What properties are eligible for 1031 exchange?

The IRS says that there are many forms of real estate that can be used for a 1031 exchange. This includes any property used for a business that includes a store, manufacturing facility, or office building.

Plus, investment property is also eligible for a 1031 exchange—this includes rental properties.

Again, the properties involved must be “like-kind.” The like-kind requirement is interpreted liberally, and almost all real estate properties qualify as like-kind. The types of like-kind properties may include:

What properties cannot be used in a 1031 exchange?

There are several types of property that cannot be used for a 1031 exchange. They include the following:

Stock in trade or other property held primarily for sale;

Other securities or evidence of indebtedness or interest;

Certificates of trust or beneficial interests;

A chose in action, which is a right to something, like payment of a debt or damages in a lawsuit); and

A run-down on what landlords should know about 1031 Exchange Rules and what it means for homeowners looking to put their home on the rental market.

Belong

Dom Difurio

Flora Fiorillo

Natalie McNeal

Brett Jaffe

Ashleigh Graf

Dom Difurio

Flora Fiorillo

Natalie McNeal

Brett Jaffe

Ashleigh Graf