Annual Rent Increase Caps

During the first 12 months of a tenancy, no rent increases are allowed. After that, rent increases may only happen once in a 365-day period and are capped at 7% plus Consumer Price Index (CPI), or 10%, whichever is less. For manufactured and mobile homes, the cap is even lower—5%. Beginning in June 2025 and annually thereafter, the Washington Department of Commerce will calculate the maximum annual rent increase percentage allowed for the following calendar year and publish it on the Landlord Resource Center.

Extended Notice Requirements

Rent and fee increase notices must now be issued at minimum 90 days in advance if delivered in person, 95 days in advance if delivered via certified mail. This minimum is a significant increase from the former 60-day requirement. Landlords must use the rent increase notice provided in the bill and must attempt personal service of the notice.

Rent Parity Across Lease Types

HB 1217 mandates that landlords apply rental parity—charging no more than a 5% rent difference between month-to-month and fixed-term leases for the same unit.

Stringent Tenant Protections and Penalties

Tenants may terminate their lease with a 20-day notice if an unlawful rent increase is proposed. If the landlord violates the new limits, tenants or the attorney general can seek damages, including:

• Reimbursement of excess rent, fees, or costs.

• Up to three months' rent, fees, and costs charged unlawfully by landlord.

• Attorneys' fees and costs.

• Civil penalties up to $7,500 per violation.

Exemptions Exist - But Documentation is Required

Certain properties can qualify for exemptions, but the exemptions must be documented and included in your rent increase notice. These properties include:

• Newer construction (less than 12 years old with proof of certificate of occupancy).

• Properties with affordable housing status (LIHTC, nonprofit-owned, owner-occupied small multi-unit buildings).

• Other less common residential and/or ownership situations (see bill for details).

New Online Landlord Resource Center

The Washington State Department of Commerce has create a landlord resource center that provides information about available programs, services, and resources, including the landlord mitigation program and low-income residential weatherization program.

Seek Professional Advice

As always, investment property owners should seek the advice of an attorney, tax advisor, or property management professional to ensure they are in compliance with the new laws. Failure to abide by the law can result in serious consequences.