In May, Washington enacted House Bill 1217, also known as the Rent Stabilization Act. As you can guess from the legislation’s name, it aims to protect residential tenants from destabilizing price hikes and requires residential WA landlords and property managers to adjust their leasing practices. This legislation is important in a state where 40% of the population rents.
HB 1217 limits annual residential rent increases, requires that residential landlords list similar rent prices for different lease types (month-to-month v. fixed term) of comparable properties, and lengthens notice requirements for rent increases from 60 to 90 days.
Washington is the third U.S. state to enact statewide rent control, following California and Oregon. Here’s a closer look at WA’s Rent Stabilization Act and some of the implications of this legislation on residential property managers.
Why Now?
HB 1217 was passed amid rising residential rents and growing housing instability in the Evergreen State. Consider that nearly 15 percent of renters reported annual rent increases exceeding $250, a steep hike to absorb and one that could create housing challenges.
Who is Impacted
HB 1217 impacts residential rentals, including single-family homes and multifamily units, as well as mobile-home park rentals. However, there are some key exemptions:
- Brand-new buildings for 12 years after their certificate of occupancy
- Owner-occupied duplexes, triplexes, or fourplexes
- Nonprofit or government-supported affordable housing
- Post-tenancy rent adjustments (when a tenant moves out)
Note that even exempt properties are required to properly document their exemption in the rent‑increase notice.
Rent Increase Caps
With HB 1217 in effect, residential landlords must follow these restrictions on residential rent increases:
- No rent increases during the first 12 months of a tenancy, regardless of whether it’s a fixed‑term or month‑to‑month lease (https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/House%20Passed%20Legislature/1217.PL.pdf?q=20250508093051)
- Annual increase cap: The lesser of 7 percent plus the CPI or 10 percent total, calculated each June 1 for the following year
- Manufactured/mobile‑home parks have a 5 percent cap, with no expiration date (governor.wa.gov)
Notice Requirements
To implement a residential rent increase under HB 1217, residential landlords must:
- Provide at least 90 days’ written notice (increased from 60 days)
- Use statutorily prescribed language
- Deliver the notice via certified mail or another verifiable method
- Keep proof of delivery and calculations supporting the increase
Rental Parity Rule
Landlords are now prohibited from charging substantially different rents for similar properties solely because a lease is month‑to‑month. Specifically, residential rents on flexible leases cannot exceed those on fixed‑term leases by more than 5 percent.
Best Practices for Landlords
Here are some basic guidelines we suggest for residential landlords and property managers in Washington. Of course, real estate matters can be complex; our attorneys can help with any specific challenges you are facing under HB 1217.
1. Understand Exemptions
Verify if your residential property qualifies for an exemption, such as being newly constructed or owner‑occupied. Make sure to document and include this exemption information in each notice.
2. Update Lease Agreements
Your residential lease must comply with the new rules or you could face fines. Agreements should reflect no rent increases in year one, proper rent‑increase language, and a 5 percent cushion for flexible leases. Review existing agreements and adjust as needed (preferably with a real estate attorney!).
3. Organize Your Files
For all properties, keep documentation on:
- Move‑in dates (to avoid illegal first‑year increases)
- Rent‑increase notice deadlines
- June 1 annual CPI release
Also, we suggest that you maintain copies of notices, mailing receipts, and CPI calculations. Proper documentation will protect you in case of tenant or Attorney General scrutiny.
4. Consider Legal Review
A real estate attorney can review your current leasing practices, draft compliant notices, and guide accurate adherence to HB 1217 from day one.
HB 1217 represents a significant change for Washington’s residential landlords and property managers. It balances residential tenant protections and market stability with allowable exemptions and structured compliance. With proper preparation and awareness, Washington residential landlords can provide quality housing while meeting their obligations under the new Rent Stabilization Act.