On May 7, 2025, HB 1217 took effect bringing some changes to the Washington Residential Landlord-Tenant Act (RCW 59.18).  One of the most notable changes is the cap on rent increases for residential tenancies. Not only does HB 1217 apply to new tenancies, it also applies to tenancies existing prior to May 7, 2025.

Subject to some exceptions, rent increases are now capped at 7% plus the consumer price index (CPI), or 10%, whichever is less.  The cap may be lower for space rented for manufactured/mobile homes.  The cap was set by the Washington Department of Commerce and may change for subsequent years. Furthermore, rent cannot be raised during the initial 12 months of a tenancy, regardless of whether the lease is month-to-month or for a fixed term. Subject to certain limitations, the changes effectively restrict a landlord’s ability to raise rents even to meet rising costs of property ownership.

There are some situations in which an owner may be exempt from the rent cap for certain tenancies.  For example, it may be possible to obtain an exemption from the rent cap for premises where the first certificate of occupancy was issued within twelve (12) years from the date of the notice of rent increase, units owned by non-profits, owner-occupied duplexes/triplexes/fourplexes, and some other types of properties.  Even if the property may qualify under one of the foregoing categories, the ownership structure may still disqualify the property from the exemption.

There is also a new and specific form of notice that must be provided to tenants at least 90 days in advance of any rent increase.  Additional information must be provided in the notice if the landlord is claiming an exemption from the rent cap. The notice must also be served in the same manner as an eviction notice and cannot simply be sent via email.  Rent increases made without providing proper notice are unlawful and may subject the landlord to penalties.  Landlords beware – not only can tenants bring an action for an illegal rent increase, the Washington Attorney General’s office may also initiate enforcement action and impose penalties up to $7,500 per violation.  Washington State appears to be taking enforcement seriously. For example, in August 2025 eight landlords were fined by the Washington attorney general’s office for violating this new law.

Tenants and Landlords especially should review HB 1217 to ensure compliance with the new changes to the Washington Residential Landlord Tenant Act. If you have any questions about the changes, please reach out to one of the Lasher real estate attorneys.