Understanding Washington's New Rent Control Law: What Property Owners Need to Know

Understanding Washington's New Rent Control Law: What Property Owners Need to Know
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Washington State passed a new law called House Bill 1217, also known as the Rent Stabilization Act. This new law brought some major changes to landlords and property owners who rent out their homes. These changes aim to protect tenants from sudden and unfair rent hikes, but they also come with new responsibilities for landlords.

One of the largest changes is that rent can no longer be raised during the first 12 months of a lease. Subsequently, landlords can only increase the rent once per year, and the increase must remain within certain limits. In most cases, the rent can only increase by 7% plus inflation, or by 10% total, whichever is less.

The law also requires landlords to give more notice before raising rent. They must now provide tenants with at least 90 days of written notice, up from the previous 60 days. That notice must include specific language and be delivered properly—such as through certified mail—with proof that it was sent. Landlords are expected to keep records of these notices and how the rent increase was calculated.

Another rule to be aware of is the limit on how much more can be charged for month-to-month leases. Landlords cannot charge more than 5% of the fixed-term lease cost for the same rental unit. This rule ensures that tenants are not penalized unfairly when choosing more flexible lease options.

The new law also provides more rights to tenants. If a landlord charges too much, the tenant has the right to cancel their lease without penalty. They can also take legal action to recover the extra rent they pay, along with other possible costs such as attorney fees. In serious cases, landlords could face fines of up to $7,500 for breaking the rules.

There are some exceptions to the new rent caps. For example, brand-new buildings are exempt for 12 years after construction. Owner-occupied duplexes, triplexes, and fourplexes may also be exempt, as may certain types of nonprofit housing or government-supported affordable housing. However, even if a property qualifies for an exemption, landlords must clearly document this in their rent increase notice.

If you own rental property in Washington, it is important to start preparing now. Review your lease agreements and ensure that they follow the new rules. Ensure that all notices are sent on time and saved in the records. If you think your property qualifies for an exemption, gather the documents that prove it.
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In conclusion, Washington’s new Rent Stabilization Law brought a major shift in the management of rental properties. While the law is meant to protect tenants, landlords who stay informed and follow the new rules can still succeed. With clear communication, accurate records, and careful planning, property owners can adapt to these changes and continue to offer high-quality housing in their communities.