Washington's New Rent Control Law: What It Could Mean for Property Owners and Renters
As a real estate broker, I work with landlords and investors who are always evaluating whether to hold, sell, or manage their rental properties differently. With new rent control legislation (EHB 1217) making its way through Washington’s legislative process, landlords may soon face new regulations that impact rental income and property strategies. At the same time, this bill aims to create more stability for renters by capping annual rent increases.
What’s Changing?
The Rental Housing Association of Washington (RHAWA) has provided a breakdown of EHB 1217, which is currently under consideration by the Senate. If passed and signed into law, it could go into effect as soon as mid-April to mid-May.
Key Takeaways for Landlords:
✅ No rent increases in the first year of tenancy
✅ After the first year, rent increases capped at 7% annually
✅ 90-day notice required for rent increases
✅ Exemptions for nonprofit and public housing
✅ Vacancy decontrol: rents may be reset beyond 7% between tenancies
✅ New properties (12 years old or less) are exempt
Additional Rules for Manufactured Housing Communities
Manufactured home park landlords will also face rent increase caps, move-in fee limitations, and structured late fee policies.
How This Impacts Landlords
Many landlords are now reconsidering their investment strategy due to increasing regulatory complexity. If you're a property owner, here are a few ways this could affect you:
Rent increase timing matters – If this law passes, any rent increases served before it goes into effect will not be impacted. If you were considering an adjustment, now may be the time.
Managing properties may become more complex – With new limits and legal risks, some landlords may opt to hire a property manager to ensure compliance.
Selling may be the right move – If you’re finding that rental restrictions are making ownership less appealing, selling your property and reinvesting elsewhere could be a better financial decision.
How This Benefits Renters
For renters, this bill is designed to provide greater housing stability and affordability. Some of the key benefits include:
✔️ Predictable rent increases – With a 7% cap after the first year, renters won’t face unpredictable or extreme rent hikes.
✔️ More time to plan – A 90-day notice for rent increases allows renters to adjust their budget or explore other housing options.
✔️ Fairer lease terms – Limits on rent differences between month-to-month and term leases give renters more flexibility in how they rent.
✔️ Stronger protections – If a landlord charges more than legally allowed, renters have recourse through written demand and legal action.
What Should Landlords and Renters Do Now?
If you own rental property in Washington, now is the time to evaluate your options. Whether you’re looking to adjust rental terms, hire a property manager, or explore selling, it’s important to make an informed decision before this legislation potentially takes effect.
If you’re a renter, understanding these changes can help you plan your housing decisions and ensure you’re receiving fair treatment under the new law.
📩 Considering selling your rental property? I help landlords navigate the market and maximize their return. Let’s discuss your options and create a strategy that works for you.
