Summer 2025

Governor Bob Ferguson signed House Bill 1217 on May 7, 2025, establishing Washington's first statewide cap on residential rent increases. The law took effect immediately on signing. Annual rent increases for residential tenancies are now capped at 7% plus inflation, or 10% — whichever is lower. The cap applies to most residential rentals; non-corporate-owned single-family homes are exempt under the final negotiated language.

Three other provisions matter for day-to-day practice. First, landlords may not raise rent during the first 12 months of any new tenancy. Second, written notice of any rent increase must now run at least 90 days ahead, up from 60. Third, the law requires parity between month-to-month and fixed-term lease pricing, closing a loophole some landlords had used to push month-to-month renters into higher rates. Most provisions sunset on July 1, 2040, giving the legislature a 15-year window to reassess.

For Washington brokers handling residential property management, advising investor clients, or representing tenants, the impact is immediate. Pro-forma rent-roll projections need recalibration, lease templates need the 90-day notice language, and any rent adjustment scheduled in the 12-month window after a new tenancy now violates the statute. The Washington State Department of Commerce maintains an HB 1217 Landlord Resource Center with the full statutory text, FAQ, and notice templates; the Washington State Standard reported the signing with the final negotiated detail.