Managing Residential Rent Increases under new Laws
From 5/7/2025 through 12/31/2025, the lease increase cap is 10%.
From 1/1/26 through 12/31/26, the lease increase cap is 9.683%
It is a best practice for housing suppliers to adjust rent routinely, keeping leas in the series of the area market rate. Housing service providers that keep rents lower than the marketplace rate in order to keep long-lasting tenants will rapidly discover themselves in a circumstance where they need to contribute cash to the residential or commercial property for continuous maintenance, and to cover increasing operating costs such as taxes, insurance, and administration, like needing to serve notices by means of Certified Mail!
It is essential to produce and document your lease increase policies to follow all state and city government regulations on increasing lease. First, let's look at the new and existing laws that govern rent increases throughout the state, then review the actions and best practices for offering lease boosts.
RENT INCREASE REQUIREMENTS FOR ALL RESIDENTIAL TENANCIES:
RCW 59.18.140 + EHB 1217 (WA 2025); and 59.12.040 + EHB 1003 (WA 2025)
- Definition: "Rent" or "rental amount" indicates repeating and regular charges identified in the rental arrangement for the use and tenancy of the facilities, which might include charges for utilities. This does not include non-recurring charges for costs due to late payment, damages, deposits, legal expenses, or other costs, including lawyers' costs. (RCW 59.18.030)
- Minimum notification for lease increase is 90 days.
• If the rental contract governs a subsidized occupancy where the amount of lease is based upon the earnings of the renter or situations specific to the subsidized family, a property manager shall supply a minimum of thirty days' previous composed notice of a boost in the amount of lease to each affected occupant.
- Any increase in the quantity of rent may not become efficient before the completion of the term of the rental agreement.
- You must utilize a specific lease boost notice kind included in the statute, EHB 1217 (WA 2025).
• The RHAWA Rent Increase Notice abide by the statute.
- No rent boost can be given in the first 12 months of occupancy.
• Per the new statutory type, but not in fact defined in law, only one rent boost can be provided in any 12-month duration after the very first 12-month period.
- Rent increase notification must be served like an expulsion notification per RCW 59.12.040.
• (See "Serving Notices Under New Law" on page 27.)
- New service requirements efficient 7/27/2025 under HB 1003 need mailing by Certified Mail, although no longer within the exact same County.
- Rent boost is limited to 7% + Consumer Price Index (CPI) or 10%, whichever is less, per 12-month duration.
• For each calendar year, the CPI number to be referenced will be chosen and announced by the Department of Commerce (DOC) at www.commerce.wa.gov/housing-policy/hb1217-landlord-resource-center/
- - From 5/7/2025 through 12/31/2025, the lease boost cap is 10%.
- From 1/1/26 through 12/31/26, the rent boost cap is 9.683%
The law forbids providing any incentives based on length of term or month-to-month status other than a 5% distinction in month-to-month lease quantity.
• If using an incentive in an existing occupancy, the greater offer needs to conform with the rent boost limitation, 7% + CPI.
Note: The renter ought to give a "notice to treat" to the landlord who increases lease unlawfully. Even without, AG can still bring enforcement action, including reimbursing lease, penalties as much as 3 months' lease, a $7500 fine per offense, attorney charges, and court costs.
Lease Renewal Laws
If you have a term lease, you can not unilaterally raise the lease mid-term. To need a renter to sign a lease renewal instead of entering into a month-to-month occupancy, RCW 59.18.650( 1) stipulates that you serve an "end of term" notice at least 60 days prior to the end of the term. Per completion of Term Notice, the tenant needs to sign before the end of the term, or they must leave.
Under EHB 1217 in result on 5/7/2025, if the lease renewal deal consists of a rent increase, notification of that increase should be served 90 days before completion of the term.
If an extended rent boost notice is needed under a local federal government law, the rent boost notification ought to be given initially, and then the lease renewal with a copy of the lease increase notification type attached. Use the RHAWA type, End of Term Notice with Lease Extension, following the supplied directions.
Local Government Regulations
Although we now have statewide rent control, RCW 35.21.830 still restricts cities or counties in Washington from implementing their own rent boost caps. However, numerous city have enacted laws that need prolonged notification durations for lease boosts and other steps intended to make complex the procedure for increasing rent.
The most ubiquitous rent boost rule that will still be in effect on top of the new state law is:
"Any total lease boost higher than 3% needs 120 days' notice." This guideline applies in the cities of Issaquah, Kenmore, Kirkland, Port Townsend, Redmond, SeaTac, and Woodinville, plus all unincorporated locations of King County.
The next most common extra rule is: "Any overall rent boost higher than 5% needs 120 days' notification," adopted by the cities of Auburn, Olympia, and Tumwater.
And a couple of more cities have their own distinct set of rules:
City of Bellingham: Any total rent increase requires 120 days' notice. If the total lease increase is 8% or more over a 12-month rolling period, the notice will consist of a variety of additional information, consisting of a rationale for the rent increase and information about Bellingham's Economic Displacement Relocation Assistance (EDRA) program.
City of Seattle: Any lease increase requires 180 days' notice. If the postal service utilized for mailing notification needs a signature, notice should also be sent by regular first-rate mail. If the boost is for 10%, the notice should likewise consist of Seattle's EDRA Notice.
City of Shoreline:
- - "Base Rent" means a repeating and regular charge recognized in the rental contract for usage and tenancy of a home or house unit. Base Rent might consist of charges for energies, however does not include those charges defined as Optional Rent.
- "Optional Rent" suggests repeating and regular charges recognized in the rental arrangement that are not needed for usage and tenancy but that an occupant voluntarily consents to, such as charges for a parking space or a pet.
- "Rent" implies the overall combined quantity of Base Rent and Optional Rent.
- Any "Base Rent" increase greater than 3% but less than 10% requires 120 days composed notification.
- Any "Base Rent" increase of 10% needs 180 days' notification.
- Any "Optional Rent" boost of any quantity requires at least 60 days' previous written notice to each affected renter. (New state law increases this to 90 days.)
NOTE: Several regional federal governments have laws that are the very same as the new state law (e.g., RCW 59.12.040 service needed) or are superseded by more tenant-friendly state law (e.g., allowances for lease increases higher than 10%). These obsolete regulations have been left out from the above to avoid confusion. The City of Burien rescinded BMC 5.63.100 - Rent increases on May 19, 2025.
Basic Steps and Best Practices for Increasing Rent
Remember, do not do any rent increases during the first year of tenancy, and for now, just do one increase per 12-month period (this might change - fingers crossed!).
Lease Renewals or Rules Changes without Rent Increases
If no rent boost is needed on a lease renewal and you are imposing repaired lease terms, send out a lease renewal offer with more than 90 days' notification. If the occupant does not sign, serve an End of Term Notice with Lease Renewal (RHAWA type). If they do not sign in one month, you can reinforce this by serving an End of Tenancy Notice (RHAWA form) with chosen cause k. Resident fails to sign a brand-new rental arrangement, etc by the end of the term (make certain to email some reminders), you can have your attorney continue with an illegal detainer. You can change nonrent related rules at lease
renewal, or in a month-to-month occupancy utilizing a 30-day Rules Change in Terms of Tenancy Notice.
Document Your Rent Increase Practices
RCW 59.18.240 prohibits the property owner from retaliation or making reprisals against the renter in action to the occupant doing anything that was within their rights to do. Retaliatory actions consist of lease boosts. RCW 59.18.250 states that if a property manager takes a negative action (such as a rent boost) within 90 days of a renter exercising their rights, such as making a reasonable housing grievance, there is a rebuttable presumption that the proprietor is guilty of retaliation, and the burden of proof is on the landlord. Similarly, a property manager could be accused of "financial expulsion" if they raise rent excessively with the intention of requiring people to vacate.
Therefore, it is very essential to only provide lease boosts using reasonable and constant practices based upon nondiscriminatory, nonretaliatory service requirements and rental market patterns. It is also essential to document your lease increase practices in case you require to react to a retaliation complaint.
Formal legal suggestions and review are suggested prior to the choice and use of this info. RHAWA does not represent your selection or execution of this information as proper for your specific circumstance. The product contained and represented herein, although obtained from dependable sources, is not considered legal guidance or to be utilized as an alternative for legal counsel.