Rental property management in Washington requires close attention to changes in the law. In 2025, the state legislature passed House Bill 1217 (“HB 1217”), which introduced:
- Rent increase limits
- Notice requirements concerning rent increases
- Prohibitions against imposing more burdensome terms and conditions on those renting on month-to-month leases than are imposed on those renting on an annual basis
- New tenant rights and remedies in response to landlord violations of HB 1217, including potential fines and civil penalties.
For landlords, HB 1217 creates new responsibilities, but it also provides an opportunity to build stronger tenant relationships and avoid disputes by adopting best practices. At North City Law, we help landlords across Washington understand these rules and adjust their business practices to stay compliant. We offer free consultations and paid compliance assistance for landlords.
If you are a landlord in Washington and want to make sure your rent increases comply with HB 1217, or if a tenant is making a demand pursuant to HB 1217, please call North City Law at 425-645-4684. Our team can review your rental practices and help you avoid costly mistakes. We offer both limited free consults and paid in-depth consults with legal advice.
Why Was HB 1217 Passed?
The Washington legislature acted after years of steadily rising housing costs and tenant displacement. Many renters – especially those on month-to-month leases – faced sudden rent hikes that made housing unaffordable with little time to respond. In response, the legislative goal of HB 1217 was to create predictability and stability in the rental market. The law ties allowable rent increases to inflation and sets a maximum cap, which lawmakers see as a means to balance landlord profitability with tenant protection.
What Are the Main Requirements of HB 1217 for Landlords?
HB 1217 contains two major provisions. First, it prohibits any rent increase during the first 12 months of a tenancy. Second, after the first year, rent increases are capped based upon a rolling 12-month period.
The cap is set at the lower of 7 percent plus inflation, measured by the Seattle-area CPI, or 10 percent. For 2025 the Department of Commerce published the maximum as 10.000 percent, and for 2026 it is 9.683 percent. For manufactured or mobile home lot rents, the cap is lower – 5 percent in any 12-month period.
How Are Residential Rentals and Manufactured Housing Treated Differently Under HB 1217?
While most landlords are subject to the 7 percent plus inflation or 10 percent rule, manufactured housing communities have lower limits. Since many tenants in those communities own their home but rent the lot underneath, lawmakers saw them as especially vulnerable to displacement. If you manage manufactured home lots, your rent increases are limited to 5 percent per year, and the same 12-month freeze applies at the start of a tenancy.
How Much Notice Must Landlords Give Before Raising Rent?
HB 1217 requires at least 90 days’ prior written notice before a rent increase can take effect for most residential leases. The notice must include the new rent amount and the effective date of the rent increase, and such notice must be delivered to the tenant in accordance with state law. An improperly delivered or incomplete notice can be invalid, which means the rent increase cannot be enforced.
Do I Need to Give Written Notice of a Rent Increase if the Lease Agreement Does Not Require Such Notice?
Yes. Even if the lease agreement provides other mechanisms for the notification of a rent increase, those other notifications likely won’t be effective unless they also comply with the provisions of HB 1217, including the 90 day advance notice provisions. Notably, recent caselaw from the COVID-era rent freezes and eviction moratoriums suggest that even mutually-agreed-upon increases likely won’t be effective without strict notice compliance.
How Does HB 1217 Affect Lease Renewals?
Lease renewals are one of the most important times for landlords to apply HB 1217 correctly. HB 1217 affects both month-to-month rentals and fixed-term leases, and the rules differ depending on the situation.
For tenants on month-to-month leases, the rent cap applies in full as soon as the tenancy passes the one-year mark. Even if you want to make gradual adjustments each year, those increases must remain within the published limits. If a rent increase exceeds the cap, or if notice of the rent increase is not properly served, the increase in rent will not be enforceable.
For annual leases, rent cannot be raised in the middle of the lease unless the agreement itself contains a lawful escalation clause. In most cases, landlords must wait until the lease ends before the increase. Once that lease rolls over into annual term or converts to month-to-month, HB 1217 governs the increase. This means that even if a tenant agrees to renew, the law still requires that the increase be capped, and that the notice requirements be met.
If you intend to raise rent at the end of an annual lease, you should serve the written notice at least 90 days in advance of the lease term, and ensure the amount falls under the cap set by the Department of Commerce. Missing the notice window could mean waiting another cycle before you can legally implement the increase.
Strategic planning is critical, particularly for landlords managing multiple units, since one missed deadline can translate into months of lost revenue.
By anticipating renewal dates and mapping them against HB 1217’s timelines, landlords can avoid compliance problems and reduce disputes with tenants. A proactive approach also shows tenants that increases are lawful and transparent, which can improve long-term retention.
How Should Landlords Calculate a Legal Rent Increase?
Calculating a rent increase under HB 1217 is a step-by-step process.
- Check the length of the tenancy. If the tenant has lived in the unit for less than 12 months, you cannot raise the rent at all during the current term, even on month-to-month leases.
- Look up the state’s published cap. Each year, the Department of Commerce sets the maximum allowable increase.
- Compare the numbers. The law says increases are limited to the lower of:
- 7 percent plus inflation (measured by Seattle’s CPI),
- 10 percent or
- 5 percent (for manufactured home lots).
- Apply the lower figure. You must use whichever number is smaller.
- Check the timing. Make sure that the increase, together with any other increases in the past 12 months, does not exceed the limit.
For example, the maximum increase for 2026 is 9.683 percent. That means no matter what your expenses are, you cannot raise rent more than 9.683 percent in the applicable 12-month period.
How Should Landlords Plan Financially Under HB 1217?
HB 1217 changes how landlords need to think about long-term financial planning. The law limits rent increases even during times of high inflation, which means rental income may not always keep pace with rising costs like property taxes, insurance premiums, and maintenance. Because of these limits, landlords cannot rely on steep rent hikes to balance the books.
Smart financial planning under HB 1217 means focusing on stability rather than sudden adjustments. Landlords should:
- Budget for gradual increases. Build financial models that assume steady, capped growth each year.
- Track lease anniversaries. Plan increases well in advance, so notices go out on time and income is not lost (remember and keep careful track of the 90 day advance written notice provisions for each unit).
- Look for efficiency. Control expenses by improving energy use, scheduling preventative maintenance, and reducing turnover costs.
- Review exemptions carefully. Certain properties may qualify for exceptions under the law, but those situations are narrow and need legal review before being applied.
- Consider lease structuring. Offering longer lease terms can help align expenses with predictable rent increases.
By taking a forward-looking approach, landlords can protect profitability even within HB 1217’s restrictions. Early planning also prevents last-minute mistakes that could make an increase unenforceable.
Are Any Rental Properties Exempt From HB 1217?
Yes — HB 1217 includes several narrowly defined exemptions in Section 102 of the Act (applied via RCW 59.18.710). But claiming an exemption requires care. If you raise rent beyond the capped amount under an exemption, you must include factual support in your notice.
Here are the key exemptions:
- New construction: Units whose first certificate of occupancy was issued within the past 12 years are exempt from the rent increase cap for a defined time period.
- Affordable housing / nonprofit-owned or regulated housing: Units owned by public housing authorities, nonprofit organizations, or those subject to certain affordable housing covenants are exempt.
- Owner-occupied small multiunit properties: The law exempts certain duplexes, triplexes, or fourplexes when the owner lives in one of the units as their primary residence at the beginning of the tenancy and continues to do so.
- Shared living with owner: If a tenant shares a bathroom or kitchen with the owner, and the owner maintains a principal residence at the same property, the cap may not apply.
- Vacated or re-renting units: The rent and fee limitations do not apply when the unit is vacant and being re-rented (i.e. you may reset the rent when a new tenancy begins).
The summary of the exemptions provided above is an overview of the exemptions. Because the exemptions contain strict conditions that must be met, a landlord should seek legal counsel prior to relying upon an exemption and making a rent increase. At North City Law, we can assist you in determining whether an exemption may be applicable in your situation.
What Qualifies as “Rent”?
While most of us think about rent as simply the payment to a landlord to live in a rental unit, in some cases other payments – such as the payment for parking – can also be subject to HB 1217. In these cases, landlords will need to ensure that the total “rent” does not exceed the threshold of HB 1217 (including any parking increases).
More specifically, for purposes of HB 1217, “rent” will likely include all the periodic payments that are a part of the lease. So, if a separate fee for parking is included in the lease, then the indicated amount for parking may also be subject to the provisions of HB 1217. If, however, there is a separate parking agreement which sets forth the parking fee, then the fee noted in the separate parking agreement may not be subject to HB 1217.
As with many legal questions, the answer to “is this rent?” will often by the classic, lawyerly “it depends.” Because of these highly fact-specific nuances, it is important to consult with an HB 1217 lawyer to make sure that the provisions of HB 1217 are not inadvertently violated.
What Happens if there is a New Landlord?
If the rental property is sold but the lease stays in place, the new landlord succeeds to the same rights and obligations under the lease as the old landlord. This means that with respect to rental increases, the new landlord would need to determine when the last rent increase was made to determine the applicable 12-month period.
What Happens if the Tenant Moves to a New Rental Unit?
If a tenant moves to a new rental unit, such move resets the 12 month time-period, and a landlord may increase the rental rate in the new unit at the beginning of the lease. This is the case even if the new rental unit is the same configuration as the unit from which the tenant is moving. And, in the version of the bill that was passed into law, the landlord is also free to charge any amount of rent to a new tenant for the unit the existing tenant has vacated without any relation back to what that tenant had been paying.
What Happens if a Landlord Ignores HB 1217?
When a landlord fails to follow HB 1217—by raising rent during the first 12 months, exceeding the allowable cap, or failing to give proper notice—the consequences can be serious. The rent increase is considered void, and tenants are not required to pay the overcharge.
Additionally, if a landlord attempts to enforce an unlawful increase through eviction or collection, the tenant may raise HB 1217 as a defense in court. Judges can reject the notice, block the eviction, and force the landlord to start over with proper calculations and delivery. This can delay any enforceable rent increase by months.
Also, under HB 1217, when tenants successfully challenge a violation, they may recover:
- Actual damages — any excess rent, fees, or costs the tenant paid under an unlawful increase.
- Statutory damages — up to three months’ rent, for any unlawful rent increase, fees, or other costs charged by the landlord.
- Reasonable attorneys’ fees and legal costs incurred by the tenant when bringing an action.
- Civil penalties — up to $7,500 per violation in favor of the tenant or Attorney General.
These damage limits are designed to deter noncompliance while giving tenants a meaningful remedy when their rights are violated.
Beyond monetary damages, a landlord may also face reputational harm, increased vacancy and turnover costs, and strained relations with tenants. Because HB 1217 allows courts to treat violations strictly, landlords should treat even small miscalculations as significant risk.
If you want to avoid these outcomes, it’s best to ensure every rent increase fully complies with HB 1217 before issuing it.
Need a second look at your proposed notice or calculation under HB 1217? Call North City Law at 425-645-4684 to schedule a consultation with our experienced landlord tenant lawyers.
Have There Been Any Enforcement Actions Brought Under HB 1217?
Yes. Washington’s Attorney General has actively enforced HB 1217 through a series of Assurances of Discontinuance (AODs) against landlords who imposed unlawful rent increases.
In August 2024, Attorney General Bob Ferguson announced the first wave of enforcement actions under HB 1217, resulting in rescinded rent increases, tenant refunds, and civil penalties of approximately $2,000 per landlord. These cases involved landlords who raised rents beyond the allowable limits or issued improper rent notices after the law took effect. See the Attorney General’s press release.
The Attorney General’s Office also published a public compilation of settlement agreements, including actions against entities such as FIG1 LLC (King County) and LeBeuf Estates, LLC (Grays Harbor County). Each agreement required landlords to rescind unlawful rent increases, refund affected tenants and remit a $2,000 payment to the AGO for investigative costs. View the compiled Settlement Agreements.
Because these enforcement actions are public, reputationally significant, and strictly enforced, landlords should consult counsel proactively to ensure compliance with the detailed notice and rent-adjustment provisions of HB 1217 before they become the subject of an investigation.
How Do Courts Enforce HB 1217?
Enforcement typically happens through tenant defenses in court. There is no state agency monitoring rent increases, but tenants who receive improper notices can use HB 1217 to challenge them in eviction or payment disputes. Courts may invalidate the increase entirely. Landlords should assume that any notice may end up before a judge, and draft and deliver notices with that in mind.
What Mistakes Do Landlords Commonly Make With HB 1217?
Many landlords run into trouble with HB 1217 because the rules are strict and easy to misapply. Some of the most common mistakes include:
- Raising rent too early. As noted above, HB 1217 prohibits any increase within the first 12 months of a tenancy. Even a small increase during that time is invalid.
- Exceeding the cap. Landlords sometimes calculate the increase without checking the Department of Commerce’s published annual maximum. If the increase is even slightly over the limit, the rent increase is void.
- Miscalculating the timing. The law applies to any rolling 12-month period, not just calendar years. Forgetting to account for a prior increase can accidentally push the increased rent over the cap.
- Improper notice delivery. Notices must meet strict requirements for content and service. Delivering by email alone, failing to specify the exact effective date, or leaving out the dollar amount are all mistakes that can invalidate a rent increase.
- Incorrect use of exemptions. Some landlords assume their property qualifies for an exemption, such as new construction or owner-occupied units, without confirming the applicability of the exemption. Misusing exemptions exposes landlords to tenant claims and damages.
Each of these mistakes can erase months of anticipated rental income, force repayment of unlawful charges, and open the door to tenant defenses in court. By carefully reviewing every rent increase against HB 1217’s requirements, landlords can seek to avoid these costly errors.
How Can Landlords Benefit From Complying With HB 1217?
While the law adds restrictions, compliance can benefit landlords. Valid, timely notices reduce the likelihood of disputes and improve credibility with tenants. Clear communication fosters resident retention, lowering the costs of turnover and vacancy. Landlords who build good systems now will also be prepared if future legislation adds new requirements.
Where Can I Find More Information About HB 1217?
For more information about HB 1217 and how it impacts landlords, please see the “Know Your Rights” alert published by the Washington Attorney General’s Office concerning HB 1217 or the HB 1217 Landlord Resource Center on the Washington State Department of Commerce .
How We Support Local Washington Landlords
North City Law works with small and mid-sized landlords throughout Washington who want to do things the right way but who do not have in-house legal departments or teams of managers. Whether you rent out a single home, a duplex, or a handful of units, HB 1217 applies to you just as much as it does to large property companies. The difference is that a mistake can have a much bigger impact on your bottom line when you only manage a few rentals.
We help local landlords structure lawful rent increases, prepare notices that hold up if challenged, and resolve disputes when they arise. Because we monitor the annual updates from the Department of Commerce, we can help you with matters such as determining the correct cap for your property leases before sending a notice for increased rent. Our goal is to give smaller landlords peace of mind so they can focus on managing their properties and maintaining good relationships with tenants.
If you want to make sure your rent increases comply with HB 1217, call North City Law today at 425-645-4684 to schedule a consultation.