Washington's rental landscape changed significantly when Governor Ferguson signed House Bill 1217 into law on May 7, 2025. For the first time, Washington has statewide rent control — and many landlords still don't fully understand what's required.

Whether you own one rental in Edmonds or a portfolio across the Seattle metro, this guide covers the compliance rules you need to know for 2026, including the new rent cap, notice requirements, and Seattle's additional municipal regulations that layer on top of state law.

The Big Change: Washington's Statewide Rent Cap (HB 1217)

HB 1217 makes Washington the third state (after Oregon and California) to implement statewide rent control. Here's what it means for your 2026 rent decisions.

The Rent Increase Formula

Landlords may not increase rent by more than 7% plus the Consumer Price Index (CPI), or 10%, whichever is lower during any 12-month period.

For 2026, the Washington Department of Commerce has published the maximum allowable increase:

Maximum rent increase for 2026: 9.683%

Calculated using the June 12-month CPI change for the Seattle-Tacoma-Bellevue area (Series CUURS49DSA0), plus 7%.

This cap applies to most residential tenancies covered by the Residential Landlord-Tenant Act (RCW 59.18).

First-Year Protection

HB 1217 prohibits rent increases during the first 12 months of any tenancy — whether it's month-to-month or a fixed-term lease. This applies to the initial occupancy period after a new tenant moves in.

Rental Parity Rule

A lesser-known provision: landlords cannot charge more than a 5% difference in rent between lease types for the same unit. If your fixed-term lease rate for a unit is $2,500/month, your month-to-month rate for that same unit cannot exceed $2,625.

This prevents the common practice of charging significantly higher rent for month-to-month flexibility.

Sunset Provision

Most of HB 1217's provisions expire on July 1, 2040 (15 years from enactment). However, the rent cap for manufactured and mobile homes does not have an expiration date — that restriction is permanent.

Who's Exempt?

Not all properties are subject to the rent cap. Exemptions under RCW 59.18.710 include:

New construction: Residential buildings are exempt for 12 years from the date of the first certificate of occupancy for the applicable dwelling unit
Owner-occupied units: Three categories qualify:
- Units where the owner shares a bathroom or kitchen with the tenant
- Single-family homes with no more than two units
- Duplexes, triplexes, and fourplexes where the owner occupies one of the units
Nonprofit-owned properties: Certain nonprofit housing providers
Manufactured/mobile homes: These are covered under a separate chapter (RCW 59.20) and subject to a stricter cap of 5% — not exempt, but under different rules

Critical for investors: The owner-occupied exemptions do not apply if the property is owned by a REIT, corporation, or LLC with a corporate member (RCW 59.18.710(2)). Many WA landlords hold rental properties in LLCs — if your LLC has a corporate member, you cannot claim the owner-occupied exemption regardless of where you live. Penalties for exceeding the cap without a valid exemption can include the excess rent collected, up to three months' rent, and the tenant's attorney fees.

If you're claiming an exemption, you must include specific facts and supporting documents in your written rent increase notice. Simply stating "this property is exempt" is not sufficient.

Notice Requirements: Now 90 Days Statewide

HB 1217 lengthened the statewide notice requirement for rent increases from 60 days to 90 days. Your written notice must include:

The current rent amount
The new rent amount and effective date
The specific language prescribed by HB 1217
If claiming an exemption from the rent cap, the factual and documentary basis for the exemption

Important: If your city requires longer notice, the longer period applies. Seattle, for example, requires 180 days — so Seattle landlords must give 180 days, not 90.

Notice Timeline Quick Reference

Location	Minimum Notice for Rent Increase	Authority
Washington State (general)	90 days	HB 1217 / RCW 59.18.140
Seattle	180 days	SMC 7.24.030
Other cities	Check local ordinance (90 days minimum)	Varies

Seattle Adds Another Layer

If you own rental property in Seattle, state law is your floor — not your ceiling. Seattle has additional landlord requirements that go beyond HB 1217.

Fair Chance Housing (SMC 14.09)

Seattle prohibits landlords from using criminal conviction records in tenant screening decisions. The only exception is the sex offender registry. This is a Seattle-specific law — outside Seattle, landlords may conduct individualized criminal history assessments per HUD guidelines.

First-in-Time Screening (SMC 14.08.050)

Seattle requires landlords to process rental applications in the order received. You must publish your screening criteria before accepting applications and evaluate each applicant against those criteria sequentially.

This means you cannot cherry-pick from a pool of applicants — the first qualified applicant gets the unit.

Just Cause Eviction (SMC 22.206.160(C))

Seattle's Just Cause Eviction Ordinance limits the reasons a landlord can terminate a tenancy. Unlike many other Washington cities, you cannot simply decline to renew a lease in Seattle without a qualifying reason.

RRIO (Rental Registration and Inspection Ordinance)

All rental properties in Seattle must be registered with the city and pass periodic inspections. Registration is required before advertising or renting the unit. Inspections occur on a rotating schedule — typically every 5 to 10 years.

Source of Income Protections

Seattle (and Washington state) prohibit discrimination based on source of income, including Section 8 vouchers and other housing subsidies. When stating income requirements in listings (such as "income must be 3x rent"), always add that this is adjusted for housing subsidy programs as required by law.

Beyond HB 1217: Other 2026 Compliance Requirements

Security Deposit Rules

Washington state does not cap security deposit amounts — however, some cities do. Seattle, for example, limits total move-in charges to one month's rent (SMC 7.24), with pet deposits charged separately. Check your local ordinance.

Under state law (RCW 59.18.280), landlords must:

Provide a written move-in condition checklist
Store deposits in a trust account
Return deposits within 30 days of the tenant vacating, with an itemized statement of any deductions

Screening Fee Disclosures

If you charge an application fee, Washington law requires you to disclose the screening criteria and the cost of the screening before accepting the fee.

Required Disclosures at Move-In

Landlords must provide tenants with written disclosures covering:

Ownership or management contact information
Move-in condition report
Mold disclosure
Information about the Landlord-Tenant Act
Lead paint disclosure (for pre-1978 properties)

Compliance Checklist for 2026

Use this checklist to audit your current practices against 2026 requirements:

Rent Increases

Rent increases do not exceed 9.683% for 2026 (or applicable exemption documented)
No rent increase during first 12 months of any tenancy
Month-to-month premium does not exceed 5% over fixed-term rate
Written notice includes all HB 1217 required language
Notice provided at least 90 days before increase (180 days in Seattle)

Seattle-Specific (if applicable)

No criminal history screening (SMC 14.09)
First-in-time screening criteria published before accepting applications
RRIO registration current and inspection up to date
Just Cause compliance for any tenancy termination
Income requirements include housing subsidy adjustment language

General

Security deposits in trust account; deposit returned within 30 days of vacating (check local caps — Seattle limits to one month's rent)
Move-in condition checklist provided and signed
All required disclosures delivered at lease signing
Screening fee disclosure provided before accepting payment
Lease terms reviewed for HB 1217 compliance

Why This Complexity Matters

Washington landlords now operate under a layered compliance framework: federal fair housing law, state law (including HB 1217), and municipal ordinances that may be significantly stricter than state requirements. A landlord with properties in both Bellevue and Seattle faces different notice periods, different screening rules, and different eviction standards for each city.

Getting any of these wrong doesn't just risk a fine — it can result in tenant lawsuits, lease invalidation, or regulatory action. And the rules change: Commerce publishes a new maximum rent increase each year, and municipalities regularly update their ordinances.

This is one of the reasons many Washington landlords — especially those managing multiple properties or investing from out of state — work with a professional property manager. A qualified PM stays current on every layer of regulation so you don't have to.

Stay Current

The Washington Department of Commerce maintains an HB 1217 Landlord Resource Center with the current year's maximum rent increase calculation and links to relevant RCW sections. Bookmark it.

For Seattle-specific rules, the city's Renting in Seattle portal covers RRIO, Just Cause, and Fair Chance Housing requirements.

PPM NW LLC is a licensed property management firm (WA License #26000662) serving the Seattle metro area. We help landlords navigate Washington's evolving compliance landscape so they can focus on their investment returns. Learn more about our management services →

Washington Landlord Compliance Guide 2026: What HB 1217 Means for Your Rental Property