Managing Residential Rent Increases under Brand-new Laws

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From 5/7/2025 through 12/31/2025, the lease boost cap is 10%.

From 5/7/2025 through 12/31/2025, the lease increase cap is 10%.


From 1/1/26 through 12/31/26, the rent boost cap is 9.683%


It is a best practice for housing service providers to adjust lease frequently, keeping rents in the series of the area market rate. Housing companies that keep leas lower than the market rate in order to keep long-lasting tenants will quickly discover themselves in a circumstance where they require to contribute cash to the residential or commercial property for continuous upkeep, and to cover increasing operating expenses such as taxes, insurance coverage, and administration, like needing to serve notifications via Certified Mail!


It is essential to develop and document your lease increase policies to follow all state and city government policies on increasing lease. First, let's take a look at the brand-new and existing laws that govern lease increases across the state, then go over the steps and best practices for offering lease increases.


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" suggests repeating and periodic charges identified in the rental agreement for the usage and occupancy of the facilities, which may include charges for energies. This does not consist of non-recurring charges for costs due to late payment, damages, deposits, legal costs, or other fees, including lawyers' fees. (RCW 59.18.030)


- Minimum notice for lease boost is 90 days.
• If the rental arrangement governs a subsidized occupancy where the quantity of rent is based upon the earnings of the occupant or scenarios specific to the subsidized home, a property manager shall supply a minimum of thirty days' previous written notification of a boost in the quantity of lease to each affected occupant.


- Any increase in the amount of rent might not end up being effective before the completion of the term of the rental arrangement.


- You must utilize a particular lease increase notice type included in the statute, EHB 1217 (WA 2025).
• The RHAWA Rent Increase Notice abide by the statute.


- No rent increase can be offered in the very first 12 months of tenancy.
• Per the new statutory type, however not in fact defined in law, just one rent increase can be given up any 12-month period after the first 12-month period.


- Rent increase notice should be served like an eviction notification per RCW 59.12.040.
• (See "Serving Notices Under New Law" on page 27.)


- New service requirements reliable 7/27/2025 under HB 1003 need mailing by Certified Mail, although no longer within the very same County.


- Rent boost is limited to 7% + Consumer Price Index (CPI) or 10%, whichever is less, per 12-month period.
• For each calendar year, the CPI number to be referenced will be picked and revealed 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 prohibits providing any rewards based upon length of term or month-to-month status aside from a 5% distinction in month-to-month rent amount.
• If offering an incentive in an existing occupancy, the higher deal should conform with the rent increase limitation, 7% + CPI.


Note: The occupant must offer a "notice to treat" to the property owner who increases lease unlawfully. Even without, AG can still bring enforcement action, including refunding rent, charges up to 3 months' lease, a $7500 fine per infraction, lawyer charges, and court costs.


Lease Renewal Laws


If you have a term lease, you can not unilaterally raise the rent mid-term. To require a renter to sign a lease renewal rather than 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 completion of the term. Per completion of Term Notice, the renter should sign before the end of the term, or they should vacate.


Under EHB 1217 in impact on 5/7/2025, if the lease renewal offer consists of a rent boost, notification of that increase must be served 90 days before the end of the term.


If an extended rent increase notice is needed under a city government law, the lease increase notification should be given initially, and after that the lease renewal with a copy of the lease increase notice form attached. Use the RHAWA form, End of Term Notice with Lease Extension, following the offered instructions.


City Government Regulations


Even though we now have statewide rent control, RCW 35.21.830 still forbids cities or counties in Washington from executing their own lease boost caps. However, several city governments have actually enacted laws that require prolonged notification periods for rent increases and other procedures planned to make complex the procedure for increasing rent.


The most ubiquitous lease increase guideline that will still be in result on top of the new state law is:
"Any total rent boost greater than 3% requires 120 days' notification." 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 typical extra rule is: "Any total rent boost greater than 5% requires 120 days' notice," embraced by the cities of Auburn, Olympia, and Tumwater.


And a few more cities have their own unique set of guidelines:


City of Bellingham: Any total rent increase needs 120 days' notice. If the total lease increase is 8% or more over a 12-month rolling duration, the notification shall include a number of extra information, including a rationale for the rent increase and info about Bellingham's Economic Displacement Relocation Assistance (EDRA) program.
City of Seattle: Any rent increase requires 180 days' notice. If the postal service utilized for mailing notice requires a signature, notification must likewise be sent by routine superior mail. If the increase is for 10%, the notification needs to also consist of Seattle's EDRA Notice.
City of Shoreline:


- - "Base Rent" means a recurring and routine charge determined in the rental arrangement for use and tenancy of a house or house system. Base Rent may include charges for energies, however does not include those charges defined as Optional Rent.
- "Optional Rent" indicates repeating and periodic charges identified in the rental arrangement that are not needed for usage and occupancy but that a tenant voluntarily accepts, such as charges for a parking space or a family pet.
- "Rent" implies the overall combined amount of Base Rent and Optional Rent.
- Any "Base Rent" increase higher than 3% however less than 10% needs 120 days written notice.
- Any "Base Rent" boost of 10% requires 180 days' notification.
- Any "Optional Rent" boost of any quantity requires a minimum of 60 days' previous composed notification to each impacted renter. (New state law increases this to 90 days.)


NOTE: Several city governments have laws that are the very same as the brand-new state law (e.g., RCW 59.12.040 service required) or are superseded by more tenant-friendly state law (e.g., allowances for rent increases higher than 10%). These obsolete guidelines have actually 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 refrain from doing any lease increases during the very first year of tenancy, and in the meantime, just do one increase per 12-month period (this may change - fingers crossed!).


Lease Renewals or Rules Changes without Rent Increases


If no rent boost is required on a lease renewal and you are implementing fixed lease terms, send out a lease renewal deal with more than 90 days' notice. If the tenant does not sign, serve an End of Term Notice with Lease Renewal (RHAWA kind). If they do not check in 1 month, you can reinforce this by serving an End of Tenancy Notice (RHAWA kind) with selected cause k. Resident stops working to sign a new rental arrangement, etc by the end of the term (make sure to email some pointers), 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 tenancy using 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 versus the occupant in reaction to the renter doing anything that was within their rights to do. Retaliatory actions include lease boosts. RCW 59.18.250 states that if a property manager takes an adverse action (such as a lease boost) within 90 days of a renter exercising their rights, such as making a reasonable housing problem, there is a rebuttable presumption that the property manager is guilty of retaliation, and the burden of evidence is on the landlord. Similarly, a landlord could be accused of "financial eviction" if they raise rent exceedingly with the objective of requiring people to leave.


Therefore, it is very important to only provide rent increases utilizing reasonable and consistent practices based upon nondiscriminatory, nonretaliatory company requirements and rental market trends. It is likewise important to document your rent increase practices in case you require to react to a retaliation grievance.


Formal legal recommendations and review are advised prior to the choice and usage of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific scenario. The product contained and represented herein, although gotten from trusted sources, is ruled out legal advice or to be utilized as a substitution for legal counsel.

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