Summer 2025 - Property Management Q&A
Question:
I have been following the legislature’s adoption of Washington’s rent control law. I know about the rent cap (7% plus the CPI or a cap of 10%, whichever is less). What else is in that law that I need to know as a property manager?
Answer:
There are a lot of subtleties to the new law. First of all, it became effective the moment it was signed by the Governor, as it contained an emergency clause. So, this is unlike most laws adopted in Washington state.
The advocates for the new law refer to it as “rent stabilization” rather than “rent control” because rather than regulating all rents generally, it does not restrict rent increases of any amount between tenants. Also, it was originally feared that the state law would be a true cap but that local jurisdictions could adopt their own, more restrictive forms of rent control. Instead, the state law restricting cities and counties from adopting their own rent control laws remains on the books.
The law prohibits increasing rent within the first twelve months of tenancy. So, if you have a relatively new tenant on a month-to-month agreement you can’t rush out and increase the rent.
There are some exceptions to the law, including shared housing situations (where the owner and tenant share bathrooms and/or kitchen facilities and also multi-family buildings up to four units in size where the owner lives on site. The law also exempts buildings less than 12 years old. Of course, few of those types of buildings are run through third party property managers. There are also exceptions for most types of non-profit ownership.
Most uniquely, the new law has adopted a statewide form for rent increases. The law also mandates that the notice of rent increase must be delivered in the same manner as Pay or Vacate Notices (see RCW 59.12.040). Additionally, the timeline to issue a notice of rent increase is now 90 days before the rent increase takes effect (and longer in many jurisdictions which require more notice, such as Seattle’s requirement of 180 days).
Another wrinkle to the law is that it regulates charging month-to-month surcharges. Historically, it has been relatively common to provide a more favorable rental rate to tenants on longer term leases. Now, a landlord may not differentiate between types or length of lease by more than five percent.
The law contains quite aggressive penalties for non-compliance, including: (a) damages in the amount of any excess rent, fees, or other costs paid by the tenant; (b) damages in an amount of up to three months of any unlawful rent, fees, or other costs charged by the landlord; and (c) reasonable attorneys' fees and costs incurred in bringing the action. This is in addition to any other remedies provided by law (such as via local ordinance). Both the tenant as well as the state Attorney General may bring an enforcement action in the case of a violation.
Christopher T. Benis
Chris is an attorney with First Avenue Law Group, PLLC in Seattle. The information contained herein is not legal advice. You are encouraged to consult with your attorney before relying on anything contained herein.