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#1 2025-10-10 15:55:38

HugoStoate
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Registered: 2025-10-10
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Managing Residential Rent Increases under Brand-new Laws

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


From 1/1/26 through 12/31/26, the rent increase cap is 9.683%
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It is a finest practice for housing providers to adjust rent frequently, keeping rents in the variety of the location market rate. Housing providers that keep rents lower than the market rate in order to keep long-term occupants will quickly find themselves in a situation where they require to contribute cash to the residential or commercial property for ongoing upkeep, and to cover increasing operating expense such as taxes, insurance coverage, and administration, like having to serve notices by means of Certified Mail!


It is crucial to create and document your rent boost policies to follow all state and regional federal government guidelines on increasing lease. First, let's look at the new and existing laws that govern rent increases throughout the state, then review the steps and best practices for providing rent 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" suggests repeating and routine charges identified in the rental arrangement for the use and occupancy of the premises, which may include charges for utilities. This does not consist of non-recurring charges for expenses due to late payment, damages, deposits, legal expenses, or other charges, consisting of lawyers' fees. (RCW 59.18.030)


- Minimum notification for rent boost is 90 days.
• If the rental arrangement governs a subsidized tenancy where the quantity of rent is based on the income of the tenant or scenarios specific to the subsidized home, a property owner shall offer a minimum of thirty days' previous written notification of an increase in the amount of lease to each affected tenant.


- Any boost in the amount of lease might not end up being effective before the conclusion of the term of the rental agreement.


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


- No rent boost can be offered in the very first 12 months of occupancy.
• Per the new statutory type, however not really defined in law, only one lease increase can be given up any 12-month duration after the first 12-month duration.


- Rent increase notification must be served like an eviction notice per RCW 59.12.040.
• (See "Serving Notices Under New Law" on page 27.)
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- New service requirements efficient 7/27/2025 under HB 1003 require mailing by Certified Mail, although no longer within the same County.


- Rent boost is limited to 7% + Consumer Price Index (CPI) or 10%, whichever is less, per 12-month period.
• For each fiscal year, the CPI number to be referenced will be selected 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 increase cap is 10%.


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


The law prohibits using any rewards based upon length of term or month-to-month status aside from a 5% distinction in monthly rent amount.
• If using an incentive in an existing tenancy, the greater deal should adhere with the lease boost limitation, 7% + CPI.


Note: The renter needs to provide a "notice to treat" to the landlord who increases rent unlawfully. Even without, AG can still bring enforcement action, consisting of refunding rent, charges as much as 3 months' lease, a $7500 fine per violation, attorney costs, and court expenses.


Lease Renewal Laws


If you have a term lease, you can not unilaterally raise the rent mid-term. To need a tenant to sign a lease renewal rather than going into a month-to-month tenancy, RCW 59.18.650( 1) specifies that you serve an "end of term" notice at least 60 days prior to the end of the term. Per the End of Term Notice, the renter must sign before completion of the term, or they must abandon.


Under EHB 1217 in result on 5/7/2025, if the lease renewal offer consists of a lease boost, notification of that boost should be served 90 days before completion of the term.


If an extended lease increase notice is needed under a regional federal government law, the rent increase notification should be offered initially, and then the lease renewal with a copy of the lease boost notice kind attached. Use the RHAWA form, End of Term Notice with Lease Extension, following the provided guidelines.


City Government Regulations


Although we now have statewide lease control, RCW 35.21.830 still prohibits cities or counties in Washington from implementing their own rent increase caps. However, numerous local governments have enacted laws that require prolonged notice durations for rent boosts and other measures planned to make complex the procedure for increasing lease.


The most common rent boost guideline that will still be in result on top of the brand-new state law is:
"Any overall lease increase higher than 3% requires 120 days' notice." This guideline uses in the cities of Issaquah, Kenmore, Kirkland, Port Townsend, Redmond, SeaTac, and Woodinville, plus all unincorporated locations of King County.


The next most typical additional guideline is: "Any overall rent boost higher than 5% requires 120 days' notice," embraced by the cities of Auburn, Olympia, and Tumwater.


And a couple of more cities have their own distinct set of guidelines:


City of Bellingham: Any overall lease increase requires 120 days' notification. If the total rent increase is 8% or more over a 12-month rolling duration, the notice shall include a variety of additional details, including a reasoning for the lease increase and information about Bellingham's Economic Displacement Relocation Assistance (EDRA) program.
City of Seattle: Any rent increase needs 180 days' notification. If the postal service utilized for mailing notification needs a signature, notice must also be sent by regular top-notch mail. If the boost is for 10%, the notice must also consist of Seattle's EDRA Notice.
City of Shoreline:


- - "Base Rent" suggests a recurring and periodic charge determined in the rental contract for use and tenancy of a residence or dwelling system. Base Rent may include charges for utilities, however does not consist of those charges defined as Optional Rent.
- "Optional Rent" means recurring and periodic charges determined in the rental agreement that are not needed for use and occupancy however that a tenant willingly concurs to, such as charges for a parking area or a family pet.
- "Rent" indicates the total combined amount of Base Rent and Optional Rent.
- Any "Base Rent" boost greater than 3% but less than 10% needs 120 days written notice.
- Any "Base Rent" increase of 10% needs 180 days' notice.
- Any "Optional Rent" increase of any amount needs a minimum of 60 days' prior composed notification to each affected occupant. (New state law increases this to 90 days.)


NOTE: Several city governments have laws that are the same as the 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 omitted from the above to avoid confusion. The City of Burien rescinded BMC 5.63.100 - Rent increases on May 19, 2025.
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Basic Steps and Best Practices for Increasing Rent


Remember, do refrain from doing any rent increases during the first year of tenancy, and in the meantime, just do one boost per 12-month period (this might change - fingers crossed!).


Lease Renewals or Rules Changes without Rent Increases


If no lease boost is needed on a lease renewal and you are imposing repaired lease terms, send a lease renewal deal with more than 90 days' notice. If the occupant does not sign, serve an End of Term Notice with Lease Renewal (RHAWA kind). If they do not sign in thirty days, you can enhance this by serving an End of Tenancy Notice (RHAWA form) with chosen cause k. Resident stops working to sign a brand-new rental arrangement, etc by the end of the term (ensure to email some pointers), you can have your attorney proceed with an illegal detainer. You can alter nonrent associated guidelines at lease


renewal, or in a month-to-month occupancy utilizing a 30-day Rules Change in Regards To Tenancy Notice.


Document Your Rent Increase Practices
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RCW 59.18.240 prohibits the property manager from retaliation or making reprisals against the tenant in action to the occupant doing anything that was within their rights to do. Retaliatory actions include lease increases. RCW 59.18.250 states that if a proprietor takes an unfavorable action (such as a lease increase) within 90 days of a renter exercising their rights, such as making a fair housing problem, there is a rebuttable anticipation that the proprietor is guilty of retaliation, and the problem of proof is on the property owner. Similarly, a property owner could be implicated of "economic eviction" if they raise lease excessively with the intention of forcing individuals to vacate.


Therefore, it is really essential to only provide lease increases utilizing reasonable and constant practices based upon nondiscriminatory, nonretaliatory business requirements and rental market trends. It is likewise crucial to document your rent increase practices in case you need to react to a retaliation grievance.


Formal legal guidance and evaluation are advised prior to the selection and usage of this details. RHAWA does not represent your choice or execution of this details as appropriate for your specific circumstance. The material contained and represented herein, although acquired from reputable sources, is ruled out legal guidance or to be utilized as an alternative for legal counsel.


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