On May 7, 2025, Washington became the third state to enact statewide rent control, joining Oregon and California. House Bill 1217, effective immediately, limits annual rent increases, extends notice requirements, and mandates parity pricing across lease types. Most provisions sunset in 2040, but some—like mobile home rent caps—are permanent.

Key Takeaways

  • Rent Caps and Notice Rules: Annual rent increases are capped (generally at 7% plus CPI or 10%), and landlords must now give 90 days’ notice before raising rent.
  • Lease Parity Required: Landlords can’t charge more than a 5% difference in rent based on lease type (month-to-month vs. fixed term).
  • Limited Exemptions: New construction (within 12 years), owner-occupied small properties, and certain affordable housing projects may qualify for exemptions—but only with proper documentation.

Why it matters: These changes create new legal obligations for landlords and could impact leasing strategies, investment returns, and property values.

Read the full alert for detailed guidance on compliance and risk management.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Emily Kelly Emily Kelly

Emily Kelly represents sophisticated owners and developers in complex commercial real estate transactions, including the acquisition, disposition, leasing, and financing of multifamily mixed-use, retail, and office projects. Emily keeps projects on track and helps clients protect real property investments and mitigate risk in…

Emily Kelly represents sophisticated owners and developers in complex commercial real estate transactions, including the acquisition, disposition, leasing, and financing of multifamily mixed-use, retail, and office projects. Emily keeps projects on track and helps clients protect real property investments and mitigate risk in order to achieve their business objectives.

Emily enjoys working with clients to reach practical and business-driven solutions to complex legal issues. She has significant experience advising clients on the development and leasing of life sciences, biomedical, and technology space. She has also negotiated numerous complex ground leases on behalf of tenants and landlords.

Photo of Kelly Rutledge Kelly Rutledge