Understand HB 1217 Impact: WA Proposed Rent Control Bill

The Washington real estate market is currently buzzing about HB 1217, a proposed rent control bill that could significantly impact how landlords manage their properties. If passed, this law would introduce rent increase caps, extended notice periods, and new compliance requirements for landlords across the state.

However, it’s important to emphasize that HB 1217 has NOT been passed yet. While this bill is still under discussion, its potential implications are serious enough that landlords should start preparing for possible changes.

In this post, we’ll break down:

  • What HB 1217 proposes and who is exempt?
  • What happens if landlords don’t comply?
  • How this bill could impact landlords?
  • How to prepare for potential changes?

What Is HB 1217 and What Would It Change?

The primary focus of HB 1217 is rent control, which would limit how much landlords can increase rent for existing tenants. Here’s what the bill proposes:

1. Rent Increase Cap
  • Landlords would not be allowed to increase rent by more than 7% in a 12-month period for existing tenants.
  • This cap applies only to tenants who are renewing their leases—it does not apply to new tenants.
2. Extended Rent Increase Notice Requirement
  • Currently, Washington state law requires 60 days’ notice for rent increases.
  • HB 1217 would extend this to 90 days, meaning landlords would need to give tenants more time to prepare for any rent adjustments
3. No Restrictions on Rent for New Tenants
  • If a tenant moves out, landlords could set a new rent at any amount for the next tenant.
  • The 7% cap only applies to tenants who are staying in the same rental unit.

Who Would Be Exempt from HB 1217?

Not all rental properties would be affected by the 7% rent cap. The bill outlines several exemptions:

1. Newer Properties (Built in the Last 12 Years)
  •  If a rental property was built in 2013 or later, it would not be subject to rent control until it reaches 12 years old.
2. Owner-Occupied Rentals
  • If a landlord rents out a unit in their primary residence (such as an ADU or basement apartment), this law would not apply to them.
3. Affordable Housing & Nonprofit-Owned Properties
  • These types of properties follow different regulations and would not be impacted by HB 1217.
4. Local City Laws Would Override This Bill
  • Even if HB 1217 is passed, it would NOT override stricter city regulations. Some Washington cities already have stricter rent increase limits and notice periods, which would continue to apply.
  • For example:
    • Seattle already requires 180 days’ notice for rent increases above 10%.
    • Issaquah, Kirkland, Woodinville, Kenmore, and Redmond require 120 days’ notice for rent increases over 3%.
  • If your rental property is in one of these cities, their local laws would take precedence over HB 1217.
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What Would Happen If a Landlord Violates HB 1217?

If this bill is passed, landlords who raise rent above 7% or fail to provide the 90-day notice could face legal consequences. Here’s how enforcement would work:

1. No More Consumer Protection Act (CPA) Complaints
  • Originally, tenants would have been able to file complaints under the Consumer Protection Act (CPA) for rent violations.
  • However, this provision was removed from the final version of the bill.
2. Tenants Must First Send a Written Demand Letter
  • Before taking legal action, tenants would be required to send a written demand letter asking the landlord to correct the issue.
3. Attorney General Could Enforce This Law
  • If a landlord does not comply after receiving the demand letter, the tenant could file a lawsuit or request enforcement from the Attorney General’s office.
4. Penalties for Non-Compliance
  • If a landlord is found in violation of the law, they may be required to:
    • Refund any excess rent charged
    • Pay up to 3 months’ rent in damages
    • Cover the tenant’s attorney fees and legal costs

How Would HB 1217 Impact Landlords?

If HB 1217 is passed, landlords will need to adjust their property management strategies to remain compliant. Here are some of the biggest potential impacts:

1. Longer Planning Time for Rent Increases
  • With the 90-day notice rule, landlords would need to plan rent increases further in advance to avoid last-minute adjustments.
2. Limited Rent Growth in High-Demand Areas
  • In competitive rental markets where rent increases typically exceed 7%, landlords would not be able to fully adjust to market conditions for existing tenants.
3. Increased Compliance Complexity Across Different Cities
  • Since many Washington cities already have their own rules, landlords will need to track and comply with both local and state regulations.
4. The Need for a Structured Compliance System
  • At our property management company, we’ve built a customized system to help landlords stay ahead of compliance issues.
    • For example, in cities with 120-day notice requirements, we begin rental analysis 165 days before lease renewal to ensure all deadlines are met.
    • This type of structured planning will become even more critical if HB 1217 is passed.

How Landlords Can Prepare for Potential Rent Control?

Even though HB 1217 has not been passed yet, it’s smart for landlords to be proactive. Here’s what you can do now:

1. Keep Properties Well-Maintained & at Market Rent
  • Regular maintenance and upgrades help keep rent competitive and justifiable under market conditions.
2. Gradually Adjust Rent to Avoid Falling Behind
  • If rent control is implemented, landlords who consistently increase rent by small amounts will have an easier time staying within market value.
3. Implement a Compliance Strategy
  • Tracking city-specific rent control laws will be crucial to avoid penalties.
  • Property owners may need to work with a professional management team to stay on top of changing regulations.

Final Thoughts: What’s Next for HB 1217?

As of now, HB 1217 is still a proposed bill and has NOT been passed into law. However, if it moves forward, landlords will need to understand and adjust to the new regulations.

Key Takeaways:

  • HB 1217 is a proposed bill and has NOT been passed yet.
  • If enacted, it would cap rent increases at 7% per year for existing tenants.
  • It would require a 90-day notice for rent increases.
  • Cities with stricter rent laws would still override this bill.
  • Tenants would need to send a demand letter before taking legal action.

At GPS Renting, we specialize in helping landlords navigate rental laws, optimize rental income, and reduce risk.

At GPS Renting, we specialize in helping landlords navigate rental laws, optimize rental income, and reduce risk. Need expert guidance?
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