Washington has officially joined the ranks of states with statewide rent control laws. On May 7, 2025, Governor Bob Ferguson signed House Bill 1217 into law, introducing major changes to how much landlords can raise rent across the state. The law aims to provide relief to tenants amidst rising housing costs, but it also presents new compliance challenges for landlords and property managers.
At Brink Property Management, we’re committed to helping landlords in Bellevue and throughout the Greater Seattle Metro Area navigate these regulatory shifts. Here’s what you need to know about HB1217, how it impacts your rental business, and how to stay ahead of compliance in this new landscape.
What is HB1217?
House Bill 1217 is Washington State’s newly enacted rent control legislation, developed in response to increasing concerns by tenant advocates about housing affordability, homelessness, and rental market instability. The bill sets a statewide cap on annual rent increases, establishing a formal framework for how much landlords can legally raise rent each year.
The law takes effect July 1, 2025, and applies to most residential rental properties across Washington. Its reported primary goal is to curb excessive rent hikes while still allowing for reasonable increases that reflect inflation and maintenance costs.
Key Provisions of HB1217
Here are the central elements of HB1217 that landlords must understand:
Cap on Rent Increases
Annual rent increases are capped at 7% plus CPI, or 10%, whichever is lower.
The absolute maximum allowable increase is 10%, even if inflation exceeds that limit.
The inflation rate is tied to the Consumer Price Index for All Urban Consumers (CPI-U) in the Seattle-Tacoma-Bellevue area.
In addition, the law limits the difference in rent charged between lease types up to a maximum of 5%. (i.e. MTM rent surcharge cannot be more than 5% above the term lease offer.) In addition, the MTM surcharge offer cannot exceed the above referenced total cap.
Exemptions for Newer Buildings
Properties that received their certificate of occupancy within the past 12 years are exempt from the rent cap.
This exemption is designed to encourage continued development and investment in new housing.
Notice Requirements
Landlords must now provide 90 days’ written notice for any rent increase.(Note that some municipalities require longer notice periods, up to 180 days)
Notice of rent increases are now required to be served in the same manner as an eviction notice as outlined in RCW 59.12.040 (ie physically served), including the requirement for Certified Mail instead of regular mail.
This extended notice period gives tenants more time to adjust or relocate if needed. However, if the rent is increased above the allowed limit, tenants are no longer bound by the lease agreement's terms and are only required to provide 20 days' notice of their intent to vacate.
Penalties for Non-Compliance
Landlords who violate HB1217 could face significant civil penalties, including repayment of unlawful rent and fines of up to 3x the overcharged amount plus attorney fees.
Errors in compliance could bring fines of $7500 per occurrence.
Why Washington Passed HB1217
The motivation behind HB1217 stems from rising rental costs and an increasingly competitive housing market. According to housing advocates, many renters were being priced out of their homes due to double-digit rent increases year over year.
The Legislature cited:
Tenant displacement and housing insecurity
Increased homelessness in urban and suburban areas
A need for predictable rent growth that aligns with real-world inflation
Supporters of the bill—including tenant rights groups and housing nonprofits—argue that the cap strikes a balance between protecting renters and preserving a viable rental housing market.
Of course other factors that affect rent increases include finance costs, maintenance/upkeep labor and building materials expenses, insurance increases, property tax increases and utility cost increases, etc.
What HB1217 Means for Bellevue Landlords
While the law is statewide, its impact may vary by city. In Bellevue and the surrounding areas, where tech-driven demand has pushed rents upward for years, this legislation could significantly shift rental market dynamics.
Here’s how:
More Oversight for Rent Adjustments
Gone are the days of simply raising rent based on local market trends. Landlords must now carefully track CPI data and ensure they don’t exceed the legal limits—even unintentionally.
Tighter Compliance Timelines
With up to 180-day notice rule requirements, landlords need to plan rent increases far in advance. You’ll need to monitor lease expiration dates, inflation forecasts, and upcoming property improvements with greater precision. Of course, it is very difficult to predict where market rents will be in 180 days or more. In addition, most renters do not know what their plans are that far ahead.
Reevaluation of Long-Term Investment Strategies
Investors and owners may need to revisit their cash flow projections, especially for value-add properties where higher returns depend on raising rents post-renovation.
Who’s Exempt from HB1217?
Not all landlords will be subject to HB1217’s rent cap. The following exemptions apply:
New construction less than 12 years old
Government-subsidized housing programs (which already operate under different affordability guidelines)
Certain nonprofit housing organizations
Short-term rentals and properties not used as a primary residence by tenants
Still, most traditional rental homes and apartment buildings in Bellevue fall under the law’s scope. If you’re unsure whether your property qualifies for an exemption, working with a knowledgeable property management firm like Brink can help clarify your position.
How Brink Property Management Can Help
At Brink Property Management, we’ve already begun adapting our systems to comply with HB1217. Here's how we're helping landlords transition smoothly:
Real-Time CPI Tracking
We monitor inflation trends and update rent increase thresholds regularly to keep your property within legal bounds.
Lease Structuring & Notifications
Our team ensures all lease agreements and notices are formatted to reflect the new notice periods and compliance with HB1217.
Exemption Guidance
We evaluate each client’s property to determine if it qualifies for exemption and help with documentation if needed.
Proactive Planning
We work with landlords to create forward-looking strategies for maintenance, upgrades, and turnover, factoring in the new rent cap to maintain profitability.
What Landlords Should Do Now
If you own a rental property in Bellevue or nearby, it’s critical to act early:
Audit your current leases – Make sure upcoming rent increases align with the new law.
Evaluate your building’s status – Check if your property is exempt due to its age or classification.
Update lease renewal procedures – Build the 90 to 180-day notice period into your lease calendar.
Work with a property management expert – HB1217 isn’t just a regulation—it’s a shift in the rental landscape.
Need Help Navigating HB1217?
Washington’s HB1217 represents a major turning point in how landlords operate—and how they plan for the future. While the law introduces more restrictions, it also creates opportunities for thoughtful, long-term property management strategies that focus on tenant retention, steady income, and legal compliance.
As a trusted partner for landlords in Bellevue and the surrounding region, Brink Property Management is here to help you navigate this transition with clarity, strategy, and confidence.
Contact us today to learn how we can support your rental business in the era of Washington rent control.
