For the first time, Washington’s attorney general has acted on the state’s new rent increase cap by fining eight landlords $2,000 each for violating the law. House Bill 1217, which took effect in early May, prohibits landlords from implementing rent hikes that exceed specified limits. The landlords in question had informed tenants about rent increases prior to the law’s enactment, but these hikes were associated with leases that renewed after the law took effect. For instance, one rent increase for a tenant in Lakewood was scheduled to begin on June 22.
The attorney general’s office notified the landlords that their planned rent increases were illegal. All landlords subsequently rescinded the increases and refunded any payments made by tenants under the unlawful hikes, as detailed in court filings. As of Wednesday afternoon, six of the landlords had not responded to requests for comment, while one declined to provide a statement.
The enforcement actions impact over 250 renters across the state. Under the new law, the maximum allowable rent increase for most rentals this year is capped at 10%, while manufactured homes have a limit of 5%. Each year, the cap for residential tenancies will be set at either 7% plus inflation or 10%, whichever is lower. Next year, the limit is projected to be 9.683%, as determined by the state Department of Commerce.
“The landlords made mistakes but were able to work with the Attorney General’s Office to make it right,” said state Rep. Strom Peterson, D-Edmonds, a key supporter of the legislation. “This is a step toward addressing the housing affordability crisis.” The landlords involved own properties throughout Washington, from Kennewick and Yakima to Edmonds and Montesano. They have 30 days to pay the $2,000 fines to cover the investigation costs incurred by the attorney general’s office.
Rent increases are prohibited during the first year of a tenancy under this landmark law, although landlords can set any rent they choose when a new tenant moves in. However, the cap does not apply to all properties; new constructions are exempt for their first 12 years. Additionally, public housing authorities, low-income developments, and duplexes, triplexes, and fourplexes where the owner resides in one unit are also excluded.
If a landlord raises rent above the mandated caps without an applicable exemption, tenants must first give the landlord an opportunity to correct the error or may terminate their lease with 20 days’ notice. The attorney general can seek penalties of up to $7,500 for each violation.
This Democratic-backed legislation was one of the most contentious during this year’s legislative session in Olympia, facing strong opposition from Republicans. Tenants who suspect their landlord may have violated the new law can file a complaint with the attorney general’s office or initiate their own legal action. The attorney general has also produced a “Know Your Rights” flyer to help educate tenants about the law.
