2SHB 1217
SignedHouse
Residential tenants
Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill establishes statewide rent and fee increase limits—capping combined increases at 7% per year for most rentals—and requires clear, standardized notice for increases. It also tightens rules on deposits and late fees, creates a landlord resource center, and gives tenants the right to break their lease without penalty if they receive an illegal increase. The bill applies to both traditional residential and manufactured/mobile home rentals.
- Caps combined rent and fee increases at 7% per 12 months for most rentals, with a 12-month freeze on new tenancies (no increases allowed in the first year).
- Requires landlords to provide standardized written notice for rent/fee increases of 3% or more, with 180 days’ notice for large increases (except for exempt properties).
- Allows tenants to terminate their lease early without penalty if they receive an unlawful rent/fee increase, owing only prorated rent through their move-out date.
- Limits security deposits and move-in fees combined to one month’s rent, and clarifies rules for holding and returning deposits.
- Creates a landlord resource center run by the Department of Commerce and model lease provisions (in top 10 Washington languages) developed by the Attorney General’s office.
- Exemptions include properties within 10 years of first occupancy, owner-occupied homes (single-family or duplex), and certain affordable housing (public/nonprofit-owned).
Who is affected
- Renters in Washington State — Most residential and manufactured/mobile home renters in Washington will be protected from rent and fee increases exceeding 7% per year, with additional protections for those in subsidized housing (though certain subsidized units are excluded).
- Landlords of residential and manufactured/mobile home properties — Landlords of most rental properties must follow new rules on rent/fee increases, provide standardized notices, and comply with stricter limits on deposits and late fees; they may face penalties for violations.
- Low-income and vulnerable renters — Low-income and vulnerable populations—including seniors, families with children, and communities of color—will benefit from reduced risk of displacement due to excessive rent hikes, as highlighted in the bill's findings.
- Local governments in Washington — Local governments gain new authority to enforce rent stabilization rules and may adopt stricter local policies.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Tenants who receive illegal rent increases gain the right to break their lease without penalty and owe only prorated rent—this directly protects low-income and vulnerable renters from displacement due to unlawful hikes, especially those in communities of color who are disproportionately affected by excessive rent increases.
HousingPeopleRef: Sec. 101(3), Sec. 201(3)The 7% annual cap on combined rent and fee increases, plus 180-day notice for increases ≥3%, provides significant predictability and stability for renters—especially seniors, families with children, and communities of color—who are most vulnerable to sudden rent spikes and displacement.
HousingPeopleRef: Sec. 101(1), Sec. 201(1), Sec. 103, Sec. 203The one-month cap on combined security deposits and move-in fees, plus limits on late fees (1.5% monthly), reduces upfront and ongoing costs for renters—particularly low-income households and first-time renters—who often struggle to afford large deposits or face punitive late fees.
HousingPeopleRef: Sec. 107, Sec. 206, Sec. 108, Sec. 207The landlord resource center and multilingual model lease provisions improve transparency and compliance, helping tenants and small landlords understand their rights and obligations—benefiting non-English speakers, seniors, and low-income renters who may otherwise be unaware of legal protections.
HousingPeopleRef: Sec. 105, Sec. 205Exemptions for public and nonprofit affordable housing ensure that subsidized units remain subject to rent regulation, preserving affordability for low-income households—though the bill excludes some subsidized units (e.g., voucher-based), the core affordable housing sector is protected.
HousingPeopleRef: Sec. 102(1)(b)-(c), Sec. 202(1)(a)-(b)
Potential Concerns (5)
The 12-month rent freeze on new tenancies may reduce landlord willingness to rent out units, potentially tightening rental supply and increasing competition for available units—especially for new renters, young adults, and mobility-limited populations—though the bill includes exemptions for new construction and owner-occupied units, which may mitigate supply effects.
HousingPeopleRef: Sec. 101(1)(a), Sec. 201(1)(a)The bill imposes mandatory damages of three months’ rent for unlawful increases and makes violations subject to the Consumer Protection Act, which increases litigation risk and compliance costs for landlords—particularly small landlords and sole proprietors—potentially discouraging new market entry or leading to reduced rental supply in high-demand areas.
Business & EmploymentPeopleRef: Sec. 101(5), Sec. 201(5), Sec. 104, Sec. 204The owner-occupancy exemptions (single-family, duplex) exclude a large segment of Washington’s rental stock—especially in high-cost areas—where many low- and middle-income renters live in converted homes or small multifamily buildings owned by individuals, limiting the bill’s coverage and potentially increasing displacement risk for those in non-exempt units.
HousingLean peopleRef: Sec. 102(1)(d)-(f), Sec. 202(1)The sunset clause (July 1, 2028) and mandatory social vulnerability assessment may delay or prevent permanent rent stabilization, creating regulatory uncertainty for landlords and tenants alike—especially vulnerable populations who rely on long-term housing predictability.
Public SafetyLean peopleRef: Sec. 303The 7% cap may not keep pace with inflation or rising property taxes in high-appreciation markets, especially for older buildings, potentially leading landlords to delay maintenance or exit the market—though the cap applies to combined rent and fees and includes exemptions for new construction, which softens this effect.
HousingLean peopleRef: Sec. 101(1)(b), Sec. 201(1)(b)
Who Is Most Affected
Low- and moderate-income renters—especially seniors, families with children, and communities of color—will benefit significantly from rent and fee caps, deposit limits, and lease termination rights, reducing displacement risk and housing cost volatility.
Small landlords (sole proprietors, owner-occupants of single-family homes or duplexes) are largely exempt and may benefit from reduced regulatory burden, but non-exempt small landlords (e.g., those with 3+ units) face increased compliance costs and litigation risk, especially under the three-month damages penalty.
Large institutional landlords (REITs, corporate entities, LLCs with corporate members) are excluded from owner-occupancy exemptions and face the full scope of liability and compliance requirements, increasing their operating costs and legal exposure.
Local governments gain enforcement authority and may adopt stricter local policies, but also face increased administrative responsibilities and potential legal challenges, though the bill explicitly allows local enforcement and provides a framework for consistency.
New renters (e.g., young adults, recent graduates) may face tighter supply in the first year after move-in due to the 12-month freeze, but benefit from long-term rent stability and standardized notice requirements once established.