Rental laws in Seattle and Washington State continue to evolve—and 2025 has brought a significant shift that every landlord needs to be aware of. Whether you manage one unit or many, keeping up with legal changes isn’t optional. It’s the best way to protect your property, avoid penalties, and build better relationships with your tenants.
Here’s a quick overview of what’s changing, what’s already in effect, and how to prepare.
Statewide Rent Cap Signed Into Law
On May 7, 2025, Governor Bob Ferguson signed House Bill 2114 into law. This legislation, often referred to as the Washington Housing Stability Act, introduces the state’s first rent cap.
Here’s what the new law includes:
- Rent increases are now capped at 7% plus inflation (CPI), or 10%—whichever is lower.
- Rent cannot be increased within the first 12 months of tenancy.
- Landlords must give a 90-day written notice before raising rent (and use the new official notice form).
- Violations may result in penalties of up to $7,500, which the Washington Attorney General enforces.
These rules apply to most residential rentals across the state, including those in Seattle, and are now in effect.
Washington Governor Signs Rent Control Bill Into Law – AP News
Seattle’s Local Rules Still Apply
Seattle already had several rental protections in place—and those aren’t going away. Some are stricter than the new statewide rules.
Here’s what you still need to follow in Seattle:
- If a rent increase is 10% or more, you must give 180 days’ notice.
- You must provide the Seattle Rental Rights Handbook to tenants before each new lease or renewal.
- Move-in fees (including deposits and non-refundable charges) cannot exceed one month’s rent.
- You must offer the rental to the first qualified applicant, following the city’s “first-in-time” rule.
- Tenants must receive itemized receipts for all deductions from the security deposit.
Ignoring these requirements can result in fines—and potential lawsuits. If you self-manage properties in Seattle, it’s worth reviewing your lease documents and internal processes to make sure everything aligns with current law.
Seattle Landlord-Tenant Regulations – Seattle Office of Housing
What’s Exempt from the New State Law?
Not all rentals are covered by the rent cap. Here are the main exceptions:
- New construction (built within the last 12 years)
- Subsidized housing or public housing programs
- Owner-occupied rentals with fewer than three units (e.g., duplex with one unit rented)
- Short-term rentals (like vacation or Airbnb-style housing)
Even if your property qualifies for an exemption, you must still follow Seattle’s local rules if your rental is within city limits.
What Landlords Need to Do Now
If you’re currently renting to tenants, here’s what we recommend:
- Check when your last rent increase occurred. You can’t raise rent again until the tenant has lived there for 12 months.
- Review your upcoming rent increases. Ensure they’re within the 7% plus CPI or 10% cap.
- Update your notice templates. The state now requires a formal notice with specific language—and it must be sent at least 90 days before the scheduled event.
- Plan. If you expect rising expenses, you’ll need to budget carefully. You won’t be able to raise rent sharply to catch up.
If you’re between tenants, it’s still legal to adjust rent at market rate—but it’s smart to consider long-term strategy over short-term gains. Competitive pricing and tenant retention often yield better results in the long run.
Why This Law Matters for Seattle Landlords
Seattle has always had a strong tenant rights framework. Now, the state is following suit. These changes are designed to provide renters with more stability and prevent sudden increases that force tenants out. As a landlord, the best thing you can do is stay informed and adapt to changing circumstances.
This new law doesn’t mean you can’t earn a return on your rental. It just means you’ll need to be more strategic—and more consistent—in how you price and manage your property.
Washington’s rent cap is now law, and Seattle’s local rules still apply. If you manage your property alone, it’s time to double-check your processes and make sure your lease agreements and notices are fully compliant. A missed step could lead to penalties or disputes down the line.
At Sound Point Property Management, we handle all of this for you. From keeping up with legal changes to managing tenant communication and rent increases, we give Seattle landlords peace of mind and more time back in their day.
Let us take care of the legal details—so you can focus on your investment.
