Hi, I’m Jason with SJC Management Group. It’s May 2025, and Washington State has just passed two major laws that every landlord, property owner, and tenant needs to be aware of. In this post, I want to focus on the more controversial of the two: the statewide rent control—or "rent stabilization"—law.
This is a big one, and it’s going to change how rent increases are handled moving forward.
How Much Can You Raise Rent?
Under this new law, landlords are now limited in how much they can raise rent in any 12-month period. Here’s the formula:
You can raise rent up to 7% plus CPI (Consumer Price Index)
But not to exceed a total of 10%
So, each year in June, a new CPI number will be released. You can apply that number on top of the 7% base—as long as the total doesn’t go over 10%.
Example:
Let’s say CPI this year is 4%. Technically, 7% + 4% = 11%, but because of the 10% cap, the most you can raise the rent is 10%.
If CPI is under 3%, you’ll be limited to something below the max. So there’s a floor of 7%, a ceiling of 10%, and CPI determines where you land in between.
Month-to-Month Lease Increases Are Also Capped
This law also affects how much you can charge if a tenant switches from a fixed-term lease to a month-to-month agreement. In the past, many landlords would allow month-to-month tenancies but charge more for the added flexibility.
Now, that additional charge can’t exceed 5% more than the fixed-term rent amount.
State-Mandated Rent Increase Form
The legislation includes a standardized statewide form that must be used when notifying tenants of a rent increase. If you don’t use the exact language provided in the law, your notice could be invalid. So make sure you’re using the right document.
New Notice and Delivery Requirements
Here’s another change that’s easy to miss but important:
Previously, mailing a rent increase notice was enough.
Now, you must attempt to personally serve the tenant, post it on the door, and mail it.
This is on top of the new certified mail requirement I discussed in another post (that law takes effect July 27, 2025). So you’ll want to make sure your notice process checks all the boxes to stay compliant.
Notice Period Has Been Extended
Statewide, the notice period for rent increases has increased from 60 days to 90 days. So any rent increase must now be delivered at least 90 days before it takes effect.
But remember—local laws still apply if they’re more restrictive.
For example:
Auburn requires 120 days’ notice
Tacoma has a two-step notice process, requiring:
One notice between 210 and 180 days
Another between 120 and 90 days
Tacoma also caps rent increases at 5%
So make sure you’re not just following the state law—you must also comply with local rules if they’re stricter.
Bottom Line
The new rent control law is here, and it’s going to impact how we manage rent increases across Washington. Whether you're managing a single unit or an entire portfolio, this is one of those changes you need to get ahead of now.
As always, if you have any questions about these changes or anything else related to property management, reach out. We’re here to help.
Thanks for reading,
Jason
Designated Broker, SJC Management Group
