Well... Washington’s House Bill 1217 has officially brought rent control statewide. HB-1217 was signed into law on May 7, 2025, and while the bill aims to protect renters, it dramatically changes how landlords in Spokane manage rental properties. We’re here to help Spokane landlords deal with these changes. Below are five key takeaways from HB 1217 from a landlord’s perspective, tailored for Spokane Property Management.
1. Rent Increase Caps
HB 1217 caps annual rent increases at the lower of 7% plus the Consumer Price Index (CPI) or 10% for residential rentals. For example, if CPI is 2%, you can raise rent by up to 9%. This restriction limits your ability to adjust rents to match Spokane’s rising market rates or cover increasing costs like property taxes and maintenance. It also limits a Spokane Property Manager to NO rent increases for the first 12 months the tenant occupies the property.
2. 60 Day Notice Increased to 90 Days Statewide
Landlords must now provide 90 days written notice for rent increases of 3% or more. Of course any stricter local regulation will still need to be adhered to. This extended timeline means Spokane Property Management professionals need to plan rent adjustments well in advance. Failure to comply could lead to tenant disputes or legal challenges, making it critical to update lease templates and maintain meticulous records.
3. Exemptions in HB 1217 Took a Turn for the Worse
Certain properties are exempt from HB 1217’s rent caps, including newer construction properties less than 12 years old and owner occupied multi family . In the original version, owners of Spokane rental properties that were't corporate owned (like REIT's) were exempt, which caused a sigh of relief for "mom & pop" landlords, but that was stricken in the final bill. So mom & pops are no longer exempt!
4. Compliance Is Critical to Avoid AG Involvement
Violating HB 1217, such as raising rent above the cap, can result in severe penalties, including fines up to $7,500 per violation enforced by the Attorney General. Tenants can also terminate leases with 20 days’ notice if caps are exceeded. Spokane Property Management teams must ensure compliance by using standardized “Rent and Fee Increase Notices” and documenting all communications to avoid costly mistakes. Yes, they state AG will get involved if you violate 1217... So make sure you have all the information and USE THE RIGHT NOTICES when you process serve.
5. Potential Long-Term Market Impacts
While HB 1217 provides "tenant stability", we are hearing from local landlords that they are looking to invest elsewhere; Idaho being the most common answer. If past results give us any indication, we are expecting management costs to rise, which unfornaturely will effect the tenant negatively. I expect there will be no winners from this bill.
We Stay On Top of Spokane Property Management Changes
HB 1217 reshapes how Spokane landlords operate, requiring higher level of compliance with the strong arm of the Attorney General to institute fines and penalties if you don't comply. At Cobalt Property Management, our Spokane Property Management experts are ready to help you adapt to these changes.
