There are two bills being proposed in the Washington legislature that if enacted into law would impose strict rent controls in Washington. The proposals’ terms vary, but both would essentially peg rent increases to inflation, with a cap of seven percent. The bills are HB 1388 and HB 1389.
HB 1389 has numerous provisions absent from HB 1388.
Landlords could “bank” unused rent increase capacity if the landlord does not increase rent in a 12-month period. To preserve banked capacity the landlord would have to serve a statutory notice form and serve in the same formal legal manner as a predicate unlawful detainer notice (eviction notice such as pay or vacate, etc.). The landlord could then increase rent by an additional three percent.
If a landlord evicts a tenant or a tenant vacates after an eviction has been initiated, the landlord would be limited to charging new tenants the old rate plus any banked capacity.
HB 1389 provides a few exemptions but rent increases would still be capped at the greater of four percent above the maximum annual rent increase, or seven percent. Exemptions include a landlord financial hardship waiver. Landlords would have to apply for the financial hardship waiver and get formal approval. Also, the landlord could exceed the maximum annual rent increase if the landlord has paid for improvements to the property in the previous twelve months, not including basic maintenance.
Tenants could sue landlords for amounts paid that exceed the rent control caps. HB 1388 also imposes civil penalties of up to $25,000 and subjects landlords to liability under the Consumer Protection Act.
Improper rent increases may negatively impact a landlord’s eviction action. These bills, if enacted, would exacerbate this eviction litigation risk.
Even without these proposals, there have already been changes to rent increase laws at the state and local levels. Rent increases were once simple but are no longer so.
An attorney can help determine whether past rent increases were proper before initiating an eviction. Initiating an eviction with legally improper rent amounts or other legal defects may necessitate repeating the entire process and expose landlords to liability. It is important to retain an attorney as early in the eviction process as possible.
