For the first time, Washington’s attorney general has enforced the state’s new cap on rent hikes, fining eight landlords $2,000 each for violating the law.
House Bill 1217 took effect in early May. The landlords told tenants before that time about rent increases that would exceed the new maximums. But these increases were tied to leases that renewed after the law took effect, according to the attorney general’s office. For example, one rent increase for a tenant in Lakewood would have begun June 22.
In each case, the attorney general notified the landlords that their rent hikes were illegal. All the landlords rescinded them and refunded any payments tenants made under the unlawful increases, according to court filings.
Six of the landlords did not immediately reply to requests for comment Wednesday afternoon. One declined to comment.
The enforcement actions by the attorney general’s office cover over 250 renters.
The maximum increase for most rentals for the rest of this year is 10% under Washington’s new law, while manufactured homes are capped at 5%. Each year, the limit for residential tenancies is set at 7% plus inflation, or 10%, whichever is lower.
Next year, the limit will be 9.683%, the state Department of Commerce determined last month.
“The landlords made mistakes but were able to work with the Attorney General’s Office to make it right,” state Rep. Strom Peterson, D-Edmonds, one of the lead backers of the new law, said in a statement. “This is one way we can start to turn the tide on the housing affordability crisis.”
The landlords own properties across Washington, from Kennewick and Yakima to Edmonds and Montesano. They were given 30 days to pay the attorney general’s office $2,000 for its costs related to investigating their cases.
Rent hikes of any degree aren’t allowed in the first year of a tenancy under Washington’s landmark law. But landlords can set rent however they please when the tenant moves in.
The cap doesn’t apply to all homes. For example, new construction is not covered for its first 12 years. Public housing authorities, low-income developments, and duplexes, triplexes and fourplexes in which the owner lives in one of the units are also exempt.
If a landlord raises rent above the caps without an exemption, the renter must give the landlord a chance to fix the error or can terminate their lease with 20 days’ notice. The attorney general can recover up to $7,500 per violation.
The Democratic-backed legislation was one of the most divisive bills of this year’s legislative session in Olympia, with Republicans strongly opposed.
Tenants who believe their landlord may have violated the new law can file a complaint with the attorney general’s office, or can bring their own legal action. The attorney general has created a “Know Your Rights” flyer to teach tenants about the new law.
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