Planning to raise rent on your new tenant? Under Washington’s rent stabilization law, you’ll need to wait. The state now prohibits any rent increase during a tenant’s first 12 months of occupancy, regardless of what your lease says or what’s happening in the rental market.

This guide explains the first-year rent freeze, the ongoing restrictions that apply after year one, and why getting your initial rent right has never been more important.

The 12-Month Protection Period

Washington’s rent stabilization law provides every tenant with a guaranteed stable rent for their first year of occupancy. From the day they move in, you cannot increase their rent for 12 full months.

This applies regardless of your lease terms. Even if you have a month-to-month agreement, you cannot raise rent during the first year. Even if your lease includes language about annual increases, you cannot enforce that provision during the initial 12-month period.

The 12-month clock starts on the tenant’s move-in date, not the lease signing date. If a tenant signs a lease in March but doesn’t move in until April, the protection period runs from April.

Restrictions After Year One

Once the first year passes, you can implement rent increases—but with significant limitations. You’re limited to one rent increase per 12-month period. This prevents landlords from making multiple small increases throughout the year that add up to more than the annual cap.

Each increase must also comply with the state’s rent cap (7% plus inflation, or 10%, whichever is lower). You cannot “bank” unused increases—if you didn’t raise rent in years one and two, you still can’t exceed the single-year cap in year three.

Why Initial Pricing Is Critical

Under the old rules, if you accidentally priced a unit below market, you could make up ground with a significant increase at lease renewal. That flexibility is gone.

Consider this scenario: You rent a unit for $2,000 when comparable properties are getting $2,300. Under the old rules, you could raise rent to $2,300 at renewal—a 15% increase that brings you to market. Under the new rules, you’re capped at around $2,200 after year one (assuming a 10% maximum), still $100 below market. It would take multiple years of maximum increases to catch up.

This makes comprehensive rental analysis before listing essential. Understanding comparable rents, neighborhood trends, seasonal patterns, and amenity premiums allows you to price correctly from the start.

The Vacancy Exception

Here’s the good news: rent stabilization limits don’t apply to vacant units. When a tenant moves out, you can reset the rent to whatever the market will bear for the next tenant.

This vacancy exception is the only way to make significant rent corrections without years of incremental increases. It’s also why tenant retention strategy becomes a more nuanced calculation—keeping a below-market tenant may not always be the optimal financial decision.

However, using lease non-renewal to circumvent rent control requires caution. Retaliatory actions against tenants who assert their rights are prohibited, and certain just-cause eviction protections may apply.

Strategic Implications

The first-year freeze changes several aspects of rental strategy.

Market analysis becomes essential: You need accurate data on comparable rents before setting your price. Guessing low is much harder to correct than before.

Longer lease terms may be advantageous: Since you can’t raise rent in year one anyway, offering a 12-month or longer lease doesn’t sacrifice flexibility you would have had.

Tenant screening matters more: With limited ability to adjust rent, placing a problematic tenant who might require eviction becomes even more costly.

Rental Analysis and Pricing Support

At inTrust Property Management, we provide comprehensive rental analyses to help landlords price vacant units optimally. Our market expertise in King and Snohomish Counties ensures you’re not leaving money on the table—or pricing so high that you face extended vacancies.

Plan your pricing strategy wisely. Contact inTrust at intrustpmc.com or call 425-438-3474 for a free rental analysis.