Washington House of Representatives passes 7% cap on rent increases

OLYMPIA – The Washington state House of Representatives has passed a bill to cap annual rent increases at 7%.

If adopted by the Senate and signed into law, the legislation would limit annual rent increases to 7% every 12 months for tenants, though landlords could set a rent above the 7% cap for the unit when a new tenant signs a lease. The bill would also require 90 days’ notice before any rent increase is enacted.

The bill contains an emergency clause, which means it would take effect immediately.

The final vote in the House was 53-42. Five Democrats joined 37 Republicans in voting against the proposal. The Legislature considered a similar bill last session, though the proposal died in the Senate after it cleared the House.

“This policy is a lifeline, but it’s also a balanced approach,” Rep. Nicole Macri, D-Seattle, said on the House floor. “It gives our landlords predictability.”

Macri said while there wasn’t a single proposal that would solve Washington’s housing shortage, the bill would provide renters stability.

“We must give people stability right now,” Macri said. “And stability starts with a home.”

On the floor, Macri highlighted the story of Spokane resident Tina Hammond, who told lawmakers during a committee hearing earlier this session that she temporarily stopped taking medicines as she struggled to afford a rent increase of $66 per month, a 12% increase from her prior rent.

According to Hammond, it took approximately three months to come up with a plan to afford the increase, a plan that includes turning her heat off at night to conserve energy.

“If her rent goes up again, she may not only lose her home, but also access to her medications, to her health and ultimately to her life,” Macri said. “And Tina is one of thousands of people in this state who shouldn’t have to choose between taking their medications and having a home.”

Rep. Andrew Engell, R-Colville, said that as a landlord with approximately a dozen rental units, he’s concerned the bill could have negative impacts on tenants.

“Huge rent increases certainly impact many, including friends and family of my own,” Engell said.

While Engell said the bill has good provisions, such as capping rent increases for nonprofit organizations, he was concerned about potential consequences.

New regulations, Engell said, often motivate smaller housing providers to sell their properties, sales he said are often to out-of-state buyers. The change of management comes with a negative result, Engell said, as local owners often maintain strong relationships with their tenants.

Engell said he was also concerned that the bill doesn’t provide an alternative rate for units rented far below market value. According to Engell, his lowest priced unit is currently rented at $400 a month, a rate he inherited from the previous owner and that he has not increased.

“The challenge is that if this legislation is adopted, it would limit me to a $31 a month increase,” Engell said, which he said would limit the tenant’s motivation to move out.

“And should I ever need to do maintenance or major renovations on this unit, it would be very difficult to do so.”

If the legislation passes, Engell said he would be “forced” to adopt the 7% yearly increase to keep up with rising costs.

“I’m worried about the lack of maintenance, lack of supply and harming tenants,” Engell said.

Last month, the Senate Housing Committee approved a companion bill to the legislation with the same provisions. The bill is currently in the Ways and Means Committee.