If you own rental property in Spokane or anywhere in Washington state, the regulatory landscape has shifted significantly — and not in your favor. A wave of new landlord-tenant laws at both the state and city level has introduced rent caps, extended notice periods, mandatory registrations, and penalties that can reach thousands of dollars per violation. For property owners managing their own units, the risk of non-compliance has never been higher.
Washington’s new rent control law changes everything
In May 2025, Governor Bob Ferguson signed House Bill 1217 into law — Washington’s first-ever statewide rent control measure. The law imposes a hard cap on how much landlords can raise rent each year: 7% plus the Consumer Price Index (CPI), or 10%, whichever is less. For 2026, the effective maximum is 9.683%.
But the caps are only the beginning. HB 1217 also prohibits any rent increase during the first 12 months of a tenancy, requires a minimum of 90 days’ written notice before any increase, and mandates rental parity — meaning landlords cannot charge more than a 5% difference between month-to-month and fixed-term lease rates for the same unit.
Landlords who violate these provisions face serious consequences. Tenants and the Washington Attorney General can seek reimbursement of excess rent, up to three months’ rent in damages, attorney’s fees, and civil penalties of up to $7,500 per violation. In August 2025, eight landlords were fined under this law — the first enforcement actions of their kind in the state.
KEY EXEMPTIONS TO KNOW
Not every property is subject to the rent cap
HB 1217 does include limited exemptions. Properties with a certificate of occupancy issued within the last 12 years are not subject to the rent increase cap. Certain nonprofit-owned affordable housing properties and units receiving Low-Income Housing Tax Credits (LIHTC) also fall outside the cap. However, the notice requirements and other tenant protections still apply broadly, and proving exemption eligibility requires proper documentation.
SPOKANE ADDS ANOTHER LAYER
City-level regulations that go beyond state law
Washington state law is only half the picture. The City of Spokane has enacted its own set of landlord regulations that stack on top of HB 1217 — creating an additional compliance burden for local property owners.
Starting in June 2024, Spokane landlords must now provide 120 days’ notice before raising rent by 3% or less, and 180 days’ notice — a full six months — for any increase above 3%. That is double to triple the state’s 90-day requirement, and far beyond the 60-day standard that was in place just a few years ago.
Spokane also requires all landlords to register their long-term rental properties through the city’s Rental Registry. This means obtaining a business license ($131/year through the Washington State Department of Revenue), paying a $15-per-unit registration fee, and ensuring each property is compliant with city code. Landlords who are not properly licensed and registered are prohibited from raising rent or pursuing evictions — effectively freezing their ability to manage their own properties.
The city’s Code Enforcement department now conducts both cause-based and proactive inspections of rental housing. While the initial inspection carries no fee, landlords who fail to correct violations face additional inspection fees and civil infractions. In 2025, code enforcement began issuing civil infractions to non-compliant properties.
WHAT THIS MEANS FOR PROPERTY OWNERS
Increased exposure and administrative burden
Taken together, these state and local regulations create a compliance environment that is increasingly difficult for individual landlords to navigate on their own. Consider what is now required just to execute a routine rent increase in Spokane:
- Confirm whether HB 1217’s rent cap applies to your property and calculate the allowable increase
- Determine whether Spokane’s 120-day or 180-day notice period applies based on the increase percentage
- Issue written notice that includes the percentage increase, the new rent amount, and the effective date
- Ensure your rental registry is current and your business license is active — otherwise, the increase is void
- Maintain documentation proving compliance in case of tenant dispute or Attorney General inquiry
A single misstep — a notice sent 89 days instead of 90, or a registration that lapsed during renewal — can expose an owner to penalties, legal fees, and lost income. And these are not theoretical risks. The state has already demonstrated its willingness to enforce, and the City of Spokane’s code enforcement team is actively issuing infractions.
The cost of non-compliance is no longer just a late fee or an uncomfortable conversation with a tenant. It is fines, legal liability, and the potential inability to manage your own property.
HOW APEX PROPERTY MANAGEMENT PROTECTS YOUR INVESTMENT
Professional management built for this regulatory environment
This is exactly the kind of environment where professional property management stops being a convenience and starts being a necessity. At Apex Property Management, regulatory compliance is built into every aspect of how we operate — not bolted on as an afterthought.
Our team monitors legislative changes at the state, county, and city level so our owners do not have to. When HB 1217 took effect, our clients’ rent increase notices, lease language, and renewal timelines were already adjusted. When Spokane’s extended notice requirements went into effect, our systems were updated before the first deadline hit.
Here is what that looks like in practice:
- Rent increase compliance: We calculate allowable increases under both state and local caps, issue properly formatted notices within the required timelines, and maintain full documentation.
- Rental registry and licensing: We ensure every property we manage is registered, licensed, and current with the City of Spokane — so your ability to raise rent and enforce lease terms is never at risk.
- Inspection readiness: Our proactive maintenance approach and routine property inspections mean your units are prepared for city code enforcement reviews before they happen.
- Lease language updates: We keep lease agreements current with all applicable state and local requirements, including the new prohibited-clause provisions under HB 1217.
- Legal exposure reduction: By staying ahead of every regulatory change, we reduce the risk of tenant disputes, AG complaints, and costly penalties.
With over 40 years of combined property management experience in the Spokane and Inland Northwest market, we have seen regulatory cycles come and go. What sets this moment apart is the pace of change and the severity of the consequences. Owners who are still self-managing may not realize they are out of compliance until a fine arrives or a tenant exercises their right to terminate a lease without penalty.
TAKE THE NEXT STEP
Do not wait for a violation to find out where you stand
If you own rental property in Spokane, Spokane Valley, Liberty Lake, or anywhere in Eastern Washington or North Idaho, we encourage you to evaluate whether your current management approach accounts for every requirement now in effect. If there is any doubt, that is exactly the conversation we are here to have.
Learn more about our property management services or contact our team directly to discuss your portfolio.
Phone: (509) 747-6060
Email: info@apexpmt.com
Office: 110 S Cedar St, Spokane, WA 99201