Washington landlords are facing a new reality. With the passage of House Bill 1217 (HB 1217), the state has officially implemented statewide rent control, placing restrictions on how much rent can increase and how often those increases can occur.

If you own rental property in Seattle, Bellevue, Redmond, or anywhere in Washington, you may be wondering: Should I sell, hold, or adjust my long-term strategy?

There’s no one-size-fits-all answer, but in this article, we’ll break down what landlords need to consider when re-evaluating their investment under HB 1217. Whether you’re looking to sell your rental property in Washington or simply navigate new rent rules, here’s what you need to know.

What HB 1217 Actually Does (And Doesn’t Do)

First, let’s clear up what’s included in the law:

  • Annual rent increases are capped at the lower of:
    • 7% + Consumer Price Index (CPI), or
    • 10% total
  • 180-day notice is required for rent increases of 3% or more
  • 90-day notice is required for increases under 3%
  • Some properties are exempt, including:
    • Units built in the last 12 years
    • Certain nonprofit or affordable housing units

What’s not included:

  • No rent freezes
  • No statewide caps on fees (late fees, move-in charges, etc.)

Need help navigating your new legal obligations? Get in touch with our compliance experts.

1. Should You Sell Your Rental Property in Washington?

Some landlords are considering an exit, especially if:

  • They rely on aggressive rent increases to cover rising costs
  • Their properties are not exempt from HB 1217
  • They prefer hands-off investing and are uncomfortable with new oversight

If you own an older property with high maintenance costs or thin margins, selling could make sense. But remember:

  • Buyer demand for rental properties could soften due to the new rules
  • You may need to price strategically if investor interest declines

Want to know what your rental is worth? Request a free property value estimate.

2. When Holding Still Makes Sense

Not every landlord is looking to jump ship—nor should they.

Holding may be your best option if:

  • Your property is newer (and exempt from the rent cap)
  • You’ve locked in reliable, long-term tenants
  • You have low overhead and stable financing

Rent control doesn’t prevent you from earning income—it just requires more careful planning. Even under a 7-10% cap, rental revenue can still grow over time.

Curious how HB 1217 affects your rent strategy? Let’s run the numbers.

3. Or Should You Rethink Your Strategy Entirely?

Rather than rushing to sell or hold blindly, many landlords are asking a smarter question:

How can I adapt my rental strategy to stay profitable under HB 1217?

Here are a few ways to do that:

a. Start With a Rent Review

Many landlords haven’t raised rent in years. If you’re significantly under market, a legal increase of 7-10% might still provide a solid income bump.

b. Maximize Tenant Retention

Tenant turnover is expensive. By improving your tenant experience (timely repairs, open communication, well-maintained properties), you keep good renters longer—and avoid vacancy losses.

c. Upgrade to Qualify for Higher Rent

Even within the cap, better homes fetch better rents. Fresh paint, updated appliances, and improved landscaping go a long way.

d. Consider 12-Year-Exempt New Builds

Future investors may shift focus to new construction rentals, which are exempt from HB 1217 for 12 years. If you’re in acquisition mode, this could be a long-term play.

Want help building a new rent strategy? Book a free consultation.

What About Long-Term Investment Potential?

The bigger question isn’t whether you can make money under rent control—it’s whether you’re willing to adapt.

Real estate is still one of the best ways to build wealth, but Washington’s landscape is shifting. Investors who treat rentals like a business—with planning, data, and expert support—are more likely to succeed.

HB 1217 is a major policy shift, but it doesn’t mean your rental property is a lost cause. It does mean your old strategy may need adjusting. Whether you sell, hold, or pivot, the key is knowing your numbers, understanding the law, and having the right people in your corner.

At SJA Property Management, we help landlords across King County make smart, profitable decisions in any market.

Want personalized guidance? Reach out to SJA today and let’s talk about your next move.

Disclaimer:

This article is for educational purposes only and should not be considered legal or financial advice. For personalized advice, consult with an attorney or financial advisor.