The proposed bill seeks to enhance housing stability for tenants in Washington by implementing measures to limit rent and fee increases, ensure transparency in rental agreements, and provide resources for landlords. Key provisions include capping rent and fee increases at a maximum of seven percent per year after the first 12 months of tenancy, with exemptions for certain housing types. Landlords are required to give written notice of any rent increases, including supporting facts for claimed exemptions, and tenants can terminate their agreements if increases exceed the allowed limits. The bill also establishes a landlord resource center and mandates the creation of model lease provisions regarding rent and fee increases, while enhancing tenant protections by prohibiting excessive move-in fees and capping security deposits at one month's rent.

Additionally, the bill amends existing laws to clarify the handling of security deposits, requiring landlords to deposit them into a trust account and provide written receipts to tenants. It limits late fees to a maximum of 1.5% of total rent per month and prohibits such fees for rent paid within five days of the due date. The legislation also outlines the required contents of rental agreements and prohibits certain fees, ensuring that landlords cannot impose more burdensome terms on month-to-month agreements compared to longer-term ones. An assessment of the impacts of rent stabilization on various communities is mandated, with a report due to the legislature by December 1, 2026, and a temporary expiration of this assessment section set for July 1, 2027.

Statutes affected:
Original Bill: 59.18.140, 59.18.200, 59.18.650, 59.18.270, 59.18.170, 59.20.090, 59.20.170, 59.20.060, 59.20.030
Substitute Bill: 59.18.140, 59.18.270, 59.18.170, 59.20.090, 59.20.170, 59.20.060, 59.20.030
Engrossed Substitute: 59.18.140, 59.18.270, 59.18.170, 59.20.090, 59.20.170, 59.20.060, 59.20.030