Lease Renewals and Tenant Retention in Tacoma
A renewal costs you $250. A turnover costs roughly ten times that before a single repair. Our lease renewal cost also includes an interior inspection. Here is the math, and the rent increase rules that now govern every renewal in Tacoma.
What a turnover actually costs you
Owners tend to think of a turnover as a cleaning bill. It mostly is not. Here is the math, using the Tacoma median rent of $1,677 from the Apartment List Tacoma Rent Report, September 2026.
| Item | Renew the lease | Turn the unit |
|---|---|---|
| Renewal fee | $250 | $0 |
| Leasing fee (50% of one month’s rent, Gold Package) | $0 | about $839 |
| 30 days of vacancy at the Tacoma median | $0 | $1,677 |
| Subtotal before any repairs | $250 | about $2,516 |
| Make ready: paint, cleaning, carpet, landscaping | Usually none | Varies by property |
Every vacant day at that median costs about $56. Even a fast 15 day turnaround runs about $1,678 in leasing fee plus lost rent, close to seven times the cost of renewing.
That is why we treat a renewal as real work, not an automatic letter, and why we sometimes recommend a smaller increase than the law allows. An extra $50 a month is $600 a year. One 30 day vacancy at the Tacoma median wipes that out in a single month.
These figures use the market median for illustration, not a quote for your property.
Get a free rental analysis for your address.
The renewal math under first HB 1217
Washington’s rent stabilization law is in effect, codified at RCW 59.18.700 through .730. Every renewal in this state runs through it.
The Cap is set by the year the increase takes effect
Not the year you write the notice. Send a notice in the fall of 2026 for an increase that takes effect in 2027, and you use the 2027 figure of 10.0 percent.
The Cap.
The annual increase may not exceed 7 percent plus CPI, or 10 percent, whichever is less. The Department of Commerce publishes the annual figure.
2026 cap: 9.683 percent
2027 cap: 10.0 percent
What that looks like in dollars
At the Tacoma median rent of $1,677, a 9.683 percent increase taking effect in 2026 is $162.38 a month, or $1,839.38 in new rent. At the 10.0 percent cap in 2027 it is $167.70, or $1,844.70.
No increase in the first 12 months
Rent cannot be raised during the first 12 months of a tenancy, so first renewals get planned around that date, not the calendar year.
The notice itself is regulated
A rent increase notice must substantially follow the form in RCW 59.18.720 and state the percentage, the dollar amount, the effective date, and whether the increase is below the cap, at the cap, or exempt. Statewide the notice period is 90 days under RCW 59.18.140, or 30 days for an income-based subsidized tenancy. Tacoma’s is far longer, and we cover it below.
The 5 percent lease type parity rule
Under RCW 59.18.700(4), rent cannot differ by more than 5 percent based on lease type. If a 12 month lease is $1,677, month to month on that unit cannot exceed about $1,760.85. Large month to month premiums are no longer allowed.
Pet rent counts
Pet rent is a recurring charge, so it sits inside the HB 1217 cap. Raising rent to the cap and then adding pet rent on top is how a legal increase becomes an illegal one. Assistance animals are not pets and cannot be charged pet rent.
Exemption exist, and they have to be claimed
RCW 59.18.710 exempts buildings with a first certificate of occupancy 12 or fewer years before the notice date, public housing authorities, qualifying nonprofits, LIHTC units under a WSHFC agreement, and owner-occupied 1 to 4 unit buildings that are the owner’s principal residence, which corporations, REITs and LLCs with a corporate member cannot use. An exemption counts only if it is claimed in the written notice.
What it costs to get it wrong
If an increase does not comply, the tenant may terminate with 20 days notice under RCW 59.18.700(3), penalties can reach three months of unlawful rent plus fees, and the Attorney General can seek up to $7,500 per violation. Read more about Washington’s rent increase law.
The Tacoma notice stack, and why renewal planning starts seven months early
Inside Tacoma, two codes govern the same rent increase notice and they ask for different things.
01
TMC 1.95.060: 180 days written notice on a City form
Tacoma requires 180 days of written notice before a rent increase, raised from 120 days on January 1, 2026 by Ordinance 29086. The notice must be on a City form and must state the new rent, the percentage, the effective date, and a description of the relocation assistance program.
TMC 1.100.050: two separate notices
02
The voter-passed Landlord Fairness Code requires two notices. The first goes out 210 to 180 days before the increase, the second 120 to 90 days before. TMC 1.100 is enforced only by private lawsuits, so meeting TMC 1.95 alone does not protect you.
Practical rule: send both.
03
One notice at about seven months out and a second at about three to four months out satisfies both codes. That is why we begin renewal conversations seven months before the lease ends, not thirty days before.
The City forms that go with it
04
A City Notice of Resources form must accompany any rent increase notice or notice to vacate. Under TMC 1.95.030.B, Tacoma also requires a tenant information packet at lease offer or renewal, with a signed acknowledgment.
Two things that stop a notice before it starts
05
Under TMC 1.95.060.E and 1.95.070.B, no landlord may issue a rent increase notice without a current Tacoma business license and each unit registered for code compliance, even for a single unit. Rent also may not be raised while the unit has habitability violations, which is an affirmative eviction defense. Read more about Tacoma’s rental housing codes and the Tacoma landlord business license.
Relocation assistance, the rule that changes what an increase is worth
This is the calculation almost no Tacoma owner runs, and it is why a modest increase can be a bad decision.
Raise rent 5 percent or more in a 12 month period, and if the tenant elects to move because of it they may request relocation assistance. You pay within 30 days. If the tenant does not actually move, they repay within 10 days.
| Size of increase | Relocation assistance owed |
|---|---|
| 5% up to 7.5% | Two months' rent |
| Over 7.5% up to 10% | Two and a half months' rent |
| Over 10% | Three months' rent |
Now put numbers on it. At the Tacoma median rent of $1,677, a 5 percent increase is $83.85 a month, or $1,006.20 a year. If that resident elects to move and requests assistance, you owe two months of rent, which is $3,354, more than three years of the gain.
So the question is not only “what does the cap allow.” It is what the increase is worth against the chance the resident leaves, plus the turnover cost at the top of this page. We run that analysis with you on every renewal.
A separate displacement relocation program under TMC 1.95.080.B covers demolition, substantial rehabilitation or change of use, for tenants at or below 50 percent of Pierce County median income. The base is $2,000 per eligible unit, CPI adjusted yearly, split half landlord and half City.
How we actually keep good tenants
The legal work above protects you. Keeping the resident is what earns you money.
We answer maintenance requests fast and track them against the RCW 59.18.070 deadlines, because slow repairs are the top reason a good resident starts looking. We open the renewal conversation seven months out, so a resident can plan instead of feeling pushed. And we price renewals against current market rent rather than the cap, so nobody pays more than the same home rents for down the street.
Median Tacoma rent is down 1.6 percent year over year, per Apartment List, September 2026. In a flat market, the resident already in your home is your most valuable asset.
Keep good residents longer.
Every move-out means lost rent and turnover costs. Our team plans renewals early, keeps rent in line with the market, and treats residents well so good people want to stay.
- Fewer vacancies. We start renewal talks early so you are not left with an empty home.
- A real person reads every message. No bots, just our local team.
- Quick replies. Most messages get a response within one business day.
- No pressure. Property owners can ask questions with no obligation.
TESTIMONIALSThe Trusted Choice for
Lease Renewals and Tenant Retention
Cassidy and Celina have been absolutely amazing through the whole rental/move in processes. I’ve been renting from Red Roof Rentals for almost a year now and am extremely happy with the team. Definitely check them out! You won’t regret it!
Awesome and amazing service along with great personal experience with staff especially Cassidy who was such a great free spirited person!!
I appreciate this property management on their great customer service and for helping us throughout the process when we had the ok that we were approved, Cassidy is such a great worker and helped me throughout the process she is very professional and just an awesome worker making everything easygoing.
Cassidy was very helpful! She made everything very stress free and she was very thorough with everything! :)
Cassidy was a great help!
They made setting everything up very easy, and Cassidy was a super great help!
I have had a great experience moving into my new place with Red Roof Rentals. The team is friendly, communicative, and so helpful! I am happy to be renting from them and appreciate their great service!
Great people all around! Helped us get into our home pretty fast.
I have never worked with a more pleasant property management company. Cassidy and Celina are incredibly responsive, knowledgeable, informative, and very friendly. They made the rental process go so smoothly and relieved a lot of the stress of a very stressful process. I can’t say enough great things about this team.
Thank you guys!
Everyone was super nice and friendly, I've never worked with a management company that's so hassle free. They got our move-in set up quickly and they made the process smooth and enjoyable.
My family and I recently moved into one of their apartment complex and Cassidy from the office was absolutely wonderful throughout the whole process. Her team was incredibly accommodating with our move in situation and got us in exactly when we wanted to be. I am so happy with the whole experience.
Red Roof has always been pleasant to work with! Highly recommend!
Related services
Explore more property management services.
Most owners use a few of these together. See how each one works.
Lease renewal and rent increase questions
-
The cap is 7 percent plus CPI or 10 percent, whichever is less, under RCW 59.18.700. For 2026 it is 9.683 percent and for 2027 it is 10.0 percent. The cap is set by the year the increase takes effect, not the year the notice is sent, and rent cannot be raised at all during the first 12 months of a tenancy.
-
Inside Tacoma, TMC 1.95.060 requires 180 days of written notice on a City form. TMC 1.100.050 separately requires two notices, one at 210 to 180 days before and a second at 120 to 90 days before, so the safe approach is to send both. Statewide, RCW 59.18.140 requires 90 days.
-
Only if the increase is 5 percent or more in 12 months and the tenant elects to move and requests it. You pay within 30 days, and the tenant repays within 10 days if they do not move. The amount is two months rent for 5 to 7.5 percent, two and a half months up to 10 percent, and three months above 10 percent.
-
Renewing, in almost every case. A renewal is $250 under our Gold Package. A turnover at the Tacoma median rent of $1,677 costs about $839 in leasing fee plus $1,677 for 30 days of vacancy, roughly $2,516 before any make ready work. That is close to ten times the cost of renewing.
-
The tenant may terminate with 20 days notice under RCW 59.18.700(3), and penalties can reach three months of unlawful rent plus fees, with Attorney General civil penalties up to $7,500 per violation. Tacoma TMC 1.100 penalties start at $500, reach five times the monthly rent, and are enforced by private lawsuit.
Let us run your renewal numbers
Send us the property and the current rent. We will show you what the cap allows, what the market supports, your relocation assistance exposure at that increase, and what a turnover would cost if the resident leaves. Then you decide with the whole picture in front of you.
Call 253.222.3387, Monday to Friday, 9:00am to 4:00pm. See our full fee schedule and our property management services.
This page summarizes public law as of September 2026 and uses market medians for illustration only. It is general information, not legal advice, and not a rent quote for your property.