Owner's guide — Redmond, WA, 2026
Rent out my house in Redmond, WA: the 2026 owner's guide
What it rents for, the Redmond rules that sit on top of state law, what management costs on a real number, and the rent-or-sell call — from the team that manages and sells homes here.
Page author
Adriano Tori
Founder & Designated Broker — RexMont Real Estate · WA Lic. #27660
Designated Broker, RexMont Real Estate — the firm that manages and sells homes in Redmond
Written with Grisel Castro, Property Manager (WA Lic. #137529), who prices, leases and serves the notices on RexMont’s Redmond rentals. Reviewed by Adriano Tori, Designated Broker (WA Lic. #27660). Not legal or tax advice; the sections cited below are the law, and your attorney or CPA applies them to your facts.
To rent out a house in Redmond, WA you need no city licence for a long-term rental of four or fewer units, a lease under RCW 59.18, and Redmond's own rules: 120 days' notice for increases over 3%, 180 days over 10%, move-in fees plus deposits capped at one month, late fees capped at 1.5%. The state's 9.683% ceiling applies in 2026. I'm Adriano Tori, Designated Broker of RexMont Real Estate, and Grisel Castro runs our Redmond property management. Redmond owners are often leaving for a transfer and planning to come back, which makes the lease term and the notice rules matter more than the rent. This page puts the rules in the order you will meet them, cited to the section, with every number dated.
RexMont Rent Read
What will your Redmond house rent for?
Your monthly rent range in seconds, next to what the home would sell for today and the rent-vs-sell math. Estimate, not an appraisal.
Estimate, not an appraisal. Rents from RexMont’s licensed NWMLS data and licensed rental comps; the full read with the comps goes by email.
Can I rent out my house in Redmond?
Yes, and for one house you can skip the city licence. Redmond's business-licence code exempts any long-term residential rental or leasing of four or fewer units at any one location in the city (RMC 5.04.130, per the City's licensing FAQ), so a single-family home you lease for 30 days or more needs no Redmond licence. You still need the Washington state business licence if you operate as a business, and your lender and insurer need to know the home is becoming a rental.
Short stays are the opposite case. From January 1, 2026, every individually addressed short-term rental unit in Redmond needs its own city business licence under RMC 5.04, with a signed Short-Term Rental Safety Checklist and proof that the City's tenant-rights notice is posted (RMC 5.04.070.F), submitted with the application. If your plan was furnished 30-night-or-shorter stays between tenants, that is a licensed activity now; a year-round tenant is not.
If the home is in Redmond Ridge, Trilogy, Education Hill's newer plats or any HOA, read the CC&Rs before you list: lease minimums, rental caps and tenant registration live there, not in city code, and they bind you alongside RMC 9.54.
What will my Redmond house rent for?
Redmond single-family homes (3–4 bedrooms) RexMont leases run $3,400 to $5,500 a month, with the 3-bedroom average near $3,900 and newer Education Hill and Redmond Ridge stock at the upper end (our leasing, October 2026). HUD's FY 2026 baseline for the whole metro is below; Redmond homes sit above it.
Two things set your number inside that range: the comps within a mile or two with the same bedroom count, and week one on market. Washington puts no ceiling on the starting rent of a new tenancy; the 2026 cap limits increases on a sitting tenant, not your list price. Price to the licensed comps, not to your mortgage payment, and read the week-one showing count as the market's answer.
| Home | Monthly rent | Source and date |
|---|---|---|
| Redmond single-family home (3–4 BR) | $3,400–$5,500+ | RexMont leasing, October 2026 |
| Redmond 3-bedroom average | about $3,900 | RexMont leasing, October 2026 |
| 3-bedroom (HUD baseline) | $3,272 | HUD FY 2026 Fair Market Rent, Seattle-Bellevue HMFA |
| 4-bedroom (HUD baseline) | $3,847 | HUD FY 2026 Fair Market Rent, Seattle-Bellevue HMFA |
| 2-bedroom (HUD baseline) | $2,501 | HUD FY 2026 Fair Market Rent, Seattle-Bellevue HMFA |
HUD's Fair Market Rents are the 40th percentile of gross rents for the whole metro, published for FY 2026; they are a floor for a planning pro forma, not a listing price. RexMont's ranges come from our own leasing in the city and from licensed NWMLS rental comps, which is what the Rent Read above uses for your address.
The Rent Read at the top of this page runs your address against active and recently leased NWMLS rentals near you, with a long-term rent model as the check, and puts the RexMont Market Signal sale value beside it. The number is free; the full read with the comps goes to your email from Grisel.
What rules apply to a rental in Redmond?
Redmond adopted Ordinance 3091AM, in force July 30, 2022, as Redmond Municipal Code chapter 9.54, Tenant Protections. It adds three things to state law: longer notice for larger rent increases, a one-month cap on everything a tenant pays before moving in (with an installment right), and a late-fee cap. In May 2025 the state added the rent-increase ceiling, which sits under Redmond's notice tiers. Here is the full stack for a single-family rental.
| Rule | What it requires | Section | In force |
|---|---|---|---|
| City business licence | Not required for a long-term residential rental of four or fewer units at one location in Redmond. Short-term rentals (under 30 days) need one licence per addressed unit from January 1, 2026, with the safety checklist and tenant-rights posting. | RMC 5.04.130 (exemption); RMC 5.04 and 5.04.070.F (short stays) | 2026-01-01 (short stays) |
| Redmond notice tiers | At least 120 days' written notice for a rent increase above 3%, and 180 days above 10%; the agreement must state the dollar amount. Subsidized, income-based tenancies: 30 days. | RMC 9.54.030 (Ord. 3091AM) | 2022-07-30 |
| Move-in cap and installments | All move-in fees and security deposits charged before possession: one month's rent in total (income-based subsidized housing excepted, vouchers not). Tenants on terms of six months or more may pay in six equal monthly installments; shorter or month-to-month, two. | RMC 9.54.040 | 2022-07-30 |
| Late-fee cap | Late fees and penalties for nonpayment may not exceed 1.5% of the tenant's monthly rent; the lease must let the tenant propose a different due date. | RMC 9.54.050–.060 | 2022-07-30 |
| 2026 rent-increase ceiling | No increase in the first 12 months of a tenancy; after that, at most 7% plus the June Seattle-area CPI or 10%, whichever is less, in any 12 months — 9.683% for calendar 2026. Single-family homes the owner does not live in are covered. | RCW 59.18.700; WA Commerce HB 1217 resource center | 2025-05-07 |
| Exemptions from the ceiling | A home whose first certificate of occupancy is 12 years old or newer; a single-family home the owner lives in while renting out at most two units or bedrooms (an ADU counts); a unit sharing a kitchen or bath with the resident owner; an owner-occupied duplex to fourplex. Corporate, REIT and some LLC owners lose the owner-occupied exemptions. | RCW 59.18.710 | 2025-05-07 |
| Notice before any increase | At least 90 days' written notice, and the new rent cannot start before the lease term ends. Subsidized tenancies where rent follows income: 30 days. | RCW 59.18.140(3)(a)–(b) | 2025-05-07 |
| Ending a tenancy | Just cause is required to end a month-to-month tenancy. An owner moving in, or an immediate family member, needs 90 days' written notice; selling a single-family home needs 90 days' written notice and a good-faith listing within 30 days of the tenant leaving. A first lease of 6–12 months may end at its term with 60 days' notice. | RCW 59.18.650(2)(d)–(e), (1)(b) | 2021-05-10 |
| Security deposit handling | The deposit goes into a trust account at a Washington bank or licensed escrow agent, with a written receipt and the bank's name and address given to the tenant. Within 30 days of move-out: refund or an itemized statement with the invoices or estimates behind every deduction. | RCW 59.18.270; RCW 59.18.280(1) | in force |
| Habitability and the smoke-detector notice | Keep the home fit, weathertight and to code, with working locks and keys; give a signed written notice at lease signing that the home has the smoke detection required by RCW 43.44.110 and that the tenant maintains it. | RCW 59.18.060(1)–(12) | in force |
The ≤3% tier runs on the state's 90 days under RCW 59.18.140 (amended May 2025). HOA covenants are a private layer on top of this table. 'Redmond, WA' throughout: the Oregon city of the same name has none of these rules.
How the tiers combine in practice: an increase of 3% or less needs the state's 90 days; over 3% needs Redmond's 120 days; over 10% needs 180 days, and in 2026 an increase over 9.683% is not available at all on a covered home, so the 180-day tier only matters for exempt property (new construction within 12 years, owner-occupied). With the state's 12-month freeze, the rent you set at move-in is the rent for a year, so price right the first time.
The full Redmond rule set, with the forms, is on the Redmond landlord laws page; the state ceiling has its own calculator at Washington rent increase cap.
What does it cost to have it managed in Redmond?
RexMont manages Redmond single-family homes at 8% to 10% of collected rent, plus a tenant-placement fee of one month's rent when a new tenant is placed (50%–75% of a month on renewals), with six written guarantees. On a $3,900 Education Hill house the monthly fee is $312 to $390; a self-managed vacancy that runs one month longer than ours costs more than a year of it.
| Monthly management at 8% | $312 |
|---|---|
| Monthly management at 10% | $390 |
| Tenant placement (one month's rent, once per new tenant) | $3,900 |
| First year, all in, at 8% | $7,644 |
| First year, all in, at 10% | $8,580 |
| A renewal year at 8% (no placement) | $3,744 |
| A renewal year at 10% (no placement) | $4,680 |
RexMont's published Redmond pricing: 8%–10% of collected rent, one month's rent for placement, 50%–75% of a month on renewals. Owner-paid items outside the fee: repairs, insurance, property tax.
What the fee buys in Redmond specifically: pricing off licensed comps, screening with written criteria applied identically, a RCW 59.18 lease with Redmond's move-in cap, installment right and 1.5% late-fee limit written in, the deposit in trust, rent-increase notices on the state form inside both the ceiling and Redmond's 120/180-day tiers, and the 90-day notices when you want the house back. The fee models and a full worked example are on property management cost in Redmond.
Should I rent out or sell my Redmond house this year?
Run both numbers before you decide, with one team: RexMont manages rentals and lists homes, so the rent read and the net-proceeds read come from the same desk. Renting tends to win when the home carries a low-rate mortgage, cash-flows at market rent after the 8%–10% fee and a vacancy allowance, and you expect to come back; selling tends to win when the yield on your equity is thin, when landlording from another time zone does not fit, or when the tax clock below is about to run out.
Under 26 U.S.C. § 121 you can exclude up to $250,000 of gain ($500,000 filing jointly) when you have owned and lived in the home for at least two of the five years before the sale, so a home you move out of today keeps that exclusion for roughly three more years as a rental and loses it after; this is not tax advice, and your CPA runs the dates on your return.
The capital-gains clock page walks the three-year window; the sell side is on sell my house in Redmond and, if the home is already a rental, sell a rental property in Redmond. Transferring for work? The relocation owner page covers the accidental-landlord case.
Who does what in the first 30 days?
This is the sequence we run for every Redmond owner, whether you do it yourself or hand us the risky steps. The days are a working calendar from the day you decide; the insurance, move-in-cap and late-fee lines are the ones owners miss.
- 1
Days 1–2: decide rent or sell with both numbers in hand
Run the Rent Read above for the rent range and the rent-vs-sell read, then the Redmond home value for the net-proceeds side. Both are free; the full read with the comps goes to your email.
- 2
Days 2–5: confirm the licence exemption, read the CC&Rs
A long-term rental of four or fewer units at one Redmond address is exempt from the city business licence (RMC 5.04.130); keep a note of the exemption in the file, and file the Washington state business licence if you operate as a business. In an HOA (Redmond Ridge, Trilogy and most newer plats), request the CC&Rs and any leasing policy the same day.
- 3
Days 3–7: switch the insurance and tell the lender
Your homeowner's policy is written for an owner-occupant. Move to a landlord (dwelling-fire) policy before a tenant has keys, and read the occupancy clause in your mortgage note before you list; your servicer needs to know the home is becoming a rental.
- 4
Days 3–10: make it safe, then make it rent-ready
Safety first under RCW 59.18.060: smoke detection per RCW 43.44.110, locks and keys, heat, water, weathertight. Then the finish items that shorten vacancy: paint, deep clean, carpets or floors, yard, lighting, a working set of appliances.
- 5
Days 8–12: price against today's licensed comps, not your mortgage
Grisel prices every RexMont home off active and recently leased NWMLS rentals within a mile or two with the same beds, not off a metro average. Overpricing in week one costs more than the overprice: the home sits, then concedes.
- 6
Days 10–14: photograph and list everywhere tenants look
Professional photography, a complete listing with every rule disclosed (pets, smoking, parking, utilities), and syndication to every portal tenants search. Reply to every inquiry the same hour; week-one showing count predicts days on market.
- 7
Days 14–24: screen with written criteria, applied identically
Publish the criteria before you show (income multiple, credit floor, rental history, the documents required), apply them in the order applications arrive, and keep the file. Source of income is protected statewide under RCW 59.18.255.
- 8
Days 20–24: sign a RCW 59.18 lease that honors Redmond's caps and tiers
A current Washington lease with the smoke-detector notice (RCW 59.18.060(12)); deposit plus all move-in fees at or under one month's rent with the six-installment option stated (RMC 9.54.040); late fees at or under 1.5% of rent with the due-date clause (RMC 9.54.050–.060); the rent-increase clause written to Redmond's 120/180-day tiers (RMC 9.54.030); and a term that matches your plan: 6–12 months if you may move back in or sell (60-day end-of-term notice under RCW 59.18.650(1)(b)), 12 months if you are staying a landlord.
- 9
Days 24–30: deposit into trust, move-in checklist signed, keys
Deposit to a Washington trust account with a written receipt and the bank named (RCW 59.18.270); a signed, dated move-in condition checklist with photos (this is what defends a deduction at move-out); utilities transferred; the smoke-detector notice signed.
- 10
Day 30 onward: run it like a business
Rent collection with one consistent late process, maintenance answered inside habitability timelines, a Schedule E ledger from day one, and a calendar line 100 days before every anniversary for the rent-review notice window.
Related pages
Do it yourself, or hand off the risky steps
FAQ
Renting out your Redmond house — the questions owners ask first
Do I need a business licence to rent out my house in Redmond?
Not for one house. Redmond exempts any long-term residential rental or leasing of four or fewer units at one location from its business licence (RMC 5.04.130). Short-term rentals under 30 days are different: from January 1, 2026 each addressed unit needs its own Redmond licence with a safety checklist and tenant-rights posting.
How much can I charge for rent on my Redmond house?
Whatever the licensed comps support: Washington does not cap the starting rent of a new tenancy. Redmond 3–4 bedroom homes RexMont leases run $3,400–$5,500+ a month, with the 3-bedroom average near $3,900 (October 2026); HUD's FY 2026 metro baseline is $3,272 for a 3-bedroom and $3,847 for a 4-bedroom. The Rent Read on this page gives the range for your address.
How much notice does Redmond require before a rent increase?
RMC 9.54.030 (Ordinance 3091AM, in force July 30, 2022) requires at least 120 days' written notice for an increase above 3% and 180 days above 10%, with the dollar amount stated. Increases of 3% or less run on the state's 90 days under RCW 59.18.140. The new rent cannot start before the lease term ends.
Is there a cap on raising the rent on a Redmond rental in 2026?
For a Redmond home you do not live in, yes, state law caps it. RCW 59.18.700 bars any increase in the first 12 months and limits later increases to 7% plus CPI or 10%, whichever is less: 9.683% for 2026. The exemptions in RCW 59.18.710 are new construction (first certificate of occupancy within 12 years) and owner-occupied situations; a single-family rental you moved out of is not exempt.
What can I charge a Redmond tenant up front, and for a late payment?
Up front, one month's rent in total for all move-in fees and deposits (RMC 9.54.040), and the tenant may pay it in six equal monthly installments on a lease of six months or more. Late fees and penalties for nonpayment are capped at 1.5% of monthly rent (RMC 9.54.050). The deposit then sits in a Washington trust account under RCW 59.18.270.
Should I rent out my Redmond house or sell it?
Run both numbers. Renting wins with a low-rate mortgage, positive cash flow after the 8%–10% fee and a vacancy allowance, and a plan to come back; selling wins when the yield on your equity is thin or when the Section 121 window (two of the last five years as your residence, up to $250,000 or $500,000 of gain excluded) is about to close. RexMont shows you the rent read and the net-proceeds read side by side.
Sources and verification
Every rule and number on this page was read at its source on the date shown. Laws change; the section numbers are here so you can read them yourself before you act.
- City of Redmond, Ordinance 3091AM / RMC 9.54 Tenant Protections (120/180-day tiers, one-month cap, 1.5% late fee)checked 2026-10-15
- City of Redmond, business-licence FAQ (long-term rental of four or fewer units exempt, RMC 5.04.130)checked 2026-10-15
- City of Redmond, short-term rentals (licence per unit from 2026-01-01, RMC 5.04)checked 2026-10-15
- WA Commerce, HB 1217 landlord resource center (2026 ceiling 9.683%)checked 2026-10-15
- RCW 59.18.700, limit on rent increaseschecked 2026-10-15
- RCW 59.18.710, exemptions from the limitchecked 2026-10-15
- RCW 59.18.140, notice of rent increase (90 days)checked 2026-10-15
- RCW 59.18.650, just cause and owner move-in or sale (90 days)checked 2026-10-15
- RCW 59.18.270 and 59.18.280, deposit trust account and 30-day statementchecked 2026-10-15
- RCW 59.18.060, landlord dutieschecked 2026-10-15
- HUD FY 2026 Fair Market Rent schedule (Seattle-Bellevue HMFA)checked 2026-10-15
- IRS Topic 701, sale of your home (the $250,000 / $500,000 exclusion)checked 2026-10-15
Start here
Rent it, or sell it. One team, both numbers.
Address and a few details. You get the rent range with the licensed comps, the net-proceeds number if you sold instead, and the Redmond lease checklist for your address, from Grisel and me, not from a call center.