Buying a House and Renting it Out Right Away in Washington: Is it Possible?

Some Washington homeowners find themselves in a situation where they need to move soon after buying a home, but don’t want to sell the property.

Turning your house into a rental is one way to approach this situation. It allows you to keep your most important asset while generating income from it as well. But you may be asking yourself, “Can I rent out my house after buying it?”

Buying a housing and renting it out right away is possible, but you’ll want to check with your mortgage lender or loan servicer first. There may be mortgage rules about renting out a home in WA, which often require a 12-month occupancy period before allowing rental. There may also be homeowner rental restrictions in WA as per applicable HOA rules.

Here are five important points to know about this subject:

1. Check with your lender first. If you bought the home as a primary residence, you usually need to live in it for 12 months before renting it out. Violating this can be considered mortgage fraud.
2. HOAs and local laws matter. Your homeowners association may have rules against renting, and local landlord-tenant laws vary, so research both.
3. Update your insurance. You’ll probably need a different policy when converting a home to a rental in Washington. Your regular homeowner’s insurance might not be enough.
4. Prepare for new responsibilities. Being a landlord involves repairs, legal compliance, and possibly hiring a property manager. It’s not always passive income.
5. Know the tax implications. Rental income is taxable, but you can deduct expenses like repairs, insurance, and mortgage interest. Good record keeping is essential.

Review Your Mortgage and Loan Terms

Most home buyers in Washington use conventional, FHA, or VA loans to finance their purchases. These loans can have specific rules when it comes to renting out a recently-purchased property.

Some loan programs require homeowners to occupy the house as a primary residence for a set period (such as 12 months) before converting it to a rental.

For starters, you’ll want to review your home loan paperwork. Look for any occupancy or owner‑occupancy clauses, as these can differ from one mortgage product to the next.

You might want to call your lender as well. Explain your situation—whether it’s a job transfer to Seattle, a growing family in Spokane—and ask if they’ll allow you to rent sooner.

Depending on the situation, you might be able to request a waiver to the standard one-year rule, allowing you to rent the home out shortly after buying. Some lenders and loan servicers might grant exceptions for job relocations, military deployment, and similar scenarios.

It’s best to get clear guidance up front, before converting a primary residence into a rental.

Step-by-Step Guide for New Homeowners

If you recently purchased a home in Washington and wish to rent it out, you have a bit of homework to do. While this process can vary, it usually works like this:

1. Locate loan documents.

Gather all paperwork related to your mortgage, including the loan agreement, promissory note, and any accompanying riders or disclosures.

2. Identify loan type.

Determine the type of mortgage loan you have—conventional, FHA, VA, etc. This is usually stated in your loan documents. Government-backed loans (FHA, USDA, VA) typically have stricter primary residency requirements.

3. Review occupancy requirements.

Read through the mortgage documents to find the section detailing the occupancy requirements. Look for clauses specifying that the home must be the borrower’s primary residence and for how long.

4. Contact your mortgage servicer.

Reach out directly to your mortgage servicer. This is the company you send your monthly payments to. You can find their contact information on your monthly statements or on their website.

5. Inquire about renting policies.

Explain your situation and your desire to rent out your home in Washington. Ask about any restrictions or waiting periods related to renting out a home that was initially financed as a primary residence to make sure you’re in compliance with landlord rules in Washington state. As mentioned, renting a primary residence in Washington before you’ve lived in yourself for at least 12 months would be a violation and could leave you facing repercussions.

6. Ask about exceptions.

If you haven’t met the standard occupancy requirement (typically 12 months), inquire if there are any exceptions or hardship provisions that might apply to your situation. Common examples include job relocation, family changes, and military deployment.

7. Document the communication.

Keep a record of your conversations with the mortgage servicer, including the date, time, name of the representative, and the information they provided. It’s also wise to follow up with an email summarizing the conversation, so you have a written record.

8. Request written confirmation.

If the mortgage servicer says that renting is permissible, request written confirmation of this approval and any specific conditions or requirements you need to follow.

Research Washington’s Landlord‑Tenant Laws

The state of Washington has detailed statutes governing security deposits, notice periods, repairs and eviction procedures. If you’re planning to rent a home you recently purchased, you’ll want to review these landlord-tenant laws.

You can find the full statutes under Chapter 59.18 of the Revised Code of Washington (RCW).

Check Local Ordinances and HOAs

Washington cities often add their own rules on top of state laws. For example:

• Seattle: Requires landlords to register each rental unit, carry $25,000 in liability insurance, and offer tenants relocation assistance in some eviction scenarios.
• Tacoma: Caps late fees at 10% of one month’s rent and requires landlords to inspect and register each unit annually.
• Spokane: Generally limits security deposits to one month’s rent and sets strict timelines for returning them.

If your home is in a homeowners association (which are common in new‑build suburbs around Vancouver or Bellevue) be sure to review the covenants. Some HOAs limit the number of rentals or require a minimum lease term.

In summary, buying a house and renting it out right away in Washington ins possible, but there are several nuances to consider. It’s best to partner with an expert in this field to ensure you have all your bases covered and are prepared for any rules about this with your mortgage lender and HOA (if applicable).

Need Financing?

If you’re looking to buy in Washington, we can help. At Sammamish Mortgage, we offer various mortgage options for you to choose from. Visit our website to get an instant rate quote or call us today to have your mortgage questions answered!