I once spoke with someone who was considering whether to sell their home or rent it out to generate extra income as they approached retirement. There are several common questions that come up in these discussions. I will address them in order: how much rent can be charged, how to find tenants, and what legal obligations must be met.

First, let's talk about rent. According to Zumper, the average rent in Federal Way as of April 2026 is $1,800 per month. This is relatively low compared to nearby Seattle or Bellevue, making it a region with lower entry barriers, even if the cash flow may not be substantial. If your goal is to have a stable supplemental income after retirement, it is often more advantageous to set a rent that aligns with local market rates rather than charging excessively high rents, which can lead to vacancies.

The next question is how to find tenants. Platforms like Zillow, Apartment List, and local Facebook groups provide sufficient exposure. Take photos of each room during the day, and clearly state the rent amount, number of bedrooms/bathrooms, and parking availability.

The third common question is how to screen tenants. Basic checks include credit score inquiries, income verification, and reviewing previous rental history. Many landlords look for income that is about three times the rent. Avoid using personal criteria outside of these three factors when selecting tenants.

The fourth question is what to include in the lease agreement. Basic items include the rent amount and due date, security deposit amount, pet policy, maintenance responsibilities, lease term, and renewal conditions. Additionally, if you plan to rely on rental income after retirement, it is wise to also calculate a reserve fund for potential vacancies.

The fifth question is what to prepare before the tenant moves in. It is advisable to document the condition of the walls, floors, and appliances with photos and have the tenant sign off on them. This documentation will serve as evidence when settling the security deposit later.

Finally, the most frequently asked question is what legal obligations must be followed. Washington state does not set a cap on security deposits, but any collected funds must be held in a trust account, and a statement of deductions and remaining balance must be returned to the tenant within 30 days after they move out. There are also established procedures for evicting tenants. For rent arrears, a 14-day notice is required; for lease violations, a 10-day notice; and for serious issues, a 3-day notice. Washington has a just cause regulation that prevents landlords from terminating leases without valid reasons, so it is important to follow the proper procedures.

Another common question is how much rent can be increased. Under HB 1217, which took effect in 2025, the annual increase is capped at 7 percent plus the consumer price index, or 10 percent, whichever is lower, with a maximum increase of 9.683 percent for 2026. Rent cannot be increased during the first 12 months, and written notice must be given at least 90 days prior to any increase.

Insurance is also a frequently overlooked aspect when considering renting after retirement. Standard homeowners insurance may not fully cover damages while tenants are living in the property, so switching to landlord insurance is a safer option. After tenants move in, how quickly you respond to repair requests becomes crucial for long-term rentals.

As the lease approaches its expiration, it is important to contact the tenant in advance to confirm their intention to renew. This allows you to prepare for the next tenant without any vacancy period. If you are considering rental income after retirement, it is wise to assess whether you can manage not only the incoming rent but also the responsibilities of property management.

When considering rental income as a supplemental source after retirement, it is advisable to weigh profitability against management burdens. This article is intended for general informational purposes, and it is recommended to consult with a professional knowledgeable in Washington state landlord-tenant laws before entering into any agreements.