Washington law does not limit the maximum security deposit, but local jurisdictions can establish their own limits. For example, Seattle limits the maximum security deposit plus any non-refundable fees to one month’s rent and the non-refundable fees cannot exceed 10% of one month’s rent. [1]
Spokane and Tacoma laws do not limit the maximum security deposit. Check your local laws to determine if there are security deposit laws specific to your area.
Landlords can charge a deposit [5] up to 25% of the first month’s rent to secure a rental unit in advance. If the tenant moves in, the deposit must be credited to their rent or security deposit. If the tenant does not move in, the landlord can keep the deposit if the tenant was provided with a written statement of conditions when paying the deposit.
Single-family housing is exempt from the security deposit rules in these two situations if an attorney reviews and approves the lease agreement and the lease agreement mentions the exemption. [6]
Washington law does not prohibit landlords from charging a pet deposit, non-refundable pet fee, and/or monthly pet premium, but local jurisdictions may establish their own rules regarding pet deposits.
In Seattle, landlords can only charge a maximum pet deposit, except for animals that provide support to disabled persons, of up to 25% of one month’s rent in addition to the security deposit [7] and may not charge any other pet-related fees. [8] If a landlord charges a pet deposit in Seattle, the tenant must be permitted to pay it in three equal installments. [9]
Washington law does not limit the maximum security deposit, prepaid rent, and non-refundable fees that can be collected upfront, but in some situations, the tenant must be permitted to pay in installments.
Landlords must allow tenants to pay in installments unless the deposit plus non-refundable fees are less than 25% [10] of the first month’s rent and last month’s rent is not collected upfront. The required installment options are:
Local jurisdictions may establish their own similar rules.
For example, Seattle Municipal Code allows tenants to pay their security deposit, non-refundable fees and last month’s rent in:
When collecting a security deposit, landlords in Washington must provide the tenant with a written statement describing the condition of the rental unit, where the deposit will be held, and a written lease agreement must be provided that includes the conditions of the deposit.
Yes, landlords in Washington must provide a receipt for the security deposit. [16]
To collect a security deposit, landlords in Washington must provide a written statement [17] describing the condition of the rental unit at the start of the lease term. The statement must be signed [18] by the landlord and tenant and a copy must be provided to the tenant. The tenant can request one additional copy. [19]
If a landlord fails to provide a written statement when collecting a security deposit, the tenant has the right to sue the landlord for the amount of the deposit including court costs and reasonable attorneys’ fees. [20]
Landlords in Washington must hold security deposits [21] in one of the following:
The account must only be used for security deposits and not mixed with the landlord’s own funds. Landlords must provide written notice of the name and address of the financial institution.
Washington law does not require landlords to provide interest on held security deposits. If the security deposit is placed in an account that gains interest, it belongs to the landlord unless stated otherwise in the lease agreement. [22]
Security deposits are not considered taxable income when they are collected.
When a property is sold in Washington, the seller must transfer the security deposit to an equivalent account and notify the tenant of the name and address of the new account. [23]
..the total amount of a security deposit and non-refundable move-in fees may not exceed the amount of the first full month’s rent…The total amount of non-refundable move-in fees may not exceed ten percent of the first full month’s rent..
No moneys paid to the landlord which are nonrefundable may be designated as a deposit or as part of any deposit. If any moneys are paid to the landlord as a nonrefundable fee, the rental agreement shall be in writing and shall clearly specify that the fee is nonrefundable.
…if a landlord chooses to waive a security deposit requirement, and a tenant agrees to instead pay a fee in lieu of a security deposit…
Such disclosures to the tenant must be in substantially the following form…
A landlord who charges a prospective tenant a fee or deposit to hold a dwelling unit…must provide the prospective tenant with a receipt…together with a written statement of the conditions…may not request a fee or deposit…in excess of twenty-five percent of the first month’s rent…
The provisions of this chapter shall not apply to any lease of a single-family dwelling for a period of a year or more or to any lease of a single-family dwelling containing a bona fide option to purchase by the tenant: PROVIDED, That an attorney for the tenant must approve on the face of the agreement any lease exempted from the provisions of this chapter as provided for in this section.
…the total amount of the pet damage deposit may not exceed 25 percent of the first full month’s rent…
Other than the pet damage deposit authorized by subsection 7.24.038.A, the landlord may not charge the tenant any fee for keeping a pet.
The tenant may elect to pay the pet damage deposit in three consecutive, equal monthly installments…
…a landlord must permit the tenant to pay any deposits…in installments…if the total amount of the deposits and nonrefundable fees do not exceed twenty-five percent of the first full month’s rent and payment of the last month’s rent is not required at the inception of the tenancy…
…three months or longer, the tenant may elect to pay any deposits, nonrefundable fees, and last month’s rent in three consecutive and equal monthly installments…
…three months or longer, the tenant may elect to pay any deposits, nonrefundable fees, and last month’s rent in three consecutive and equal monthly installments…
For any rental agreement term that establishes a tenancy for six months or longer, the tenant may elect to pay the security deposit and non-refundable move-in fees…in six consecutive, equal monthly installments…
For any rental agreement term that establishes a tenancy between 30 days and six months, the tenant may elect to pay the security deposit and non-refundable move-in fees…in no more than four equal amounts that begin at the inception of the tenancy and are paid in installments…
For any rental agreement term that establishes a tenancy from month to month, the tenant may elect to pay the security deposit and non-refundable move-in fees…in two equal installments….
The landlord shall provide the tenant with a written receipt for the deposit.
No deposit may be collected by a landlord unless the rental agreement is in writing and a written checklist or statement specifically describing the condition and cleanliness of or existing damages to the premises and furnishings…
The checklist or statement shall be signed and dated by the landlord and the tenant, and the tenant shall be provided with a copy of the signed checklist or statement.
The tenant has the right to request one free replacement copy of the written checklist.
If the landlord collects a deposit without providing a written checklist at the commencement of the tenancy, the landlord is liable to the tenant for the amount of the deposit, and the prevailing party may recover court costs and reasonable attorneys’ fees.
All moneys paid to the landlord by the tenant as a deposit as security…shall promptly be deposited by the landlord in a trust account, maintained by the landlord for the purpose of holding such security deposits for tenants of the landlord, in a financial institution as defined by *RCW 30.22.041 or licensed escrow agent located in Washington.
Unless otherwise agreed in writing, the landlord shall be entitled to receipt of interest paid on such trust account deposits.
If during a tenancy the status of landlord is transferred to another, any sums in the deposit trust account affected by such transfer shall simultaneously be transferred to an equivalent trust account of the successor landlord, and the successor landlord shall promptly notify the tenant of the transfer and of the name, address, and location of the new depository.