Washington Security Deposit

Maximum Security Deposit Amount

Outside Seattle, Washington state does not cap the amount landlords can charge for a security deposit. Within Seattle, landlords may charge up to one month’s rent for unfurnished units or up to two months’ rent for furnished units.

However, the length of the lease — whether short-term or long-term — does not affect the maximum security deposit amount. The number of properties the landlord owns also makes no difference.

Pet deposits: In Seattle, landlords may charge no more than 25% of the first month’s rent as a pet damage deposit (Seattle Municipal Code 7.24.038).

Elsewhere in the state, landlords may charge any amount they consider appropriate. However, they cannot charge pet deposits for service animals or emotional support animals (ESAs).

Penalties: Landlords who violate Washington’s security deposit laws may face civil penalties. They may have to pay the tenant up to twice the deposit amount, along with reasonable attorney fees (RCW 59.18.280).

Landlords need to stay current on Washington security deposit laws to avoid civil and financial disputes with tenants, which can be costly and time-consuming.

Handling Damage Deposits

Like many states, Washington requires landlords to accept and store security deposits in a specific manner. We’ll outline some of the key regulations below.

Security deposit storage: Under RCW 59.18.270, Washington landlords are required to store security deposits in a trust account, a bank, or with a state-licensed escrow agent.

Interest-bearing account: Landlords do not need to hold Washington security deposits in an interest-bearing account, nor are they required to pay interest to the tenant (RCW 59.18.270).

Receipt: After paying the security deposit, the tenant must receive a written receipt that includes the name and address of the bank or financial institution holding the deposit. If the depository changes, the landlord must inform the tenant (RCW 59.18.270).

Documentation: In addition to the receipt requirements under Washington security deposit law, landlords should make and maintain thorough records of all forms related to security deposit transactions for their rental properties.

Although state law doesn’t outline additional documentation requirements, Washington landlords must provide tenants with a move-in checklist. This document helps prevent disputes over the property’s condition and any damages during the tenant’s stay.

Ownership transfer: If the landlord sells the rental property, they must transfer the security deposit to a comparable account held by the new owner (RCW 59.18.270). Once the tenancy ends, the new property owner must return the deposit to the tenant in line with Washington security deposit laws.

Deductions

What landlords can deduct: Washington landlords can use security deposit funds to cover damage that exceeds normal wear and tear on the rental property, including extra cleaning or damage caused by smoking in the unit.

Landlords may use security deposits to cover unpaid rent and utility bills.

If a tenant abandons the property, the landlord may use the security deposit to cover cleaning, re-renting the unit, or recovering any unpaid charges the tenant left behind.

Pro tip: Collecting rent online through TurboTenant will reduce the need to rely on a security deposit for missed payments.

Reasons landlords cannot deduct: Like in other states, Washington landlords cannot use security deposit funds to cover repairs due to normal wear and tear, which includes cosmetic issues like fading paint, torn wallpaper, or worn carpet in the unit.

Additionally, damage caused by structural issues beyond the tenant’s control, such as shifting foundations affecting window frames or water damage from leaking pipes, also qualifies as normal wear and tear.

Deductions

What landlords can deduct: Washington landlords can use security deposit funds to cover damage that exceeds normal wear and tear on the rental property, including extra cleaning or damage caused by smoking in the unit.

Landlords may use security deposits to cover unpaid rent and utility bills.

If a tenant abandons the property, the landlord may use the security deposit to cover cleaning, re-renting the unit, or recovering any unpaid charges the tenant left behind.

Pro tip: Collecting rent online through TurboTenant will reduce the need to rely on a security deposit for missed payments.

Reasons landlords cannot deduct: Like in other states, Washington landlords cannot use security deposit funds to cover repairs due to normal wear and tear, which includes cosmetic issues like fading paint, torn wallpaper, or worn carpet in the unit.

Additionally, damage caused by structural issues beyond the tenant’s control, such as shifting foundations affecting window frames or water damage from leaking pipes, also qualifies as normal wear and tear.

Return Timeline

Timeframe: Under state law, Washington landlords must return the security deposit within 30 days of the tenant’s moving out. Tenants are entitled to the full amount, minus any deductions, along with an itemized statement explaining each one (RCW 59.18.280).

Deduction tracking: If a landlord deducts money from a Washington security deposit for valid reasons, the tenant must receive an itemized list showing the reason and amount for each charge. To avoid disputes, the landlord should clearly explain each deduction and provide copies of repair estimates or receipts (RCW 59.18.280).

Itemized deduction notification: Washington landlords must send the itemized statement of deductions and the remaining deposit by first-class mail. Both must be postmarked within 30 days of the tenant moving out, though they don’t need to be delivered within that timeframe (RCW 59.18.280).

Penalties: If a landlord fails to follow Washington security deposit laws, the tenant may sue and recover up to twice the deposit amount. The tenant can also claim reasonable legal fees from the landlord (RCW 59.18.280).

Handling Disputes

Move-in/move-out checklist: To collect a security deposit in Washington, landlords must use a move-in checklist that documents the property’s condition when the tenant moves in. This checklist should include detailed unit descriptions and may also feature photos as supporting evidence (RCW 59.18.260).

Though Washington law doesn’t require a move-out checklist, landlords can reuse the move-in checklist when the tenant moves out. Doing so helps both parties confirm any items needing repair using deposit funds and can prevent future disputes over the property’s condition.

Tenant challenge: Even if landlords provide an itemized statement and follow all Washington security deposit laws, tenants may still file complaints about how landlords handled their deposits.

Tenants can challenge any deductions from the security deposit and the amount or method of its return. If a tenant disputes the deposit, the landlord should first try to resolve the issue directly. With proper documentation, landlords can show that they followed Washington state law throughout the deposit process.

If the tenant continues to press the issue and pursues legal action, the landlord must gather all documentation to use as evidence in court. Landlords should also consult an attorney experienced in Washington landlord-tenant law and security deposit disputes.