Washington Security Deposit Law (2024): Pets, Holdings & FAQs

Last Updated: November 25, 2024 by Roberto Valenzuela

Quick Facts	Answer
Maximum / Limit	No Limit
Receipt Requirement	Yes
Inventory Requirement	Required
Interest Requirement	None

To learn about laws on security deposit returns in Washington, click here.

note

Some cities and counties may have regulations which are more restrictive than those presented here, in addition to Seattle as discussed below. Always check local laws.

Maximum Security Deposit Allowed in Washington

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.

Washington landlords can collect non-refundable fees in addition to the security deposit as long as they are mentioned in the lease agreement, like a non-refundable pet fee.

Landlords can choose to collect a fee instead of a security deposit, which may be partially or fully non-refundable, if all of the following conditions have been met:

The tenant agrees to pay the fee instead of the security deposit
The landlord provides a disclosure to the tenant regarding their option to select the fee
The landlord provides the same options to all tenants
The fee is used to purchase insurance to cover damage to the unit and the coverage is not altered during the lease term
The landlord provides the terms of the insurance coverage to the tenant in writing

Landlords can charge a deposit 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 if an attorney reviews and approves the lease agreement and the lease agreement mentions the exemption, in the following two situations:

The lease term is longer than a year, OR
The lease agreement includes an option for the tenant to purchase

Can Landlords Charge an Additional Pet Deposit in Washington?

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 and may not charge any other pet-related fees. If a landlord charges a pet deposit in Seattle, the tenant must be permitted to pay it in three equal installments.

How Much Rent Can a Landlord Collect Upfront in Washington?

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% of the first month’s rent and last month’s rent is not collected upfront. The required installment options are:

Leases three months or longer – Three consecutive, equal payments
Shorter leases – Two consecutive, equal payments

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:

Leases shorter than six months: Four installments
Leases six months and longer: Six installments
Month-to-month leases: Two installments

Security Deposit Collections in Washington

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.

Do Landlords Have To Provide a Receipt for the Security Deposit in Washington?

Yes, landlords in Washington must provide a receipt for the security deposit.

What Obligations Do Landlords Have To Establish Property Conditions at Move-in in Washington?

To collect a security deposit, landlords in Washington must provide a written statement describing the condition of the rental unit at the start of the lease term. The statement must be signed by the landlord and tenant and a copy must be provided to the tenant. The tenant can request one additional copy.

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.

Security Deposit Holdings in Washington

Landlords in Washington must hold security deposits in one of the following:

Trust account
State or national bank and trust company
State or federal savings bank, savings and loan association, or credit union
Licensed escrow agent located in Washington

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.

Are Tenants Entitled to Interest on Their Security Deposit in Washington?

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.

How Are Security Deposits Accounted for in Washington?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in Washington?

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.

Sources

1 Seattle Mun. Code § 7.24.035(A) & (B): A. Limit on the amount of charges for security deposits and non-refundable move-in fees.

After January 15, 2017, the total amount of a security deposit and nonrefundable move-in fees may not exceed the amount of the first full month’s rent for the tenant’s dwelling unit. If rent is not paid or otherwise apportioned on a monthly basis, then for the sole purpose of applying this limit the total rent shall be pro-rated on an equal, monthly basis and the total charge to a tenant for the cost of a security deposit and nonrefundable move-in fees may not exceed the pro-rated, monthly rental amount.

B. Restrictions on fees

1. Other than non-refundable move-in fees, security deposits, pet security deposits, and last month’s rent, landlords are prohibited from charging tenants any one-time fee at the beginning of the tenancy.

2. Pursuant to RCW 59.18.257, any fees charged to a prospective tenant by the landlord for the cost of obtaining a tenant screening report cannot exceed the actual cost of obtaining the report, which may not exceed the customary costs charged by a tenant screening service in The City of Seattle. The landlord shall provide, personally or by mail, the prospective tenant with a receipt for any fees charged for the cost of obtaining the screening report. The landlord shall provide the tenant with the name and address of the reporting agency and the prospective tenant’s rights to obtain a free copy of the consumer report, pursuant to RCW 59.18.257.

3. If the tenant has paid a non-refundable move-in fee for cleaning, the landlord may not deduct additional cleaning fees from the tenant’s security deposit.

4. The total amount of non-refundable move-in fees may not exceed ten percent of the first full month’s rent, except that if the cost of a tenant screening report exceeds ten percent of the first full month’s rent, the amount in excess of ten percent may be included in the non-refundable fee but may not exceed the customary costs charged by a screening service in The City of Seattle.
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2 Wash. Rev. Code § 59.18.285: 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 the landlord fails to provide a written rental agreement, the landlord is liable to the tenant for the amount of any fees collected as nonrefundable fees. If the written rental agreement fails to specify that the fee is nonrefundable, the fee must be treated as a refundable deposit under RCW 59.18.260, 59.18.270, and 59.18.280.
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3 Wash. Rev. Code § 59.18.670(1)(a) - (1)(f)(i): (1) Notwithstanding any other provision of law, 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, the landlord shall:

(a) Ensure that the fee in lieu of a security deposit is strictly optional for the tenant, and the tenant may choose to pay a full security deposit rather than a fee in lieu of a security deposit;

(b) Not use a prospective tenant’s choice to pay a fee in lieu of a security deposit or a traditional security deposit as a criterion in the determination of whether to approve an application for occupancy;

(c) If choosing to offer the fee in lieu of a security deposit option, offer it to every prospective tenant whose application for occupancy has been approved, without further regard to income, race, gender, disability, source of income, sexual orientation, immigration status, size of household, or credit score;

(d) Allow any tenant that agrees to pay a fee in lieu of a security deposit to opt out of the continuing fee in lieu of a security deposit obligation upon full payment of the security deposit that is listed in the disclosure form pursuant to (f)(ii) of this subsection, and in the event the tenant seeks to pay a security deposit, RCW 59.18.610 shall apply;

(e) Provide a written checklist to the tenant pursuant to RCW 59.18.260; and

(f)(i) Disclose to the tenant in writing:

(A) The terms of any insurance coverage purchased by the landlord for landlord’s losses associated with any unpaid amounts due from the tenant to the landlord pursuant to the lease, including but not limited to rent, fees, or unit damage in excess of wear resulting from ordinary use of the premises, and including the amount of exclusions or caps, if any, on coverage of any amounts due from the tenant to the landlord pursuant to the lease; and

(B) If the insurance provider requires the landlord to first attempt reimbursement from the tenant before filing a claim, that payment of the fee in lieu of a security deposit does not preclude the insurer or the landlord from proceeding against the tenant to recover any unpaid amounts due to the landlord pursuant to the lease and unpaid costs to repair damage to the property for which the tenant is responsible pursuant to the lease but never to include any sums for wear resulting from ordinary use of the premises, together with reasonable attorneys’ fees.
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4 Wash. Rev. Code § 59.18.670(1)(f)(ii) - (f)(iv): Such disclosures to the tenant must be in substantially the following form:

YOU MAY PAY A MONTHLY FEE INSTEAD OF A SECURITY DEPOSIT. This fee is not a security deposit and will not be refunded when you move. By paying this fee the landlord is permitting you to move into the housing unit without paying a security deposit. If you do not make all payments or you damage the premises beyond wear resulting from its ordinary use, you may be required by the landlord, an insurance company, or a debt collector to pay the unpaid amounts, including costs of repairing the damages in excess of wear resulting from ordinary use of the premises.

Washington state law may allow you three different options:

(1) Paying the full security deposit upon signing the lease.

(2) If applicable, paying the full security deposit and other move-in fees in up to three installments (see below for more detail).**some local laws provide for a longer period of time.

(3) If offered by your landlord, paying a monthly deposit waiver fee instead of a security deposit. If you choose this option, you will not pay a security deposit or last month’s rent in advance. Your recurring monthly charge will be $____ IN ADDITION to your monthly rent payment, instead of a security deposit and/or last month’s rent in the amount of $____.

IF YOU CHOOSE TO PAY A MONTHLY DEPOSIT WAIVER FEE INSTEAD OF A SECURITY DEPOSIT, HERE IS THE AMOUNT YOU WILL PAY OVER THE LEASE TERM COMPARED TO THE ONE-TIME DEPOSIT PAYMENT:

Monthly Nonrefundable Deposit Waiver Fee:

One-time Refundable Security

Total cost of monthly fees over lease term:

Deposit: ________In the event your tenancy terminates and you have not paid rent or other amounts due pursuant to the lease, and you have not paid to repair damages beyond wear resulting from ordinary use of the premises, insurance coverage will pay your landlord up to:

$_________ for any unpaid rent and fees, and

$___________ for any damages.

Total coverage: $________________

IMPORTANT: IF YOU CHOOSE TO PAY A RECURRING MONTHLY FEE INSTEAD OF A SECURITY DEPOSIT:

(1) YOU ARE NOT AN INSURED PARTY UNDER THE INSURANCE POLICY PURCHASED BY THE LANDLORD USING YOUR FEES;

(2) YOU ARE NOT A BENEFICIARY TO ANY INSURANCE COVERAGE OR ANY INSURANCE BENEFITS UNDER THE INSURANCE POLICY THAT THE LANDLORD PURCHASES USING YOUR FEES; AND

(3) YOU ARE STILL OBLIGATED TO PAY RENT AND ALL PAYMENTS REQUIRED BY THE LEASE, INCLUDING COSTS TO REPAIR DAMAGES BEYOND WEAR RESULTING FROM ORDINARY USE OF THE PREMISES.

The landlord may seek payment from you before filing any claims with the insurance provider. If you fail to pay the landlord for unpaid rent or other unpaid payments or the costs to repair damages beyond wear resulting from ordinary use of the premises, and an insurer pays the landlord instead, then the insurer may seek reimbursement from you of its payments to the landlord.

If you choose to pay a recurring monthly fee instead of a security deposit, then you are permitted at any time to pay the landlord a security deposit in the amount of $__________ and stop paying the recurring fee beginning in the month following payment of the security deposit.

(iii) The landlord shall provide the disclosure form to the tenant with any lease and renewal that includes the option to pay a fee instead of a security deposit.

(iv) The office of the attorney general shall make this form available in the 12 most commonly spoken languages in Washington.
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5 Wash. Rev. Code § 59.18.253(1) - (3): (1) It shall be unlawful for a landlord to require a fee or deposit from a prospective tenant for the privilege of being placed on a waiting list to be considered as a tenant for a dwelling unit.

(2) A landlord who charges a prospective tenant a fee or deposit to hold a dwelling unit or secure that the prospective tenant will move into a dwelling unit, after the dwelling unit has been offered to the prospective tenant, must provide the prospective tenant with a receipt for the fee or deposit, together with a written statement of the conditions, if any, under which the fee or deposit may be retained, immediately upon payment of the fee or deposit.

(3) A landlord may not request a fee or deposit to hold a dwelling or secure that the prospective tenant will move into the dwelling unit in excess of twenty-five percent of the first month’s rent as described in RCW 59.18.610(4).
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6 Wash. Rev. Code § 59.18.415: 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.
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7 Seattle Mun. Code § 7.24.038: A. Except as provided in subsection 7.24.038.B, the landlord may require payment of a pet damage deposit provided that the total amount of the pet damage deposit may not exceed 25 percent of the first full month’s rent, regardless of the time when the pet damage deposit is paid. If rent is not paid or otherwise apportioned on a monthly basis then for the sole purpose of applying this limit the total rent shall be pro-rated on an equal, monthly basis and the total charge to a tenant for the pet damage deposit may not exceed 25 percent of the pro-rated, monthly rental amount.

B. The landlord may not require a pet damage deposit if the pet serves as an assistance animal for the tenant. This prohibition does not prohibit a landlord from bringing an action for damages resulting from damage to the landlord’s property caused by the tenant’s assistance animal.

C. If the pet’s occupancy begins at the beginning of tenancy, the amount of the pet damage deposit shall be specified in a rental agreement. If the pet’s occupancy begins after the beginning of the tenancy, the amount of the pet damage deposit shall be specified in an addendum to the rental agreement. The tenant may elect to pay the pet damage deposit in three consecutive, equal monthly installments that begin when the pet first occupies the rental unit or, the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant’s alternative installment schedule the schedule shall be described in the rental agreement.

D. The landlord cannot keep any portion of the pet damage deposit for damage that was not caused by pets for which the tenant is responsible.

E. 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.
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8 Wash. Rev. Code § 59.18.610(1) - (3): (1)(a) Except as provided in (b) of this subsection, upon receipt of a tenant’s written request, a landlord must permit the tenant to pay any deposits, nonrefundable fees, and last month’s rent in installments.

(b) A landlord is not required to permit a tenant to pay 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.

(2) In all cases where premises are rented for a specified time that is 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, beginning at the inception of the tenancy. In all other cases, the tenant may elect to pay any deposits, nonrefundable fees, and last month’s rent in two consecutive and equal monthly installments, beginning at the inception of the tenancy.

(3) A landlord may not impose any fee, charge any interest, or otherwise impose a cost on a tenant because a tenant elects to pay in installments. Installment payments are due at the same time as rent is due. All installment schedules must be in writing and signed by the landlord and the tenant.
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9 Seattle Mun. Code § 7.24.035(C): Except as provided in subsection 7.24.035.C.4, tenants may pay security deposits and non-refundable move-in fees in installments as provided below. Landlords may not impose any fee, charge any interest, or otherwise impose a cost on a tenant because a tenant elects to pay in installments.

1. 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, excluding any payment made by a tenant to the landlord prior to the inception of tenancy to reimburse the landlord for the cost of obtaining a tenant screening report, in six consecutive, equal monthly installments that begin at the inception of the tenancy or, the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant’s alternative installment schedule the schedule shall be described in the rental agreement.

2. 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, excluding any payment made by a tenant to the landlord prior to the inception of tenancy to reimburse the landlord for the cost of obtaining a tenant screening report, in no more than four equal amounts that begin at the inception of the tenancy and are paid in installments of equal duration or, the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant’s alternative installment schedule the schedule shall be described in the rental agreement.

3. 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, excluding any payment made by a tenant to the landlord prior to the inception of tenancy to reimburse the landlord for the cost of obtaining a tenant screening report, in two equal installments. The first payment is due at the inception of the tenancy and the second payment is due on the first day of the second month or period of the tenancy or, the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant’s alternative installment schedule the schedule shall be described in the rental agreement.

4. The tenant cannot elect to pay the security deposit and non-refundable move-in fees in installments if (a) the total amount of the security deposit and nonrefundable move-in fees does not exceed 25 percent of the first full month’s rent for the tenant’s dwelling unit; and (b) payment of last month’s rent is not required at the inception of the tenancy.

5. A tenant’s failure to pay a security deposit and non-refundable move-in fee according to an agreed payment schedule is a breach of the rental agreement and subjects the tenant to a 10-day notice pursuant to RCW 59.12.030(4).
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10 Wash. Rev. Code § 59.18.270: All moneys paid to the landlord by the tenant as a deposit as security for performance of the tenant’s obligations in a lease or rental agreement 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. The landlord shall provide the tenant with a written receipt for the deposit and shall provide written notice of the name and address and location of the depository and any subsequent change thereof. 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. If, during the tenancy, the tenant’s dwelling unit is foreclosed upon and the tenant’s deposit is not transferred to the successor after the foreclosure sale or other transfer of the property from the foreclosed-upon owner to a successor, the foreclosed-upon owner shall promptly refund the full deposit to the tenant immediately after the foreclosure sale or transfer. If the foreclosed-upon owner does not either immediately refund the full deposit to the tenant or transfer the deposit to the successor, the foreclosed-upon owner is liable to the tenant for damages up to two times the amount of the deposit. In any action brought by the tenant to recover the deposit, the prevailing party is entitled to recover the costs of suit or arbitration, including reasonable attorneys’ fees. The tenant’s claim to any moneys paid under this section shall be prior to that of any creditor of the landlord, including a trustee in bankruptcy or receiver, even if such moneys are commingled.
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11 Wash. Rev. Code § 59.18.260: (1) If any moneys are paid to the landlord by the tenant as a deposit or as security for performance of the tenant’s obligations in a lease or rental agreement, the lease or rental agreement shall be in writing and shall include the terms and conditions under which the deposit or portion thereof may be withheld by the landlord upon termination of the lease or rental agreement. If all or part of the deposit may be withheld to indemnify the landlord for damages to the premises for which the tenant is responsible, the rental agreement shall be in writing and shall so specify.

(2) No deposit may be collected by a landlord unless the rental agreement is in writing and a written checklist or statement is provided by the landlord to the tenant at the commencement of the tenancy specifically describing the condition and cleanliness of or existing damages to the premises, fixtures, equipment, appliances, and furnishings including, but not limited to:

(a) Walls, including wall paint and wallpaper;

(b) Carpets and other flooring;

(c) Furniture; and

(d) Appliances.

(3) 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.

(4) No such deposit shall be withheld on account of wear resulting from ordinary use of the premises.

(5) 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. This section does not limit the tenant’s right to recover moneys paid as damages or security under RCW 59.18.280.
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12 RCW § 59.18.270: 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.
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