Overview
Washington security deposit laws provide specific requirements for how landlords must handle tenant deposits, from collection and documentation to return and allowable deductions. These laws are designed to protect tenants and ensure accountability from landlords.
Under Revised Code of Washington (RCW) § 59.18.260 to § 59.18.280, landlords must comply with detailed deposit handling requirements. Failure to do so may result in financial penalties and forfeiture of withheld funds.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: RCW § 59.18.260–59.18.280
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Washington does not impose a limit on how much a landlord may charge for a security deposit.
Storage requirements: Landlords must place the deposit in a trust account at a financial institution. The tenant must be informed of the bank’s name and location.
Tenant notification: Landlords are required to disclose in writing the name and address of the financial institution where the deposit is held.
Law Reference: RCW § 59.18.270
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 21 days of the tenant vacating the premises.
Permissible deductions: Deductions may be made for unpaid rent, damages beyond normal wear and tear, and any other costs specified in the lease.
What landlords cannot deduct: Landlords may not deduct for normal wear and tear, such as faded paint or worn carpeting.
Itemized statement required: If any portion of the deposit is withheld, landlords must provide a written itemized statement detailing all deductions.
Law Reference: RCW § 59.18.280
3. Interest Payments & Documentation Requirements
Interest payments: Washington does not require landlords to pay interest on deposits unless required by a local ordinance or agreed upon in the lease.
Move-in condition report: Landlords must provide a written move-in checklist detailing the condition of the property. This checklist must be signed by the tenant.
Tenant review period: Tenants should inspect the unit at move-in and note any discrepancies to ensure they are not held responsible later.
Failure to provide documentation: If a landlord fails to provide a move-in checklist, they forfeit the right to retain any portion of the deposit.
Law Reference: RCW § 59.18.260
4. Penalties for Mishandling Security Deposits
Washington enforces penalties for landlords who fail to comply with deposit return rules.
Failure to return the deposit within 21 days or to provide the required documentation can result in full forfeiture of the deposit and potential legal damages.
Failure to provide a move-in checklist removes the landlord’s right to make any deductions.
Law Reference: RCW § 59.18.260, § 59.18.280
Key Takeaways
There is no cap on deposit amounts, but landlords must follow strict storage and disclosure rules.
Deposits must be placed in a trust account, and tenants must be notified of the institution’s details.
Deposits must be returned within 21 days with a written itemization of any deductions.
A signed move-in checklist is mandatory, and failure to provide one removes the right to withhold funds.
Non-compliance may result in full forfeiture of the deposit and legal liability.
By understanding and following Washington security deposit laws, landlords can ensure compliance, and tenants can protect their right to a timely and fair return of their funds.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
