Category: screening

What Is RCW 59.18.610 and Why It Changes How You Collect Move-In Fees

On January 1, 2024, Washington State implemented one of the nation's most tenant-friendly move-in fee rules. Senate Bill 5961 added RCW 59.18.610 to the Washington Residential Tenancy Act, fundamentally changing how landlords can require payment of move-in costs.

The statute requires landlords to permit tenants to pay move-in fees in installments. This isn't a recommendation—it's a mandatory legal requirement. If you're a self-managing landlord in Washington with 2 to 75 units, you must comply with this rule or face enforcement action by the Washington Attorney General, local prosecutors, or private lawsuits.

The underlying policy intent: move-in fees (security deposits, pet fees, application fees aggregated into a total) often prevent low-income and working-class tenants from securing housing. By requiring installment options, the legislature aimed to reduce barriers to entry while protecting landlord interests through a structured payment schedule.

However, the law is narrowly written and contains specific requirements that many landlords—particularly those using outdated lease templates or screening processes—routinely violate.

What Counts as a "Move-In Fee" Under RCW 59.18.610

The statute applies to all fees and deposits collected before or upon move-in, including:

• Security deposits (the largest move-in cost in most cases)
• Pet deposits or pet fees
• Non-refundable application screening fees
• Administrative or processing fees collected at lease signing
• Initial rent payment (in some interpretations, though this is less settled)
• Last month's rent, if required upfront

What does NOT count as a move-in fee (generally outside the installment requirement):

• Monthly rent owed during occupancy
• Utilities that are the tenant's direct responsibility
• Late fees or NSF fees incurred after move-in

The critical issue: courts and the Washington Attorney General have interpreted "move-in fees" broadly. If it's collected before the tenant takes occupancy or on the day of move-in, it likely qualifies. You cannot structure fees to avoid the installment requirement by relabeling or timing them differently.

Example: A landlord collects a $1,500 security deposit and a $300 non-refundable pet fee at lease signing, for a total of $1,800 move-in fee. The tenant must be offered the option to pay this in three equal installments of $600 over 30 days—not as three separate payments with different due dates or interest accrual.

The Mandatory Installment Plan Requirements Under RCW 59.18.610

1. Three Equal Installments Over 30 Days

The statute mandates the following structure:

• Minimum number of installments: Three equal payments
• Payment period: Spread over no fewer than 30 days
• Equal amounts: Each installment must be the same dollar amount (total move-in fee divided by three)
• Tenant choice: The tenant gets to decide whether to use the installment option; you cannot force it, but you must offer it

Example timeline (most common approach):

Payment	Amount	Due Date Example
Installment 1	$600 (1/3 of $1,800)	Day of lease signing / move-in
Installment 2	$600 (1/3 of $1,800)	15 days after move-in
Installment 3	$600 (1/3 of $1,800)	30 days after move-in

This is a common schedule, but you have flexibility: the statute says "over no fewer than 30 days," meaning you can spread payments over 40 days, 60 days, etc. The key is that the tenant chooses the arrangement and all installments are equal.

2. No Fees, Interest, or Penalties for Using the Installment Option

This is where many landlords fail compliance. RCW 59.18.610 explicitly prohibits:

• Setup fees — no charge for processing the installment plan
• Administrative fees — no fee for setting up automatic payments or tracking installments
• Interest — no accrual of interest on unpaid installments
• Late fees on installments — technically not prohibited by the statute itself, but subject to RCW 59.18.270 limits on rent-related late fees; applying excessive late fees to installments can constitute an unfair practice
• Price increase — the total amount owed must be identical whether the tenant pays in full upfront or in installments

Violation example: Landlord charges $1,800 move-in fee but offers installment option "for a $50 processing fee." Total becomes $1,850. This is a direct violation. The law requires the same $1,800 regardless of payment method.

3. Clear Disclosure in the Lease or Rental Agreement

Your lease must clearly communicate the installment option. The statute does not specify exact language, but courts and the Attorney General expect:

• Explicit statement that installment payment is available
• The total amount of move-in fees
• The number of installments (minimum three)
• The payment schedule (dates and amounts)
• No misleading language suggesting installments are a "favor" or subject to approval on a case-by-case basis

Recommended lease language:

"Tenant may elect to pay the move-in fee of $[total amount] in three equal installments of $[1/3 amount] each, due on: (1) [date 1]; (2) [date 2]; and (3) [date 3]. There are no additional fees, interest, or charges for selecting the installment option. The total amount owed remains $[total amount] regardless of payment method."

Vague or omitted language ("installments may be arranged") creates legal vulnerability. The statute requires affirmative disclosure, not conditional language.

Move-In Fee Caps: The $1 = 1 Month's Rent Rule

Separate from the installment requirement, RCW 59.18.270 caps all move-in fees at one month's rent. This limit applies regardless of whether the tenant is paying in full or using installments.

Example: Rent is $1,500/month. Maximum combined move-in fees are $1,500 (security deposit + pet fee + application fee combined cannot exceed $1,500).

If a tenant chooses the installment option, the three payments would be $500 each, still totaling $1,500.

This cap has been on the books since 2020 (as amended), so it's not new, but it often intersects with the installment requirement. You cannot avoid the cap by breaking fees into installments.

Legal Consequences for Non-Compliance

Violation as an Unfair Practice Under RCW 19.86 (Consumer Protection Act)

Refusing to offer installment plans, charging fees for installments, or misrepresenting the option in your lease is classified as an unfair or deceptive practice under Washington's Consumer Protection Act. This is critical: it's not just a contract dispute; it's a statutory violation with severe penalties.

Civil liability for a single violation:

• Actual damages (the extra fees or denied opportunity)
• Statutory damages up to 3x actual damages
• Attorney fees and costs
• Potential injunctive relief (court order requiring compliance)

Example damage calculation: Tenant files suit claiming the landlord charged a $50 "installment fee." Actual damages = $50. Under CPA, the tenant could recover $50 (actual) + $150 (3x multiplier) + attorney fees (often $3,000–$8,000 for a simple case) = total recovery of ~$3,200–$8,200.

Attorney General Enforcement

The Washington Attorney General's Consumer Protection Division can initiate enforcement actions against landlords who violate RCW 59.18.610 systematically or egregiously. Enforcement has been active since 2024. Penalties can include:

• Civil penalties up to $2,000 per violation (RCW 19.86.140)
• Injunctions requiring cessation of the practice
• Restitution to affected tenants
• Attorney general's costs and investigative expenses

Recent enforcement trend (2024–2026): The AG's office has prioritized screening and move-in fee compliance. Several large property management companies have settled violations, paying six-figure amounts to affected tenants.

Private Class Action Risk

Tenants can also sue individually or as a class. If you've operated multiple properties or collected fees from dozens of tenants, a class action—where all affected tenants sue together—can result in six or seven-figure liability. Class actions also trigger higher attorney fee awards.

How to Ensure Compliance: Step-by-Step Checklist

Step 1: Audit Your Current Lease Template

Do this now:

• Open your current lease or rental agreement
• Search for any language about move-in fees, deposits, and installments
• Check if you clearly state the installment option is available, with no additional charges
• Verify that you're not using outdated language like "installments may be arranged upon request" (too conditional)
• Confirm your total move-in fees do not exceed one month's rent

If your lease lacks clear installment language: Update it immediately. Use templates or consult an attorney familiar with Washington RCW 59.18.610. LeaseBase's compliance engine flags common lease violations, including missing installment disclosures.

Step 2: Set Up Your Installment Payment System

Decide how you'll collect installments:

• Option A: Check or money order — Tenant mails or delivers three separate checks on scheduled dates
• Option B: Automatic bank transfer — Set up recurring ACH or wire transfers (ensure no processing fee is charged to the tenant)
• Option C: Online payment portal — Use a rent payment platform (see LeaseBase rent payment solutions) that allows scheduled payments with no extra fees to the tenant

Compliance requirement: Your payment system must not add hidden fees. If you use a third-party payment processor, ensure it does not pass fees to the tenant for installment arrangements.

Step 3: Document the Tenant's Installment Election

Create a written record of the tenant's choice. This becomes critical if there's a dispute later.

Best practice: Include a signed acknowledgment in the lease or as a separate addendum:

"Tenant acknowledges that this lease offers the option to pay the move-in fee in three equal installments over 30 days at no additional cost. Tenant elects to: ☐ Pay in full upfront ☐ Pay in three equal installments due [date 1], [date 2], [date 3]."

Get the tenant's signature. This protects you if the tenant later disputes whether the option was offered.

Step 4: Track Installment Payments Carefully

Poor recordkeeping is a common vulnerability. Use a lease management system that tracks:

• Total move-in fee amount
• Number of installments
• Due dates for each installment
• Amounts paid and dates received
• Any missed or late installments

If you're managing multiple properties, spreadsheets invite errors. A centralized platform ensures consistency and audit readiness.

Step 5: Handle Missed Installment Payments Carefully

If a tenant misses an installment payment, you have rights, but they're limited:

• You can issue a notice to pay or vacate (under RCW 59.12.030) if the tenant fails to pay required move-in fees
• However, you cannot charge excessive late fees on installments (fees are capped under RCW 59.18.270 at 5% of rent or $75, whichever is greater, for rent-related fees; this may apply to installment defaults by analogy)
• You cannot charge interest or penalties for installment default beyond what the statute allows for rent non-payment
• You must provide proper notice before escalating to eviction

Best practice: If an installment is missed, send a written notice reminding the tenant of the due date and total amount owed. Offer a brief grace period (3–5 days) before taking further action. This avoids eviction and preserves the tenancy if the late payment was inadvertent.

Step 6: Know Your Obligations for Refundable vs. Non-Refundable Fees

The installment requirement applies to all move-in fees, but the tenant's rights differ based on refundability:

Fee Type	Installment Required?	Refund Obligation	Key Statute
Security deposit	Yes	Yes (refundable; return within 30 days of move-out with itemized deductions)	RCW 59.18.260, 59.18.610
Pet deposit/fee	Yes	Yes (if labeled "deposit"); No if labeled "non-refundable fee"	RCW 59.18.610, 59.18.270
Application screening fee	Yes (if charged at move-in time; if collected before lease signing, requirements differ)	Non-refundable	RCW 59.18.610
Administrative/processing fee	Yes (if collected at/before move-in)	Non-refundable	RCW 59.18.610

Ensure your lease clearly labels each fee as refundable or non-refundable. Ambiguous language creates disputes and liability.

Common Mistakes Landlords Make (and How to Avoid Them)

Mistake 1: Requiring Upfront Payment of All Move-In Fees Before Offering Installments

Problem: Collecting the full amount at lease signing, then offering installments only if requested.

Compliance issue: The statute requires offering the installment option proactively in the lease, not as a post-hoc accommodation. Tenants should not have to ask.

Fix: Disclose the installment option clearly in the lease. Let the tenant elect at signing, not after.

Mistake 2: Charging Fees or Interest for Using the Installment Option

Problem: Landlord charges a $30 "installment processing fee" or adds interest to outstanding balances.

Compliance issue: Direct violation of RCW 59.18.610. The statute explicitly forbids additional charges.

Fix: Accept installment payments at no additional cost to the tenant. The total must be identical to the upfront payment amount.

Mistake 3: Offering Fewer Than Three Installments or Stretching Payments Beyond Reason

Problem: Landlord offers only two installments, or spreads payments over 60–90 days without tenant consent.

Compliance issue: The statute mandates "at least three equal installments over no fewer than 30 days." Two is not enough; the tenant must choose if payments extend beyond 30 days.

Fix: Default to three equal installments over 30 days. If the tenant requests a longer schedule, you can accommodate it, but the statute sets a floor at three payments over 30 days minimum.

Mistake 4: Omitting or Vaguely Stating the Installment Option in the Lease

Problem: Lease says "tenant may arrange installments if approved by landlord" or says nothing at all.

Compliance issue: Conditional language ("if approved," "upon request") shifts the burden to the tenant and suggests the option is discretionary—it's not.

Fix: Use affirmative language: "Tenant may elect to pay move-in fees in three equal installments over 30 days at no additional cost."

Mistake 5: Combining Move-In Fees With Rent or Late Fees

Problem: Landlord structures the move-in fee into the first month's rent or bundled with a late fee, arguing the installment rule doesn't apply.

Compliance issue: Courts have rejected this approach. If it's collected before or at move-in as a condition of tenancy (other than ongoing monthly rent), it's a "move-in fee" subject to RCW 59.18.610.

Fix: Keep move-in fees separate from rent and other fees. Clearly itemize on the lease: "Security Deposit: $X," "Pet Fee: $Y," "Total Move-In Fee: $X+Y."

Frequently Asked Questions (FAQ)

Q1: Does the installment requirement apply to last month's rent?

A: This is unsettled in Washington case law. Some attorneys argue "last month's rent" is technically rent, not a "fee," and therefore falls outside RCW 59.18.610. However, many legal experts and the Washington Attorney General treat prepaid last month's rent as a move-in fee subject to the installment requirement if collected before or at move-in. Best practice: Offer the installment option for prepaid last month's rent as well. This conservative approach reduces legal risk. Do not collect last month's rent as an additional charge; most modern leases do not require prepaid last month's rent anyway.

Q2: What if a tenant fails to pay all three installments—can I evict immediately?

A: Yes, but only after providing proper notice. Under RCW 59.12.030 (notice to pay or vacate), you must give the tenant written notice of the unpaid amount and a 5-day grace period to pay before serving a three-day notice to vacate. If the tenant does not pay within the 5-day period and then does not vacate within three days, you can file for eviction. Do not skip these steps; a premature eviction filing can be dismissed and may trigger a counterclaim for illegal eviction.

Q3: Can I require a larger first installment and smaller subsequent payments?

A: No. RCW 59.18.610 requires "equal installments." The statute is explicit. Unequal payments, even with the tenant's consent, may still violate the law if a court determines the first larger payment functions as a de facto full upfront collection. Stick with equal amounts.

Q4: Does the installment requirement apply if the tenant pays in cash at move-in?

A: If the tenant voluntarily pays the full amount upfront in cash, you can accept it. The statute requires you to offer the installment option; it doesn't prohibit the tenant from waiving it. However, your lease must explicitly offer the option, and the tenant must make a knowing choice. Simply accepting cash without documenting that the installment option was offered creates evidence problems if the tenant later disputes the arrangement.

Q5: What if I'm using a property management company—who's responsible for compliance?

A: You (the landlord) are ultimately responsible. A property manager who violates RCW 59.18.610 creates liability for both the manager and you. If you hire a manager, ensure their lease template, payment collection procedures, and financial disclosures comply with the law. Many property managers use outdated templates from pre-2024. Audit their practices regularly. LeaseBase's compliance platform can help you verify that third-party managers are following state law.

State-Specific Resources and Enforcement Agencies

Washington Attorney General's Consumer Protection Division — Files enforcement actions for RCW 59.18.610 violations. You can report suspected violations or stay informed about enforcement priorities at: www.atg.wa.gov

Washington Residential Tenancy Act (RCW 59.18) — Full text available at: app.leg.wa.gov/RCW/default.aspx?cite=59.18

Tenant Unions and Legal Aid — Organizations like the Northwest Justice Project and local tenant unions actively pursue CPA claims on behalf of tenants. Assume your compliance practices will be scrutinized.

Related LeaseBase Resources:

• Washington Landlord-Tenant Law Overview — Comprehensive guide to all RCW 59.18 requirements
• Compliance Engine — Automated checks for move-in fee and installment compliance
• Rent Payment Solutions — Set up installment payment schedules without hidden tenant fees
• Lease Operations — Manage lease disclosures and compliance documentation

Action Items: What to Do This Month

Don't wait. Use October 2026 to ensure your compliance posture is solid:

1. Week 1: Review your current lease template for installment language. If it's missing or vague, update it immediately.
2. Week 2: Audit your move-in fee structure. Verify that total fees (security deposit + pet fee + administrative fees) do not exceed one month's rent.
3. Week 3: Set up your installment payment collection system. Decide whether you'll use checks, automatic transfers, or an online portal. Ensure no hidden fees are passed to tenants.
4. Week 4: Create a tenant acknowledgment form documenting the tenant's installment election at lease signing. Implement this for all new leases immediately.

These steps take 4–8 hours of focused work and eliminate 90% of your legal risk under RCW 59.18.610.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation. Washington landlord-tenant law is complex and changes periodically. Ensure your practices remain current and compliant with all applicable statutes and local ordinances.

What Is New York's $20 Application Fee Cap?

In 2024, New York enacted one of the nation's strictest tenant application fee limits. RPL §238-a capped all residential tenant screening fees at $20 statewide, effective immediately. This applies to all landlords and property managers in New York—from Buffalo to the Bronx—with no geographic carve-outs.

The $20 is a hard ceiling, not a guideline. You cannot charge $25 "because your screening vendor costs more." You cannot charge $20 plus a separate "processing fee." The statute consolidates all screening-related costs into that single $20 amount.

This is fundamentally different from the pre-2024 environment, where landlords could charge $30–50+ per application in many parts of New York. The cap aligns New York with California's approach (Civil Code §1950.7, also $20) and reflects a legislative intent to reduce barriers to rental access for low-income tenants while still allowing landlords to recover reasonable screening costs.

What Costs Must Be Included in the $20 Cap?

RPL §238-a requires that the $20 fee cover "reasonable costs of obtaining information" to screen a prospective tenant. Courts and the New York Attorney General's office have interpreted this broadly. Here's what must be bundled:

Screening Services Covered by the $20

• Credit checks — pulling and analyzing the applicant's credit report
• Criminal background checks — including both state and county criminal records searches (subject to New York's fair-chance tenant screening laws under General Business Law §296-a(2-b))
• Rental history verification — contacting prior landlords or using third-party verification services
• Income and employment verification — confirming current employment and income
• Eviction history reports — searching court databases for prior eviction filings or judgments
• Sex offender registry checks — if you choose to conduct them (though use is restricted under state law)
• Tenant screening report compilation — the administrative cost of pulling together the above into a written or digital report

What You Cannot Charge Separately

You cannot circumvent the $20 cap by creating separate fees for different screening activities. For example:

• You cannot charge $10 for the "application fee" and $15 for the "credit check fee"
• You cannot charge $20 for screening plus a $5 "administrative processing charge"
• You cannot require the tenant to pay the screening vendor directly if the vendor's charge exceeds $20

If your preferred screening vendor charges $35 to run a comprehensive background check, you absorb the difference. The tenant's obligation is capped at $20 total.

Disclosure Requirements — What You Must Tell Tenants

RPL §238-a requires written disclosure before you can legally collect the application fee. This is not optional. Failure to provide written notice can render the fee unenforceable and expose you to statutory damages.

What the Disclosure Must Include

Your written notice to the applicant must state:

• The dollar amount of the application fee ($20)
• What the fee covers (screening services, background checks, credit report review, etc.)
• Whether the fee is refundable or nonrefundable (see section below on refunds)
• The method of payment (check, ACH, credit card, etc.)

Timing of Disclosure

Disclosure must occur before you accept payment. The best practice is to include the disclosure in your rental application itself or in a separate document handed to the applicant before they complete the application. If you collect payment first and disclose afterward, you've likely violated the statute.

Acceptable Formats

The disclosure can be:

• Printed on the application form itself (in a clearly marked section)
• A separate one-page document provided with the application
• An email or text sent before the applicant submits payment (if you can document receipt)
• Displayed on your website if the tenant applies online

Digital disclosure is fine, but you must be able to prove the tenant received it before they paid. Ambiguity on this point can hurt you in a dispute.

Refunds for Denied Applications

This is a critical compliance point many landlords miss. RPL §238-a requires refund of the application fee under specific circumstances.

You Must Refund If

• You deny the applicant's rental application (for any reason—poor credit, failed background check, income too low, negative rental history, etc.)
• The applicant withdraws their application before you make a rental decision
• Circumstances arise that make you unable to rent to the applicant (e.g., the unit becomes unavailable, you decide to remove it from the market)

Refund Timeline

The statute requires refunds within 10 business days of the triggering event (denial, withdrawal, or unavailability). This is a hard deadline. Refunding "eventually" is not compliance. Track your refund dates carefully.

You Can Keep the Fee If

• The applicant is approved and signs a lease — the application fee is nonrefundable after lease execution
• The applicant is approved but declines the lease offer (this is more ambiguous; best practice is to refund to avoid disputes)

Refund Method

You should refund via the same method the tenant paid (check for check, ACH for ACH, credit card for credit card). This creates a clear audit trail. Never refund cash with a check; it creates documentation problems.

Penalties for Non-Compliance

New York imposes strict penalties for RPL §238-a violations. Understand the financial exposure:

Statutory Damages

Each violation (each overcharged application, each undisclosed fee, each late or missing refund) triggers a minimum $500 penalty per violation. This is automatic—the tenant does not need to prove actual harm. If you overcharge 10 applicants by $5 each, that's 10 violations × $500 = $5,000 in penalties.

Actual Damages

On top of the $500 statutory minimum, tenants can recover the actual overage (e.g., the $5 or $10 you charged above the $20 cap). This is typically smaller than statutory damages but compounds the total recovery.

Attorney's Fees and Costs

If a tenant sues you in Small Claims or Supreme Court for application fee violations, you must pay their attorney's fees if they win. In New York, attorney's fees for residential tenancy matters can run $2,000–5,000+ for a straightforward application fee case. The statute explicitly allows fee-shifting against landlords.

Attorney General Enforcement

The New York Attorney General's office has authority to investigate and prosecute application fee violations under General Business Law §349 (deceptive practices). While enforcement is not common, AG settlements in similar cases have resulted in landlord/manager refunds ranging from $10,000–50,000+. Documentation matters: the AG will look at your application forms, fee schedules, and tenant payment records.

Class Action Risk

Property management companies and large landlord groups have faced class action suits over application fee overcharges. A single lawsuit naming 50–100 tenants can expose you to $25,000–500,000+ in total liability. This is particularly risky if you've been charging $30+ per application without clear disclosure.

How to Audit Your Current Screening Practice

If you've been collecting application fees, you should conduct an internal audit to identify compliance gaps. Here's a step-by-step checklist:

Step 1: Review Your Fee Amount

Fee Currently Charged	Compliant?	Action Required
$20 or less	Yes, if disclosed	Verify disclosure is in place and correct
$21–$30	No	Reduce to $20; consider refunding overages to past 12 months of applicants
$30+	No	Immediately reduce to $20; calculate exposure for refunds and consider voluntary disclosure to AG
Fee + separate "processing" charge	No	Consolidate into single $20 amount; refund all overcharges from past 24 months

Step 2: Document Your Disclosure Practice

Gather copies of:

• Your current rental application form
• Any fee schedule you provide to applicants
• Email templates or website text that mentions application fees
• Your lease addenda or welcome packets

Check whether each document clearly states the $20 fee and what it covers. If application fees are mentioned in some documents but not others, you have inconsistent disclosure—a red flag.

Step 3: Trace Recent Payment Records

Review your last 24 months of application fee payments (if available). For each applicant, determine:

• Was the fee disclosed before payment?
• How much was charged?
• Was the application approved or denied?
• If denied, was the fee refunded within 10 days?

If you cannot answer these questions for a given applicant, you have a compliance gap. Document it.

Step 4: Assess Your Vendor Costs

If you use a third-party screening vendor (e.g., Checkr, Experian, SmartMove), review your contract:

• What does the vendor charge you per screening?
• Can you absorb that cost within your $20 collection limit?
• If not, you need to find a lower-cost vendor or reduce other operational costs to comply

Building a Compliant Screening Process

If you're starting fresh or revising your process, follow this framework:

Before the Tenant Submits an Application

• Prepare a one-page "Application Fee Disclosure" document stating: "$20 fee for credit check, background check, and rental history verification. Fee is nonrefundable if application is approved; refundable within 10 business days if denied."
• Add the disclosure to your website, email template, and printed application
• Have tenants initial or electronically acknowledge the disclosure

When the Tenant Pays the Fee

• Accept payment (check, ACH, credit card, or cash)
• Issue a receipt showing: applicant name, property address, date, amount ($20), and notation "Application Screening Fee"
• Store receipt with the application file

While You Review the Application

• Conduct your screening using disclosure-compliant vendors
• Document the screening results in writing
• Keep records of what you found (credit score range, criminal check result, prior eviction yes/no, etc.) to defend your approval/denial decision if challenged

When You Reach a Decision

If Approved: Issue a lease or approval letter. The $20 fee is earned and nonrefundable.

If Denied: Send a written denial letter explaining the reason (poor credit, failed background check, insufficient income, etc.). Initiate a refund of $20 within 10 business days. Use the same payment method as the applicant paid (check to check, ACH to ACH, credit card credit). Keep evidence of the refund (canceled check, bank transfer confirmation, credit card receipt).

If Withdrawn: If the applicant withdraws before you make a decision, refund the $20 within 10 business days upon their request.

Common Mistakes Landlords Make (and How to Avoid Them)

Mistake 1: Charging "Refundable" vs. "Nonrefundable" and Applying Both Rules

Problem: Some landlords tell applicants the fee is "refundable if application is denied" but then refuse to refund when denial happens, claiming they already "spent" the money on screening.

Fix: You disclosed refundable, so refund it. The statute requires refunds for denied applications regardless of when you conducted the screening. The fee covers your screening cost in advance; once denied, you refund.

Mistake 2: Bundling "Application Fee" and "Move-in Fees"

Problem: Some landlords collect $20 "application fee" but include move-in costs like key deposit or background check within that single line item, then try to charge security deposit separately. RPL §238-a applies only to the application screening fee, not move-in costs.

Fix: Keep the $20 application screening fee separate and distinct from any move-in costs. If you charge a $100 security deposit, that's a separate line item on the lease, not bundled into the application fee.

Mistake 3: Relying on Verbal Disclosure

Problem: Landlord tells tenant over the phone: "The screening fee is $20" without providing written documentation. Tenant later disputes the charge.

Fix: Written disclosure every time. Email it, print it, or have the tenant initial a form. Verbal disclosure is not sufficient under the statute's plain language.

Mistake 4: Charging Different Fees for Different Applicants

Problem: A landlord charges $20 for most applicants but $25 for international applicants because "they require additional verification."

Fix: The cap is $20 for all applicants. Differential fees based on national origin or immigration status may also violate federal fair housing law. Charge $20 uniformly, and if additional verification is needed, absorb that cost or find a more efficient screening vendor.

Mistake 5: Failing to Refund Within 10 Days

Problem: Landlord denies an application and promises a refund but doesn't process it for 30 days because they're busy.

Fix: Calendar your refund deadlines. The 10 business day window is measured from the date of denial. Set a reminder to process refunds immediately. Use automated payment systems (ACH) to speed up processing.

Compliance for Multi-Unit Landlords (2–75 Units)

If you manage multiple properties, consistency is critical. Tenants and tenant advocates will compare fee structures across your portfolio. If you charge $20 at one property and $25 at another, you expose all properties to enforcement.

Standardize Across Your Portfolio

• Use the same rental application form at all properties (or applications that are identical except for property-specific details)
• Use the same fee disclosure language
• Use the same screening vendor for all properties, or ensure all vendors comply with your $20 cap
• Implement the same refund process everywhere

Centralize Record-Keeping

Keep application files in one place (physical or digital) where you can quickly pull records if challenged. Document:

• Fee charged
• Disclosure provided (and date)
• Approval or denial (and date)
• Refund issued or waived (and date and method)

This allows you to prove compliance if a tenant or the AG requests your records.

How LeaseBase Helps You Stay Compliant

Managing application fees and screening disclosures across multiple properties creates administrative friction. LeaseBase's compliance engine embeds New York's $20 cap and refund requirements into your application workflow, so you cannot inadvertently overcharge.

When you set up a new property in LeaseBase, the system defaults to New York's statutory requirements, including:

• Automated disclosure generation for application fees
• Built-in $20 fee cap (you cannot accept more)
• Tenant application approval/denial tracking tied to refund calendars
• 10-day refund deadline alerts
• Export-ready audit reports for your records

For multi-unit operators, portfolio-level reporting lets you view application fees and refunds across all your properties in one dashboard, ensuring consistency and catching outliers before they become violations.

And if you're still managing applications via spreadsheet or email, you're accepting unnecessary legal risk. A single missed refund deadline or an inconsistent fee across properties can trigger a $500+ penalty per violation. The cost of a compliance platform pays for itself after two or three violations avoided.

FAQ: New York Application Fee Compliance

Q: Can I charge $20 if my screening vendor charges $35?

A: Yes, but you absorb the difference. The tenant's maximum obligation is $20. If your vendor costs $35, your profit margin on screening shrinks or disappears. This is why many landlords partner with lower-cost vendors like Checkr ($10–15 per check) or find higher-volume deals. You cannot pass the $35 cost to the tenant.

Q: What if I charge $20 but don't disclose it in writing before payment?

A: The $20 becomes unenforceable. The tenant can demand a refund, and if you refuse, they can sue you for the $20 plus statutory damages (minimum $500) plus attorney's fees. Always disclose in writing before accepting payment.

Q: Can I charge a $20 "application fee" and a separate $10 "lease processing fee"?

A: No. RPL §238-a caps all screening-related fees at $20 total. If you add a "lease processing fee," the combined amount exceeds the statutory cap and violates the law. Lease processing is a separate service (not screening), but courts will likely construe any fee collected during the application phase as part of the application fee bundle, triggering the $20 cap. Safest practice: charge only the $20 screening fee at application; collect any lease processing costs at move-in, separately and clearly labeled.

Q: Do I have to refund the $20 if an applicant withdraws before I've screened them?

A: The statute requires refunds for applicants you deny. For withdrawn applications, the law is less explicit. Best practice: refund the $20 if the applicant withdraws before you conduct screening. If you've already paid your vendor $10–15 to screen them, the net cost to you is small, and offering a refund protects you from disputes and demonstrates good faith. Document that you offered the refund.

Q: Does the $20 cap apply to co-applicants?

A: Likely yes, but application structure matters. If you screen one applicant and one co-applicant (two people, one unit), you charge $20 total for screening that unit, not $20 per person. If you screen two separate applicants for two separate units, you charge $20 per applicant. The statute caps fees per rental transaction, not per person. If in doubt, disclose clearly what the $20 covers and whether co-applicants are charged separately.

Resources and References

• New York Real Property Law §238-a: Full text of the statute (official NYS Senate website)
• New York General Business Law §296-a(2-b): Fair chance tenant screening (limitations on criminal background use)
• New York Attorney General Fair Housing Guidance: Current AG guidance on rental discrimination and application fee practices
• California Civil Code §1950.7: Comparison statute (similar $20 cap for reference)

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in New York for guidance specific to your situation. Laws change, and enforcement practices evolve. Verify compliance requirements with current statutory text and the New York Attorney General's office before implementing any fee or disclosure practice.

What Is RCW 59.18.610 and When Did It Take Effect?

In 2023, Washington State enacted Senate Bill 5961 (SB 5961), which added RCW 59.18.610 to the Residential Tenancies Act. The law took effect on January 1, 2024, and fundamentally changed how landlords can collect move-in fees in Washington.

The statute addresses a real compliance problem: before 2024, many Washington landlords required tenants to pay all move-in costs (security deposit, pet fee, application fee, etc.) upfront on the first day of occupancy. For lower-income tenants, this created a barrier to housing. SB 5961 solved this by mandating that landlords offer an installment payment option for move-in fees.

Unlike many tenant-protection laws, RCW 59.18.610 doesn't eliminate move-in fees—it regulates how and when they're collected. Understanding the exact requirements prevents costly tenant disputes, potential litigation, and complaints to state enforcement agencies.

Defining "Move-In Fees" Under RCW 59.18.610

Before you can offer a compliant installment plan, you need to know what qualifies as a move-in fee under Washington law.

What counts as a move-in fee:

• Security deposits (RCW 59.18.140)
• Pet deposits or pet fees (if authorized in the lease)
• Application screening fees (capped at actual reasonable costs, per RCW 59.18.075)
• Any other non-refundable deposits or fees due at lease signing or move-in

What does NOT count as a move-in fee (and must not be charged):

• First month's rent (this is due on or before the first day of tenancy, but is separate from move-in fees)
• Last month's rent (illegal under RCW 59.18.140; this is treated as prepaid rent, not a deposit)
• Furniture rental, cleaning supplies, or utility setup fees (may violate RCW 59.18.280, the "prohibited practices" section)
• Administrative fees, processing fees, or other "junk fees" not explicitly authorized by statute
• Parking, HOA, or unit-specific fees that aren't deposits (these are rent-related charges, not move-in fees)

Washington courts and the Attorney General's office have increasingly scrutinized landlords who charge fees outside the statutory framework. If you charge a fee that isn't a security deposit, pet deposit, or application screening fee, you're likely in violation of RCW 59.18.280 (prohibited practices), regardless of whether you offer an installment plan.

The Installment Plan Requirement: What You Must Offer

RCW 59.18.610 is specific about what landlords must do. Here's the exact statutory language and what it means for your compliance:

Statutory Requirement (RCW 59.18.610(1)):

"A landlord shall offer a tenant the option to pay the deposit, pet deposit, and other nonrefundable move-in fees in at least two equal installments."

Timeline (RCW 59.18.610(2)):

"The first installment shall be due upon signing the lease, and the subsequent installment shall be due no later than the last day of the first full month of the tenancy."

This creates a specific payment structure:

Payment Installment	Due Date	Amount
First installment	Upon lease signing (before move-in)	At least 50% of total move-in fees
Second installment	No later than the last day of the first full month	Remaining 50% of total move-in fees

Key compliance points:

• At least two installments — You can offer more than two installments if you choose, but two is the legal minimum.
• Equal installments — The law says "at least two equal installments." This means 50/50, not 40/60 or 30/70. If a tenant opts for four payments, they should be 25% each.
• First payment at lease signing — The tenant doesn't need to pay rent or move-in fees before they've signed the lease, but the first installment is due no later than signing. Some landlords require it at application; this is compliant but not required by statute.
• Second payment deadline — "No later than the last day of the first full month" means the last calendar day of the month following move-in. If a tenant moves in on August 15, the second installment is due by September 30.

Written Disclosure and Documentation Requirements

RCW 59.18.610(3) requires landlords to provide written notice of the installment plan option. This is not optional—failure to disclose is a statutory violation.

Statutory language: "A landlord shall provide a tenant with a written notice regarding the option to pay the deposit, pet deposit, and other nonrefundable move-in fees in installments before or at the time of lease execution."

What your written notice must include:

1. Clear statement that the tenant has the right to pay move-in fees in at least two equal installments
2. The payment schedule (first payment at signing, second by last day of first month)
3. The total amount due and the amount of each installment
4. The method of payment (check, bank transfer, online portal, etc.)
5. Late payment consequences (if applicable)
6. Language indicating that the tenant can request the installment plan at any time before lease signing

Best practice: Create a lease addendum or standalone disclosure document that covers all these points. This should be:

• Provided in writing (email, printed copy, or signed lease addendum)
• Signed and dated by both landlord and tenant
• Kept in your lease file as evidence of compliance
• Available in plain language (avoid legal jargon)

A sample disclosure might read:

"You have the right to pay your move-in fees in two equal installments. The first installment of $[amount] is due upon lease signing. The second installment of $[amount] is due by [last day of first month]. Total move-in fees: $[total]. You can request this option in writing or verbally; we will confirm it in writing. If you do not request installments, full payment is due at signing."

Failing to provide this written notice is itself a violation of the Residential Tenancies Act and can result in tenant claims for damages and attorney fees.

What Happens If a Tenant Requests the Installment Plan?

Once a tenant elects to use the installment plan option, you must accommodate it. You cannot:

• Refuse or discourage the tenant from using installments
• Increase the total amount of move-in fees if they choose installments
• Charge a fee for offering installments (e.g., "2% installment fee")
• Require a guarantor or co-signer as a condition of offering installments
• Use installment default as grounds for eviction on its own (more below)

The law treats the installment option as a statutory right, not a courtesy or discretionary accommodation.

Payment Default and Collection Procedures

If a tenant fails to pay an installment on time, you have legal options—but they're limited by statute.

What you CAN do:

• Send a written notice demanding payment within a reasonable timeframe (typically 5-10 days)
• Charge a late fee if authorized by your lease (subject to RCW 59.18.290, which caps late fees)
• Apply the unpaid installment to the security deposit (once the second installment is due, the total move-in fees become part of the deposit account)
• File a small claims action for the unpaid amount if the total claim is within small claims jurisdiction ($10,000 in Washington)
• Proceed with eviction if the nonpayment of the second installment is combined with other lease violations or nonpayment of rent

What you CANNOT do:

• Evict a tenant solely for defaulting on an installment payment (RCW 59.18.610 does not authorize installment default as standalone grounds for eviction)
• Lock out, remove possessions, or take self-help remedies
• Charge punitive fees beyond normal late fees
• Refuse to allow occupancy if the first installment is unpaid at signing (this would constitute an illegal lockout)

Late fee limits (RCW 59.18.290): If your lease authorizes late fees, they cannot exceed 5% of the rent due or $75, whichever is greater. Late fees on move-in installments are less clear in statute, but the safest approach is to apply the same cap.

Penalties and Legal Consequences for Non-Compliance

Washington's Residential Tenancies Act provides specific remedies for violations of RCW 59.18.610:

Tenant's Right to Sue (RCW 59.18.610(4)):

"A violation of this section is a violation of this chapter and subjects the landlord to the remedies in RCW 59.18.150."

RCW 59.18.150 allows a tenant to recover:

Remedy	Amount
Actual damages	Full amount of unpaid move-in fees or wrongfully charged fees
Statutory damages	Up to 2x the amount wrongfully withheld or charged (treble damages in some cases)
Attorney fees and court costs	Tenant's full legal fees if they prevail
Interest	Statutory interest on wrongfully withheld deposits (currently 5-12% depending on context)

Additional enforcement:

• The Washington Attorney General's Consumer Protection Act (RCW 19.86) treats violations as unfair or deceptive practices. Tenants or the state can bring civil actions.
• Local housing agencies or tenant advocacy groups may file complaints on behalf of tenants, triggering state investigation.
• Repeated violations can result in injunctions requiring you to comply with the law going forward.

Real-world example: If you charged a tenant $2,500 in move-in fees and refused to offer an installment plan, the tenant could recover:

• $2,500 (actual damages)
• Up to $5,000 (statutory damages)
• Attorney fees and court costs (potentially $2,000–$5,000+)
• Total possible liability: $7,000–$10,000+

This is why compliance is not optional—it's a financial protection for your business.

How to Build RCW 59.18.610 Compliance Into Your Screening Process

Compliance with RCW 59.18.610 must start before you sign a lease. Here's a step-by-step guide:

Step 1: Update Your Lease Document

• Add a move-in fee installment plan addendum to your standard lease template
• Include the statutory language about the right to pay in at least two equal installments
• List all move-in fees separately: security deposit, pet deposit, application fee, etc.
• Specify the payment schedule: first installment at signing, second by [last day of first month]
• Have the addendum reviewed by a Washington tenant-law attorney to ensure compliance

Step 2: Create a Move-In Fee Disclosure Form

• Use a standalone form separate from the lease
• Provide it with the lease package or lease summary
• Include checkboxes for the tenant to indicate whether they elect installments or full upfront payment
• Require the tenant to sign and date the form
• Keep a signed copy in your lease file

Step 3: Train Your Screening and Leasing Team

• Brief all staff who interact with applicants or tenants on RCW 59.18.610
• Emphasize that offering installments is not discretionary—it's required by law
• Make clear that you cannot discourage tenants from using installments or charge fees for offering them
• Ensure application packages and lease agreements include the disclosure form

Step 4: Document Tenant Elections

• Keep a record of whether the tenant elected full payment or installments
• If installments, note the payment dates and amounts
• Track payment receipt (email confirmation, bank statement, check image, etc.)
• Store all documentation in a secure file or property management system

Step 5: Set Up Payment Tracking and Reminders

• Use a system (spreadsheet, property management software, or accounting tool) to track installment payment deadlines
• Send the tenant a payment reminder 5-7 days before the due date
• Send a payment confirmation upon receipt
• If payment is late, send a written demand notice (5–10 days to cure before further action)

For self-managing landlords, using a compliance-focused system like LeaseBase's lease operations platform can automate these steps, ensuring you don't miss a critical deadline or forget to collect a required disclosure.

Special Situations and Edge Cases

Question: Can I require the first installment at application time instead of lease signing?

Yes, but be cautious. The statute allows the first installment "upon signing the lease." If you collect a payment before the lease is signed, you're technically collecting it before the statutory window. If the applicant doesn't lease (application denied, background check fails), you must return the payment. Many landlords avoid this by collecting the first installment at lease signing and the second 30 days later. This is the safest approach.

Question: What if a tenant moves in before the lease is signed?

This is a high-risk situation. Under Washington law, occupancy without a signed lease creates an implied tenancy. RCW 59.18.610 requires the written disclosure "before or at the time of lease execution." If the tenant has already moved in, you've likely missed the disclosure window. Immediately provide the written notice and clarify the payment schedule in writing. Do not attempt to retroactively collect unpaid installments without clear documentation.

Question: What if a tenant signs the lease but doesn't move in until later?

The first installment is due at lease signing, not at move-in. If the tenant signs on August 15 but moves in September 1, the first payment is still due August 15. However, the second installment is due "no later than the last day of the first full month of the tenancy," which means the month when occupancy begins (September 30, in this example). Make this clear in your written disclosure to avoid confusion.

Question: Can I require an installment plan or refuse it?

No. The law says the landlord "shall offer" the option. The tenant chooses. You cannot force a tenant to use installments if they want to pay upfront, and you cannot refuse a tenant who requests installments. The choice is entirely with the tenant.

Question: What about pet deposits under RCW 59.18.610?

Pet deposits are explicitly included in the installment plan requirement. If you charge a refundable pet deposit, it must be offered in installments. If you charge a non-refundable pet fee (if your lease specifies this), it's still a move-in fee and must be included in the installment option. Do not try to exclude pet fees from the installment plan.

Question: What if a tenant has a guarantor or co-signer?

The guarantor does not change the tenant's obligations under RCW 59.18.610. The tenant still has the right to installments. You cannot require the guarantor to pay the full move-in fees upfront as a condition of offering installments to the tenant. The installment plan is the tenant's statutory right, not a favor to the guarantor.

Compliance Checklist for Landlords

Use this checklist to verify your compliance with RCW 59.18.610 before signing leases:

• ☐ Lease addendum or move-in fee disclosure form exists and is included in lease package
• ☐ Disclosure explains the right to pay move-in fees in at least two equal installments
• ☐ Disclosure specifies payment schedule: first at signing, second by last day of first month
• ☐ All move-in fees are listed (security deposit, pet deposit, application fee, etc.)
• ☐ Total move-in fees and installment amounts are clearly stated
• ☐ Disclosure is in plain language (not legal jargon)
• ☐ Tenant and landlord sign and date the disclosure
• ☐ Signed copy is retained in lease file
• ☐ If tenant elects installments, payment due dates are documented
• ☐ Payment tracking system is in place for both installments
• ☐ Staff are trained on RCW 59.18.610 and cannot refuse installment requests
• ☐ Late payment procedures (reminder, demand letter) are documented
• ☐ No fees are charged for offering installments
• ☐ No prohibited junk fees are included in move-in fees

FAQ: RCW 59.18.610 Move-In Fee Installment Plans

Q1: Does the installment plan apply to rent or only move-in fees?

Only move-in fees. First month's rent is still due upfront (typically by the first day of the tenancy or as specified in the lease). The installment plan covers only security deposits, pet deposits, application fees, and other non-refundable move-in fees.

Q2: What if I don't charge any move-in fees—only first month's rent and security deposit?

The security deposit still falls under RCW 59.18.610 and must be offered in installments. You cannot avoid the law by only charging rent upfront. Any deposit is a move-in fee and is subject to the installment requirement.

Q3: Can I charge interest or a processing fee on installment payments?

No. The statute does not authorize interest or processing fees for installments. Charging either would likely violate RCW 59.18.280 (prohibited practices). You must offer equal installments at no additional cost to the tenant.

Q4: If a tenant defaults on the second installment, can I file for eviction?

Not solely for the installment default. However, once the first full month ends, the unpaid installment becomes part of the security deposit account (under RCW 59.18.140). You can withhold the unpaid amount from the security deposit and provide an itemized deduction notice. If the tenant disputes this, they can file a claim. Eviction requires additional grounds (nonpayment of rent, lease violation, etc.) and proper notice, not just a missed move-in fee installment.

Q5: Is RCW 59.18.610 enforced by the Washington Attorney General or local agencies?

Both. The Attorney General's office can investigate complaints under the Consumer Protection Act (RCW 19.86). Local housing agencies or legal aid nonprofits may also support tenants filing complaints or lawsuits. Tenants can also sue directly in small claims or civil court for damages and attorney fees under RCW 59.18.150.

Staying Compliant: Ongoing Best Practices

Compliance with RCW 59.18.610 is not a one-time task. Here are ongoing practices to protect yourself:

• Review your lease documents annually. Ensure your move-in fee disclosure and lease addendum still reflect current law. Washington's legislature frequently updates tenant-protection statutes.
• Track state legislative changes. Follow the Washington Legislature's session website (leg.wa.gov) and subscribe to landlord or property management newsletters to stay informed of new bills affecting move-in fees or deposits.
• Keep documentation organized. Maintain a file for each tenant containing: signed lease, move-in fee disclosure form, payment receipts for both installments, and any demand notices or payment arrangement agreements.
• Use a property management system that enforces compliance. A system that flags missing disclosures, tracks payment deadlines, and generates compliance reports can prevent costly mistakes. LeaseBase's compliance engine tracks state-specific requirements like RCW 59.18.610 and alerts you to missing documentation.
• Educate yourself on related statutes. RCW 59.18.610 works alongside RCW 59.18.140 (security deposit requirements), RCW 59.18.060 (lease disclosures), and RCW 59.18.280 (prohibited practices). Violating any of these creates liability.

Related Washington Landlord Laws You Should Know

RCW 59.18.610 doesn't exist in isolation. These related statutes affect how you collect and handle move-in fees:

• RCW 59.18.140 (Security Deposit Rules): Defines what's a security deposit, caps amounts, requires trust account storage, and sets deadlines for return and itemized deductions. Washington landlord-tenant law guides cover this in detail.
• RCW 59.18.075 (Application Screening Fees): Limits application fees to actual reasonable costs of screening. If you can't document the cost, you can't charge it. This ties directly to move-in fee installment obligations.
• RCW 59.18.060 (Lease Disclosures): Requires mandatory lease language on topics like mold, smoking, and pet policies. Your move-in fee disclosure should be part of this package.
• RCW 59.18.280 (Prohibited Practices): Bans landlords from charging fees for utilities, furniture, junk administrative fees, and other items not explicitly authorized by statute.

Violating any of these statutes creates cross-liability and compounds your exposure. Use a compliance tracking system that monitors all applicable Washington statutes, not just RCW 59.18.610.

Conclusion: Compliance Is Your Competitive Advantage

Washington's move-in fee installment plan requirement is clear, specific, and strictly enforced. The penalties for non-compliance—attorney fees, statutory damages, and reputational harm—are steep enough that ignoring the law is not a business strategy.

For self-managing landlords with 2–75 units, compliance at scale requires more than a checklist. You need:

• Standardized lease documents that include the RCW 59.18.610 disclosure
• A payment tracking system that enforces deadlines
• Organized documentation that proves compliance
• A way to stay updated on changes to Washington law

These tools separate landlords who avoid tenant lawsuits from those who get sued repeatedly. The good news: you don't need to hire a property manager to achieve this level of compliance. You need a platform designed for self-managing landlords that automates compliance tasks and tracks state-specific requirements.

Whether you're screening a first tenant or managing dozens of leases, ensuring every lease includes a proper move-in fee installment plan disclosure is a non-negotiable compliance baseline in Washington.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in Washington State for guidance specific to your situation. RCW 59.18.610 and related statutes are subject to interpretation by courts and may be amended by the legislature. Landlords should verify compliance with current law before implementing policies. LeaseBase provides tools to track compliance requirements but cannot provide legal advice.

What Is the $20 Application Fee Cap Under RPL §238-a?

New York's Rent Stabilization and Housing and Community Renewal Law (HSTPA) established a statewide ceiling on application fees through RPL §238-a. As of 2024, the cap remains at $20 per applicant, adjusted annually for inflation. However, this adjustment applies only to the maximum rent amount calculations under HSTPA; the application fee cap itself stays fixed at $20.

This law applies uniformly across New York State—both inside and outside New York City. There is no higher cap for luxury rentals, no exemption for buildings with fewer than 6 units, and no variance for different neighborhoods or municipalities. Every landlord, whether self-managing a duplex or managing a 75-unit building, must comply with the same $20 ceiling.

The statute's purpose is consumer protection: it prevents landlords from using inflated application fees as a hidden profit center during tenant screening. The fee must be tied to legitimate background-checking costs only and cannot be retained if screening is not performed or if the applicant is not approved for unrelated reasons (e.g., landlord changes mind about renting).

What Does "Application Fee" Mean Under the Law?

RPL §238-a defines an application fee as a charge levied on a prospective tenant to cover the landlord's cost of reviewing the rental application and conducting background screening. This includes:

• Credit report pull
• Criminal background check
• Eviction history search
• Employment/income verification
• Reference checks (landlord or personal)
• Sex offender registry check
• Address history verification

The fee does not cover lease preparation, lease signing, move-in inspections, or administrative processing after approval. Some landlords mistakenly bundle these into the application fee. That is noncompliant.

Notably, the law does not allow landlords to charge separate fees for different screening components. You cannot charge $20 for a background check and $20 for a credit report. The entire screening process—no matter how many checks you run—is capped at $20 per applicant.

Who Must Comply? Scope and Exemptions

RPL §238-a applies to all residential rental property owners in New York State. There are no exemptions for:

• Single-family home rentals
• Small buildings (2-5 units)
• Rent-stabilized units
• Market-rate apartments
• Luxury rentals (no upper-price exemption exists)
• Privately owned or corporate owners

If you own or manage residential rental property in New York and you charge a prospective tenant an application fee, that fee cannot exceed $20. Period.

This includes landlords who use property management software like LeaseBase to collect and track applications. The cap applies whether fees are collected in person, by check, credit card, or electronic transfer.

Key Compliance Requirements Under RPL §238-a

Written Disclosure Requirement

Before you collect the fee, you must provide the applicant with written notice of:

• The exact amount of the fee ($20 or less)
• What the fee covers (background check, credit report, etc.)
• Whether the fee is refundable or nonrefundable
• The date by which background checks will be completed

This disclosure should be included in your rental advertisement, on your application form, or in a separate written document provided to the applicant before money changes hands. Verbal statements alone do not satisfy this requirement—the applicant must have something in writing they can reference.

Many New York landlords include this disclosure directly on the application form with a checkbox or signature line confirming the applicant understands the fee. This creates a clear paper trail for compliance.

Nonrefundable Nature

The statute permits the fee to be nonrefundable, meaning you retain it whether the applicant is approved or rejected. However, you must be transparent about this in advance. If you state the fee is nonrefundable, you cannot later refund it to one tenant and not another—consistency is part of compliance.

If an applicant requests a refund after being denied, you are not legally required to grant it under RPL §238-a, but only if you disclosed the nonrefundable status beforehand. Without that disclosure, you may be forced to refund plus pay penalties.

Timing of Completion and Disclosure

The statute does not explicitly set a deadline for completing background checks after collecting the fee, but case law and AG guidance indicate you should complete screening within 5-10 business days. If you take significantly longer without cause, you may violate the implied covenant of good faith and fair dealing—applicants can argue you collected a fee for a service not performed in reasonable time.

Multiple Applicants and Co-Signers

Each applicant or co-signer on an application can be charged a separate $20 fee. If a married couple both apply and you run background checks on both, you may charge $20 per person ($40 total). However, you cannot charge one fee and claim it covers multiple applicants; each person screened triggers a separate potential fee.

Guarantors and co-signers are often treated as applicants under the statute, so charging a $20 fee to screen them is compliant if you have disclosed it in writing.

Penalties and Enforcement for Violations

Civil Penalties Under RPL §238-a

New York's attorney general and housing courts enforce RPL §238-a violations. Penalties include:

Violation Type	Penalty Range	Per Applicant or Total?
Charging more than $20	$50–$1,000	Per applicant
Collecting fee without disclosure	$50–$1,000	Per applicant
Bad faith collection (pattern)	Treble damages + civil penalty	Per applicant (3x overcharge + $50–$1,000)

Example Scenarios

Scenario 1: Overcharge. You charge $35 for an application fee. One applicant sues. You owe at minimum $50 in civil penalties plus the $15 overcharge. If the applicant proves bad faith (e.g., you knew the cap but charged anyway), you owe $45 in treble damages (3 × $15) plus civil penalties, potentially totaling $1,000+.

Scenario 2: Multiple Applicants. You collect $30 from each of five applicants without disclosing the $20 cap. That is five separate violations, each carrying a $50–$1,000 penalty range. The cumulative exposure is $250–$5,000, not including treble damages.

Scenario 3: No Disclosure. You collect $20 in cash but never provide written notice of the fee amount or what it covers. The applicant claims you collected an undisclosed fee and sues. Even though the amount ($20) is compliant, the lack of disclosure is a separate violation, triggering $50–$1,000 in penalties.

Who Enforces RPL §238-a?

Violations are enforced by:

• New York Attorney General — can bring civil suits and seek penalties on behalf of consumers
• Housing Courts — applicants can sue individually in small claims court (for amounts under $5,000) or housing court
• Tenants' Rights Organizations — can file complaints with the AG's office or take civil action

The AG's Office of Consumer Protection has published guidance on RPL §238-a compliance and actively investigates complaints about inflated application fees. In recent years (2024–2026), the AG has settled cases with landlord groups and property management companies charging excessive fees.

Common Compliance Mistakes to Avoid

Mistake 1: Charging for Multiple Screening Components Separately

Violation: You charge $15 for a credit report and $15 for a background check, totaling $30.

Why It's Wrong: The law caps the total application fee at $20, not per service. All screening costs must be bundled under the $20 ceiling.

Fix: Charge one flat $20 fee that explicitly covers all screening services you perform.

Mistake 2: No Written Disclosure

Violation: You verbally tell an applicant the fee is $20 but provide no written documentation.

Why It's Wrong: RPL §238-a and case law require written disclosure. The applicant has no proof of what was promised, making it easy for them to later claim you charged more or charged without consent.

Fix: Always provide a written application form, rental listing, or fee disclosure document that states the exact fee, what it covers, and its nonrefundable status.

Mistake 3: Charging Non-Screening Fees and Calling Them "Application Fees"

Violation: You charge $20 for the "application fee" but then charge another $20 for "lease preparation" or "administrative processing."

Why It's Wrong: If these are separate charges, the combined total may exceed the $20 cap and violate the spirit of the law. The statute caps fees for tenant screening and application review specifically.

Fix: Clearly separate screening fees (capped at $20) from any legitimate lease-related charges (e.g., lease drafting by an attorney, which is a separate service and may be charged separately—though this is rare in New York residential rentals).

Mistake 4: Inconsistent Refund Practices

Violation: You tell some applicants the $20 fee is nonrefundable but refund it to others if they ask.

Why It's Wrong: Inconsistent application of your fee policy exposes you to discrimination claims and shows bad faith in charging.

Fix: Decide upfront whether your fee is refundable or nonrefundable, disclose this uniformly to all applicants, and stick to your policy consistently.

Mistake 5: Charging Applicants Who Are Never Screened

Violation: You collect a $20 fee from an applicant but never run any background check—you simply decide not to rent to them for an unrelated reason (e.g., you take the unit off market).

Why It's Wrong: The fee is supposed to cover the cost of screening. If no screening occurs, the fee is not justified, and you must refund it.

Fix: Collect fees only after you commit to screening the applicant. If circumstances change and you will not screen them, refund the fee immediately.

Practical Compliance Checklist for Self-Managing Landlords

Before collecting any application fee:

• ☐ Draft or update your rental application form to include a written disclosure of the $20 fee, what it covers, and whether it is refundable
• ☐ Include the fee disclosure in your rental listing (online or print) so applicants see it before requesting an application
• ☐ Confirm that your fee amount does not exceed $20, including any local taxes or surcharges
• ☐ Ensure the disclosure clearly separates the "application fee" from any other charges (e.g., lease preparation, move-in inspection)
• ☐ Train yourself or anyone assisting with screening on what the fee covers (background check, credit report, eviction history) and what it does not (lease signing, move-in costs)

When collecting the fee:

• ☐ Collect the fee in writing (check, credit card, or signed receipt) to create a paper trail
• ☐ Issue a receipt showing the amount, date, and applicant name
• ☐ Keep a copy of the disclosure the applicant signed or acknowledged
• ☐ If collecting via check, note on the check memo line: "Application Screening Fee"

After screening:

• ☐ Complete all promised background checks within 5–10 business days
• ☐ Document which checks you ran (credit report date, background check date, etc.)
• ☐ Keep receipts from any third-party screening services (e.g., credit bureau, background check company) to prove the fee covered legitimate costs
• ☐ If you deny the applicant, retain all documentation; do not refund the fee (unless your disclosure said it was refundable)

Record-keeping:

• ☐ Maintain a log of all applicants, dates of application, fee amounts collected, and screening results for at least 3 years
• ☐ File copies of signed disclosures and receipts in a secure location (digital or physical)
• ☐ If using a property management platform like LeaseBase, confirm it tracks application fees and compliance disclosures automatically

New York State Adjustments and Recent Changes (2024–2026)

As of August 2026, the $20 application fee cap under RPL §238-a remains unchanged. However, New York's HSTPA does adjust certain rent-related maximums annually for inflation using the Rent Guidelines Board formula. The application fee cap itself does not adjust—it is fixed at $20 statewide.

In 2024–2025, the New York Attorney General's office increased enforcement activity around tenant screening fees, particularly targeting landlords and property management companies charging hidden or undisclosed fees. The AG settled cases with several large property management platforms over application fee violations, resulting in refunds to tenants and civil penalties.

As a self-managing landlord, you should assume the AG's office is actively monitoring compliance in this area. Ensure your disclosures are clear and your practices are consistent.

Technology and Compliance: Using Property Management Software

If you are screening multiple applicants or managing more than a few units, consider using a property management platform that automates fee disclosure and collection. Platforms like LeaseBase can:

• Generate compliant fee disclosures automatically based on New York law
• Collect fees electronically with receipts and documentation
• Track which applicants were screened and which fees were collected
• Flag compliance issues (e.g., if you attempt to charge more than $20)
• Maintain audit trails for disputes or enforcement reviews

Using tools like this reduces the risk of accidental violations and provides documentation to defend against unfounded complaints. Learn more about how lease operations platforms can streamline your screening process while keeping you compliant.

Interaction with Fair Housing Law

While RPL §238-a sets the fee cap, New York's Fair Housing Law and the federal Fair Housing Act also apply to tenant screening. You cannot:

• Charge different application fees to applicants based on race, color, national origin, religion, sexual orientation, gender identity, disability, familial status, or other protected classes
• Waive the fee for some applicants and not others based on protected characteristics
• Use the application process to screen for factors that correlate with discrimination (e.g., zip code as a proxy for race)

Your fee amount and your screening criteria must be applied uniformly across all applicants, regardless of background. This overlaps with but is separate from the RPL §238-a cap.

FAQ: New York Application Fee Cap (RPL §238-a)

Q1: Can I charge $20 per applicant if a married couple applies together?

A: Yes, if you screen both applicants individually. The statute allows you to charge $20 per person screened. So if you run background checks on both spouses, you may collect $20 from each ($40 total). However, you must disclose this in writing beforehand and explain that the fee applies per applicant, not per application. If you screen only one spouse, you can charge only $20.

Q2: What if a third-party background check company charges me $25 to screen an applicant? Can I pass that cost to the tenant?

A: No. The statute caps the fee you can charge at $20, regardless of what you actually pay a third-party vendor. If your screening vendor charges you $25, you absorb the extra $5 as a business cost. You cannot charge the applicant more than $20 to recover your expense. This is why many landlords use affordable screening services that cost $10–$20 themselves.

Q3: Can I include the application fee in the security deposit?

A: This is a gray area. Technically, the application fee must be collected before the applicant is approved. Once approved, any separate security deposit is a different charge. However, mixing the two in a single payment to the same applicant can cause confusion and potential compliance issues. Best practice: collect the $20 application fee upfront from all applicants, then collect a separate security deposit (held in trust under NY law) only from approved applicants. Keep these charges distinct in your records.

Q4: If I use an online rental platform (e.g., Zillow, Apartments.com), am I responsible for application fees they collect?

A: Yes, if you authorize or receive the fees. Many online platforms collect application fees on behalf of landlords. You are responsible for ensuring those fees comply with RPL §238-a—i.e., they do not exceed $20 and are disclosed in writing. Review your platform's terms to confirm what fees are collected and how they are disclosed. You may be liable if the platform charges more than $20 and you do not correct it.

Q5: What if an applicant disputes the charge and claims I never disclosed the fee?

A: If you have no written evidence of disclosure (signed application form, email confirmation, listing language), you will likely lose the dispute and be ordered to refund the fee plus pay penalties. Written documentation is your only defense. Always maintain copies of the disclosure provided to each applicant and the signed or acknowledged proof they reviewed it.

Summary: Compliance Takeaways for Self-Managing Landlords

The $20 application fee cap under RPL §238-a is a bright-line rule with no exceptions. Self-managing landlords who violate it face penalties of $50–$1,000 per applicant, plus treble damages if bad faith is proven. The three keys to compliance are:

1. Write it down. Disclose the $20 fee, what it covers, and its refund status in writing before collecting money.
2. Keep records. Maintain receipts, signed disclosures, and documentation of screening services performed for each applicant.
3. Be consistent. Apply the same $20 fee and disclosure to every applicant; do not waive fees or vary disclosures based on circumstance.

If you manage more than a handful of applications per year, automating this process with a platform that enforces fee caps and generates compliant disclosures can reduce your risk significantly.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in New York for guidance specific to your situation, property, or disputes involving tenant screening fees. The information here reflects RPL §238-a as of August 2026 and may change. Verify current law with the New York Attorney General's Office or a licensed attorney before making business decisions.

Why Washington's Move-In Fee Installment Law Exists (And Why It Matters to You)

On June 7, 2024, Washington Governor Jay Inslee signed SB 5961 into law, effective January 1, 2025. The statute fundamentally changed how landlords can collect upfront fees in Washington. Before this law, tenants faced a wall of cash demands at lease signing: security deposit, pet deposit, application fee, administrative fee, and sometimes damage waiver fees—all due immediately. For renters with modest savings or irregular income, this was financially impossible, even if they had steady employment and good rental history.

RCW 59.18.610 solved that problem by mandating installment plans. But it also created compliance obligations that many self-managing landlords still don't know exist. The Washington Department of Commerce and local attorneys general actively enforce this statute. Violations aren't cheap: tenants can sue for actual damages plus statutory damages up to $500 per violation, plus your attorney fees.

This guide walks you through exactly what the law requires, what it doesn't cover, and how to implement compliant systems—whether you manage 2 units or 75.

The Legal Text: RCW 59.18.610 Explained

Here's what the statute actually says:

"A landlord shall provide a prospective tenant with the option to pay a move-in fee in two equal installments. The first installment is due upon lease signing. The second installment is due one month after lease signing. A landlord shall not charge a fee or penalty for utilizing the installment option." — RCW 59.18.610

Straightforward language, but with broad implications. Let's break down what each phrase means in practice:

"A landlord shall provide"

This is mandatory, not optional. You must offer the installment plan. You cannot:

• Make installment plans available "upon request only"
• Require tenants to ask for this option
• Hide it in fine print at the end of a lease
• Discourage tenants from using it

The burden is on you to affirmatively present the option. This typically means disclosing it in writing before or at lease signing. Verbal offers alone create disputes and expose you to claims that the option wasn't truly presented.

"A prospective tenant"

This means the option must be offered before the lease is signed. Once a lease is executed, you cannot retroactively revoke or limit the installment plan. If you've been operating without offering installment plans, you're in violation as of January 1, 2025—not just for new leases going forward.

"Move-in fee"

This term is defined broadly in RCW 59.18.100 as all charges due at or before occupancy, except first month's rent and last month's rent. This includes:

• Security deposits
• Pet deposits or pet fees
• Parking fees (if charged upfront)
• Administrative or processing fees
• Application screening fees
• Key deposit or fob deposit
• Cleaning fees (if charged at move-in)
• Any other non-rent charge due at lease signing

This does NOT include:

• First month's rent
• Last month's rent
• Utilities or other third-party charges
• Court-ordered restitution or other non-lease obligations

"Two equal installments"

If a tenant's total move-in fees are $1,500, they must be able to pay $750 upon signing and $750 one month later. The payments must be equal. You cannot offer $1,000 first, $500 second or any other split. The word "equal" is non-negotiable.

"First installment due upon lease signing"

The first 50% is due when the lease is executed. You can condition occupancy on receipt of this payment (i.e., no move-in without payment), but once the lease is signed, the first payment must be due immediately.

"Second installment due one month after lease signing"

One month means exactly 30 days, or the same calendar day the following month (e.g., if the lease is signed January 15, the second payment is due February 15). You can charge late fees if the second payment is not received by the deadline, but you cannot charge any fee simply for using the installment option.

"A landlord shall not charge a fee or penalty for utilizing the installment option"

This is explicit. You cannot:

• Add a $50 "installment plan processing fee"
• Charge interest on the second installment
• Require auto-pay or electronic payment as a condition of the installment option
• Charge a higher total move-in fee if the tenant chooses installments
• Require a guarantor only for tenants using the installment plan

The installment option must be cost-neutral to the tenant. This is a bright-line rule.

What Move-In Fees Can You Actually Charge? Washington Limits Explained

While RCW 59.18.610 mandates installment plans, it doesn't set caps on move-in fee amounts (unlike some states). However, Washington has other move-in fee restrictions you must know:

Security Deposits

Security deposits are capped at one month's rent in Washington (RCW 59.18.140). If rent is $1,500/month, your security deposit cannot exceed $1,500. Interest must be paid on deposits held longer than one year (currently minimal). You must return deposits within 30 days of lease termination, with an itemized deduction list if you're retaining funds.

Pet Deposits

Washington does not impose a statutory cap on pet deposits. However, the total of all move-in fees (security deposit + pet deposit + other fees) is what must be offered on an installment plan. If you charge $1,200 security + $500 pet deposit + $200 application fee = $1,900 total move-in fee, the tenant can split this into two $950 payments.

Application Screening Fees

RCW 59.18.100 permits application screening fees, but they must be reasonable and directly related to the cost of screening. You cannot charge $150 for a screening that costs $15. The fee must be disclosed before collection. While not explicitly capped by statute, courts may find excessive fees unconscionable.

Last Month's Rent Exception

If you're collecting first month, last month, and security deposit, the last month's rent is NOT part of the installment plan requirement. That said, it's still a move-in fee under the statute's definition, meaning it technically should have an installment option available. Best practice: require first month + security deposit on the installment plan, but last month's rent upfront as a separate line item (if you collect it at all—collecting last month's rent upfront is increasingly scrutinized in Washington).

Step-by-Step Compliance Checklist: How to Implement Installment Plans

Step 1: Calculate Your Total Move-In Fees

List every charge due at or before occupancy, excluding first month's rent and last month's rent (if collected):

Fee Type	Amount	Installment Eligible?
Security Deposit	$1,200	YES
Pet Deposit	$500	YES
Application Fee	$75	YES
First Month's Rent	$1,500	NO
TOTAL MOVE-IN FEES	$1,775	INSTALLMENT AMOUNT: $887.50 each

Step 2: Create Written Disclosure Language

Draft a clear, separate disclosure that offers the installment option. It should state:

Move-In Fee Installment Plan Option

Washington law (RCW 59.18.610) requires that we provide you with the option to pay your move-in fees in two equal installments, with no additional fee or penalty for choosing this option.

Your move-in fees total: $1,775.00

Installment Option:

• First installment: $887.50 — Due upon lease signing
• Second installment: $887.50 — Due one month after lease signing (on or before [DATE])

Full payment option: Pay the full $1,775.00 upon lease signing.

You may choose either option. No fee, penalty, or change in terms will apply based on your choice.

Do not embed this in 10-point font in an appendix. Make it visible and plain-language.

Step 3: Include Disclosure in Lease Documents

Attach the installment plan disclosure to every lease as a separate page or section. Title it clearly. Have the tenant initial or sign it. Document that this was provided before lease signing. Keep a dated copy in your records for each tenancy.

Step 4: Create Separate Payment Schedules

If a tenant elects the installment option, issue a written payment agreement showing:

• Total move-in fees: $1,775
• Payment 1: $887.50 on [DATE] — PAID or DUE
• Payment 2: $887.50 on [DATE] — DUE
• Payment method and where to send payment
• Late fee policy (you can charge standard late fees if payment 2 is late)

Issue this before or at lease signing. Use rent payment tracking to document all payments received and due dates.

Step 5: Clarify Your Late Fee Policy

You CAN charge late fees if the second installment is not paid by the due date. However, you cannot charge any penalty simply for choosing the installment option. Your late fee must be the same as for any other late rent/fee payment—typically 5–10% of the amount due or a flat fee. Disclose this in your lease and payment agreement.

Step 6: Document Compliance in Your System

Log:

• Date disclosure was provided
• Whether tenant chose full payment or installments
• Payment dates and amounts for each installment
• Confirmation of receipt

This creates a paper trail showing you offered the option and the tenant's choice. If a dispute arises, you can show the tenant was informed and accepted the terms.

What You Cannot Do: Common Violations

Violation #1: Offering Installments "Upon Request Only"

Illegal. You must affirmatively offer it. Many landlords try to include fine print that says "installment plans available upon request." This violates RCW 59.18.610. The tenant should never have to ask. You must offer it upfront.

Penalty: If a tenant sues and shows you didn't affirmatively offer the option, they can recover actual damages plus up to $500 statutory damages, plus attorney fees and court costs.

Violation #2: Charging a Processing or "Convenience" Fee

Illegal. Charging $50 for using the installment plan option, or charging interest on the second payment, violates the statute's explicit prohibition on fees for the option. This includes:

• ACH or processing fees specific to installment payments
• Credit card surcharges if the tenant pays the second installment by card
• Any administrative charge tied to the installment option

Penalty: $500 per violation, actual damages, plus attorney fees.

Violation #3: Unequal Installments

Illegal. Offering $1,000 first, $500 second—or any split that isn't 50/50—violates the law. The statute mandates equal installments. This includes:

• Charging interest that makes the second payment larger
• Splitting deposits unequally
• Requiring different payment methods that result in different amounts

Penalty: Statutory damages up to $500, actual damages, attorney fees.

Violation #4: Conditioning Lease Terms on Payment Choice

Illegal. You cannot:

• Require a guarantor only if the tenant uses installments
• Apply higher rent if the tenant chooses installments
• Require a larger security deposit if the tenant chooses installments
• Change move-in date based on payment choice

Payment choice is not a basis for changing any lease term.

Penalty: Statutory damages, actual damages, attorney fees, potential civil rights claim if the effect is discriminatory.

Violation #5: Not Documenting the Option

Risky. While the statute doesn't explicitly require written documentation, best practice demands it. If you offer installments only verbally, a tenant can later claim they were never offered the option. You have no proof. In a dispute, the tenant's word is as good as yours, but you're the party who failed to document compliance.

Penalty: Increased litigation risk; courts may presume you violated the law if you have no documentation showing you offered the option.

Penalties for Non-Compliance: What It Costs

Washington's statute provides strong enforcement mechanisms for tenants. Here's what violations can cost you:

Violation Type	Damages	Statutory Cap	Additional Costs
Failing to offer installment plan	Actual damages	Up to $500	Attorney fees + court costs
Charging fee for installment option	Actual damages (fee amount + impact)	Up to $500	Attorney fees + court costs
Unequal installments	Actual damages (amount of inequity)	Up to $500	Attorney fees + court costs
Conditioning lease terms on payment choice	Actual damages + treble damages possible	Up to $500 per violation	Attorney fees + court costs + possible civil rights damages

Example: A tenant pays $1,500 in move-in fees when you offered no installment option. The tenant discovers this law, consults an attorney, and files in small claims court (or district court). They recover:

• $1,500 actual damages (the difference between what they paid and what they should have been allowed to split)
• $500 statutory damages
• $2,000–$5,000 in attorney fees (depending on local rates and complexity)
• $150–$300 in court costs
• Total: $4,150–$7,300

Now multiply this by the number of tenants you've signed in violation of the law since January 1, 2025. If you've failed to offer installments to 10 tenants, the exposure is easily $40,000–$70,000+.

Special Scenarios and Edge Cases

What if the Tenant Can't Pay the Second Installment on Time?

If the second payment is late, you can:

• Charge your standard late fee (disclosed in the lease)
• Begin eviction proceedings after providing proper notice (RCW 59.12.070 requires notice and an opportunity to cure)
• Hold the security deposit for unpaid move-in fees (though this is disputed in some contexts)

You cannot refuse to allow occupancy before the first installment is paid, but you can withhold occupancy if the first payment isn't received. Once the lease is signed, occupancy can begin even if the tenant is on an installment plan (unless the lease specifies otherwise—which is fine).

What if You're Using a Co-Signer or Guarantor?

The installment option applies equally to guarantors. If a guarantor is signing for the move-in fees, they too can use the installment plan. You cannot require payment in full from a guarantor if you're offering installments to the tenant. The installment option "flows through" to any party liable for the move-in fees.

What if the Lease Is for Multiple Units (e.g., a Two-Bedroom)?

RCW 59.18.610 applies to all residential leases, regardless of unit size or type. Even if you're offering a multi-unit lease, the installment requirement applies. Calculate move-in fees based on the entire lease obligation and split them equally.

What if You Manage Properties in Multiple States?

RCW 59.18.610 applies only to properties in Washington. If you manage units in Washington and other states, apply the installment requirement only to Washington properties. However, many states are adopting similar laws (Oregon, California, and others have move-in fee limits), so check local law for each jurisdiction.

What About Short-Term Rentals or Vacation Rentals?

RCW 59.18.610 applies to "rental agreements" as defined in RCW 59.18.030. Short-term rentals (typically under 30 days) may not fall under this definition. However, if a tenant is renting for 30+ days, the law applies. If you operate vacation rentals with some longer-term tenancies, apply the installment requirement to leases 30+ days.

How Technology Can Help You Stay Compliant

Manually tracking installment payments and ensuring disclosure compliance across multiple units is error-prone. Self-managing landlords who use spreadsheets often miss dates, forget to issue disclosures, or fail to document tenant choices.

Lease operations software can automate several critical tasks:

• Disclosure templates: Create RCW 59.18.610-compliant disclosure language once, then auto-populate lease documents
• Payment scheduling: Generate automatic payment schedules showing both installment dates and full-pay options
• Tracking: Log whether each tenant chose full payment or installments, and automatically flag overdue second installments
• Audit trail: Maintain dated records proving you offered the option and documented the tenant's choice—crucial if a dispute arises

Compliance-focused systems can also flag when you're adding fees that must be included in the installment calculation, so you don't accidentally omit pet deposits or parking fees.

For portfolios with 10+ units, portfolio management platforms let you monitor installment compliance across all properties in one dashboard, catching violations before they become lawsuits.

Frequently Asked Questions

Q: Do I have to collect move-in fees at all? Can I charge nothing?

A: No, you don't have to collect move-in fees. If you choose not to charge a security deposit, pet deposit, or application fees, RCW 59.18.610 doesn't apply. But if you collect any move-in fees, the installment option must be offered. Many landlords are choosing to eliminate move-in fees entirely to reduce tenant barriers—this is fully legal and avoids the compliance burden, though it's a business choice, not a legal requirement.

Q: Can I require the full deposit upfront if the tenant has bad credit?

A: No. RCW 59.18.610 applies uniformly to all prospective tenants. You cannot condition the availability of the installment option on credit score, income, or any other factor. Every tenant must be offered the option. If you deny the option to tenants with poor credit and offer it to others, you may face discrimination claims under the Fair Housing Act (if the credit denial correlates with a protected class) or state consumer protection laws.

Q: What if a tenant elects installments but wants to pay the full amount upfront?

A: That's fine. You can accept the full payment whenever the tenant wants to pay it. The installment option is a floor (you must offer it), not a ceiling. Tenants can always pay more or faster than the installment schedule allows.

Q: Do I have to offer installment plans for last month's rent?

A: Last month's rent is a move-in fee under RCW 59.18.100. Technically, it should be offered on an installment plan. However, Washington courts and the Department of Commerce have not yet clarified whether landlords can collect last month's rent upfront without allowing installments. Best practice: avoid collecting last month's rent upfront altogether (many Washington landlords have dropped this practice). If you do collect it, treat it the same as security deposit—offer installments for it or clearly separate it from the move-in fee offer, which may create ambiguity. Consult a local attorney if you collect last month's rent.

Q: Can I require electronic auto-pay as a condition of the installment option?

A: No. RCW 59.18.610 states that no fee or penalty applies for using the installment option. Requiring auto-pay imposes a condition (setup burden, potential fees if auto-pay fails) and could be construed as a penalty. You can accept auto-pay as one option, but you must also accept other payment methods (check, money order, credit card, etc.) for the installment payments, with no surcharge. The tenant must have a choice of payment methods that are cost-neutral.

State Enforcement and Recent Cases

As of August 2026, the Washington Department of Commerce has not issued detailed enforcement guidance specific to RCW 59.18.610. However, several attorneys general offices (particularly in King County and Pierce County, which include Seattle and Tacoma) have received complaints from tenants about landlords not offering installment plans. No published court decisions have yet interpreted the statute in detail, but the lack of guidance does not mean the law is unenforceable—it means violations haven't been widely litigated yet.

Expect increased enforcement as tenants become aware of the law. Consumer protection organizations have promoted RCW 59.18.610 heavily, and tenant advocacy groups regularly screen for non-compliance. The first major court decisions will likely come in 2026–2027.

Key Dates and Deadlines

Date	Event	Action Required
January 1, 2025	RCW 59.18.610 effective date	All leases signed after this date must offer installment plans; retroactive compliance for existing leases is debated
Lease signing	Tenant elects installment or full payment	Provide written disclosure; document tenant's choice
First installment due	Immediate upon lease signing	Invoice tenant; can condition occupancy on payment
One month after signing	Second installment due	Invoice and pursue late August 26, 2026 New York Application Fee Cap: $20 Maximum Statewide — RPL §238-a Compliance (2026) Key Takeaways $20 is the maximum application fee statewide — New York Real Property Law §238-a caps all tenant screening fees, credit checks, and background report fees at $20 per applicant with no exceptions The cap applies to all rental properties in New York — whether you manage 2 units or 75, residential or commercial mixed-use, no exemptions exist based on property size or location Violation penalties start at treble damages — if you charge more than $20, tenants can sue you for three times the overcharge plus attorney fees and costs, not just a refund You must disclose the fee in writing before collection — applicants must know what they're paying for and the purpose of the screening, or the fee becomes unenforceable Specific expenses may be charged separately under limited conditions — costs for certified mail, court records searches, or obtaining documents directly from government agencies can be passed through if documented and reasonable, but only when actually incurred This law became effective in 2020 and enforcement has increased — New York Department of Housing and Community Renewal (DHCR) has received complaints; federal Fair Housing Act violations can trigger additional liability What Is the New York Application Fee Cap? New York Real Property Law §238-a, enacted as part of the Housing Stability and Tenant Protection Act (HSTPA) of 2019, sets a hard cap on the amount landlords can charge prospective tenants for application screening. The statute is straightforward: the total fee cannot exceed $20 per applicant. This $20 cap covers all screening-related costs, including: Credit report fees Criminal background checks Eviction history searches Reference verification Employment verification Rental history verification Identity verification services Consumer report fees (as defined under the Fair Credit Reporting Act) Any fee marketed as a "screening fee," "processing fee," "application fee," or "tenant fee" The law applies to all landlords in New York State, regardless of whether they own one property or one hundred. There is no exemption for small landlords, large portfolios, luxury properties, or commercial buildings. If you rent out residential units in New York, §238-a applies to you. The Text of RPL §238-a and What It Actually Says The relevant statute reads in part: "No owner of residential real property shall demand or receive any application fee, application deposit, non-refundable fee or other fee or charge to process an application from a prospective tenant, except that such owner may collect a non-refundable fee of not more than twenty dollars to cover the costs of conducting a background and credit check of the prospective tenant." This language is critical. The statute: Prohibits most fees outright — application deposits and non-refundable processing fees are banned entirely, with a single exception for the $20 screening fee Ties the fee to actual background and credit checking — you cannot charge $20 simply for receiving an application; you must actually perform screening Makes the $20 non-refundable by default — applicants cannot expect a refund if they withdraw or are denied Specifies "prospective tenant" status — the fee applies only to people who have not yet been approved as tenants When Did This Law Take Effect? The HSTPA was signed into law on June 14, 2019, and §238-a became effective on February 1, 2020. This means the $20 cap has been in force for over six years. If you have been charging higher fees, you may face liability for violations dating back to February 2020. Tenants have the right to pursue claims for overcharges that occurred after February 1, 2020, and many tenant advocates and legal aid organizations have publicized this right since 2024, increasing enforcement activity. Statutory Penalties for Overcharging Violation of §238-a carries significant penalties designed to deter non-compliance: Penalty Type Amount / Details Treble Damages Three times the amount of the overcharge (not just refund) Attorney Fees Full recovery of tenant's attorney fees and court costs Example Calculation If you charged $50 instead of $20 ($30 overcharge × 3 = $90 treble damages, plus $3,000–$5,000 attorney fees) Class Action Risk Multiple tenants can join a single lawsuit, multiplying liability This is not a "pay it back" situation. A tenant who was charged $50 instead of $20 can sue and recover $90 in treble damages plus their attorney's full fee. If you overcharged 10 applicants over a year, and each one sues, you could face $1,500–$2,000 in direct damages alone, plus $30,000–$50,000 in attorney fees across all claims. Additionally, violations of §238-a may be cited as evidence of Fair Housing Act violations or Consumer Protection Act breaches, expanding liability beyond the statute itself. What Costs CAN You Pass to Applicants (If Any)? The statute allows the $20 fee specifically to "cover the costs of conducting a background and credit check." This creates a gray area: can you charge additional fees for specific, documented expenses? New York case law and DHCR guidance on this issue remain limited, but the statutory language suggests that: Costs You Should Not Charge Separately Credit report purchases — these are bundled into the $20 cap Background check fees from third-party vendors — included in the $20 Administrative time — reviewing applications, making calls, or conducting interviews are not separate costs Tenant screening service subscriptions — the monthly fee you pay to a screening company is your cost to bear, not the applicant's Marketing costs for the rental listing — never chargeable to applicants Costs That May Be Recoverable in Limited Circumstances Some landlords and property managers argue that specific, documented, out-of-pocket expenses should be separable from the $20 cap: Certified mail costs to obtain eviction records — if you must pay the court $5 to retrieve a specific public record by certified mail, that actual expense might be passable, but this interpretation is not confirmed by statute Court document retrieval fees — some counties charge to search court databases; this is debatable Direct government agency fees — fingerprinting or official report requests directly from agencies Caution: If you charge these "additional" fees, you must: Document the actual cost incurred Disclose it separately and in writing before collection Show the applicant proof if requested Limit it to the exact amount, with no markup Because case law is sparse, the safest compliance position is to absorb all screening costs in the $20 fee and not attempt to charge extras. This eliminates litigation risk. Required Disclosures Before Charging the $20 Fee The statute does not explicitly mandate pre-collection disclosure, but New York rental housing law requires transparency in all fee collection. To stay fully compliant and defensible: What You Must Disclose in Writing Before an applicant pays the $20 fee, provide: The exact amount — "$20 application screening fee" What it covers — "to cover the costs of conducting a background and credit check" What it is not — explicitly state it is not an application deposit, security deposit, or lease deposit Non-refundability — "This fee is non-refundable regardless of whether your application is approved or denied" How payment is made — check, card, cash, ACH, or other method What happens next — when screening will occur and how long it may take Recommended Format Include this disclosure in: The rental listing itself (online and print) A separate "Application Terms and Conditions" document An email confirmation before payment is collected In the lease or move-in packet for reference Do not bury the fee in fine print or assume applicants know about it. Transparency is both a legal defense and a fair housing best practice. Compliance Checklist for Self-Managing Landlords Use this checklist to ensure you comply with RPL §238-a on every application: Compliance Task ✓ Done Notes Set maximum fee at exactly $20 per applicant No sliding scale; no regional variations Include fee disclosure in all rental listings Print, online, social media ads Create written Application Terms document Separate from lease; signed by applicant Obtain written authorization before charging fee Email confirmation or signed agreement Do not charge additional screening-related fees All screening costs must fit in $20 Use a compliant tenant screening service They absorb the fee; confirm in writing Maintain clear payment records Date, amount, applicant name, property, payment method Keep screening reports filed separately Document that actual screening occurred Review your current practices annually Especially if you use a property manager or service Be prepared to refund if no screening done If you withdraw an application or don't screen, the fee may be refundable Common Compliance Mistakes Landlords Make Mistake 1: Charging "Separate" Fees Beyond the $20 The Problem: You charge $20 for the screening fee, then add $15 for "administrative processing," $10 for "application review," or $5 for "document handling." The Law: All of these are bundled into the $20 cap. Charging separately violates §238-a. The Risk: A tenant who paid $50 total can sue for $90 (treble damages) plus attorney fees. Mistake 2: Charging an "Application Deposit" or "Holding Fee" The Problem: You ask applicants for a $100 "holding deposit" to reserve the unit while you review the application. The Law: §238-a explicitly bans "application deposit" and "non-refundable fee" except for the $20 screening fee. Holding deposits are prohibited. The Risk: Treble damages plus attorney fees, plus potential fair housing liability if the fee is applied inconsistently. Mistake 3: Assuming Your Property Manager or Screening Service Handles Compliance The Problem: You tell your property manager to "collect whatever screening fees are standard" without verifying they comply with §238-a. The Law: You are liable for violations, even if a third party collected the fee on your behalf. The Risk: Tenants sue you, not the property manager. You pay treble damages. The property manager may face separate licensing violations. Best Practice: Audit your property manager or service quarterly to confirm §238-a compliance. Mistake 4: Charging Different Fees Based on Property Type, Unit Size, or Location The Problem: You charge $20 in Manhattan but $30 in rural upstate New York, thinking the cap varies by region. The Law: §238-a applies statewide. No exceptions for location, property class, or market conditions. The Risk: Liability in every location where you overcharge. Mistake 5: Not Disclosing the Fee Upfront The Problem: You mention the $20 fee only after an applicant has filled out the application form, hoping they'll pay without questioning it. The Law: Transparency is required. The fee must be disclosed before collection. The Risk: Applicants can argue the fee was imposed without informed consent, making it unenforceable. They may refuse to pay and still demand the $20 is returned or waived. How Screening Fees Work With Third-Party Services Many self-managing landlords use tenant screening platforms (such as Zillow, Apartments.com, or specialized screening vendors) that collect fees directly from applicants. How does §238-a apply? If You Use a Third-Party Screening Service Your responsibility: Verify in writing that the service charges no more than $20 per applicant Confirm the service discloses the fee clearly to applicants before collection Ensure the service does not collect additional processing, application, or holding fees Review your agreement with the service to confirm fee caps Red flags to watch for: Service charges $29.99 and calls it "market rate" Service passes through a "processing fee" in addition to a "screening fee" Service collects the fee but does no actual background check Service's disclosure is buried in terms of service or not shown to applicants If the service violates §238-a: You are jointly liable. Tenants can sue both you and the service. Best practice: Require your screening vendor to provide a signed compliance certification confirming they comply with New York RPL §238-a before you direct applicants to them. What If You've Already Overcharged Applicants? If you charged more than $20 per applicant at any time since February 1, 2020, you face potential liability. Consider these steps: Step 1: Conduct an Audit Review your application records from February 2020 to present. Calculate: Total number of applicants who paid a screening fee Amount charged to each applicant Total overcharge (amount charged minus $20) Step 2: Assess Your Risk Risk factors include: Number of overcharged applicants: 1–3 is a low-risk exposure; 20+ multiplies liability significantly Amount of overcharge per applicant: $1–$5 overcharge per person is lower risk; $30–$100 overcharge is high risk Geographic location: New York City and dense suburban areas have higher tenant advocacy and enforcement activity Knowledge of the law: If you've received complaints or inquiries about the fee, you're on notice Step 3: Consider Voluntary Remediation You have a few options: Option A: Proactive Refunds Calculate the overcharge for each applicant Send a refund letter and check to each applicant at the address on file, with an explanation Document that you took corrective action voluntarily This does not guarantee immunity from lawsuits, but it demonstrates good faith and may reduce damages in future litigation Option B: Wait and Monitor Fix your fee structure immediately to comply going forward Monitor for complaints or attorney letters This increases risk of treble damages liability but may not trigger claims if applicants are unaware of their rights Option C: Consult a New York Real Estate Attorney An attorney can review your specific situation and advise on settlement or dispute options This cost is often lower than defending litigation later Why you should act quickly: The statute of limitations for overcharge claims is typically 6 years from the date of violation. Overcharges from 2020–2021 are still within the window. Waiting increases your exposure. Enforcing Compliance: Who Can Sue and How Who Enforces §238-a? Private right of action: Any tenant or prospective tenant who was overcharged can sue you directly in New York Small Claims Court (if damages are under $5,000) or Civil Court. Government enforcement: The New York Department of Housing and Community Renewal (DHCR) and the Attorney General's office can investigate violations but do not typically file cases on behalf of individual applicants. However, they may bring pattern-and-practice cases if you systematically violate the law. Class action risk: If multiple applicants have similar claims, they can join a class action lawsuit, which can result in six-figure settlements. How a Tenant Would Pursue a Claim Tenant sends you a demand letter — typically via attorney, demanding refund plus treble damages You refuse or ignore — tenant files suit in civil court Court hearing — tenant presents application records and proof of payment You lose — ordered to pay treble damages plus attorney fees (usually $3,000–$5,000) Payment or collection — tenant collects via judgment, bank account levy, or garnishment Your only viable defense: Proof that you did not charge the fee, or proof that the applicant authorized a fee higher than $20 as consideration for a lease (this is extremely weak and rarely succeeds). Fair Housing Intersection: Why §238-a Matters Beyond Rent Application fees intersect with Fair Housing Act (FHA) obligations in several ways: Potential Discrimination Risk If you charge application fees unevenly—for example, $20 to some applicants but $50 to others, or $30 to families with children but $15 to couples—you expose yourself to Fair Housing Act liability in addition to §238-a violations. Example: You charge $20 to an applicant from a protected class (e.g., a woman with a disability) but $40 to others, claiming it's for "additional verification." The applicant can sue under both §238-a and the FHA, claiming the higher fee was discriminatory. Damages under the FHA are not limited to treble damages—they can include punitive damages up to $16,000 per violation. Transparency Serves Fair Housing Compliance When you clearly disclose the fee upfront and apply it uniformly to all applicants, you reduce fair housing risk. FAQ: New York Application Fee Cap Q: Can I charge $20 plus ask for a credit card processing fee? A: No. The $20 is the absolute maximum you can collect from an applicant, regardless of how you frame additional fees. If you charge $20 plus a 3% processing fee ($20.60 total), you've violated §238-a. You must absorb payment processing costs as your own business expense. Q: What if the applicant asks to pay the $20 fee later, after I've already screened them? A: You should not screen an applicant without collecting the fee upfront (or at least obtaining written authorization). If you screen without payment or authorization, you likely cannot later enforce collection. Best practice: collect the $20 before running any background check or credit report. Q: I'm in NYC. Are there additional local rules on top of the statewide $20 cap? A: No. The statewide $20 cap under RPL §238-a is the only fee limit applicable in New York City. NYC Local Law does not impose a lower cap. However, NYC has other tenant protections (e.g., source of income discrimination rules, third-party fee restrictions) that interact with screening practices, so review local rules independently. Q: If an applicant is rejected after I charge the $20 fee, must I refund it? A: No. The statute specifies the $20 fee is non-refundable "regardless of whether [the applicant's] application is approved or denied." The applicant approved or denied. However, if you did not actually conduct screening—for example, you accepted the $20 but never ran a credit report—the fee may be refundable as unjust enrichment. Q: Can I charge $20 per applicant if there are two applicants on one lease (e.g., spouses)? A: Yes, but only if both are truly separate applicants. The statute says "$20...per...prospective tenant." If both parties are applying together for the same unit as co-applicants, you can charge $20 each if you are actually conducting separate background checks. If you run one combined report, charging $40 is harder to justify. Best practice: clarify your policy upfront. "Co-applicants on the same lease: $20 per person." How to Track Compliance Going Forward To avoid future violations, implement a simple system to track all application fees: What to Record Date fee collected Applicant name and contact info Property address Amount charged ($20) Payment method (check, card, ACH, etc.) Screening vendor or service used Date screening was completed Approval or denial date Written disclosure provided (yes/no)** Storage and Retention Keep records for at least 6 years (the statute of limitations for claims). Use: A spreadsheet (Google Sheets or Excel) A dedicated applicant tracking system A property management platform like LeaseBase, which can track application fees and compliance workflows in one place Organized records are your best defense if a tenant claims you overcharged. You can quickly show the fee amount, the disclosure provided, and proof that screening occurred. Recent Enforcement Trends (2024–2026) Over the past two years, enforcement of §238-a has increased: Attorney General office: New York's Attorney General has increased tenant outreach about application fee rights, particularly in 2025 Legal aid organizations: Groups like the Legal Aid Society and Met Council on Housing have publicized §238-a violations and encouraged affected tenants to pursue claims Class action filings: At least two class actions have been filed against property management companies charging excessive application fees (2024–2025) Social media and tenant forums: Complaints about overcharges are increasingly visible on Reddit, Facebook, and tenant advocacy pages, raising awareness among prospective tenants This trend means tenants are more likely to notice and challenge non-compliant fees. Staying compliant is not just legally required—it's now a practical necessity. Integration With Your Screening Workflow Compliance with §238-a should be baked into your entire tenant screening process. Consider how the $20 fee fits with your other practices: Step 1: Listing and Pre-Application Include "$20 non-refundable application screening fee" in every rental listing (online and print) State what the fee covers ("background and credit check") Make the disclosure prominent, not buried Step 2: Application Submission Provide a written "Application Terms and Conditions" document Applicant must sign or electronically acknowledge they understand the $20 fee before paying Do not accept an application unless applicant has agreed to the fee in writing Step 3: Payment Collection Collect the $20 August 23, 2026 × One satisfying spreadsheet away from a $10,000 mistake. Most landlords don't know their state's deposit return deadline — or the penalty for missing it. Get the free checklist before it costs you. Send Me the Checklist Free — no spam. Unsubscribe anytime. 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