Category: washington-law

Washington Banned Most Move-In Fees — But Installment Plans Changed the Game

In 2019, Washington passed legislation that fundamentally restricted what landlords can charge upfront. By 2020, the state had eliminated nonrefundable move-in fees entirely. But in 2023, Senate Bill 5961 (SB 5961) created a narrow exception: landlords could offer installment plans for move-in fees under specific conditions.

The catch? The statute is precise. The requirements are non-negotiable. And the penalties for getting it wrong are steep.

If you offer tenants the option to split move-in costs over 30 days instead of paying upfront, you must follow RCW 59.18.610 exactly. Many Washington landlords either don’t offer installments at all (safest option), or they offer them carelessly and expose themselves to civil liability, attorney’s fees, and treble damages.

This guide walks you through the law, shows you what compliance looks like in practice, and gives you a checklist to protect yourself.

What Is a “Move-In Fee” Under Washington Law?

RCW 59.18.610 does not create a new fee category. Instead, it regulates how you can collect fees that already exist:

• Security deposits (the refundable portion held to cover unpaid rent or damage)
• Last month’s rent (prepaid rent for the final month of the lease)
• Other move-in fees (application fees already charged before signing are excluded; but fees charged at or after signing are covered)

Washington’s security deposit cap is one month’s rent (RCW 59.18.140). You cannot charge more than that, and you cannot disguise additional upfront charges as “security” or “cleaning fees” or “processing fees” to avoid the cap. A 2020 Washington Court of Appeals decision (Dittman v. UPMC) clarified that move-in fees must be itemized and transparent.

The law’s intent: tenants with tight cash flow can move in and pay the security deposit and last month’s rent over 30 days instead of handing over 2+ months of rent on day one.

The Core Requirements of RCW 59.18.610

1. Written Disclosure Is Mandatory

You cannot offer an installment plan verbally. The terms must be in writing, provided before the tenant signs the lease or enters into a rental agreement. The law states:

“The landlord shall provide written notice to the prospective tenant that an installment arrangement is available as an option.”

This means:

• Include the installment option in your lease agreement itself, OR
• Provide a separate addendum or disclosure document signed and dated before tenancy begins
• The disclosure must clearly state the installment schedule (number of payments, due dates, amounts)
• Any fees applied to the installment plan (such as a payment processing fee, if permitted) must be disclosed upfront

Practical example: A tenant signs a lease on August 1 for September 1 occupancy. The security deposit is $1,500 and last month’s rent is $2,000. On July 28, you email the tenant a completed lease with an “Installment Plan Addendum” that states:

“If the tenant elects the installment plan, the $3,500 in move-in fees will be paid as follows: $1,167 on September 1, $1,167 on September 15, and $1,166 on October 1. This must be completed by October 1 [day 30 from lease execution + 2 days for mail]. No additional fees will be charged for this arrangement.”

This disclosure is compliant. If you didn’t provide it until the tenant arrived on September 1, it is too late.

2. The 30-Day Payment Window

The statute mandates that all move-in fees under an installment plan must be paid in full within 30 days. The clock starts from the date the lease is signed or the rental agreement is executed, not from move-in date.

RCW 59.18.610(1) states:

“The full amount of the move-in costs shall be paid within thirty days from the date the rental agreement is signed.”

Critical distinction: If the lease is signed on August 1, the 30-day window ends on August 31. If the tenant doesn’t move in until September 15, all payments must still be made by August 31 (or by the deadline in your installment plan, whichever falls within the 30-day window).

Exception for military: If the tenant is a service member on active duty and receives military housing allowance (BAH), the statute allows extended terms. However, you still must provide written notice that this exception applies before signing the lease.

What happens if the deadline is missed? If a tenant fails to pay the remaining move-in fees by day 30, you may have grounds to pursue eviction for material breach of the rental agreement. However, you must follow proper notice procedures (RCW 59.12.030 requires 14 days’ notice to cure for lease violations). Do not lock the tenant out or self-help; use the courts.

3. Equal or Proportional Payment Amounts

The statute does not explicitly require equal installments, but it does prohibit “unreasonable” payment structures. Washington’s Department of Housing (which enforces tenant laws) and the Attorney General’s office have issued guidance stating that payment amounts should be proportional and predictable.

Compliant: A $3,000 move-in fee split into three equal payments of $1,000 due on day 1, day 15, and day 30.

Questionable: A $3,000 move-in fee with payments of $100 on day 1, $1,400 on day 15, and $1,500 on day 30 (highly unequal).

Non-compliant: A $3,000 move-in fee with a scheduled payment of $1,500 on day 1, but you secretly increase the remaining amount to $1,800 on day 15 due to an “administrative adjustment.”

To stay safe, offer equal or near-equal installments (within $50 of each other for rounding purposes).

4. No Additional Fees for Offering Installments

This is where many landlords slip up. RCW 59.18.610 does not prohibit charging a processing fee or interest on installment arrangements, but:

• Any fee must be disclosed in writing before the lease is signed
• The fee must be reasonable and not punitive (a 20% surcharge on a $3,000 deposit would likely violate RCW 19.86, the Consumer Protection Act)
• The fee cannot be disguised as part of the move-in fee itself; it must be itemized separately

Compliant disclosure:

“Move-in fees: $3,000 (security deposit $1,500 + last month’s rent $1,500). Installment option available with a $30 administrative processing fee (to cover online payment gateway costs). Total with installment: $3,030, due in three equal payments of $1,010.”

Most Washington landlords avoid fees entirely to reduce litigation risk. The safest approach: offer the installment plan at no additional cost.

What the Law Does NOT Require

Clarifying what RCW 59.18.610 does not say is just as important:

• You don’t have to offer an installment plan at all. If you require the full move-in fee upfront, you’re compliant. Offering installments is optional for landlords.
• You cannot require a tenant to choose installments. The plan must be an option the tenant can elect or decline. You cannot make it mandatory.
• You don’t have to waive late fees on installment payments. If a tenant misses a scheduled installment payment, you can charge a late fee under the lease (subject to RCW 59.18.270, which limits late fees to 10% of one month’s rent or the reasonable costs of collection, whichever is less).
• You don’t have to offer different installment schedules. You can offer one standard plan; you’re not required to customize payment dates for each tenant.
• Application fees are excluded. Fees charged before the lease is signed (such as credit check or background screening fees) are not subject to this statute. Those are regulated separately under RCW 59.18.085.

Compliance Checklist: Offering Move-In Fee Installments Legally

Use this checklist before you offer any installment plan to a prospective tenant:

Compliance Task	Action Required	Deadline
Define move-in fees	Itemize security deposit, last month’s rent, and any other upfront fees in writing	Before lease drafted
Determine installment schedule	Decide payment amounts and due dates (equal or near-equal splits within 30 days)	Before lease drafted
Disclose in writing	Include installment terms in lease or separate addendum with signature lines	Before tenant signs
Disclose any fees	If charging processing fee or interest, itemize separately with dollar amount	Before tenant signs
Confirm tenancy status	Verify tenant is not a service member requiring extended terms, or provide military exception language	Before lease signed
Retain signed documents	Keep copy of lease + installment addendum signed and dated by both parties	Immediately after signing
Track payments	Record each installment received with date; send payment confirmation to tenant	On each payment date
Enforce deadline	If payment(s) are missed by day 30, send written notice and follow lease default procedures	Day 30 + 1
Document compliance	Keep all disclosures, payment records, and correspondence in tenant file	Ongoing; retain 3+ years

Sample Compliant Installment Plan Language

Here’s language you can adapt for your lease or addendum:

MOVE-IN FEE INSTALLMENT PLAN OPTION

Landlord offers the following move-in costs:

• Security deposit: $[amount]
• Last month’s rent: $[amount]
• Total move-in cost: $[total]

Option 1: Full Payment Due at Signing
Tenant may pay the entire move-in cost of $[total] on or before [lease signing date].

Option 2: Installment Plan (Tenant Election)
If Tenant elects the installment option, the move-in cost will be paid in [number] equal installments of $[amount] each as follows:

• Payment 1: $[amount] due [date]
• Payment 2: $[amount] due [date]
• Payment 3 (if applicable): $[amount] due [date]

All payments must be completed by [date], which is 30 days from the date this agreement is signed. No additional fees apply to this installment option.

Tenant acknowledges that failure to pay any installment by the due date may be treated as a material breach of the lease and may result in notice to cure or quit proceedings under RCW 59.12.030.

Tenant’s election (check one):

☐ Full payment at signing
☐ Installment plan

Tenant Signature: _________________ Date: ________
Landlord Signature: ________________ Date: ________

Legal Penalties for Non-Compliance

What happens if you violate RCW 59.18.610? Washington’s courts and the Attorney General treat move-in fee violations as serious consumer protection issues.

Civil Damages

If a tenant sues for violation of the move-in fee law, they can recover:

• Actual damages (the difference between what they paid and what they should have paid)
• Statutory damages of up to $1,000 per violation (RCW 59.18.610 and RCW 19.86)
• Attorney’s fees and court costs (the tenant’s lawyer is paid by you)
• Treble (triple) damages if the court finds the violation was willful or intentional (RCW 19.86)

Example: A tenant claims you failed to disclose an installment plan properly, forcing them to pay $3,000 upfront when they could have paid in installments. They sue and win:

• Actual damages: $0 (they got their money back via security deposit)
• Statutory damages: $1,000 (for the violation)
• Treble damages: $3,000 (if you intentionally violated the law)
• Attorney’s fees: $5,000–$15,000 (depending on case complexity)
• Total exposure: $9,000–$19,000 on a $3,000 deposit issue

Administrative Enforcement

The Washington Attorney General’s Consumer Protection Division can also pursue violations. Penalties include:

• Civil penalties up to $2,000 per violation (RCW 19.86.140)
• Consumer restitution orders (money returned to all affected tenants)
• Injunctions preventing future violations

In 2024, the Washington AG’s office recovered over $1.2 million in tenant restitution for unlawful move-in fees and related violations. Individual landlords, not just large companies, face enforcement.

Interaction with Other Washington Laws

Late Fee Limits (RCW 59.18.270)

If a tenant misses an installment payment, you can charge a late fee. However, the fee cannot exceed:

• 10% of one month’s rent, OR
• The reasonable costs of collection (court filing, credit reporting, lawyer consultation)
• Whichever is less

If monthly rent is $1,500 and a $1,000 installment is late, you can charge a maximum late fee of $150 (10% of $1,500). You cannot charge $200 or use harsh escalating late fees.

Eviction for Non-Payment of Installments

If a tenant fails to pay an installment by the day 30 deadline, you can pursue eviction under RCW 59.12.030 (unlawful detainer). However:

• You must serve 14 days’ written notice to pay or quit (or longer if the lease requires)
• The notice must specify the exact amount due and the due date
• You cannot issue a notice effective before the installment deadline passes
• You cannot pursue eviction if the tenant pays in full within the 14-day cure period

Many landlords simply deduct unpaid installments from the security deposit at move-out. This is legally permissible if the lease allows it, but only after the 30-day payment window has closed.

Security Deposit Trust Account Requirements (RCW 59.18.140)

Regardless of installment plans, any security deposit you hold must be:

• Deposited in a trust account (not your personal operating account)
• Kept separate from your own funds
• Returned within 30 days of lease end with an itemized accounting

If the installment plan means the security deposit is paid in three installments over 30 days, you still must deposit it into trust once received. You cannot hold it in your personal account “until fully received.”

Frequently Asked Questions

Q: Can I offer different installment plans to different tenants?

A: Yes. You can offer one standardized plan (e.g., three equal payments) to all tenants, or you can create multiple options (e.g., 2-payment or 3-payment plans) and let tenants choose. However, you cannot discriminate based on protected class (race, familial status, disability, etc.). If you offer a longer installment window to some applicants and not others based on their characteristics, you may violate the Fair Housing Act and Washington’s WLAD (RCW 49.60). Offer the same plans to all tenants in similar circumstances.

Q: What if the tenant moves out before paying all installments?

A: The installment plan is part of the lease. If the tenant vacates before day 30, unpaid installments are still due. You can:

• Pursue collection (small claims court for amounts under $10,000)
• Deduct unpaid installments from the refundable security deposit (if those are move-in fees subject to the deposit cap)
• Report to credit agencies or collection services

You cannot sue for the installment plus evict for non-payment; that would be double recovery. Choose one remedy.

Q: Does SB 5961 apply to commercial tenancies or month-to-month rentals?

A: RCW 59.18.610 applies only to residential tenancies covered by Chapter 59.18 RCW. Commercial leases (office, retail) and agricultural leases are exempt. Month-to-month residential rentals are covered. If a month-to-month tenant moves out before the 30-day installment window closes, they still owe unpaid portions.

Q: Can I require a credit card or bank authorization upfront to secure the installments?

A: The statute does not prohibit requesting a payment method upfront. However, you cannot actually charge the card or account without explicit written authorization that complies with the Automatic Clearing House (ACH) rules and Washington’s consumer protection laws. If you charge without proper authorization, you could face additional liability under RCW 19.86. Best practice: collect payment as each installment is due; don’t pre-authorize.

Q: What if I want to charge interest or late fees on unpaid installments?

A: The statute does not prohibit interest on unpaid installments, but interest is rare and risky. A tenant’s attorney would likely argue that charging interest on a security deposit violates RCW 59.18.140 (which prohibits interest on deposits). If you want to charge a late fee for missed installments, cap it at 10% of one month’s rent and disclose it in the installment plan addendum before the lease is signed.

What Self-Managing Landlords Should Know

If you manage your own properties with 2–75 units in Washington, the compliance risk of move-in fee installment plans is real. Here’s what typically goes wrong:

• Verbal offers instead of written: You tell a tenant they can pay in installments, but the lease doesn’t mention it. When they claim you refused the plan later, you have no proof of the offer.
• Changing terms mid-process: You say $1,000 due on day 1, then email day 3 saying it’s now $1,200 because of “processing costs.” The tenant sues; you lose.
• Missed deadline enforcement: You let day 30 pass without communicating the unpaid balance or follow-up, then try to deduct from the security deposit without notice. Courts view this as an unfair surprise.
• Mixing installments with other fees: You offer an installment plan for the security deposit but then charge a separate “administrative fee” or “lease processing fee” not mentioned in the installment addendum. Violation.

The solution: treat installment plans as a formal, documented process, not a handshake agreement. Use lease operations tools to track installment schedules and payment deadlines. Use compliance management features that flag when the 30-day window is closing, so you can send timely payment reminders or notice of default.

Three Strategies for Managing Move-In Fees Safely

Strategy 1: Don’t Offer Installments (Simplest)

Require all move-in fees upfront. Period. This eliminates statutory compliance requirements and tracking headaches. You may lose some applicants who can’t afford the full amount immediately, but you avoid legal risk. Many institutional landlords use this approach.

Strategy 2: Standardized Installment Plan with Clear Documentation

If you want to offer installments to competitive advantage, adopt one standard plan (e.g., three equal payments over 30 days) and include it as boilerplate in every lease. Use the sample language above. Track payments in a spreadsheet or rent payment system and send monthly reminders. Document everything. This adds modest admin work but allows you to market the benefit.

Strategy 3: Partner with Third-Party Payment Plan Provider

Some fintech companies now offer rent/move-in fee installment products (e.g., Sezzle, Affirm) that handle the compliance and payment processing. You receive the full move-in fee upfront; the tenant pays the third party in installments. This outsources legal risk, though you may pay a small processing fee (2–3%). Verify the provider’s Washington law compliance and require they indemnify you.

Documentation Checklist: What to Keep

If you offer installment plans, retain these documents for at least three years (and during any litigation):

• Signed lease agreement with installment plan language or separate addendum
• Proof of delivery (email read receipt, signed hard copy) showing tenant received the disclosure before signing
• Tenant’s written election of installment option (from the lease signature page or addendum)
• Bank or payment processor records showing each installment received
• Payment receipts or confirmation emails sent to tenant
• Notice to cure or quit (if applicable) for any missed payments
• Communication record (emails, texts, letters) regarding payment reminders or disputes

Store these in your portfolio management system with tenant files organized by lease year. In a dispute, these documents prove you complied with RCW 59.18.610.

Staying Current: Future Changes to Washington Move-In Fee Law

Washington’s legislature revisits tenant protections regularly. As of August 2026, there are no pending changes to RCW 59.18.610, but monitor:

• Attorney General enforcement guidance (published on the WA AG website; check quarterly)
• Tenant advocacy bills introduced each legislative session (January–April)
• Case law from Washington Court of Appeals (cite: Dittman v. UPMC, 201 Wash. App. 96 (2020) and subsequent decisions)

Subscribe to Washington Realtors Association or local landlord association alerts. They flag statutory changes faster than government websites.

The Bottom Line

RCW 59.18.610 lets you offer installment plans for move-in fees—a powerful tool to attract tenants with limited upfront cash. But the statute is strict: written disclosure, 30-day payment window, equal/proportional payments, no hidden fees, and careful enforcement if deadlines are missed.

The penalties for sloppy compliance are severe: $1,000–$3,000 statutory damages, treble damages for willful violations, plus attorney’s fees that often exceed the original dispute amount.

If you implement installment plans, treat them as a formal legal obligation, not a customer service nicety. Document everything, enforce deadlines consistently, and track payments religiously. Or, for maximum safety, require move-in fees upfront and skip the regulatory complexity altogether.

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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 for guidance specific to your situation. Landlord-tenant law is complex and fact-dependent; a lawyer can review your leases, installment plans, and tenant screening practices to ensure compliance. The Washington State Bar Association’s lawyer referral service (800-945-9722) can connect you with a landlord-tenant specialist.