Washington Move-In Fee Installment Plans — RCW 59.18.610 Compliance Guide (2026)

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
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