Key Takeaways
- RCW 59.18.610 mandates installment plan offers — Washington landlords must provide tenants the option to pay move-in fees in installments, not as a single upfront charge
- Installment payments must be interest-free — landlords cannot charge interest, fees, or penalties on installment payments under state law
- Violation carries financial penalties — tenants can recover actual damages plus up to $5,000 in civil penalties per violation, plus attorney fees
- Written disclosure required at lease signing — tenants must receive clear written notice of installment plan availability before or at lease execution
- SB 5961 applies to all move-in fees — this includes security deposits, prepaid rent, and other required upfront charges (with limited exceptions)
- Payment schedule flexibility expected — installment terms must be reasonable and align with the lease commencement date, typically spread across 1-3 months
What Is RCW 59.18.610 and When Did It Take Effect?
In 2023, Washington State passed Senate Bill 5961 (SB 5961), which amended RCW 59.18.610 to create a statewide requirement that landlords offer tenants the option to pay move-in fees in installment payments rather than a single lump sum at lease signing or move-in. The statute became effective on January 1, 2024, and applies to all new leases signed on or after that date.
This law fundamentally changes how Washington landlords can collect upfront housing costs. Before SB 5961, landlords could require all move-in fees—including security deposits, last month’s rent, application fees (where legally permitted), and other charges—to be paid in full before a tenant received keys. For low-income and middle-income renters, this created a significant barrier to accessing housing, particularly in high-cost markets like Seattle, King County, and the Puget Sound region.
The statute does not eliminate move-in fees. Rather, it requires landlords to offer a payment plan alternative. A tenant can still choose to pay the full amount upfront if they wish, but landlords must make installment payment an available option.
Which Fees Are Covered Under RCW 59.18.610?
RCW 59.18.610 applies to all “move-in fees,” which the statute defines as charges required from a tenant before or upon occupancy of a rental unit. This includes:
- Security deposits (RCW 59.18.140)
- Last month’s rent (prepaid rent held in advance)
- First month’s rent (though some landlords argue this falls outside scope—see legal ambiguity below)
- Pet deposits or pet fees
- Non-refundable lease fees (where permitted)
- Cleaning fees or damage prevention fees
- Utility setup deposits (if charged by the landlord rather than utility company)
- Key/lock replacement deposits
- Any other required prepaid charges due before occupancy
Important exclusion: Application fees—if charged before a lease is signed—fall outside RCW 59.18.610 because they are not “move-in fees.” However, once a tenant is approved and a lease is signed, any remaining upfront charges must offer an installment option.
Clarification on first month’s rent: Some landlords argue that “first month’s rent” is rent payment, not a “move-in fee.” Washington courts and the Attorney General have not definitively ruled on this question. To comply safely, treat first month’s rent as subject to installment plan requirements unless you have specific legal guidance otherwise. The safest practice is to offer installment options for all upfront charges due at lease signing or move-in.
Exact Requirements Under RCW 59.18.610
1. Mandatory Offer of Installment Payment
Landlords must offer tenants the option to pay move-in fees in installments. The statute does not require the tenant to elect this option—it only requires that the option be provided. A tenant may still choose to pay the full amount upfront.
The offer must be made in writing, clearly explained, and presented at the time the lease is signed or before the tenant takes occupancy. Verbal offers do not satisfy the requirement. Your lease agreement or a separate move-in fee disclosure must include this language.
2. Interest-Free and Fee-Free Terms
RCW 59.18.610 explicitly states that installment payments must be interest-free. Landlords cannot charge:
- Interest on installment payments
- Administrative fees for setting up a payment plan
- Late fees on missed installment payments (standard late fees for rent may apply if installments are unpaid and the situation becomes a lease violation)
- Processing fees
- Any other charges tied to the installment arrangement
The tenant pays exactly the same total amount whether they pay in full upfront or in installments. The only difference is timing.
3. Reasonable Payment Schedule
While RCW 59.18.610 does not specify exact payment schedule lengths, the law requires installment plans to be “reasonable.” Courts interpreting this language typically expect:
- 2-3 month payment windows as the industry standard
- Installments aligned with the lease commencement date (e.g., if lease starts September 1, first installment due September 1, second installment October 1, etc.)
- Equal or roughly equal payment amounts across all installments
- No installment schedule that extends beyond the first lease term or 90 days from move-in, whichever is shorter
A 12-month installment plan would likely violate the “reasonable” standard and invite tenant litigation or Attorney General scrutiny. A 30-day plan across two payments, or a 45-day plan across three payments, would be reasonable.
4. Written Disclosure and Transparency
Landlords must provide tenants with written disclosure of the installment plan option that includes:
- A clear statement that an installment plan is available
- The payment schedule (due dates and amounts for each installment)
- Confirmation that no interest or fees will be charged
- What happens if the tenant defaults on an installment payment (e.g., lease violation, eviction proceedings)
- Whether tenants must request the installment plan or if it is automatically offered
This disclosure should be included in your lease agreement, attached as an addendum, or provided as a separate written document signed by both parties. Email confirmation is acceptable as long as it is clearly documented and retained.
Practical Compliance Checklist for Washington Landlords
Use this checklist to ensure your leases and move-in fee practices comply with RCW 59.18.610:
| Compliance Task | Deadline / Timing | Status |
|---|---|---|
| Add written installment plan offer to lease agreement or addendum | Before lease signing for any lease executed after Jan 1, 2024 | ☐ |
| Define reasonable installment schedule (2-3 equal payments over 30-90 days) | Before lease signing | ☐ |
| Confirm zero interest, zero fees policy in writing | Before lease signing | ☐ |
| Document tenant’s election (full upfront vs. installment plan) in lease file | At lease signing | ☐ |
| Send payment schedule and installment due dates in writing | Before first installment is due (or with lease) | ☐ |
| Set up separate tracking for installment payments vs. rent | Before move-in | ☐ |
| Ensure payment collection system accepts installment schedule | Before move-in date | ☐ |
| Review payment logs monthly to confirm installments are on track | Ongoing, throughout installment period | ☐ |
| Document any missed installment payments with written notice to tenant | Within 5 days of missed payment | ☐ |
What Happens If a Tenant Misses an Installment Payment?
If a tenant elects an installment plan and then fails to pay an installment on the due date, you have limited options:
Non-Payment as a Lease Violation
A missed installment payment can be treated as a breach of the lease—specifically, a failure to pay required move-in fees. You may:
- Send a written notice to cure or quit under RCW 59.12.030 (typically 10 days to pay or vacate)
- File for eviction (forcible detainer) if the tenant does not cure within the notice period
- Pursue the unpaid installment balance in small claims or civil court
Cannot Charge Late Fees on Installments
You cannot charge a late fee or interest on a missed installment payment under RCW 59.18.610. However, you can treat the non-payment as a lease violation and proceed to eviction. The distinction is important: the remedy is eviction or judgment, not additional fees.
Practical Approach
Document the missed payment in writing and send the tenant a friendly reminder with a new due date (grace period of 3-5 days is common practice). If the tenant then pays, no further action is needed. If they do not pay, you have grounds for a notice to cure or quit and potential eviction.
Penalties and Legal Liability for Non-Compliance
Failure to comply with RCW 59.18.610 exposes landlords to significant financial and legal risk.
Tenant Remedies
A tenant who is not offered an installment plan, or who is charged interest or fees on installments, can sue the landlord for:
- Actual damages — the cost difference between what they paid and what they should have paid (e.g., interest charged illegally)
- Civil penalty of up to $5,000 per violation — each tenant or each lease violation counts separately
- Attorney fees and court costs — if the tenant prevails, the landlord typically pays legal costs
For example, if you charged $50 in administrative fees for an installment plan, or if you charged 5% interest on a $1,500 security deposit split over three months, the tenant could recover $75-$250 in actual damages plus up to $5,000 in civil penalties, plus attorney fees (potentially $2,000-$5,000 or more in a contested case).
Enforcement by Washington Attorney General
The Washington Attorney General’s Consumer Protection Division has authority to enforce RCW 59.18.610 on behalf of tenants statewide. The AG can investigate complaints, issue cease-and-desist orders, and seek penalties. Large-scale violations (e.g., a property management company systematically charging fees on installments across multiple units) are targets for AG enforcement.
Recent enforcement activity shows the state is taking this statute seriously. The AG has issued guidance clarifying expectations and has pursued settlements with companies that charge hidden fees on installment plans.
Private Right of Action
RCW 59.18.610 includes an explicit private right of action, meaning tenants do not need the Attorney General to bring a lawsuit. They can file directly in small claims court (up to $10,000 in Washington) or civil court. This makes individual tenant claims easy to pursue and hard to defend if the violation is clear.
Sample Lease Language for RCW 59.18.610 Compliance
Include language similar to this in your lease agreement or as a signed addendum:
MOVE-IN FEE INSTALLMENT PLAN
In compliance with Washington State law (RCW 59.18.610), Landlord offers Tenant the option to pay move-in fees in installments. Move-in fees include security deposit, last month’s rent, and any other charges required before occupancy.
Option 1 — Full Payment: Tenant may pay all move-in fees in full by [DATE], prior to receiving keys and occupying the unit.
Option 2 — Installment Plan: Tenant may elect to pay move-in fees in [NUMBER] equal installments as follows:
- Installment 1 (due [DATE]): $[AMOUNT]
- Installment 2 (due [DATE]): $[AMOUNT]
- Installment 3 (due [DATE]): $[AMOUNT]
Installment payments are interest-free and carry no additional fees or charges. The total amount paid under either option is identical.
Tenant’s election (select one): ☐ Full payment ☐ Installment plan
Failure to pay any installment by the due date is a material breach of this lease and may result in a notice to cure or quit, eviction proceedings, or pursuit of the unpaid amount in court.
Common Compliance Mistakes to Avoid
Mistake 1: Burying the Installment Offer in Fine Print
Simply mentioning that installment plans are “available upon request” in a dense lease addendum does not satisfy RCW 59.18.610. The offer must be clear, conspicuous, and affirmatively presented. Best practice: include it in a separate section of the lease with bold or highlighted text, and require the tenant to initial it.
Mistake 2: Offering Installments But Requiring a Credit Check or Application Fee
The statute requires the option to be offered, but some landlords charge a “credit check fee” or “application fee” for tenants who choose installments. This circumvents the law. You cannot charge any additional fees tied to the installment arrangement.
Mistake 3: Automatically Charging Installment Plans Without Tenant Consent
If you automatically split move-in fees into installments without the tenant’s express agreement, you may violate the lease and create confusion about payment obligations. Tenants must elect the installment plan. Make the choice explicit in writing and documented in your lease file.
Mistake 4: Setting Unreasonable Payment Schedules
A 12-month installment plan or one that extends beyond the lease term is likely unreasonable and legally vulnerable. Keep installment periods to 30-90 days maximum.
Mistake 5: Treating Missed Installments as Rent Non-Payment
While a missed installment is a lease violation, it is distinct from rent non-payment. Some landlords incorrectly report missed installments to credit agencies as “unpaid rent,” which can harm the tenant’s credit score unfairly. Document missed installments separately and pursue them through lease violation channels, not rent collection channels.
Regional Differences: Does This Apply Statewide?
RCW 59.18.610 is a statewide Washington law and applies uniformly across all counties and cities, including Seattle, King County, Pierce County, Snohomish County, and rural areas. There are no local or regional exemptions or variations.
Some cities (like Seattle) have additional tenant protections under municipal code, but those protections do not override or reduce the RCW 59.18.610 requirement. If Seattle has stricter rules, both apply.
How LeaseBase Helps With RCW 59.18.610 Compliance
Managing installment plans manually—tracking due dates, ensuring zero interest is charged, documenting tenant elections, and monitoring compliance—is error-prone and time-consuming. LeaseBase’s Compliance Engine automatically flags RCW 59.18.610 requirements for any new Washington lease and ensures your lease templates include required disclosures.
LeaseBase Rent Payments allows you to set up separate installment payment schedules for move-in fees and track them independently from monthly rent. Payment reminders are sent automatically, and missed installments are logged for your records—critical if you later need to pursue eviction or legal action.
For portfolio landlords managing multiple units across Washington, LeaseBase Analytics provides visibility into which tenants are on installment plans, which are current, and which have missed payments—so you can stay on top of compliance without manual spreadsheet tracking.
Frequently Asked Questions
Q: Do installment plans apply to property manager companies or only individual landlords?
A: RCW 59.18.610 applies to all landlords, including property management companies, corporate landlords, and individual property owners. If a property manager is handling move-in fees on behalf of an owner, the PM must comply with the statute or face liability alongside the property owner.
Q: Can I require a tenant to use an installment plan, or is it optional?
A: Installment plans must be optional for the tenant. You must offer the option, but a tenant can elect to pay the full amount upfront if they choose. You cannot force a tenant to pay in installments or deny them occupancy if they want to pay in full.
Q: What if a tenant signs the lease but then says they want to switch from full payment to installments after lease signing?
A: If a tenant requests a plan change after the lease is signed and they have already paid the full amount, you should honor the request and refund the installment plan benefit if reasonable. The spirit of the law is to reduce barriers to occupancy, and denying a post-signing change may invite legal dispute. Document the change in writing and amend the lease or sign an addendum. If the tenant is requesting installments after paying in full, you do not have a legal obligation to refund, but offering a courtesy may be wise for tenant relations.
Q: Does the installment plan requirement apply to month-to-month leases or only fixed-term leases?
A: RCW 59.18.610 applies to all rental agreements, whether fixed-term (12 months) or month-to-month. Any lease executed after January 1, 2024, that requires move-in fees must include the installment plan option.
Q: If a tenant is evicted for non-payment of an installment, can I sue for the unpaid installment balance and also charge attorney fees?
A: Yes, but carefully. If you obtain a judgment for eviction based on non-payment of move-in fees, you can pursue a judgment for the unpaid balance. Attorney fees are allowed under RCW 59.18.010(3) in unlawful detainer (eviction) actions if you prevail. Document the missed installment clearly in your notice to cure or quit and in your eviction filing so the court understands the basis for the claim.
Final Compliance Checklist: Before Your Next Lease Signing
- ☐ Review your current lease template for RCW 59.18.610 compliance
- ☐ Add or update the move-in fee installment plan section with clear language and a sample payment schedule
- ☐ Confirm your payment collection system (online portal, check, ACH) can handle installment due dates
- ☐ Train yourself (or your staff) to explain installment options to prospective tenants and document their choice
- ☐ Create a tracking system or spreadsheet to monitor installment payments and flag missed payments within 5 days
- ☐ Set a calendar reminder to review this checklist annually, especially if Washington law changes
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, lease agreements, or tenant disputes. Landlord-tenant law is fact-specific and subject to ongoing legislative change. LeaseBase recommends reviewing this content with a lawyer before implementing any policy changes.
Get Compliance Right With LeaseBase
Don’t track RCW 59.18.610 compliance across spreadsheets and email reminders. LeaseBase’s integrated platform for self-managing landlords includes built-in compliance checking, payment plan setup, and audit trails that prove you followed the law. Know you’re legally protected before a tenant’s attorney gets involved.