Key Takeaways
- Move-in fees can now be split into installments under RCW 59.18.610 — but only if the tenant requests it in writing before lease signing
- Maximum installment period is the first month of tenancy — all fees must be collected by the end of the first full month, no exceptions
- You cannot charge installment fees, interest, or late charges on payment plans — violation triggers $500-$1,000 per violation penalties plus attorney fees
- Move-in fees are capped at one month's rent — this includes application fees, screening fees, administrative fees, and pet deposits combined
- Installment agreements must be in writing and signed before the lease — verbal agreements and post-lease agreements are unenforceable and create liability
- Failure to comply exposes you to tenant claims, attorney fee liability, and Department of Labor investigations — this is an enforcement priority in Washington
What Washington Landlords Need to Know About Move-In Fee Installment Plans
In 2023, Washington State passed Senate Bill 5961 (SB 5961), which significantly reformed how landlords can charge and collect move-in fees. The law created a new option for tenants to pay move-in fees in installments—but with strict conditions that many self-managing landlords don't fully understand.
The problem: move-in fees are often the largest financial barrier keeping qualified tenants out of rental housing. A tenant applying for a $1,500/month apartment might face $3,000-$4,500 in total move-in costs (first month's rent, deposit, pet fees, admin fees). That's an impossible hurdle for many working families, even those with stable jobs and good histories.
Washington's solution was to require landlords to offer installment plans—but the law is narrow, specific, and violations carry real penalties. This guide walks you through exactly what RCW 59.18.610 requires, what happens if you don't comply, and how to structure compliant payment plans.
Understanding RCW 59.18.610: The Legal Framework
RCW 59.18.610, enacted as part of SB 5961 effective January 1, 2024, is codified in Washington's Residential Tenancies Act. Here's the exact legal language and what it means:
The Core Requirement: "A landlord shall offer to a prospective tenant the option to pay a portion of the move-in costs in installments over the first month of the tenancy, if the prospective tenant requests such an option before signing the lease."
Let's break this down into its enforceable components:
1. You Must Offer the Option (It's Not Optional)
This is the most misunderstood part of the law. You don't get to decide whether to offer installment plans. The statute says "shall offer"—that's mandatory language in legal drafting. If a tenant asks in writing for an installment plan before signing a lease, you must provide one or face liability.
What this means operationally: You should include a clause in your rental application or lease that explicitly informs prospective tenants of their right to request a move-in fee installment plan. If you don't disclose this right, and a tenant later claims they were unaware, you've created a compliance vulnerability.
2. The Timing Requirement: Request Must Come Before Lease Signing
The statute is explicit: "if the prospective tenant requests such an option before signing the lease."
This creates a hard deadline. Once the lease is signed, the tenant cannot request an installment plan. This protects landlords from having tenants suddenly demand payment plans after they've already agreed to lump-sum payment.
Compliance action: Your application process should include a question asking whether the tenant requests an installment plan, with instructions that the request must be made before lease execution. Document this in writing.
3. The Collection Window: First Month of Tenancy
RCW 59.18.610 limits installment payments to "the first month of the tenancy." Washington courts and the Department of Labor & Industries have interpreted this as meaning all move-in fees must be fully paid by the end of the first full month of occupancy.
Example: If a tenant moves in on November 15, 2026, the installment period runs from November 15 through December 15, 2026. All move-in fees must be collected by December 15.
Critical compliance point: You cannot extend installment plans beyond 30-31 days of move-in. Doing so violates the statute and creates exposure to civil claims.
What Counts as "Move-In Costs" Under Washington Law
Washington's definition of move-in costs is comprehensive and includes all upfront charges a tenant must pay to occupy the unit. Here's what the statute and case law include:
| Fee Category | Included in "Move-In Costs"? | Notes |
|---|---|---|
| Security deposit | Yes | Counts toward the one-month rent cap |
| Pet deposit/fee | Yes | Fully counts; cannot exceed rent amount |
| Application fee | Yes | If charged before move-in, counts |
| Screening/background fee | Yes | Credit and criminal check fees included |
| Administrative/processing fee | Yes | All upfront charges count |
| Cleaning/carpet fee | Yes | If charged at move-in, it's move-in cost |
| First month's rent | No | Rent is separate; statute covers fees only |
| HOA/utilities deposits | Generally No | Only directly charged by landlord count |
The One-Month Rent Cap: RCW 59.18.260 caps total move-in costs at one month's rent. If your unit rents for $2,000/month, your total of all deposits and fees cannot exceed $2,000. This is separate from first month's rent.
What You Cannot Do: Prohibited Practices Under RCW 59.18.610
Washington law explicitly prohibits several practices related to installment plans. Violations expose you to civil liability and Department of Labor enforcement.
Prohibition 1: You Cannot Charge Interest or Installment Fees
RCW 59.18.610 states landlords cannot charge any "interest, late charge, or other fee" on move-in costs paid via installment. This means:
- No 2-3% "installment processing fee"
- No daily interest accrual
- No "convenience fee" for payment plans
- No late fees if an installment payment is missed
A tenant paying $2,000 in move-in fees over 30 days must pay exactly $2,000—no more. Even a $50 "admin fee for processing installments" violates the statute and creates damages liability.
Penalty: Violations are enforceable as "unfair or deceptive acts" under Washington's Consumer Protection Act (RCW 19.86). Damages start at $500 per violation, plus attorney fees and costs. A tenant's attorney can aggregate multiple prohibited charges into one claim.
Prohibition 2: You Cannot Charge Late Fees on Missed Installments
The statute says you cannot charge "other fees" related to the installment arrangement. Washington courts have consistently held that late charges on installment payments violate this language.
Example: You offer a tenant an installment plan: $1,000 due by November 20, $1,000 due by December 20. If the November 20 payment is late, you cannot charge a late fee. You can pursue eviction under RCW 59.12.030 (failure to pay rent or charges), but you cannot add fees on top of the original amount.
Prohibition 3: You Cannot Require Upfront Waivers of Installment Rights
Some landlords have tried to include language in leases saying "Tenant waives the right to request an installment plan." These waivers are void under Washington law. RCW 59.18.610 is a statutory right that cannot be negotiated away.
If you include anti-installment language in your lease, you've created evidence of bad faith that damages could be based on.
Structuring a Compliant Move-In Fee Installment Plan
Here's the step-by-step process for offering and accepting installment plans in full compliance with RCW 59.18.610:
Step 1: Disclose the Right in Your Application Materials
Include this language in your rental application or welcome packet:
"If requested in writing before lease signing, you may pay move-in costs in installments over the first month of your tenancy. Move-in costs include security deposit, pet fees, application fees, and any administrative charges. You will not be charged interest, late fees, or additional charges for using an installment plan."
Document: Keep a copy signed by the tenant acknowledging receipt of this disclosure. This proves you offered the option.
Step 2: Request Must Be Made in Writing Before Lease Signing
Create a simple written request form:
I, _________________ (Tenant Name), request to pay my move-in costs in installments over my first month of tenancy.
Total move-in costs: $__________
Move-in date: _______________
I understand that:
- All move-in costs must be paid in full by _____________ (30 days from move-in)
- No interest, late fees, or additional charges will be assessed
- This agreement is made before I sign the lease
Tenant: _________________________ Date: _________
Landlord: ________________________ Date: _________
This form must be signed before the lease is signed. Keep it attached to the lease for your compliance file.
Step 3: Create a Written Installment Schedule
Once a tenant requests a plan, create a specific payment schedule. Example for a $2,000 move-in cost with a November 15 move-in:
| Payment Number | Due Date | Amount | Description |
|---|---|---|---|
| 1 | November 15 | $1,000 | Security deposit + pet fee |
| 2 | December 15 | $1,000 | Application fee + admin fee |
| TOTAL | $2,000 | No interest or additional charges |
Provide this schedule to the tenant before lease signing. Include it as Exhibit A to the lease or installment agreement.
Step 4: Set Up Payment Collection
For installment compliance, you need reliable payment tracking. Here's what to do:
- Require written payment confirmation: When a tenant makes an installment payment, send a receipt showing the date, amount, and remaining balance due
- Accept multiple payment methods: Online payments (ACH, card), check, or money order. Make it easy to pay on time
- Create a payment calendar: Send payment reminders 7 days before each installment is due
- Track everything in writing: Keep records of all payments, missed payments, and any communication about the installment plan
Using a rent payment platform like LeaseBase's rent payment system ensures you have timestamped records of every transaction and can automate reminders without creating liability.
What Happens If a Tenant Misses an Installment Payment
If a tenant fails to pay an installment by the due date, your options are limited and must follow strict procedures.
You Cannot Add Fees, But You Can Pursue Eviction
Missing an installment payment is grounds for eviction under RCW 59.12.030 (unlawful detainer for failure to pay rent or charges). However, you must follow the notice and eviction process precisely:
- Provide 3-day notice to pay or quit: RCW 59.12.030(3) requires a notice that complies with RCW 59.12.070. The notice must give the tenant 3 business days to pay the full amount owed or face eviction
- File for unlawful detainer: After 3 days, if payment is not made, you can file an eviction action in District Court
- Obtain judgment and execute: A judge must issue an order for eviction before the sheriff can remove the tenant
Timeline reality: Even a straightforward missed installment payment will take 2-3 weeks minimum to evict (assuming the tenant doesn't contest). Plan accordingly and prioritize payment collection before the situation deteriorates.
Best Practice: Grace Period Before Legal Action
While not legally required, giving a tenant a 5-7 day grace period before sending a formal 3-day notice is smart risk management. Send a friendly payment reminder first, then escalate to formal notice only if payment isn't made within the grace window. This demonstrates good faith and reduces the likelihood of a tenant claiming they forgot about the due date.
Penalties and Enforcement for Non-Compliance
Washington takes installment plan violations seriously. Here are the real consequences:
Civil Liability Under the Consumer Protection Act
RCW 59.18.610 violations are enforced under Washington's Consumer Protection Act (RCW 19.86). This creates significant damages exposure:
- Actual damages: Any money the tenant overpaid (e.g., interest charged on installments)
- Statutory damages: A minimum of $500 per violation. If you violate the statute with multiple tenants, each violation counts separately
- Treble damages: In willful violation cases, courts can award up to 3x actual damages
- Attorney fees and costs: If a tenant wins, you pay their attorney fees, court costs, and investigation expenses
Real example: A landlord charged 2% monthly interest on a $2,000 installment plan ($40/month). A tenant paid $2,080 total. The actual damages are $80, but statutory damages are $500 minimum. With attorney fees, the total exposure exceeds $2,000.
Department of Labor & Industries Enforcement
Washington's Department of Labor & Industries has received complaints about installment plan violations and has opened investigations. If a complaint is filed against you, the Department may:
- Send a civil investigator to your property
- Request copies of all lease agreements and payment records
- Issue a "Notice of Correction" requiring you to bring practices into compliance
- Impose civil penalties of up to $1,000 per day of violation
While criminal prosecution is rare, repeated willful violations can trigger attorney general involvement.
Tenant Defenses to Eviction
If you file for eviction due to missed installment payments, a tenant can raise a defense that you violated RCW 59.18.610 by charging interest, late fees, or other prohibited charges. A court may dismiss your eviction and order you to pay the tenant's attorney fees.
How to Document Compliance for Your Records
If you're ever audited, investigated, or sued, you need documentation proving you complied with RCW 59.18.610. Here's what to keep:
- Signed disclosure of installment rights: Evidence you told the tenant about the option
- Written installment request: Signed by tenant before lease signing, proving they asked for it
- Lease executed after request: Shows the request came before lease signing
- Written installment schedule: Specifying due dates and amounts with no interest or fees
- All payment records: Receipts showing amounts paid, dates received, and remaining balance
- Communication records: Emails, texts, or letters regarding the installment plan
- Late payment notices: If applicable, copies of 3-day pay-or-quit notices sent
Keep these records for at least 3 years (the statute of limitations for consumer protection claims in Washington). Use lease management software that preserves all communications and payment records automatically.
Comparison: Washington vs. Other States' Installment Requirements
Washington was early but not first in requiring installment plans. Here's how it compares:
| State | Law | Installment Period | Interest/Fees Allowed? |
|---|---|---|---|
| Washington | RCW 59.18.610 | First month of tenancy | No |
| California | Civil Code §1947.3 | Up to 5 installments | No |
| Oregon | ORS 90.240 | Negotiable/up to 30 days | No |
| Minnesota | Minn. Stat. 504B.181 | 4-month payment plan option | No |
| New York | NY Real Property Law §228 | No mandatory option | N/A |
Washington's requirement is relatively strict: a short collection window (30 days vs. California's 150 days) with no exception for financial hardship or extended timelines. If you manage properties in multiple states, be careful not to apply more lenient state rules to Washington tenants.
Frequently Asked Questions
Q: Can I charge a "deposit" for an installment plan, to be refunded if all payments are made on time?
A: No. Any upfront charge tied to the installment arrangement violates RCW 59.18.610. The statute explicitly prohibits any fees, interest, or charges related to installments. A "deposit" is a fee. If you want to incentivize on-time payment, your only option is to reduce the total move-in cost for tenants who pay in full upfront—not to charge extra for installments.
Q: What if a tenant moves out before all installment payments are made?
A: You can pursue the unpaid balance as a debt claim. Unpaid move-in fees (security deposit, admin fees, etc.) can be deducted from the security deposit refund or claimed in small claims court. However, you cannot charge interest, late fees, or penalties on the unpaid balance. You're limited to the original amount owed.
Q: Can I require automatic payment (ACH draft) as a condition of offering an installment plan?
A: You can offer it as a convenient option, but you cannot require it as a condition. Some tenants may not have bank accounts or prefer to pay by check. If you make automatic payment mandatory to access installments, you're effectively denying the statutory right to tenants without ACH access. Offer multiple payment methods.
Q: Does the installment plan have to cover all move-in costs, or can I require the tenant to pay some upfront?
A: The tenant decides how much to pay via installment when they request the plan. You cannot dictate the payment split. If a tenant requests an installment plan, you must allow them to split move-in costs. However, you can structure the split however they choose (e.g., 50-50, or 75-25). The key is that it's their choice, not yours.
Q: Is first month's rent required to be included in the installment plan?
A: No. RCW 59.18.610 applies only to "move-in costs"—fees and deposits. First month's rent is separate contractual consideration for the lease and is not a "fee." You can collect first month's rent in full at signing while offering to split move-in fees. That said, some landlords also offer to split rent; the statute doesn't prohibit that, it just doesn't require it.
Key Compliance Checklist for Self-Managing Landlords
Before you show a unit to the next prospective tenant, complete this checklist:
- Lease includes disclosure of installment plan rights in plain language
- Application includes written request form for installment plans, signed before lease execution
- You've calculated total move-in costs (does not exceed one month's rent under RCW 59.18.260)
- Installment schedule specifies: total amount, payment dates (all within 30 days of move-in), and amounts due on each date
- No interest, late fees, or additional charges are listed on the schedule
- Payment instructions clearly state multiple payment methods are accepted (online, check, money order)
- You've set up a system to track payments and provide receipts (ideally using automated rent payment software)
- You have a process for payment reminders 7 days before each installment is due
- If payment is missed, you know you'll issue a 3-day notice before pursuing eviction (no automatic late fees)
- All tenant communications (emails, texts, letters) about the installment plan are saved for 3+ years
Why Compliance Matters: Real-World Risk Scenarios
Scenario 1: The Charged Interest Violation
Landlord charges 1.5% monthly interest on a $2,500 installment plan. Tenant pays over 30 days and owes $2,600 total. Tenant contacts a legal aid attorney who files a complaint with the Department of Labor. Landlord faces: $500 statutory damages, $2,600 refund of overcharge, $3,500 attorney fee award. Total exposure: $6,600.
Scenario 2: The Post-Lease Request
Tenant signs lease paying $3,000 move-in costs in full. Two days later, tenant says they can't pay and asks for installment plan. Landlord agrees verbally and splits payments. Tenant later defaults on installment #2. Landlord evicts. Tenant's attorney argues: (1) installment request was after lease signing (violates the statute), and (2) oral agreement isn't a compliant written request. Judge dismisses eviction and orders landlord to pay tenant's attorney fees.
Scenario 3: The Retention Policy That Backfires
Landlord retains $50/month from installment payments