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

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However, the law is narrowly written and contains specific requirements that many landlords—particularly those using outdated lease templates or screening processes—routinely violate.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