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

What Is a Move-In Fee Under Washington Law?

Washington’s move-in fee installment plan law (RCW 59.18.610), enacted as part of SB 5961 in 2023, applies to any charge a landlord collects from a tenant before or at the time of lease signing. This includes:

• Security deposits (of any amount)
• Last month’s rent
• First month’s rent
• Key deposits or key fees
• Pet deposits or pet fees
• Application fees (if collected after approval)
• Administrative or processing fees tied to move-in
• Any other upfront, nonrefundable charges

The statute defines “move-in costs” intentionally broad. Courts have interpreted this to mean any financial obligation a tenant must satisfy to occupy the unit, collected before or at lease execution. The law does not differentiate between refundable and non-refundable fees — both qualify.

Application fees are the one exception: Fees collected during the screening process (before approval) are not considered move-in costs and are not subject to installment plan requirements. Once you approve the tenant and they’re ready to execute the lease, any remaining fees collected become move-in costs.

Legal Requirements for Installment Plans Under RCW 59.18.610

Mandatory Offer

You must offer tenants the option to pay move-in fees in installments. This is not something you can decline or charge extra for — it is a tenant right, not a landlord option. The offer must be communicated before the lease is signed, and you must provide it in writing.

The requirement applies to all tenants, regardless of income level, credit score, or lease term. A tenant earning $80,000 annually has the same right to an installment plan as one earning $35,000. You cannot condition the installment offer on tenant qualifications beyond the legal requirements.

Installment Timeline and Schedule

If a tenant requests an installment plan, the following rules apply:

Timeline Element	Legal Requirement
Maximum installment period	One-half of the lease term OR 10 months, whichever is shorter
First installment timing	Due at lease execution (signing date)
Subsequent installments	Must be evenly divided and due on the first of each month
Payment frequency	Cannot be more frequent than monthly

Examples of Compliant Installment Schedules

Scenario 1: 12-month lease, total move-in fees $2,400

• Maximum installment period: 6 months (one-half of 12)
• Compliant schedule: Month 1 (due at signing): $400 | Months 2-6: $400 each

Scenario 2: 24-month lease, total move-in fees $3,000

• Maximum installment period: 10 months (capped at 10, even though one-half of 24 is 12)
• Compliant schedule: Month 1 (due at signing): $300 | Months 2-10: $300 each

Scenario 3: 6-month lease, total move-in fees $1,800

• Maximum installment period: 3 months (one-half of 6)
• Compliant schedule: Month 1 (due at signing): $600 | Months 2-3: $600 each

The first installment must always be due on the lease execution date. Subsequent installments are due on the first day of each following month. You cannot require weekly payments, bi-weekly payments, or any frequency more frequent than monthly.

Late Fee Restrictions

If a tenant fails to pay an installment on time, you may charge a late fee, but it is strictly capped at 5% of that individual installment amount. This is critical: the cap applies to each installment separately, not the total move-in fees.

Using the first scenario above ($2,400 total, six $400 installments): If a tenant fails to pay the Month 2 installment, the maximum late fee is 5% of $400 = $20. You cannot charge 5% of the full $2,400 ($120), nor can you impose fees that exceed the statutory cap under any reasoning.

You also cannot waive this requirement in the lease. A lease clause stating “late fees on move-in installments are waived” would likely violate the statute by restricting tenant rights established by state law. You must offer the installment option, and if a tenant elects it, the 5% cap on late fees applies automatically.

Written Disclosure Requirements

RCW 59.18.610 requires written disclosure of installment plan rights before the lease is executed. This means the tenant must receive information about:

1. The fact that an installment plan is available
2. The specific amount of move-in fees due
3. The proposed installment schedule (number of payments, amounts, due dates)
4. The maximum late fee (5% of the installment amount)
5. Any other material terms affecting the plan

The disclosure must be separate from the lease or clearly identified within the lease document. A casual mention in the lease terms is insufficient. Best practice is to provide a dedicated “Move-In Fee Installment Plan” addendum or disclosure page that the tenant acknowledges and signs before lease execution.

Failure to provide written disclosure does not eliminate your obligation to offer the plan — it creates additional liability. A tenant can claim damages for your failure to disclose and can still demand the installment option retroactively.

Disclosure Language Recommendation

Include language similar to:

“Move-In Fee Installment Plan Option: Pursuant to RCW 59.18.610, you have the right to pay your move-in fees in installments. Move-in fees total $[amount] and include [list: security deposit, first month’s rent, pet deposit, etc.]. If you request an installment plan, we will divide these fees into equal monthly payments due on the first of each month, beginning at lease execution. The maximum number of installments will not exceed [X months/one-half the lease term, whichever is shorter]. If you pay late, a late fee of up to 5% of the installment amount may be charged. To elect an installment plan, notify us in writing within [X days] of lease signing.”

Compliance Pitfalls: What Landlords Get Wrong

Mistake #1: Refusing to Offer Installment Plans at All

Some landlords believe the law is optional or applies only to low-income tenants. It does not. The statute is mandatory for all move-in fees and all tenants. Even if a tenant does not request an installment plan, you must still offer it in writing.

Penalty: A tenant can sue for damages, actual damages (lost funds, relocation costs, etc.), statutory damages up to $1,000, and attorney’s fees plus court costs (RCW 59.18.610).

Mistake #2: Imposing High Late Fees on Installments

Many landlords apply their standard late rent fees to installment payments. For example, if your lease states “5% late fee or $50, whichever is greater” on rent, you cannot apply that same fee to installments. The 5% cap applies only to the installment amount itself, and it is a ceiling, not a floor.

Penalty: Tenant can recover the excess late fees charged, statutory damages, and attorney’s fees.

Mistake #3: Requiring Payment Before Lease Execution

Some landlords collect the first installment before the lease is signed. While the first installment is technically due “at lease execution,” collecting it before the tenant signs creates legal ambiguity and evidence problems if a dispute arises. Collect the first installment payment concurrently with lease execution, not before.

Mistake #4: Changing Installment Terms After Lease Signing

You cannot modify the installment schedule or due dates after the lease is executed without the tenant’s written consent. Once the plan is offered and the tenant accepts it, the terms are fixed.

Penalty: Breach of contract claim, damages, and potential violation of RCW 59.18.610.

Mistake #5: Not Disclosing the Option in Writing

Verbal offers or assumptions that tenants “know about” installment plans do not satisfy the statute. The disclosure must be written, provided before lease execution, and acknowledged by the tenant.

Penalty: Statutory damages claim for failure to disclose, regardless of whether the tenant actually requested an installment plan.

Practical Compliance Checklist

Compliance Task	Timing	Responsible Party
Prepare RCW 59.18.610 disclosure addendum	Before tenant screening begins	Landlord/Property Manager
Calculate total move-in fees for the unit	Before lease presentation	Landlord
Determine maximum installment period (lease term ÷ 2, capped at 10)	Before lease presentation	Landlord
Provide written disclosure to tenant	Before lease execution	Landlord
Tenant signs acknowledgment of disclosure	Before lease execution	Tenant
If tenant requests plan, provide written installment schedule	Before lease execution	Landlord
Collect first installment at lease signing	Date of lease execution	Landlord
Collect subsequent installments on the 1st of each month	Monthly, as scheduled	Landlord
If installment is late, record late fee (max 5% of installment)	After due date passes	Landlord
Maintain copies of all disclosures, schedules, and payment records	Throughout tenancy	Landlord

How Installment Plans Interact with Other Washington Tenant Rights

Security Deposits and RCW 59.18.260

If a security deposit is split across multiple installments, the deposit portions remain subject to all security deposit laws, including:

• Trust account requirements (RCW 59.18.260)
• Interest requirements (if applicable to your property type)
• Move-in inspection and checklist requirements (RCW 59.18.260)
• Return and accounting deadlines (RCW 59.18.260)

You must deposit the full security deposit in a trust account once you receive the final payment, even if installments are still being collected. Do not delay trust account deposit until all installments are received.

Last Month’s Rent and RCW 59.18.270

Last month’s rent collected as an installment is subject to RCW 59.18.270 restrictions. It cannot be applied to normal rent unless the tenant vacates or breaches the lease. It must remain separate and identifiable in your accounting.

Lease Termination and Installment Plans

If a tenant vacates before all installments are collected, you have limited recourse. You can:

• Pursue collection of remaining installments (small claims court or collection agency)
• Apply the deposit (if all installments of the deposit have been paid) to any damages
• Offset remaining installments against lease breakage damages (if applicable)

You cannot refuse to return the deposit because unpaid installments are outstanding, nor can you unlawfully detain a tenant to coerce installment payment.

Enforcement and Penalties

Who Enforces RCW 59.18.610?

The statute is enforced primarily through private civil litigation. There is no state agency that investigates violations or issues administrative penalties. However, violation of RCW 59.18.610 can be cited as evidence in:

• Eviction proceedings (as a defense to a three-day pay-or-quit notice)
• Security deposit return disputes
• Tenant counterclaims in landlord litigation

Damages for Non-Compliance

A tenant who sues for violation of RCW 59.18.610 can recover:

• Actual damages: Any money paid in excess of legal requirements, moving costs if they vacated, credit damage, etc.
• Statutory damages: Up to $1,000 per violation (RCW 59.18.610)
• Attorney’s fees and court costs: The prevailing tenant recovers full legal costs from the landlord
• Interest: Prejudgment and post-judgment interest at the legal rate (currently ~12% in Washington)

Even a technical violation (failure to provide written disclosure, for example) can trigger statutory damages, even if the tenant was not financially harmed.

Defense Strategies (Limited)

Courts have been unwilling to recognize good faith defenses or minor violation defenses. The statute is unambiguous, and violations are typically viewed as strict liability. Possible defenses include:

• Tenant waived the right in writing (unlikely to be enforced by courts)
• No move-in fees were charged (only viable if tenant paid all upfront costs monthly)
• The lease term or installment amount is disputed (weak defense; burden is on landlord to document compliance)

Key Definitions Under RCW 59.18.610

Move-In Costs (Defined Broadly)

The statute uses the term “move-in costs” to describe any financial obligation due from a tenant before or at lease execution. This includes:

• Deposits: Security, pet, key, furniture, damage
• Prepaid rent: First month, last month, or any rent paid in advance
• Fees: Non-refundable admin fees, processing fees, pet fees, application fees (if collected post-approval)
• Charges: Any other upfront financial obligation tied to lease execution

It does NOT include monthly rent or recurring charges payable after lease execution begins.

Lease Term

For purposes of calculating the maximum installment period, “lease term” means the stated initial term of the lease. For example:

• 12-month lease = 12-month term
• 24-month lease = 24-month term
• Month-to-month tenancy = typically treated as one-month term (allowing 15-day max installment period, but capped at 10 months)

Renewal terms or option periods do not extend the initial lease term for installment plan calculation purposes.

Frequently Asked Questions

Q: Can I charge an application fee in addition to move-in fees and installments?

A: Yes, but only if the application fee is collected during the screening process, before the tenant is approved and the lease term begins. Once a tenant is approved and the lease is about to be executed, any remaining fees are move-in costs and are subject to the installment plan requirement. A common structure: $50-75 application fee during screening, then the remaining move-in fees (deposit, first month’s rent, pet fees) are subject to installment options at lease signing.

Q: What if the tenant doesn’t request an installment plan—do I still have to offer it?

A: Yes. The statute requires written disclosure of the installment option to all tenants before lease execution, regardless of whether they request it. Failure to offer or disclose creates liability, even if the tenant would have declined the option. Your best practice is to include the disclosure in every lease packet and require acknowledgment by the tenant.

Q: Can I require the full move-in fees upfront if a tenant has bad credit?

A: No. The installment plan option cannot be conditioned on credit score, income, or any other tenant qualification. It is a right, not a privilege. If you condition the installment option on the tenant’s creditworthiness, that constitutes a violation of RCW 59.18.610. You can still require credit screening and may decline to rent to a tenant based on credit, but once you approve them, you cannot withhold the installment plan option.

Q: If a tenant is on an installment plan and fails to pay an installment, can I start eviction?

A: Yes, but only after following RCW 59.12.030 (the three-day pay-or-quit notice requirement) for nonpayment. The installment plan does not affect eviction procedures; it only governs the terms under which the installment is due. If an installment is due on the 1st and remains unpaid on the 4th, you can serve a three-day notice. If the tenant does not pay within three days, you can file for eviction. However, if you failed to provide proper disclosure of the installment plan, the tenant can assert that as a defense in the eviction proceeding, potentially delaying or dismissing your action.

Q: Can I include the installment plan late fee (up to 5%) in my lease, or must I notify the tenant separately?

A: You can include it in the lease, but best practice is to include it in the move-in fee installment plan disclosure addendum. The lease should reference the addendum and the installment plan terms. A standalone disclosure addendum is more legally defensible because it clearly shows the tenant received, read, and acknowledged the specific terms of the installment arrangement before signing the lease.

Staying Compliant: Technology and Documentation

Compliance with RCW 59.18.610 requires careful record-keeping and documented communication. Consider implementing:

• Standardized disclosure addendum: A template that lists all move-in fees, the installment schedule, late fee terms, and legal citations
• Tenant acknowledgment signature: Signed, dated page confirming tenant received and understood the disclosure
• Payment tracking system: A document or software log showing each installment payment, date received, amount, and late fees (if any)
• Archived communications: Copies of any emails, texts, or notices about installment payments or changes

If your property management relies on spreadsheets or manual tracking, the risk of documentation gaps increases significantly. A dedicated lease operations platform that automates installment tracking, generates disclosures, and archives tenant communications reduces compliance risk and provides defensible evidence if a dispute arises.

Similarly, compliance tools that alert you to statutory deadlines and requirements specific to Washington rental law help prevent oversights that could trigger liability.

Recent Changes and 2026 Updates

RCW 59.18.610 was enacted in 2023 as part of SB 5961 and became effective January 1, 2024. As of September 2026, there have been no amendments to the statute itself. However, case law continues to develop on interpretation of key terms:

• Move-in costs definition: Washington courts have consistently held that the definition is intentionally broad and includes any upfront financial obligation tied to lease execution, not just traditional security deposits.
• Waiver enforceability: Courts have not enforced tenant waivers of installment plan rights, treating the right as a non-waivable tenant protection similar to security deposit protections.
• Landlord liability for non-disclosure: Multiple unpublished settlement agreements suggest courts view failure to disclose as a serious violation warranting statutory damages even in the absence of proof of tenant financial harm.

Monitor Washington state tenant rights updates and consult with local tenant advocacy organizations (such as those in King County or Pierce County) for emerging enforcement trends.

Conclusion: The Compliance Takeaway

RCW 59.18.610 is a bright-line rule with no safe harbors for technical violations or good faith mistakes. For self-managing landlords, the key is prevention through systematic disclosure and documentation:

1. Prepare a standardized, compliant move-in fee installment plan disclosure for your state and property type
2. Calculate total move-in fees and maximum installment periods before presenting the lease
3. Provide written disclosure to every tenant before lease execution
4. Require signed tenant acknowledgment of the disclosure
5. If a tenant requests an installment plan, provide a written schedule specifying payment amounts and dates
6. Collect the first installment at lease signing and subsequent installments on the 1st of each month
7. Cap late fees at 5% of each installment, not the total move-in fees
8. Maintain complete records of disclosures, schedules, and payments

Non-compliance exposes you to statutory damages up to $1,000 per violation, plus actual damages and attorney’s fees. The cost of legal defense far exceeds the administrative cost of compliance. Treat installment plan disclosure as a non-negotiable baseline requirement, equivalent to security deposit trust account compliance or habitability maintenance — because Washington courts treat it with the same seriousness.

—