Washington Move-In Fee Installment Plans — Compliance Requirements & Penalties (2026)

What Is a Move-In Fee Under Washington Law?

Washington landlord-tenant law draws a sharp distinction between rent, deposits, and move-in fees. This distinction matters because each category is governed by different rules and carries different compliance obligations.

A move-in fee is any charge imposed on a tenant at or before occupancy that is not:

• First month’s rent
• Last month’s rent
• A security deposit

Move-in fees cover costs such as:

• Non-refundable cleaning fees
• Non-refundable administrative or application processing fees
• Pet fees (when non-refundable)
• Lock re-keying or security system setup charges
• Painting or unit turnover costs the landlord passes to the tenant
• Utility connection or deposit arrangement fees the landlord charges directly

What move-in fees do not include:

• First or last month’s rent (these remain due in full upfront)
• Security deposits (which have separate installment protections under RCW 59.18.270)
• Deposits for utilities or services (treated differently under RCW 59.18.280)

Before 2024, Washington had no statewide law requiring landlords to allow move-in fees to be paid in installments. Senate Bill 5961, codified as RCW 59.18.610, changed this entirely. The law took effect January 1, 2024, and applies to all new tenancies (and any lease renewal or modification after that date).

RCW 59.18.610: The Statutory Requirement

The statute is brief but mandatory. Here is the operative language:

“A landlord shall not charge a prospective or existing tenant a fee in connection with occupancy unless the landlord also offers the tenant the option to pay the fee in installments without interest or late fees over a period of time, not to exceed five months.”

This creates four non-negotiable obligations:

1. You must offer an installment option for any move-in fee
2. Installments must be interest-free — no finance charges, APR, or carrying costs
3. No late fees — if a payment is missed, you cannot assess penalties
4. Maximum 5-month period — you cannot extend installments beyond 5 months from occupancy

The law does not say installment plans are optional. It says you, the landlord, “shall not charge a fee” unless you simultaneously offer installments. This is a condition precedent to charging the fee at all.

Who Does This Law Apply To?

RCW 59.18.610 applies to:

• All landlords — regardless of portfolio size (2 units or 200)
• All move-in fees — any non-rent, non-deposit charge imposed at occupancy
• All prospective and existing tenants — new leases, renewals, and modifications after January 1, 2024
• All unit types — single-family, multi-unit, condos, manufactured homes in communities

The law does not apply to:

• Federally subsidized housing or public housing authorities (different regulatory framework)
• Owner-occupied properties where the landlord lives in one unit and rents no more than one other unit (RCW 59.18.040 exemption, though some courts narrow this)
• Month-to-month tenancies where no new fee is being charged (though any fee charged must still comply)

In practice, most self-managing landlords in Washington must comply. If you charge a move-in fee, you must offer installments.

What You Must Do: Compliance Checklist

Before Lease Signing

1. Disclose the installment option in writing

The statute requires the offer be made before the tenant signs the lease or incurs occupancy. The safest approach:

• Include the installment language in the lease document itself, or in a separate rider signed before occupancy
• If advertising, state in the listing: “Move-in fees available in installments”
• Provide the offer in email or written form (oral offers do not satisfy the statute)
• Clearly state the installment period (e.g., “up to 5 months”) and zero interest

Sample Compliant Language:

“Landlord offers Tenant the option to pay the move-in fee of $[amount] in up to 5 equal monthly installments beginning on the move-in date, with no interest or late fees. Tenant may elect this option by [date] by notifying Landlord in writing.”

2. Calculate the total move-in fee accurately

Be clear about what is and is not included. If your property has multiple move-in charges (cleaning, admin fee, pet fee), disclose them separately or as a total, but do not disguise them as “rent” or “deposit.”

Example Disclosure:

3. Decide on your installment plan structure

You control the structure, as long as it meets the statutory requirements:

• Maximum period: 5 months — You can require payment in fewer months, but not more.
• Equal or unequal installments — The statute does not require equal payments, though equal payments are simpler to administer.
• Payment schedule — Tie payments to the move-in date or first day of occupancy.

Example Installment Plans (all compliant):

After Tenant Selects Installments

4. Put the payment plan in a written agreement

Do not rely on email or text. Create a written installment agreement that specifies:

• Total fee amount
• Installment amount
• Due dates (e.g., “First day of each month, beginning [date]”)
• Payment method (check, ACH, online portal, etc.)
• That no interest or late fees will be charged
• What happens if the tenant breaches (e.g., lease violation, but no financial penalty)

5. Collect payments as agreed

• Use the same payment portal or method you use for rent if possible (consistency reduces errors)
• Send payment reminders (not demands or notices of violation)
• Record all payments in your accounting system
• Do not threaten eviction for a missed installment alone (see penalty discussion below)

6. Document everything

Keep copies of:

• The lease and any installment addendum
• The written offer of the installment option
• The tenant’s written election (if they chose installments vs. upfront)
• All payment records and correspondence
• Any evidence that the fee amount was disclosed before lease signing

If a tenant later claims you violated RCW 59.18.610, you will need to prove you offered the option and documented the tenant’s choice.

What You Cannot Do: Prohibited Actions

Do Not Charge Interest or Late Fees

The statute explicitly prohibits interest and late fees. This means:

• No percentage-based interest (2%, 5%, APR, etc.)
• No flat late fees ($25 for missed payment, etc.)
• No administrative processing charges for installment setup
• No credit reporting or collection agency fees (you cannot outsource the fee)

If a tenant misses an installment payment, you have limited remedies:

• Send a payment reminder
• Attempt to collect the outstanding amount
• In extreme cases, terminate the lease for material breach (if the lease defines non-payment of fees as grounds for eviction), but you still cannot assess financial penalties

This is where many landlords stumble. You may be accustomed to charging late fees on rent (which is permitted under RCW 59.18.270 with restrictions). Do not apply that practice to move-in fee installments — it is illegal.

Do Not Deny Installment Plans to Certain Tenants

You cannot:

• Offer installments only to tenants who pass credit checks (must offer to all)
• Charge higher installment amounts based on credit score or income
• Require a co-signer only if the tenant chooses installments (discrimination risk)
• Claim installments are “not available” after advertising a move-in fee

Fair Housing Act concerns apply here as well. If you offer installments to one demographic group but not another, you may face claims of disparate impact discrimination.

Do Not Disguise Move-In Fees as Rent or Deposits

Some landlords attempt to circumvent RCW 59.18.610 by mislabeling fees:

• Calling a $300 admin fee “pro-rated first month’s rent”
• Charging a “move-in deposit” instead of a “non-refundable cleaning fee”
• Bundling fees into the “total occupancy costs” without separating them

Washington courts and enforcement agencies look to the substance of the charge, not its label. If a charge is non-refundable and imposed at occupancy for purposes other than rent or security, it is a move-in fee subject to RCW 59.18.610.

Do Not Require Upfront Payment as a Condition of Lease Signing

The statute requires you to offer installments before the tenant signs. If your lease requires the full fee upfront as a condition of occupancy, you have violated the law, even if you later tell the tenant they can pay in installments.

Penalties for Non-Compliance

Statutory Violations and Damages

A violation of RCW 59.18.610 is treated as an unfair practice under RCW 59.18.140. The consequences are steep:

• Three times actual damages — If a tenant paid $600 in move-in fees upfront (when you should have offered installments) and sues, they recover 3 × $600 = $1,800, plus their original fee refunded = $2,400 total.
• Attorney fees — The tenant’s attorney fees are paid by you, even for the first violation. No “safe harbor” exists for technical violations.
• Court costs — Filing fees, discovery costs, and expert witness costs are also recoverable.

This is not a “small fine.” A single violation of RCW 59.18.610 can result in $2,000–$3,000+ in liability per tenant, before attorney fees.

Class Action Risk

If you systematically deny installment plans or charge illegal late fees, you face class action exposure. Multiple tenants over several years can become a class, with damages multiplied across all members.

Example: A landlord charged 50 tenants $500 move-in fees over 3 years without offering installments. Each tenant has a claim for $1,500 (3 × $500). Total exposure: $75,000, plus attorney fees for the class (often $15,000–$50,000).

Tenant Remedies Beyond Damages

In addition to monetary damages, a tenant can:

• Terminate the lease without penalty (though this is rare in practice)
• File a complaint with the Washington State Department of Commerce or attorney general
• Raise the violation as a defense in an eviction proceeding (if you try to evict for non-payment of fees)
• Countersue if you file a collections action for unpaid fee installments

Enforcement Actions

Washington’s Attorney General and local tenant rights organizations have begun targeting landlords for RCW 59.18.610 violations. While enforcement is not yet widespread, the trend suggests increased scrutiny in 2025–2026, particularly for:

• Large portfolio landlords or property management companies
• Systematic denial of installment plans
• Charging late fees on installments (clearest violation of statute language)

Interaction with Other Washington Tenant Protections

Security Deposits (RCW 59.18.270)

Move-in fee rules are separate from security deposit rules, though they often occur together.

Key point: If you charge both a move-in fee and a security deposit, each must comply with its own rules. Do not combine them or mislabel one as the other.

Lease Disclosures (RCW 59.18.060)

Washington requires certain disclosures in every lease. While RCW 59.18.060 does not specifically mention move-in fees, best practice is to include the installment option in your lease or in a separate disclosure addendum signed before occupancy.

Habitability and Rent Withholding (RCW 59.18.200)

These rules are independent of move-in fees. A tenant cannot withhold rent or repair-and-deduct costs because you violated move-in fee rules. However, a tenant can raise move-in fee violations as a counterclaim in an eviction for non-payment of rent.

Frequently Asked Questions

Q: Can I offer installments only to tenants who fail the credit check?

A: No. The statute requires you to offer installments to all tenants as a condition of charging the fee. You cannot condition the installment offer on credit approval. This would also create fair housing issues if the practice disparately affects protected classes.

Q: What if the tenant misses an installment payment?

A: You cannot charge a late fee. You can send payment reminders and attempt collection. In severe cases, you can terminate the lease for material breach (if your lease defines non-payment of fees as grounds for termination), but you cannot assess financial penalties. Consult an attorney before pursuing eviction for a single missed installment, as courts may view this as punitive rather than remedial.

Q: Does the 5-month maximum apply to security deposits too?

A: No. RCW 59.18.610 applies only to move-in fees. Security deposits have a separate installment rule under RCW 59.18.270, which allows up to 12 months if the tenant requests it in writing. However, unlike move-in fee installments, you may charge interest on security deposit installments.

Q: Can I require automatic bank draft (ACH) for installment payments?

A: Yes, but only with the tenant’s written consent. You must also provide an alternative payment method. Many Washington landlords use online rent payment platforms (like those integrated with LeaseBase rent payment tools) to simplify installment collection and reduce disputes over payment timing.

Q: If a tenant pays the full move-in fee upfront, do they waive their right to installments?

A: Practically, yes. If the tenant voluntarily chooses upfront payment, they cannot later claim they should have been offered installments. However, you must still offer the option in writing before they commit. Document the tenant’s written election to pay upfront to protect yourself.

Q: Do move-in fees violate fair housing law?

A: Move-in fees themselves are legal under federal fair housing law. However, if you charge higher move-in fees to tenants based on race, disability, or other protected class, or if you deny installment plans in a discriminatory manner, you violate both RCW 59.18.610 and the Fair Housing Act. Apply the same move-in fee amount and installment terms to all similarly situated tenants.

Best Practices for Washington Landlords

1. Document Your Move-In Fee Policy in Writing

Create a written policy that states:

• What move-in fees you charge and why (cleaning, admin, pet fees, etc.)
• That installment plans are always available
• The maximum installment period you offer (up to 5 months)
• That no interest or late fees apply to installments
• How tenants elect to pay in installments

Share this policy with all prospective tenants before lease signing.

2. Use a Lease Template That Complies with RCW 59.18.610

Do not rely on generic leases purchased online. Many do not include RCW 59.18.610 compliance language. If you manage multiple units, lease operations tools that auto-generate compliant disclosures reduce errors and ensure consistency across your portfolio.

3. Separate Move-In Fees from Rent and Deposits

In your lease and all communications, clearly distinguish:

• First month’s rent: Due upfront, follows rent payment rules
• Last month’s rent: Held as requested or due at end of tenancy
• Security deposit: Held in trust, refundable within 30 days, subject to separate installment rules
• Move-in fees: Non-refundable, installment plan must be offered

4. Automate Installment Payment Tracking

Use a property management tool that tracks installment payments separately from rent. This helps you:

• Send payment reminders without confusing them with eviction notices
• Maintain accurate payment history
• Respond to tenant disputes or attorney demands with clear records

5. Never Threaten Eviction for a Missed Installment Alone

If a tenant misses a move-in fee installment payment, do not include it in a notice to pay or quit for “non-payment of rent.” Move-in fees are not rent. Threatening eviction may expose you to unfair practice claims. Instead, send a friendly payment reminder and attempt to resolve the matter directly.

6. Review Your Process Annually

Washington tenant law evolves. In 2024, RCW 59.18.610 took effect. In 2025–2026, additional protections or amendments may be introduced. Subscribe to updates from the Washington landlord-tenant law resources or consult with a local real estate attorney annually to ensure your policies remain compliant.

Red Flags: Audit Your Current Practices

Review your current leases and fee practices. If any of these apply to you, you may be out of compliance:

• You charge a move-in fee but do not mention installment plans in the lease
• You offer installments only verbally, not in writing
• You charge late fees on missed installment payments
• You require full upfront payment as a condition of lease signing, even if you mention installments elsewhere
• You offer installments only to tenants who pass a credit check
• You charge different installment terms or fees to different tenants
• You require installment payments to be made by automatic bank draft without the tenant’s consent
• Your lease calls a move-in fee a “security deposit” or “rent”

If you identify any of these practices, correct them immediately. Update your lease templates and notify existing tenants of policy changes before their next renewal.

Key Compliance Dates and Deadlines