Security Deposit Alternative in Washington
Washington's cash-deposit rule in RCW 59.18.280 generally requires a specific accounting, supporting damage documentation and any refund within 30 days after the agreement terminates and the resident vacates, or after the landlord learns of abandonment. RCW 59.18.260 requires a written agreement and signed condition checklist before collecting a deposit. The separate fee-in-lieu framework in RCW 59.18.670 preserves choice and imposes its own insurance, disclosure and claim rules; it is not merely a nonrefundable-fee label.
What Washington law says about security deposits
- Can you require it?
- Optional only
- RCW 59.18.670 makes the fee strictly optional and preserves the resident's right to switch to a deposit. Required disclosures and insurance rules apply.
- Statutory cap
- No statewide maximum
- Return deadline
- 30 days after termination and vacating, or after the landlord learns of abandonment
- The law
- Washington's security deposit rules
- RCW 59.18.260 and 59.18.280
Source baseline: . See the official Washington source. Deposit rules change, and this is general information rather than legal advice. Confirm the current text with your own counsel before you change a lease.
Can you require it of every Washington resident?
Washington RCW 59.18.670 expressly regulates a fee in lieu of a deposit. The fee is strictly optional, cannot determine application approval, and must be offered to every approved applicant if offered at all. The resident may switch to the disclosed deposit, with applicable installment rights. Provide the move-in checklist and statutory disclosure with each relevant lease or renewal, including total fee cost, insurance limits and continuing resident liability. Use the fee to buy coverage from a lawful insurer; it cannot exceed the cost of obtaining and administering that insurance. Nonpayment of this fee is not rent nonpayment and cannot itself support eviction under this section. These conditions do not establish that a particular Beagle agreement complies.
Fee-in-lieu provision: RCW 59.18.670, read on .
Fee-program claim notices
For a continuing fee under RCW 59.18.670, follow the damage documentation and notice standards and wait at least 60 days after both the required notice/documentation and the insurer claim before landlord collection activity. Landlord actions must commence within one year after termination or abandonment, subject to subsection (4)'s scope. A landlord cannot recover amounts already paid by the insurer. Insurer reimbursement requests require supporting documents and a 60-day collection wait, with another 60 days if disputed; different denial grounds affect any landlord claim.
Claim-notice provision: RCW 59.18.670(3)–(4)
Rules differ by state and by city, and subsidized housing is its own question. This is general information for property managers, not legal advice. Get a written opinion before you make the fee a condition of tenancy anywhere.
How the program works in Washington
Review Beagle's deposit alternative alongside the agreement for your property. Protection, resident responsibilities and claim handling depend on the program terms and applicable state and local requirements.
Explain the options at signing
A qualifying fee arrangement lets a resident pay a monthly charge instead of providing the full cash deposit. Explain the available deposit choice, refundability and continuing resident obligations at signing. The payment’s legal treatment depends on the arrangement and jurisdiction.
Match protection to the lease
Compare the selected program’s covered losses, limit, exclusions and claim requirements with the deposit your lease would require. Payment depends on an eligible claim and the program terms; a fee does not itself guarantee the same recovery as cash security.
Document move-out and give notice
A deposit alternative changes how an eligible claim is paid. Keep move-in and move-out evidence, provide the notices required for the property's jurisdiction, and follow the program's claim process. Claim review and resident disputes can still require your team's involvement.
Agree the program economics
Confirm the resident’s charge and any property administration payment in your quote and agreement. Include permitted fees in the disclosures required for the property; earnings depend on the agreed economics and applicable law.
Security deposit rules in other states
- AlabamaReview the payment’s security function
- AlaskaReview nonrefundability and notice rules
- ArizonaReview security and fee rules
- CaliforniaReview the broad security definition
- ColoradoReview security function and fee pricing
- ConnecticutCheck upfront fees and total-rent disclosure
- DelawareOptional surety has its own rules
- FloridaOptional only
- GeorgiaReview cap scope and return duties
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- HawaiiCheck the fee rules first
- IdahoReview security purpose and custody
- IllinoisReview return rules and fee disclosures
- IndianaReview returnable security and the address
- IowaReview deposit custody and instructions
- KansasReview deposit caps and refund triggers
- KentuckyConfirm local adoption and required records
- LouisianaReview security function and statement timing
- MaineOptional licensed surety has separate notice
- MarylandOptional only
- MassachusettsConfirm authorizing rules
- MichiganReview the deposit procedure
- MinnesotaReview fee classification and disclosure
- MississippiReview the payment’s security function
- MissouriReview the security definition
- MontanaCleaning and damage fees presumed security
- NebraskaReview function and housing-agency scope
- NevadaOptional only
- New HampshireCheck the fee rules first
- New JerseyReview trust, interest and special refunds
- New MexicoReview reasonable security and mailing
- New YorkReview fee restrictions
- North CarolinaReview the bond structure
- North DakotaReview security cap and 30-day accounting
- OhioReview the security definition
- OklahomaReview escrow and the demand trigger
- OregonCheck the fee rules first
- PennsylvaniaReview escrow and fee classification
- Rhode IslandReview security function and furniture limit
- South CarolinaReview deposit standards and agreement
- South DakotaReview security function and both notices
- TexasOptional only
- UtahReview nonrefundable designation and notice
- VermontReview refundable definition and local law
- VirginiaOptional only
- West VirginiaReview refundable security and contractor notice
- WisconsinReview security and deduction rules
- WyomingReview disclosures and separate clocks
Washington security deposit alternative FAQs
No. RCW 59.18.670 requires the fee option to be strictly optional and lets the resident switch to the disclosed deposit. If the landlord ends the option, the statute requires 60 days' notice before the end of the term or period, credits prior fees toward the deposit, and provides a three-month installment plan for the remainder. Confirm the full statutory disclosure and insurance conditions before offering it.
See it on your Washington units
Run the selected program against your own unit count, or review its charges, onboarding and agreement terms with our team.