Washington State does not cap the amount of a residential security deposit. There is no statewide maximum, no one month rule, and no limit on non-refundable fees. What the state does control is the paperwork, and the paperwork is where owners lose money. Get the written agreement or the move-in checklist wrong and you can be liable for the entire deposit even when your deductions were fair.
Some cities do set a maximum. If your rental is inside Olympia, your deposit is capped at one month’s rent, your pet deposit is capped separately, and your late fee is capped at $10 a month. Those limits are stricter than anything in state law.
Is there a statewide cap on security deposits in Washington?
No. RCW 59.18.260, the section of the Residential Landlord-Tenant Act that governs deposits, sets no dollar figure and no month based maximum. Neither does RCW 59.18.285, which covers non-refundable fees.
Where the confusion comes from
HB 1217, the 2025 rent stabilization law, does contain a one month cap on move-in fees and deposits combined, rising to two months where the tenant has pets. That provision sits in the Manufactured/Mobile Home Landlord-Tenant Act and applies only to manufactured and mobile home tenancies. The Senate Bill Report for EHB 1217 sets that scope out clearly.
It is an easy provision to misread, and it has been widely reported as though it applied to all rentals. It does not. If you own a manufactured home community, the cap is real and it binds you. If you own a rental house, it does not.
Does Olympia cap security deposits?
Yes. This is the rule that actually constrains most owners reading this, and it is stricter than state law. Under Olympia Municipal Code chapter 5.82:
| What | Olympia limit | Code section |
| Refundable security deposit, or last month’s rent taken to secure possession | May not exceed one month’s rent | OMC 5.82.060(A)(2) |
| Pet damage deposit | May not exceed 25% of one month’s rent | OMC 5.82.050(A) |
| Any other pet fee | Not permitted at all | OMC 5.82.050(E) |
| Late charge for late rent | May not exceed $10 per month | OMC 5.82.060(A)(5) |
Two details worth knowing. A tenant may elect to pay the pet damage deposit in three consecutive equal monthly instalments, or propose a different schedule if you agree, under OMC 5.82.050(C). And the code works by listing what you are permitted to charge, so a fee that is not on the list is not chargeable. The ordinance prohibits excessive fees and fees for anticipated landlord expenses.
The $10 late fee cap catches people out more than any other item here. On a $2,000 rental, a late fee of even one percent would be $20, which is double what Olympia allows.
Does Tumwater cap deposits or fees?
Tumwater does not set a maximum deposit amount in the way Olympia does. What Tumwater Municipal Code chapter 5.75 does require, at TMC 5.75.050, is that any recurring non-refundable fee be clearly specified in writing as non-refundable. If it is not, it is treated as a refundable deposit and you will be returning it.
What about Lacey, Yelm and unincorporated Thurston County?
We are not aware of a Lacey or Yelm ordinance capping deposits or fees as at August 2026, so the state framework governs there. Local ordinances change, so confirm with the city before you set a deposit on a property in either.
What does state law actually require?
This is the part that costs owners money, and it has nothing to do with the amount.
You must have a written agreement and a move-in checklist
Under RCW 59.18.260, if you collect a deposit, the rental agreement must be in writing and must state the terms under which the deposit may be withheld. You must also give the tenant a written checklist describing the condition of the premises, fixtures, equipment, appliances and furnishings, signed and dated by both of you, with a copy to the tenant.
Miss the checklist and the statute makes you liable to the tenant for the amount of the deposit, plus court costs and attorney fees. Not the disputed portion. The whole deposit.
Non-refundable fees must say they are non-refundable
RCW 59.18.285 says money that is non-refundable may not be called a deposit or included in one. The agreement must be in writing and must clearly specify that the fee is non-refundable. If it does not, the fee is treated as a refundable deposit and comes back to the tenant at the end. If there is no written agreement at all, you are liable for the fees you collected.
The tenant can pay the deposit in instalments
Under RCW 59.18.610, if the tenant asks in writing, you generally must let them pay the deposit, any non-refundable fees and last month’s rent in instalments. For a tenancy of three months or longer that is three consecutive equal monthly instalments starting at the beginning of the tenancy. Otherwise it is two. You may not charge a fee, interest or any additional cost for allowing it, and refusing a compliant request carries a statutory penalty of one month’s rent plus attorney fees.
Deposits must sit in a trust account
RCW 59.18.270 requires deposit money to be placed promptly in a trust account with a financial institution or licensed escrow agent in Washington. You must give the tenant a written receipt and written notice of the name, address and location of the depository, and tell them if it changes. Unless the lease says otherwise, interest on the account belongs to you.
You have 30 days to account for the deposit
Under RCW 59.18.280, within 30 days after the tenancy ends and the tenant vacates, you must give a full and specific written statement of the basis for retaining any of the deposit, together with any refund due. You must attach documentation, meaning estimates, invoices or receipts. If you did the work yourself, you must state the time spent and a reasonable hourly rate.
Fail to do it and you are liable for the full amount of the deposit. Refuse intentionally and a court may award up to two times the deposit, plus the prevailing party’s costs and attorney fees. Note the deadline is 30 days. It was shorter in the past and a good deal of older guidance still online says 21 days. Work to 30 and diary it from the vacate date.
What you cannot deduct
- Wear resulting from ordinary use of the premises. RCW 59.18.260 says so directly.
- Anything not documented on the move-in checklist, because you have no baseline to prove it against.
- Carpet cleaning where you cannot show the condition went beyond normal wear.
If you are unsure where the line sits, our guide to normal wear versus damage works through the practical cases.
What about late fees?
RCW 59.18.170 gives tenants a five day grace period. You may not charge a late fee on rent paid within five days of the due date. That section sets a grace period but not a maximum amount. Your city may. Olympia caps late fees at $10 per month under OMC 5.82.060(A)(5), and that cap governs inside city limits. Before you set a late fee, check the ordinance for the city the property sits in rather than assuming a statewide figure applies.
What if you own a manufactured or mobile home community?
Different rules, and here the cap is real. Under HB 1217, for tenancies entered into on or after the effective date, move-in fees and the security deposit combined may not exceed one month’s rent, or two months’ rent where the tenant has pets. Late fees are tiered at 2 percent of monthly rent in the first month rent is past due, 3 percent in the second consecutive month and 5 percent in the third, and only apply once rent is more than five days late.
Practical checklist for Thurston County owners
- Identify which city the property is actually inside. Olympia city limits and an Olympia mailing address are not the same thing.
- If it is in Olympia, cap the deposit at one month’s rent, the pet damage deposit at 25 percent of one month’s rent, and the late fee at $10 per month.
- Put the deposit terms in the written agreement, including the conditions for withholding.
- Complete the move-in checklist, have both parties sign and date it, and give the tenant a copy. Photograph everything.
- Label any non-refundable fee as non-refundable, in writing, or expect to refund it.
- At move out, diary 30 days from the vacate date and send a specific statement with documentation attached.
Frequently asked questions
Is there a maximum security deposit in Washington State?
Not at state level. RCW 59.18.260 sets no maximum for residential tenancies. Some cities do set one. Olympia caps the deposit at one month’s rent under OMC 5.82.060(A)(2).
Did HB 1217 cap security deposits at one month’s rent?
Only for manufactured and mobile home tenancies. The Senate Bill Report for EHB 1217 confines that provision to the Manufactured/Mobile Home Landlord-Tenant Act. There is no equivalent cap for ordinary residential tenancies under the Residential Landlord-Tenant Act.
How long does a landlord have to return a security deposit in Washington?
30 days from the end of the tenancy and the tenant vacating, under RCW 59.18.280. The landlord must give a full and specific statement of any amounts retained with documentation attached. Failing to do so makes the landlord liable for the full deposit, and an intentional refusal can carry damages of up to twice the deposit plus attorney fees.
Can a landlord charge a non-refundable fee in Washington?
Yes, and the amount is not capped by state law, but under RCW 59.18.285 the rental agreement must be in writing and must clearly specify that the fee is non-refundable. If it does not, the fee is treated as a refundable deposit.
Can a tenant pay a security deposit in instalments in Washington?
Yes. Under RCW 59.18.610, if the tenant requests it in writing the landlord generally must allow the deposit, non-refundable fees and last month’s rent to be paid in instalments. Three equal monthly instalments for a tenancy of three months or longer, two otherwise. No fee or interest may be charged for allowing it.
How much can a landlord charge for a pet deposit in Olympia?
No more than 25 percent of one month’s rent, under OMC 5.82.050(A). No other pet fee is permitted. The tenant may choose to pay it in three equal monthly instalments.
What is the maximum late fee in Olympia?
$10 per month, under OMC 5.82.060(A)(5). State law adds a five day grace period under RCW 59.18.170 but does not itself set a maximum amount.
Can a landlord deduct for carpet cleaning?
Only where the condition goes beyond ordinary wear and you can document it. RCW 59.18.260 prohibits withholding for wear resulting from ordinary use, and deductions must be supported by the move-in checklist and by receipts or estimates under RCW 59.18.280.
Getting this right on your property
MVP Property Pros has managed rental homes across Thurston County since 2004. Deposits are one of the few areas where the paperwork matters more than the judgement call, and where a missing signature can cost an owner the entire deposit regardless of how reasonable the deductions were.
If you would like your deposit terms, checklist process and move-out procedure reviewed against the city your property sits in, get in touch or call (360) 339-8539. You can also read about what full-service management includes.
Disclaimer: Information deemed reliable but not guaranteed, and not to be construed as legal advice. Laws and local ordinances change, and how they apply depends on your property and situation. Consult your attorney or your property manager before acting on anything here. Where possible, statements in this article link to the statute, code section or agency publication they are drawn from, so you can verify them directly.
Sources
- RCW 59.18.260, deposits, written agreement and move-in checklist requirement.
- RCW 59.18.285, non-refundable fees.
- RCW 59.18.610, right to pay deposits and fees in instalments.
- RCW 59.18.270, trust account requirement.
- RCW 59.18.280, deposit accounting, the 30 day deadline and damages.
- RCW 59.18.170, five day grace period on late fees.
- Senate Bill Report, EHB 1217, scope of the deposit and move-in fee cap.
- Olympia Municipal Code chapter 5.82, deposits, pet deposits and late fees.
- Tumwater Municipal Code chapter 5.75, non-refundable fee disclosure.