landlord may collect a security deposit from a tenant only if the lease is in writing
and includes the terms and conditions under which any portion of the deposit may
be withheld by the landlord. RCW 59.18.260. Before collecting any deposit, the
landlord must complete a written checklist specifically describing the condition of
the premises and provide a copy to the tenant. Id. The landlord must also deposit all
moneys paid by the tenant as a deposit or security into a trust account in a qualifying
financial institution. RCW 59.18.270. The landlord may retain any interest accrued
by the deposit, but it must also keep the tenant apprised of the status of the deposit
by providing a written receipt for the deposit; written notice of the name, address,
and location of the trust account; and written notice of any changes to the location
or the owner of the trust account. Id. Further, if the landlord faces foreclosure during
the tenancy, the landlord must either transfer the tenant’s deposit to the successor
landlord or immediately refund it to the tenant. Id. (“The tenant’s claim to any
moneys paid under this section shall be prior to that of any creditor of the landlord,
including a trustee in bankruptcy or receiver, even if such moneys are
10
For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.
Silver v. Rudeen Mgmt. Co.
No. 98024-1
commingled.”). These provisions illustrate the legislature’s intention to ensure that
tenants have adequate protections.
Under the RLTA, the tenant’s deposit provides security for the performance
of the tenant’s obligations under the lease, but “[n]o part of the deposit belongs to
the landlord unless and until the tenant breaches.” 17 WILLIAM B. STOEBUCK & JOHN