Effective June 11, 2020, the Washington State Legislature will add or amend sections to RCW 59.18 to allow for tenants to pay monies owed in installments.
The new statute explicitly covers deposits, nonrefundable fees, and last month's rent sums.
This section does NOT cover:
- Regular rent due during a lease term.
- Any type of holding deposit to reserve the place for a tenant who wishes to move into the unit; however, the section states that the landlord cannot charge a fee on such a holding deposit that exceeds 25% of the first month's rent.
The tenancy must be for a FIXED period that is three months or longer. This section excludes any month-to-month written or oral agreement, or the fixed term is less than three months.
If the tenant is paying in installments:
- If the tenancy is for a fixed term that is three months or longer, the tenant pays in three equal and consecutive installments, starting with the first month of tenancy. In any other case (month-to-month or shorter fixed term), it will be TWO consecutive equal installments, starting with the first month of tenancy.
- No late fees or interest can be charged to the tenant.
- Installment payments are generally due at the time regular rent is due.
After January 1, 2021, if the landlord refuses to let the tenant pay in installments after the tenant properly gives written request and the landlord receives said request, the landlord may be liable to the tenant for one month's rent in damages, plus reasonable attorney's fees.
RCW 43.31.605 and RCW 59.18 have been amended to include unpaid tenant installments as reimbursable through the landlord mitigation program. The same factors must be found, such as the tenant is low-income or otherwise faces hardship. If the landlord receives monies from a landlord mitigation program claim, the landlord (or the landlord's attorney) must file a Satisfaction of Judgment with the court. The tenant may be liable to reimburse the state for those monies.
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This is a change in the law that should benefit landlords and tenants. Especially in the wake of COVID-19, when tenants are losing their jobs, it can be difficult to save up money to cover non-rent obligations. It also gives the landlord a chance to recoup any monies from unpaid installments.
This statute is designed for longer-term protections, even after Governor Inslee lifts the eviction moratorium or does not extend said moratorium.
It is worth noting that a judgment for monies owed could include breach of contract matters in small claims court, and doesn't limit it to judgments on unlawful detainer matters. Plaintiff landlords could attempt to request relief under RCW 43.31.605 instead of evicting the tenant. It's a similar tactic that a Manhattan landlord used in filing a claim for rent owed against New York Mets pitcher Noah Syndergaard. In that case, Syndergaard is not currently occupying the unit (he never occupied it due to the pandemic), and the dispute is purely over monies owed.
