CHAPTER 8 - HOLDING DEPOSITS
A landlord may require that a tenant pay a deposit on property to ensure that the tenant will in fact take possession of the premises. According to RCW 59.18.253, to collect a “holding deposit,” the landlord must provide the prospective tenant with a receipt for the fee or deposit, together with a written statement of the conditions under which the fee or deposit is refundable. If the prospective tenant takes possession and occupies the rental unit, the landlord must credit the amount of the fee or deposit to the tenant's first month's rent or to the tenant's security deposit.
If the prospective tenant does not occupy the rental unit, the landlord may keep up to the full amount of any fee or deposit so long as it is forfeited in accordance with the written statement of conditions furnished to the prospective tenant at the time the fee or deposit was collected.
A landlord cannot charge a fee from a prospective tenant for the privilege of being placed on a waiting list. In any action brought for a violation of RCW 59.18.253, a landlord may be liable for the amount of the fee or deposit charged and $100 punitive damages. The prevailing party may also recover court costs and reasonable attorney fee.
A fee or deposit charged to secure a tenancy does not include any cost charged by a landlord to use a tenant screening service or obtain background information on a prospective tenant. RCW 59.18.257 addresses tenant screening. See also Chapter 9.