Are you still collecting first month’s rent, last month’s rent, and a full security deposit when tenants move in? That practice is now illegal throughout Washington State. The Housing Stability Act has fundamentally changed what landlords can charge upfront, and violating these limits can result in serious legal consequences.

This guide explains the new statewide cap on move-in costs, how to restructure your leasing process, and what remedies tenants have if you’re not in compliance.

The New Statewide Limit on Move-In Costs

Washington’s Housing Stability Act established a clear limit: total move-in fees and security deposits combined cannot exceed one month’s rent. This is a hard cap with no exceptions.

Let’s break down what this means in practice. If your monthly rent is $2,000, the absolute maximum you can collect upfront—combining the security deposit, any move-in fees, administrative fees, and all other charges—is $2,000. You cannot charge $2,000 for a deposit plus $500 in move-in fees. You cannot collect last month’s rent in advance. The total is capped at one month’s rent, period.

Seattle landlords may recognize this rule—the city had implemented similar restrictions before the state acted. What’s new is that this limit now applies statewide, affecting landlords in Everett, Bellevue, Tacoma, and every other city and county in Washington.

What Charges Count Toward the Cap

Understanding exactly what falls under this cap is essential for compliance. The one-month limit includes security deposits (regardless of what you call them), move-in fees, administrative fees, cleaning fees, and any other non-refundable charges collected at move-in.

Some charges remain separate from this calculation. Pet deposits may be charged separately in some circumstances, though specific rules apply. Legitimate utility transfer fees paid directly to utility companies are also typically excluded. However, when in doubt, assume the charge counts toward your one-month limit.

First month’s rent is still collected at move-in but is not part of this calculation—it’s payment for actual occupancy, not a fee or deposit.

Why This Matters for Your Cash Flow

Many landlords historically collected substantial upfront amounts—first month, last month, and a security deposit often totaling three months’ rent. This provided a significant financial cushion against tenant defaults or property damage.

Under the new law, that cushion is significantly reduced. If rent is $2,000, you’re moving from collecting $6,000 upfront (first, last, deposit) to $4,000 (first month plus maximum deposit). That’s $2,000 less protection on every new lease.

This makes thorough tenant screening more important than ever. With less financial cushion, placing the wrong tenant becomes more costly. Landlords need to rely more heavily on credit checks, income verification, rental history, and reference checks to minimize risk.

Legal Remedies Tenants Can Pursue

Tenants who are overcharged at move-in have legal remedies available to them. They can sue to recover excess amounts paid, potentially receive additional damages, and may be entitled to attorney’s fees. Courts take these violations seriously, and landlords who attempt to circumvent the law through creative fee structures risk significant liability.

Additionally, attempting to disguise excess charges as something else—calling a prohibited last month’s rent a “move-in fee” that exceeds the cap, for example—can make your legal situation worse, not better.

How to Restructure Your Move-In Process

Adapting to the new rules requires rethinking your entire move-in approach. Here’s what we recommend:

Simplify Your Fee Structure: Rather than having separate security deposits, cleaning fees, and administrative fees, many landlords are moving to a single security deposit that equals one month’s rent. This is simple to explain, easy to calculate, and clearly compliant.

Strengthen Your Screening: With less financial protection upfront, invest more in screening. Verify income (we recommend 2.5-3x monthly rent), check credit thoroughly, contact previous landlords, and confirm employment.

Update Your Lease Documents: Any lease documents referencing old deposit amounts, last month’s rent collection, or fees that would exceed the cap need to be updated immediately.

Consider Renters Insurance Requirements: While you can’t collect more upfront, you can require tenants to carry renters insurance. This provides some protection against liability and can reduce your risk exposure.

Get Help with Compliance

At inTrust Property Management, we’ve updated all our move-in procedures to comply with the Housing Stability Act. We handle deposit calculations, ensure fee structures meet legal requirements, and maintain documentation that protects landlords if disputes arise.

Need help restructuring your move-in process? Call inTrust at 425-438-3474 or visit intrustpmc.com to learn how we can help.