Bill passes to require landlords to substantiate damage claims to retain deposits
Landlords would have new rules governing move-out deposits under a bill passed on Thursday by the Washington House of Representatives.
House Bill 1074 is sponsored by Rep. My-Linh Thai, D-Bellevue, and was passed with a 57-40 vote. It will now head for the Senate.
The bill does several things, including extending the timeline landlords have to provide documentation showing that they are right in retaining all or part of a tenant’s deposit. That timeline would be extended from 21 days to 30 days.
Additionally, landlords must provide documents or receipts to substantiate damage costs withheld from a tenant’s deposit. It also prohibits landlords from keeping a deposit in certain instances, such as normal wear and tear, or replacement of fixtures, appliances and equipment if the condition of those items was not documented during the tenant’s move-in.
An earlier version of the legislation set a one-year statute of limitations for landlords to sue for additional damages, but the bill passed by the House established a three-year statute instead.
“Tenants continue to tell us they are being denied deposit refunds due to unsubstantiated damage claims. This bill doesn’t deny landlords the ability to recoup their expenses for damages, it simply ensures fair treatment of renters,” Thai said in a press statement released after the bill passage. “As a landlord myself, this is about setting a precedent for landlords to stop charging tenants thousands of dollars in uncorroborated damages.”
Many lawmakers who also are landlords argued against the bill, including Rep. Andrew Barkis, R-Olympia.
Barkis and fellow Republican Rep. Spencer Hutchins from Gig Harbor each introduced two amendments to the bill, but none of the four amendments were passed.
Barkis said there have been several examples so far this session of bipartisan and collaborative housing policies, but that Thai’s measure is “unfortunately” not one of them. He said the amendments offered that could have gotten the bill to a place that was agreeable.
“The intent of this policy is good — most housing providers are already doing most of everything that’s in here, and with a few tweaks, all could have done this policy better,” he said.
But, Barkis said, the power dynamic is shifting out of the landlord’s favor, and “thousands” of rental housing units are being lost.
If passed by the Senate and signed by Gov. Jay Inslee, the bill would become law 90 days after the legislative session ends on April 23.
This story was originally published March 2, 2023 at 2:02 PM.
