Wash. Rev. Code § 59.24 § 59.24.030
Contracts required -- Terms.
Operative Text
(1) A three-party contract shall be required of persons participating in the rental deposit guarantee program. The parties to the contract shall be the local government or nonprofit corporation operating a shelter for homeless persons or transitional housing, the tenant, and the rental property owner. The terms of the contract shall include, but are not limited to, all of the following: (a) The owner of the rental property shall agree to allow the security deposit to be paid by the tenant over a specified number of months as an addition to the regular rental payment, rather than as a lump sum payment. (b) Upon execution of the agreement, the local government or nonprofit corporation shall encumber or reserve funds in a special fund created under RCW 59.24.020 , as a guarantee of the contract, an amount no less than eighty percent of the outstanding balance of the security deposit owed by the tenant to the landlord. (c) The tenant shall agree to a payment schedule of a specified number of months in which time the total amount of the required deposit shall be paid to the property owner. (d) At any time during the operation of the guarantee, the property owner shall make all claims first against amounts of the security deposit actually paid by the tenant and secondly against the guarantee. At no time during or after the tenancy may the property owner make claims against the guarantee in excess of that amount agreed to as the guarantee. (e) If a deduction from the guarantee fund is required, it may be accomplished only to the extent permitted by the contract and in the manner provided by law, including notice to the legal agency or organization. The tenant shall have no direct use of guarantee funds, including funds which may be referred to as "last month's rent." (2) The department shall make available to local governments and nonprofit corporations receiving grants under this chapter the forms deemed necessary for the contracts and the determination of eligibility. Local governments and nonprofit corporations may develop and use their own forms as long as the forms meet the requirements specified in this chapter.
Washington's Rental Deposit Guarantee Program, established under Wash. Rev. Code § 59.24.010 et seq. § 59.24.030, requires a formal three-party contract among a landlord, a tenant, and a local government or nonprofit operating a homeless shelter or transitional housing program. Under this arrangement, the security deposit is paid by the tenant in installments over time rather than as a single upfront lump sum, while the sponsoring organization reserves at least 80% of the outstanding deposit balance as a guarantee. Any claims against that guarantee fund must follow a specific order—first against amounts the tenant has already paid, then against the guarantee—and the tenant has no direct access to those guaranteed funds.
Plain English — not legal advice.
Property owners participating in the Rental Deposit Guarantee Program under Wash. Rev. Code § 59.24.030 generally enter into a written three-party contract that spells out the installment payment schedule and the guarantee terms before the tenancy begins. Compliant operators accept the tenant's security deposit in monthly increments added to rent, and when damage or unpaid rent claims arise, they direct claims first against deposit amounts already collected from the tenant and only then against the guarantee fund. Owners are also careful never to claim against the guarantee beyond the amount specified in the contract, and they follow the legally required notice procedures when seeking any deduction from the guarantee fund.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Wash. Rev. Code § 59.24.030, tenants who participate in the Rental Deposit Guarantee Program have the right to pay their security deposit over a set number of months rather than all at once, with the terms of that schedule written into the three-party contract. The guarantee fund reserved by the sponsoring local government or nonprofit is not money tenants can draw on directly—it exists solely as a backstop for the landlord under the conditions defined in the contract. Tenants who believe a landlord has made improper claims against the guarantee, or that the contract terms have not been honored, may consider reaching out to the local government or nonprofit organization that is party to the contract, or consulting a tenant-rights organization familiar with Washington's rental deposit guarantee rules.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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