Washington's residential deposit rules under the RLTA (RCW 59.18) are highly prescriptive—mandatory trust accounts, a 21-day return window, and the forfeiture of deduction rights without a move-in checklist. None of these protections apply to commercial tenancies.

Commercial security deposits in Washington are governed entirely by the terms negotiated in the commercial lease agreement and basic contract law. The state places no statutory guardrails on the landlord.

1. No Statutory Deposit Caps

A Washington commercial landlord can demand a security deposit of any amount they deem appropriate.

• Requesting one to three months' base rent is the industry standard.
• For high-risk tenants (e.g., unproven startups or restaurants with historically high failure rates), demanding six to twelve months' rent is common and perfectly legal.

2. No Trust Account Requirement

• The RLTA's mandatory trust account rule does not extend to commercial leases.
• A commercial landlord can legally commingle the tenant's deposit with their general operating funds unless the lease specifically requires segregated escrow.
• There is no statutory requirement to pay the tenant interest on the deposit.

3. Return Deadlines and Deductions

• The RLTA's rigid 21-day return window does not apply.
• The deposit return timeline is dictated by the commercial lease. Standard contracts often grant the landlord 30 to 60 days after the tenant vacates to inspect, reconcile outstanding CAM charges, assess dilapidations, and return the remaining balance.
• Deductions can be far broader than residential, potentially including: unpaid base rent, unpaid NNN charges, default interest, CAM reconciliation shortfalls, and the cost of restoring the premises to a "vanilla shell" condition.

4. The Move-In Checklist (Not Required, But Critical)

While a commercial landlord is not statutorily required to provide a move-in checklist (unlike residentials), it is an extremely important best practice. Without documented baseline evidence of the property's condition, the landlord will struggle to successfully deduct funds for tenant-caused damages if a dispute arises.

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How Landager Helps

Managing Washington properties requires precision, especially with Seattle's strict security deposit caps and the statewide 30-day return deadline. Landager automates the mandatory move-in checklist process, tracks the 14-day "pay or vacate" notices, and ensures rent increases are delivered with the required 90-day notice. From managing installment payment requests to staying compliant with Just Cause eviction requirements, Landager helps you navigate the complex RCW 59.18 landscape.