Washington Real Estate Law Blog : Washington Real Estate Lawyer & Attorney : Dickson Steinacker Law Firm : WA HOA, Building & Zoning Updates

For a tenant to exercise his or her remedial rights under the Landlord-Tenant Act (RCW 59.18), the following requirements must be satisfied:

1.  Tenant must be current on rent

2.  Tenant must give landlord notice of any defective condition in writing (the landlord then has statutorily-outlined time requirements in which to correct the defects.  RCW 59.18.070).  If the landlord is not given notice, the court will not expect him to have fixed the defect(s). 

3.  Tenant must not prevent or thwart the landlord's attempt at remedying the defect

4.  If the landlord still does not correct the defect, the tenant may elect one of the following remedies: 

(a) terminate rental agreement, and vacate; (b) commence action in court; or (c) fix the defect and deduct the cost from the required rental payment; (d) seek a third party arbitrator or court determination which assesses the reduction of rental value of the property; (e) in the case of substantial danger to the health and safety of the tenant, he or she can request that a government conduct an inspection on the premises.  The inspector will then certify whether in deed the property is sufficiently dangerous, thus verifying whether withholding rental payment is justified; (f) seek authorization from a court or arbitrator to end the tenancy -- this is only authorized when the defects are so drastic that they cannot be corrected. 

For a more detailed description of the above guide, look to RCW 59.18.  It is important to note that tenants must follow these requirements strictly.  If a landlord can show that the RCW was not followed, he may defeat the tenant's actions in attempting to correct the deficiency -- meaning that the tenant may have violated the lease and is liable for subsequent damages. 

Above all, if you are a tenant, be sure to keep paying rent!  The court will not go along with your actions IF it is shown that you are either deficient in the rent owed, or have unnecessarily withheld amounts that you rightfully owe. 

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In a recent case, I encountered an interesting issue regarding deposits held by landlords.  Specifically, what happens to a tenant's deposit once the landlord/tenant relationship has ended (either the tenant has moved out or abandoned the property, or, the landlord has removed him or her)?  In the Landlord-Tenant Act, RCW 59.18.280 outlines what needs to happen --

"Within fourteen days after the termination of the rental agreement and vacation of the premises or, if the tenant abandons the premises as defined in RCW 59.18.310, within fourteen days after the landlord learns of the abandonment, the landlord shall give a full and specific statement of the basis for retaining any of the deposit together with the payment of any refund due the tenant under the terms and conditions of the rental agreement. No portion of any deposit shall be withheld on account of wear resulting from ordinary use of the premises. The landlord complies with this section if the required statement or payment, or both, are deposited in the United States mail properly addressed with first-class postage prepaid within the fourteen days.

     The notice shall be delivered to the tenant personally or by mail to his last known address. If the landlord fails to give such statement together with any refund due the tenant within the time limits specified above he shall be liable to the tenant for the full amount of the deposit. The landlord is also barred in any action brought by the tenant to recover the deposit from asserting any claim or raising any defense for retaining any of the deposit unless the landlord shows that circumstances beyond the landlord's control prevented the landlord from providing the statement within the fourteen days or that the tenant abandoned the premises as defined in RCW 59.18.310. The court may in its discretion award up to two times the amount of the deposit for the intentional refusal of the landlord to give the statement or refund due. In any action brought by the tenant to recover the deposit, the prevailing party shall additionally be entitled to the cost of suit or arbitration including a reasonable attorney's fee.

     Nothing in this chapter shall preclude the landlord from proceeding against, and the landlord shall have the right to proceed against a tenant to recover sums exceeding the amount of the tenant's damage or security deposit for damage to the property for which the tenant is responsible together with reasonable attorney's fees."

The important thing to remember is that the landlord has a mere 14 days to provide either an explanation of why the deposit has not been tendered (or to ask for more time).  After that 14-day window, the landlord is functionally barred from making any defenses to keeping the money and may actually have to pay more.  So, to all those landlords out there: be sure to take care of the deposit issue within that 14-day deadline.

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The Obama legislation, which passed in March, aimed specifically to assist those in danger of losing their primary residence to foreclosure.  It was thought that individuals purchasing property for investment (namely those acquiring property then leasing it out) would not be eligible under the new law.

While that has not changed, our office has seen some interesting movement by banks and loan servicers regarding investment properties.  Under many circumstances, even the investor may gain some relief through loan modification.  

Banks/servicers largely follow the same pattern as the owner-occupied loan modifications.  First, they require a signed forbearance agreement, then they require an extensive disclosure of the investor's financial status in the form of a "Hardship Packet".  When they have those two things in hand, the servicer/bank will decide whether to modify the loan.  The following is what is most often required:

1.  Letter describing hardship

2.  Last two pay stubs

3.  Length of time at current employer

4.  One month's complete bank statement

5.  Most recent tax return

6.  Statement of your complete income (including family members residing with you)

7.  Proof of paid property taxes, homeowners insurance, and HOA fees

8.  (If self-employed): (a)  Profit/loss statements; (b)  three pay stubs; (c)  last two years tax returns; and (d)  business and personal bank statements.

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