Washington State Rental Application and Tenant Screening- A Comprehensive Guide

The rental application and tenant screening process in Washington State is an essential step for both landlords and tenants. It's a system that significantly impacts housing opportunities and property management, making it essential for all parties to understand the rules and regulations involved.

At the heart of this process lies Washington's RCW 59.18.257, a key piece of legislation that provides clear guidelines for rental applications and tenant screening. This law establishes important protections and responsibilities, covering aspects such as mandatory disclosures and rights regarding consumer reports. Its aim is to create a fair and transparent process for everyone involved in the rental market.

In the following overview, we'll discuss the specifics of Washington State's rental application and tenant screening laws, unpacking their key provisions. Our goal is to equip both landlords and tenants with the knowledge they need to approach the rental process with confidence. By understanding these regulations, we can work towards a smoother, more equitable housing experience for everyone in Washington State.

An overview of Washington's tenant screening laws

Washington State’s tenant screening regulations, as outlined in RCW 59.18.257, establish a framework of protections and responsibilities for both landlords and renters, promoting transparency and fairness in the rental application process.

The law requires landlords to clearly communicate the screening process, including what information will be accessed, criteria for application denial, and associated costs. This includes the rental application fee, which covers background checks and other verification processes, typically ranging between $30 and $40. 

Landlords must inform applicants about these fees and the screening process before submission, ensuring they do not profit from these fees. This ensures equitable screenings while guaranteeing renters the right to be informed about screening criteria and access to information used in rental decisions.

A key feature of the law is the introduction of comprehensive reusable tenant screening reports. These allow renters to present a single report to multiple landlords, potentially reducing the financial burden of multiple applications.

This framework aims to streamline the rental market in Washington State, minimizing misunderstandings and disputes while benefiting all parties involved.

City-specific regulations

In addition to state-level laws, several cities in Washington have enacted their own regulations to further protect tenants and guide landlords in the screening process. A notable example is Seattle:

1. First-in-time rule: Seattle requires landlords to offer tenancy to the first qualified applicant who submits a complete application. This “first-in-time” rule is designed to prevent discrimination by ensuring that landlords process applications in the order they are received.
2. Disclosure requirements: Landlords must provide a written list of screening criteria, including what might disqualify an applicant. They must also disclose the name and address of the consumer reporting agency used and provide a free copy of the report if an application is denied.
3. Criminal records: Seattle landlords cannot deny tenancy based solely on past criminal or arrest records. This is part of the city’s efforts to prevent discrimination against individuals with criminal histories.
4. Application fees: Landlords can only charge the actual cost of screening and must provide a receipt for these costs. The fees are non-refundable unless otherwise noted.

The lease agreement is essential in detailing aspects like security deposits and ensuring compliance with state laws.

These city-specific regulations work in conjunction with state laws to create a comprehensive framework for tenant screening across Washington. Landlords and tenants should be aware of both state and local laws applicable to their area to ensure full compliance and fair practices.

Key requirements for landlords

Building on the foundation of transparency and fairness established by RCW 59.18.257, there are key requirements that landlords must adhere to during the tenant application and screening process; let's take a look.

Non-discrimination compliance

Landlords in Washington State must comply with federal, state, and local fair housing laws:

• Protected classes: Landlords cannot discriminate based on race, color, national origin, religion, sex, familial status, or disability. Washington State adds protections for marital status, sexual orientation, gender identity, and veteran/military status.
• Prohibited practices: Landlords must avoid discriminatory practices such as refusing to rent, offering different terms and conditions, using discriminatory advertising, or engaging in harassment based on protected classes.
• Reasonable accommodations: For tenants with disabilities, landlords must make reasonable accommodations to ensure equal access to housing.

Preliminary disclosure

Landlords must provide prospective tenants with important information before initiating the screening process, which includes:

• Types of information accessed: Clarifying what personal and financial information will be reviewed. The standard rental application form plays a crucial role in collecting personal information and consent for background checks.
• Criteria for application denial: Landlords are required to outline specific reasons that could result in the rejection of an application. This includes providing an adverse action notice if the application is denied, stating the specific reasons and the information that led to the denial.
• Rights regarding consumer reports: Tenants must be informed about their rights to obtain a free copy of the consumer report if their application is denied or if adverse action is taken. They also have the right to dispute inaccuracies in the report.
• Policy on accepting comprehensive reusable tenant screening reports: Comprehensive reusable tenant screening reports are not mandatory for all landlords in Washington. While these reports are allowed and can be used by tenants to apply to multiple properties within a 30-day period, landlords have the discretion to accept or reject them. Landlords must notify applicants whether they accept these reports, and if they do, they cannot charge application fees or fees to access the report.

Screening costs

Landlords are allowed to charge for the cost of tenant screening under certain conditions:

• Disclosure of charges: Landlords must inform prospective tenants upfront about any fees associated with tenant screening. This ensures transparency and allows tenants to understand what they are being charged for.
• Limitation on charges: The amount charged for tenant screening should not exceed the actual cost incurred for the screening services. This means landlords can only charge what they have to pay for these services, ensuring fairness in the process.
• Transparency requirement: Landlords are required to be transparent about what the charges cover, including costs for background checks and other verification processes. This transparency helps build trust between landlords and tenants and ensures compliance with legal standards.

Adverse action notice

As mentioned earlier, in cases where an application is denied or subjected to additional conditions, landlords must provide a detailed notice to the prospective tenant

• Reasons for adverse action: Specifically stating why the application was not approved, such as issues found in a consumer report, inadequate credit history, or negative rental history.
• Consumer report influence: If the decision was influenced by a consumer report, the notice must include the contact details of the consumer reporting agency.
• Additional conditions for tenancy: These conditions must be clearly outlined if the application is conditionally approved (e.g., requiring an increased deposit or a co-signer).

By adhering to these requirements, landlords can ensure a transparent and equitable screening process, aligning with Washington State's commitment to fair housing laws protecting landlords' and prospective tenants' rights and interests.

Penalties for non-compliance

Landlords who do not comply with the requirements of RCW 59.18.257 and other tenant screening laws in Washington State may face several penalties. These penalties serve as a deterrent against unfair screening practices and encourage adherence to the law:

Monetary penalties:

• Landlords can be liable to prospective tenants for violations of the law's provisions for amounts up to $100 per violation, plus court costs and attorney fees.
• For certain violations related to improper use or disclosure of screening information, landlords may face higher penalties of up to $1,000 per violation.

Legal consequences:

• Tenants have the right to bring civil actions against landlords for violations of screening laws.
• Courts may award damages to tenants, including both actual damages and statutory damages.
• Repeated violations could potentially lead to more severe penalties or legal action.

Legal costs and fees:

In addition to the monetary penalties, landlords found in violation may also be required to cover court costs and reasonable attorneys' fees. This further emphasizes the financial implications of non-compliance.

Reputational damage:

Beyond the direct financial and legal penalties, landlords who fail to comply with tenant screening regulations may also suffer reputational damage. Tenants are increasingly aware of their rights, and non-compliance can lead to negative reviews and public perception, potentially affecting the landlord's ability to attract future tenants.

These penalties underscore the significant legal and financial risks of non-compliance and highlight the importance of understanding and adhering to Washington State's tenant screening laws. Landlords should take these regulations seriously to avoid potential penalties and maintain a positive reputation in the rental market.

Best practices for compliance

Navigating the complexities of Washington State’s tenant screening laws requires diligence and a commitment to fairness from landlords. Achieving compliance not only protects landlords from potential penalties but also builds a foundation of trust with prospective tenants.

To help landlords navigate these challenges, we’ve partnered with the Rental Housing Association of Washington (RHAWA), a leading authority on rental housing in the state. RHAWA offers invaluable resources and services to ensure landlords stay compliant and informed:

1. Up-to-date legal information: RHAWA provides members with the latest updates on Washington State’s tenant screening laws and regulations.
2. Standardized forms and documents: Access RHAWA’s library of legally compliant forms powered by Azibo, including rental applications and screening disclosure notices.
3. Training and education: Attend workshops and webinars on best practices for tenant screening and fair housing compliance.
4. Networking opportunities: Connect with other landlords to share experiences and strategies for maintaining compliance.

By leveraging RHAWA’s resources, landlords can ensure their screening practices are transparent, legally compliant, and aligned with industry best practices. This approach not only mitigates legal risks but also enhances your reputation as a fair and professional property manager.

Remember, clear communication about screening criteria and associated costs, along with consistent application of these criteria, are key to building trust with prospective tenants and staying compliant with Washington State laws.

To learn more about how RHAWA can support your compliance efforts and improve your tenant screening process, visit their website here, or contact membership@rhawa.org.

Benefits of using Azibo's tenant screening services

Azibo, in partnership with TransUnion and the Rental Housing Association of Washington (RHAWA), offers comprehensive background and credit checks tailored for Washington State property owners. This service ensures landlords receive a thorough assessment of each applicant while maintaining compliance with state and local laws.

A Washington rental application is crucial for collecting the necessary personal and financial information for the leasing process. It ensures landlords have all the details needed to make informed decisions.

Note: Our product can be used compliantly thanks to our partnership with RHAWA, ensuring that landlords have access to up-to-date, legally sound screening processes.

Comprehensive background checks included

Each prospective tenant's background check through Azibo includes:

• Credit check: Evaluates the applicant's credit score, credit history, accounts in poor standing, level of debt, and recent credit applications.
• Eviction proceedings: Reviews tenant judgments for possession and money, unlawful detainers, and small claims judgments, providing a clear view of the applicant's rental history.

**In compliance with Washington State laws, we do not conduct criminal background checks as part of our screening process. This information cannot be used as a basis to deny a rental application in Washington State, except in specific circumstances allowed by law.

Washington State-specific features

Azibo’s screening process is designed to comply with Washington State’s tenant screening laws, including:

• Adherence to RCW 59.18.257 requirements for tenant screening
• Uses Washington-specific rental application forms for proper information collection and consent.
• Complies with local fair housing laws and additional protected classes in Washington

Legally compliant Adverse Action Notices (AANs)

• Instant generation and sending of adverse action notices for declined applicants
• Uses RHAWA-provided Adverse Action Notice (AAN) forms to meet all state-specific legal requirements.
• Includes conditional offer options within the decline flow, enabling term adjustments if the applicant accepts them

Additional benefits for Washington landlords

• Applicant-paid screening: Tenants cover the cost of screening reports, reducing landlord expenses.
• Accurate timestamps: Provides precise records of reports and tenant actions, key for compliance with state timelines.
• Streamlined application process: Easily select applicants and draft lease agreements, saving time and ensuring consistency.
• Custom application instructions: Enter specific criteria, instructions, and notes that are disclosed to applicants at the beginning of their application.
• Compliant application review: Sort applications by last updated date, completed date, or invitation date to review in the required order.

Azibo's tenant screening service, backed by RHAWA's expertise, offers a robust, user-friendly platform for Washington landlords aiming to find the right renters efficiently and securely. By leveraging Azibo's comprehensive checks and streamlined application process, property owners can enjoy peace of mind knowing they have the tools to make informed decisions while staying compliant with state laws.

Ready to simplify your tenant screening process and ensure compliance with Washington State regulations? Create your Azibo account today and take the first step towards more efficient and legally sound property management.

Ready to start a rental application in Washington state?

Washington State's tenant screening laws promote a transparent and equitable rental process, addressing the concerns of both property owners and renters. This approach fosters trust and efficiency in the rental community.

For landlords, staying compliant with these laws is crucial. The Rental Housing Association of Washington (RHAWA) offers invaluable resources to help you navigate this landscape. RHAWA provides up-to-date legal forms, educational resources, and advocacy support to ensure your success as a property owner.

Through RHAWA's partnership with Azibo, you can access state-of-the-art tools for tenant screening and property management, all designed to keep you compliant with Washington State laws.

Ready to streamline your rental process and ensure compliance? Join RHAWA today and take advantage of expert support and resources.