Some new laws came and ended along with the pandemic. Others are lingering, some are here for good, and new local laws keep popping up. Washing-ton State housing providers are left confused and unsure of what to do when a tenant is late with rent. Here are the laws and best practices broken down in steps.
STEP 1: Send Invoice/Reminder
It is best practice to communicate with the tenant to confirm there is a real problem with paying rent before proceeding with a late fee or an expensive service of a Pay or Vacate notice. It may be a simple error that can be quickly corrected with no additional costs for anyone. Make sure that this email and/or letter clearly states that rent is late as this is important information to document in the tenant’s file.
Optional: If the tenant has a short-term financial problem, consider offering a payment plan. If you are using RHAWA’s new partner plat-form, Azibo a third-party payment plan option is included and available directly to the tenant at any time. If not, use our new post-COVID version of the Invoice and Payment Schedule for Past-Due Rent form to document your negotiated direct payment terms. Keep in mind, this step is only required for rent that went unpaid during the pandemic. However, it can still a best practice based on the tenant’s circumstances.
STEP 2: Charge Late Fee
Set your late fee policies in Section 2 of your RHAWA lease and follow them consistently and equally with all tenants. While there are no specif-ic state laws that regulate the amount housing providers can charge for late fees, There are several local law caps listed below:
Local Late Rent Fee Caps:
• Redmond: 1.5% cap.
• SeaTac: 2% cap, no other charges permitted.
• Seattle: $10 cap, no other charges permitted.
• Tacoma: $10 cap, no other charges permitted.
Outside of these areas, late charge can be based on a percentage of the rent, a flat fee, or a per-day late fee that accrues. However, fees exceeding 10% of rent in any given month are generally considered excessive. Payment of late fees may not be included as a compliance requirement on a 14-Day Pay or Vacate, nor a 10-Day Comply or Vacate notice.
Statewide Mandatory Grace Period As of 2020, RCW 59.18.170 prohibits housing providers from charging late fees until the rent is more than five days past due. If the late fee policy is on a per-day basis, the housing provider may charge fees for all days past due.
STEP 3: Contact Your Attorney
After Covid era restrictions were lift-ed, many county courts began following slightly different procedures. It is important to speak to your attorney for advice before serving a pay or vacate notice, especially if you anticipate needing to follow through with eviction proceedings. If you do not have a working relationship with an attorney, it is important to form one as soon as possible if you think you might be facing an eviction.
STEP 4: Serve Pay or Vacate Notice On the tenant
If and when it is clear that the tenant is not likely to pay rent within a reasonable time, properly serve the appropriate Pay or Vacate Notice on the tenant(s) based on the location of the property, and whether or not the property is sup-ported by any federal programs including Housing Choice Voucher Program or a federally backed mortgage loan (e.g., Fanny Mae or Freddy Mac). See Support Center article, Guidance for Vacate Notices on CARES Act Covered Properties. Carefully follow the service instructions provided and retain the declaration of service as proof of proper service.
Hopefully, the tenant will pay rent or move out within the given time period. If not, your attorney will begin the eviction process by serving an “unlawful detainer notice.” In King County, most evictions are taking a full year. In other counties, the timeline varies starting with a few months.
In Seattle and now Tacoma, physical evictions by the Sheriff can be delayed further so that tenants are not forced to leave in the Winter or for students and educators, during the school year.