How can a landlord properly collect a security deposit?

In Washington State, landlords must follow certain rules when collecting a security deposit from a tenant. If a landlord collects a security deposit, they must provide the tenant with a written receipt of the security deposit. This document should include the amount of the security deposit collected, the tenant’s name, the landlord’s name and address, the date the security deposit was collected, and the purpose of the security deposit. The security deposit must be held in a separate bank account and must be either in cash or in a financial instrument (such as a bank certificate of deposit). Funds held in the form of a financial instrument must be backed by a surety bond. The surety bond must be in the amount of the security deposit and must be issued by an insurance company that is licensed and approved to do business in the state of Washington. The landlord must then provide the tenant with a statement of where the security deposit is being held, along with the name and address of the financial institution or sureties who are maintaining the security deposit. The tenant must also be informed of the type of investment being used to secure the deposit funds. The landlord must then provide the tenant with a statement of account on the security deposit once every 12 months. This statement must include the amount of the security deposit held, the monthly interest earned, and the balance of the deposit (net of withdrawals) at the end of the 12-month period. Finally, the landlord must return the security deposit to the tenant at the end of the lease term. The security deposit must be returned within 14 days of the termination of the lease agreement.

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How can a landlord properly collect a security deposit?

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