Olympia Security Deposit Rules: What the Rental Housing Code Adds to Washington Law

A landlord in Olympia has to satisfy two sets of rules at once: the Washington statute, Wash. Rev. Code § 59.18.280, and the city's own Rental Housing Code (OMC ch. 5.82). The state law sets the 30-day return deadline after termination of the tenancy and the tenant vacating; the local ordinance adds rules on deposit cap, paying the deposit in installments, return deadline, rent-increase notice and relocation assistance. Where the two overlap, the landlord has to meet the stricter one.

What the Rental Housing Code adds

• Deposit cap: A refundable security deposit or last month's rent may not exceed one month's rent (except income-based subsidized housing), and a pet damage deposit may not exceed 25 percent of one month's rent. (OMC 5.82.060.A.2; OMC 5.82.050.A)
• Paying the deposit in installments: A tenant may pay the pet damage deposit in three consecutive equal monthly installments. (OMC 5.82.050.C)
• Return deadline: Any unused pet damage deposit must be returned, or an itemized damage list provided, within 30 days of the end of tenancy. (OMC 5.82.050.D)
• Rent-increase notice: A rent increase of more than five percent, or one that with prior increases in 12 months totals seven percent or more, requires at least 120 days' notice; an increase of 10 percent or more requires 180 days' notice. (OMC 5.82.030.A-C)
• Relocation assistance: If rent rises seven percent or more within 12 months the tenant may request within 45 days, and the landlord must pay within 31 days, relocation assistance equal to two and a half months' rent. (OMC 5.82.040.A)

Who it covers: Rental units in Olympia; economic-displacement relocation does not apply to owner-occupied single-unit sites, shared dwellings, tenants of less than six months, RCW 59.18.040 arrangements, transient/assisted living/shelter units, or income-based subsidized tenancies (Section 8 vouchers not excepted).
Worth knowing: The 30-day return rule and the installment right apply to the pet damage deposit; the general deposit still follows RCW 59.18.280. Read from an archived copy of the city code page (revised March 2025); city enforcement began March 1, 2024.

What Washington law already requires

• Return deadline: 30 days after termination of the tenancy and the tenant vacating.
• Detail: Changed from 21 to 30 days in 2023 (HB 1074). Deductions must be documented with invoices or estimates, and no wear-and-tear deductions are allowed without a signed move-in checklist.
• Itemized deductions: required in writing.
• Forwarding address: not a statutory condition of getting the deposit back.
• Penalty for wrongful withholding: Intentional refusal to return or itemize exposes the landlord to up to twice the deposit plus attorney's fees; missing the deadline forfeits the right to withhold.
• Small claims limit: $10,000.
• Statute: Wash. Rev. Code § 59.18.280.

Using both rules together

1. Read the lease for the deposit amount, the move-in date, and any clause that mentions the ordinance.
2. Check the local rule first: deposit cap under OMC ch. 5.82, then paying the deposit in installments, return deadline, rent-increase notice and relocation assistance.
3. Count the Washington deadline of 30 days from termination of the tenancy and the tenant vacating.
4. A written demand that cites both Wash. Rev. Code § 59.18.280 and OMC ch. 5.82 carries more weight than one that cites either alone. Intentional refusal to return or itemize exposes the landlord to up to twice the deposit plus attorney's fees; missing the deadline forfeits the right to withhold.

Frequently Asked Questions

Q: Does Olympia require interest on security deposits?
A: The Rental Housing Code does not add an interest rule, so Washington law governs. Wash. Rev. Code § 59.18.280 does not require interest on deposits.

Q: Is the Olympia deposit return deadline different from Washington law?
A: Yes. Any unused pet damage deposit must be returned, or an itemized damage list provided, within 30 days of the end of tenancy. Where the local rule is stricter than Wash. Rev. Code § 59.18.280, the stricter one is the one a landlord has to meet.

Q: Does the Rental Housing Code apply to my unit?
A: Rental units in Olympia; economic-displacement relocation does not apply to owner-occupied single-unit sites, shared dwellings, tenants of less than six months, RCW 59.18.040 arrangements, transient/assisted living/shelter units, or income-based subsidized tenancies (Section 8 vouchers not excepted). Check the section cited below for the full list of exemptions before relying on it.

Q: Can I sue my landlord in small claims court for my Washington deposit?
A: Yes. Washington small claims court hears claims up to $10,000, which covers most deposits plus the statutory penalty. A dated written demand that cites Wash. Rev. Code § 59.18.280 is the usual first exhibit.

Sources Checked

• OMC 5.82.030; OMC 5.82.040; OMC 5.82.050; OMC 5.82.060, Rental Housing Code: code text, read 2026-09-20
• Wash. Rev. Code § 59.18.280 (the Washington statute cited above)
• LeaseLenses Washington deposit data set, last reviewed 2026-09-19; the same data powers the Washington demand letter tool
• Washington landlord-tenant overview and the Washington deposit rules page

This page is general legal information for Olympia, Washington, not legal advice. Local ordinances are amended more often than state statutes; read the current code text before relying on a figure in court.