Why You Should Avoid Month to Month Leases in Washington

In 2021, the Washington state legislature passed RCW 59.18.650. Prior to the enactment of this statute, a property owner or manager could terminate a month-to-month residential tenancy upon twenty days written notice to the tenant. The legislature did not believe that twenty days afforded a residential tenant enough time to relocate and find new housing in the event the owner or manager no longer wanted to continue the lease. Believing there was a need to protect tenants from being uprooted, the legislature passed RCW 59.18.650 prohibiting owners and property managers from terminating a month-to-month lease without cause unless the initial lease was six months or more.

If the lease is for six months or more, the lease can be terminated upon sixty days notice prior to the scheduled end of the lease. If such sixty day notice is not provided and the lease converts to month-to-month, the lease can then only be terminated for cause. The statute proceeds to define events that constitute cause including default in the payment in rent, failure to comply with a material term of the lease after ten days' notice from the landlord, and acts of waste, nuisance, or unlawful activity. For a full list of events which constitute cause, please review the statute. If no cause exists, the property owner or property manager cannot terminate the lease and the lease must continue to renew from month-to-month unless terminated by the tenant. A tenant is only required to give twenty days written notice to terminate.

So, what does this mean? Initial lease terms should be equal to or greater than six months and landlords should give a sixty day notice of termination prior to the end of the lease term. Simultaneously with such termination notice, a landlord could offer the tenant a new six month lease with a rental rate increase. If the landlord misses the sixty day deadline to provide the notice, the lease will roll into a month-to-month. However, the owner or manager can still give a sixty-day notice of rent increase in order to account for the risk of the tenant's unexpected twenty day termination.

Washington is constantly updating its residential landlord tenant laws and you should review the updates regularly. If you have any questions or would like assistance with your lease administration, ALH Real Estate Group is ready and willing to help. Just give us a call or email.