Under the Landlord-Tenant Act, Title 59 RCW (Revised Code of Washington), the term “deposit” can only be applied to money which can be refunded to the tenant.  If a refundable deposit is being charged, the law requires the following:

• The rental agreement must be in writing.
• It must say what each deposit is for and what the tenant must do in order to get the money back.
• The tenant must be given a written receipt for the deposit.
• A checklist or statement describing the condition of the rental unit must be filled out. Landlord and tenant must sign it, and the tenant must be given a signed copy.   
• The deposits must be placed in a trust account in a bank or escrow company.  The tenant must be informed in writing where the deposits are being kept.