Seattle Payment Plan Laws
In response to the COVID economic fallout, the City of Seattle enacted several measures including mandatory payment plans for both residential and commercial tenancies. Both the residential and commercial payment plan laws apply to tenants who fail to pay rent during or within six months after the state of emergency declared by the mayor.
The residential and commercial payment plan ordinances are separate laws with different terms, summarized below.
Residential payment plans.
Residential tenants who fail to pay rent during or within six months after the state of emergency declared by the mayor may pay in installments.
For overdue rent of:
- one month or less, the tenant may pay in three consecutive equal monthly installments;
- over one month and up to two months, the tenant may pay in five consecutive equal monthly installments;
- over two months and up to six months, the tenant may pay in six consecutive equal monthly installments.
The landlord cannot enforce late fees during and for one year after the state of emergency.
New mandatory language must be included in all notices to terminate for non-payment.
Small business payment plans.
Seattle small businesses and non-profits may be entitled to a payment plan. Small businesses are defined as 1) independently owned and operated, 2) has fifty or fewer employees, 3) has been forced to close or gross receipts in 2020 are less than 70 percent of the gross receipts for the same period of 2019, and 4) is not a general sales or service business with ten or more locations worldwide, not an entertainment use business with five or more locations worldwide.
The payment plan may not require the tenant to pay more than 1/3 of late rent within a month. Rent in arrears must be paid in full within a year after termination of the mayor’s state of emergency.
No late fees, interest, or other charges for late payment may accrue during or for one year after termination of the mayor’s state of emergency.
There can be no rent increases for month-to-month tenants or for new leases. Rent increases provided in the terms of an already existing lease still apply.
