Hiring a Property Manager With a Tenant in Place

DecideFacts checked November 8, 2026

Short answer

You can hire a property manager while a tenant lives in your home. The current lease stays in force, and the manager steps in as your agent. Washington law then expects a few things: written notice to the tenant of the new name and address for the landlord, the deposit held in a trust account with written notice of where it is, and any rent change only as RCW 59.18 allows.

What changes for the tenant, and what does not

For the tenant, the home, the lease and the rent stay the same. What changes is who they deal with. Under RCW 59.18.030, "landlord" means the owner and also any person designated as the owner's representative, including a designated property manager. So the manager can act as landlord under the Act, while you remain the owner.

Hiring a manager is not a reason to rewrite the lease, raise the rent or end the tenancy. Those steps each have their own rules, covered below. Most careful managers start by reading the lease you already have and working within it until it comes up for renewal.

Timing on the manager's side can be quick. Wilson Management's owner FAQ says it will be ready within the first 24 hours after the contract is signed, and that it needs to see proof of your insurance before it starts managing.

Notices the tenant should receive

RCW 59.18.060 requires the landlord to give the tenant the name and address of the landlord, by a statement in the rental agreement or a notice posted on the premises. Any change must be given to the tenant in writing immediately, either delivered in person or mailed and conspicuously posted.

If you do not live in Washington, the same section requires you to designate an agent in the county where the rental is located to receive notices and legal papers. If no one is designated, the person who receives the rent is treated as the agent. Our post for out-of-state landlords has more on owning from afar.

In practice, a welcome letter from the manager usually covers the new contact details, where and how to pay rent, how to send repair requests and what to do in an emergency. Wilson Management's owner FAQ lists rent by mail, office delivery or online payment.

Many owners also call or write to the tenant themselves before the manager's letter arrives. A short note saying why you hired help, and that the lease is not changing, can head off worry about a rent hike or a sale. Keep it factual, and point the tenant to the manager for anything new.

Moving the security deposit

RCW 59.18.270 requires deposits to be placed promptly in a trust account at a financial institution or a licensed escrow agent located in Washington. The landlord must give the tenant a written receipt and written notice of the depository's name, address and location, and notice of any later change.

When a manager takes over, the deposit usually moves from your account to the manager's trust account, and the tenant gets a new written notice of where it is held. A Washington real estate firm must treat funds it controls for others as trust funds and keep them separate from its own money under RCW 18.85.285. For the deposit rules in full, see Washington security deposit law.

Tenant in place: what usually fits
If this is youWhat usually fitsWhat to check
Written lease and signed move-in checklist on fileThe manager takes over the file as it isCopies of both and the deposit receipt
No move-in checklist was doneDocument the current condition and review how the deposit is handledRCW 59.18.260
The deposit sits in your own accountMove it to the manager's trust account and tell the tenant in writingRCW 59.18.270
Rent is below marketPlan any increase for the lease end, with proper noticeRCW 59.18.140 and RCW 59.18.700
You live outside WashingtonName an agent in the county; the manager often fills that roleRCW 59.18.060

If there was no move-in checklist

RCW 59.18.260 says a landlord may not collect a deposit unless the rental agreement is in writing and the tenant got a written checklist of the home's condition at the start of the tenancy, signed and dated by both. A landlord who collects a deposit without that checklist is liable to the tenant for the deposit amount, and the winning side in a lawsuit may recover costs and attorneys' fees.

A condition report done when the manager takes over documents today's condition, which helps with future repairs and inspections. Wilson Management's owner FAQ says it does move-in and move-out inspections and periodic inspections of occupied units, so a mid-lease visit fits that pattern. Still, a report done now is not the same as the checklist the statute requires at the start of the tenancy. Tell the manager early if the checklist is missing, so the deposit is handled with that gap in mind. When the tenant does move out, RCW 59.18.280 gives the landlord 30 days to send a full and specific statement of any deductions with the refund due.

Rent changes only by the rules

RCW 59.18.140 generally requires at least 90 days' written notice of a rent increase, and an increase cannot take effect before the current lease term ends. RCW 59.18.700 bars any increase during the first 12 months of a tenancy and, after that, caps increases in any 12-month period at 7% plus the consumer price index or 10%, whichever is less, unless an exemption applies. The Department of Commerce lists 9.683% for 2026 and 10% for 2027.

Ending the tenancy is limited too. Under RCW 59.18.650, a landlord needs one of the listed causes, with the notice that cause requires. For the notice details, see rent increases under the new law, and for lease terms see fixed-term lease vs month-to-month.

What to hand the manager

A clean file makes the handover smoother for you, the manager and the tenant. It also lets the manager spot open issues, such as a repair you promised or a balance owed, before the tenant raises them. Our guide to documents to gather before hiring a manager has the full list, and the first 30 days with a new manager covers what happens after you sign. For a tenant-occupied home, gather at least:

  • The signed lease, every addendum and any renewal.
  • The move-in checklist and any move-in photos.
  • Deposit records: amount, date received, receipt and where it is held now.
  • The rent ledger, including any balance owed or payment plan.
  • Copies of any notices you served, with dates.
  • Keys, codes, repair history, warranties and HOA rules if any.
  • Your insurance declarations page.

Frequently asked questions

Does my tenant have to sign a new lease when I hire a manager?

Usually not. Hiring a manager does not end the lease, and RCW 59.18.030 treats a designated property manager as a landlord under the Act. The manager works within the current lease until it comes up for renewal. What the tenant does need is written notice of the new landlord contact and address under RCW 59.18.060.

Can the new manager raise the rent right away?

Only as the law allows. RCW 59.18.140 generally requires at least 90 days' written notice, and an increase cannot take effect before the current lease term ends. RCW 59.18.700 bars increases in the first 12 months of a tenancy and caps them after that. A free rental analysis can show where market rent sits, so you can plan ahead.

Who returns the deposit when the tenant moves out?

Whoever holds it as landlord, which is usually the manager once the deposit has moved to its trust account. RCW 59.18.280 requires a full and specific written statement of any deductions, with any refund due, within 30 days after the tenancy ends and the tenant leaves. Your management agreement should say who handles this.

Will my tenant be told that I hired a property manager?

They should be. RCW 59.18.060 says any change in the landlord's name and address must be given to the tenant in writing immediately. Most managers also send a welcome letter covering how to pay rent, where to send repair requests and what to do in an emergency, so the tenant is not left guessing.

Can I keep collecting rent myself and let the manager handle repairs?

Some managers offer partial services, and the split depends on your agreement. If you do this, the tenant needs clear written notice of who to pay and who to call. Make sure the deposit's trust account and the record keeping are settled too. See full-service vs leasing-only management for how the options compare.

Sources

  1. RCW 59.18.060, Landlord duties and name and address disclosure (Washington State Legislature)
  2. RCW 59.18.270, Deposits held in trust account (Washington State Legislature)
  3. RCW 59.18.260, Written agreement and move-in checklist (Washington State Legislature)
  4. RCW 59.18.280, Deposit statement and refund (Washington State Legislature)
  5. RCW 59.18.700, Prohibition on certain rent increases (Washington State Legislature)
  6. Washington State Department of Commerce, HB 1217 Landlord Resource Center
  7. RCW 18.85.285, Trust accounts (Washington State Legislature)
  8. Wilson Management: Owner FAQ

Facts on this page were checked against these sources on November 8, 2026. Laws and official guidance change, so check the current text before you act. This guide is general information, not legal or tax advice.

Reviewed by Gary E. Wilson, President and Designated Broker (WA licensed), Wilson Management, Inc., on November 8, 2026.

I have been dealing with this company for more than a decade as they manage many of my rental properties. In this regard I wish to place on record my deepest appreciation for Lisa who handles my portfolio with utmost professionalism and responds to issues promptly. She is an asset to your company.

Sampath Velamoor

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