[WSBARP] Residential Lease: Liquidated Damages Question

[Gabriel Dietz]

Good Morning Fellow List Mates:

I have a potential client, a landlord who is considering a 10-year
residential lease in Seattle. Before the lease begins, landlord and tenant
want to install new floors throughout the premises. Landlord proposes to
pay for the costs of the floor installation. Tenant, in theory, would agree
to a liquidated damages clause where tenant reimburses landlord for some of
the costs of the floor install in the event that the tenant breaks the
lease early. The amount of damages would be a straight-line amortization
over the life of the lease. For example, if tenant breaks the lease in
month 1, tenant would be responsible for 50% of damages. If tenant breaks
the lease in month 120, tenant would not be responsible at all. Other than
the typical limitations on liquidated damages under Washington law, is
there anything in the Washington Residential Landlord-Tenant Act or
otherwise that would prohibit/limit this structure?

Thank you in advance,
Gabe

Gabriel A. Dietz
Partner
(206) 451-3859

gabe at hdpnw.com

www.hdpnw.com

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