Security deposit in WA and new RCW updated law "exception" question

[Celine S.]

Hello everyone, I'm in a bit of a pickle... I have been renting my townhome up in Issaquah, WA for the last 10 years with no issues. This last year, I rented it to a family with a section 8 voucher. Let's just say it didn't go as planned, and when their lease expired, they still squatted the place for another 5 months. On Tuesday, they finally told me that they had left. When I got to the townhome, it discovered a mess. And mess is a gentle word. Everything is GROSS. They pretty much haven't been in the place for the last 2 months (water was shutoff in December last year), there is still food in the fridge, the microwave is growing its own forest, trash everywhere, food everywhere, the walls/carpet are just... nasty, and I won't even describe the bathrooms...

Needless to say they can't count on their security deposit (they've been asking for it! lol!) - between the cleaning, some of the damages, and the unpaid rent and utilities...

Back when they moved in, we did a walkthrough/checklist, we all signed it, and I kept the original paperwork, but never sent them a copy.

From the law, I see that since I didn't give them a copy of the checklist, the security deposit is not "legal".

I saw there was a new House Bill that came through last year (2023), and added a new subsection to RCW 59.18.280 which does mention RCW 59.18.260 about the checklist requirement for the security deposit:

(4) The requirements with respect to checklists and documentation that are set forth in RCW59.18.260 and this section do not apply to situations in which part or all of a security deposit is withheld by the landlord for reasons unrelated to damages to the premises, fixtures, equipment, appliances, and furnishings, such as for rent or other charges owing.

This is the new "exception" (per the title of the RCW59.18.280). How does this work exactly?

I understand that I won't be able to charge them for the damages (since they didn't have a copy of the checklist), but can I charge them for all the unpaid bills and rent? Is my security deposit still legal even though I don't have the checklist, but I'll be using just for owed bills/rent?

Thank you!