The 30-point property
renovation checklist.
Unit turns, capital improvements, and occupied renovation — the operating checklist Puget Sound property managers run alongside us on every job. Each item cites the RCW, WAC, or IRS rule that governs it, so a board, owner, or auditor can verify the work.
Unit turn — 21-day clock.
Pre-move-out walkthrough
Schedule with tenant 14 days before lease end. Photograph every room, every fixture, every wall. RCW 59.18.260 requires written move-in condition reports; the move-out walk is your only defense against deposit disputes.
Deposit accounting (21-day rule)
WA RCW 59.18.280 gives landlords 30 days (21 days for tenancies that ended before July 28, 2023 reform) to deliver itemized deposit statement or full refund. Late = full forfeiture + double damages under RCW 59.18.280(2). Calendar this on day 1.
Scope categorization (capital vs ordinary)
IRS Publication 527: ordinary repairs (paint, patch, clean) are deductible in-year; improvements (new flooring, new appliances, new fixtures) capitalize over 5–27.5 years. Mis-categorizing turns a $2K paint job into a 5-year depreciation schedule — get the bookkeeping right at PO.
Vendor min-spec for in-suite work
Active L&I, $1M GL, $1M umbrella, W-9 on file, current city business license. Any vendor missing one of these cannot enter an occupied building — full stop. Verify L&I number quarterly; bonds lapse silently.
Make-ready SLA (5–10 business days)
Standard unit turn: clean (1 day), paint (2 days), flooring (1–3 days), punch (1 day). Anything over 10 business days bleeds rent and signals a vendor problem. Track per-unit days-vacant as a KPI.
Capital work — owner controls.
Owner approval threshold
Standard management agreements authorize the manager to spend up to $500–$2,000 per incident without written owner approval. Anything above requires email approval with scope, bids, and timeline. Document the approval in your PM system — verbal yeses lose in litigation.
Three-bid rule above $5K
For any work above $5,000, collect three written bids on identical scope. Award to lowest qualified — not lowest price. Document in the owner-statement notes why the winning bid was selected (warranty length, references, scheduling).
Permit verification before payment
For any work requiring a permit (electrical above 200A, plumbing reroutes, structural, roof tear-off, deck rebuilds), DO NOT release final payment until the city has issued the final inspection signoff. Pull the permit record yourself — never trust the vendor's verbal confirmation.
Lien waivers on every draw
RCW 60.04: every vendor doing $5K+ of work must deliver a conditional lien waiver (Form A) with each progress invoice and an unconditional waiver (Form B) after each payment clears. Without these, a sub can lien the property for the GC's non-payment — and the owner is liable.
Warranty registration in owner's name
Roofing, windows, HVAC, water heaters — all manufacturer warranties must be registered in the property owner's name (LLC or individual), not the contractor's. Most warranties void on transfer without notice. Confirm registration before releasing final payment.
Occupied renovation — RCW 59.18.
Tenant notice (RCW 59.18.150)
Two days written notice for any entry except emergency. For multi-day work (paint, flooring, HVAC), serve a written notice 7+ days in advance specifying dates, hours, and access type. Email is acceptable if tenant has opted in to electronic notice in writing.
Working hours by city
Seattle Noise Ord SMC 25.08.425: 7am–10pm weekdays, 9am–10pm weekends. Bellevue BCC 9.18: 7am–10pm weekdays, 9am–10pm weekends. Tacoma TMC 8.122: 7am–10pm. Construction inside cities is generally tighter; check the city ord for amplified equipment limits.
Habitability during work (RCW 59.18.060)
If work removes essential services (water, heat, electricity, weatherproofing) for more than 72 hours, the tenant is entitled to rent abatement or alternate housing. Plan riser replacements, roof tear-offs, and panel swaps in coordination with the tenant — not around them.
Asbestos / lead surveys (pre-1978 buildings)
EPA RRP Rule + WAC 296-65 require lead-safe certified renovators for any disturbance of painted surfaces in pre-1978 housing. Asbestos in flooring, popcorn ceiling, joint compound, and vermiculite insulation in any pre-1980 building must be surveyed before disturbance. Skipping this is the single largest fine exposure in PM renovation.
Insurance: certificate before mobilization
Demand the vendor's COI naming the property owner AND the management company as additional insureds — primary/non-contributory — for the duration of the project + 12 months tail. Receive the COI before the first nail goes in, not after a claim.
15 red flags.
- 01Vendor without an active L&I registration.
- 02Bid without an itemized line-item breakdown.
- 03More than 5% deposit requested before work starts.
- 04No conditional lien waivers on draw requests.
- 05Permit pulled by owner-builder when work is structural.
- 06Tenant access without RCW 59.18.150 written notice.
- 07Work in pre-1978 unit without lead-safe certification.
- 08Final payment requested before permit final inspection.
- 09Warranty registered to contractor instead of owner.
- 10COI delivered after mobilization instead of before.
- 11Make-ready scope creep without owner re-approval.
- 12Same vendor on every job without rotation or re-bidding annually.
- 13Capital improvement booked as repair in owner statement.
- 14Vendor will not provide W-9 for 1099 reporting.
- 15Move-out walkthrough skipped or done without tenant present.
Statutes and code cited above
- Source ↗WA L&I contractor license lookupVerify Golden State ADU Builders Inc · GOLDNAB882L2
- Source ↗Washington State Building Code CouncilStatewide adopted codes (IRC, IBC, WSEC)
- Source ↗WSEC 2021 Residential Energy CodeEnvelope, HVAC, hot-water and air-sealing requirements
- Source ↗WA HB 1110 — Middle housing lawStatewide middle-housing zoning preemption
- Source ↗WA HB 1337 — ADU statewide rulesTwo-ADU baseline, no owner occupancy, parking limits
- Source ↗WA Dept. of Commerce — ADU resources
- Source ↗Seattle City Light
- Source ↗Puget Sound Energy
- Source ↗Seattle Public Utilities
- Source ↗Tacoma Public Utilities
Frequently asked
How fast does a property manager have to refund a deposit in Washington?
RCW 59.18.280 — 30 days from the end of tenancy (or 21 days for tenancies that ended before July 28, 2023). The statement must itemize every charge against the deposit. Late or missing statements forfeit the entire deposit AND expose the landlord to up to 2× damages plus attorney's fees under RCW 59.18.280(2). Calendar from the day keys are returned, not from move-out walkthrough.
What's the difference between a repair and a capital improvement for IRS purposes?
IRS Pub 527: ordinary repairs keep the property in its existing efficient operating condition (paint, patch, clean, fix). Improvements add value, prolong life, or adapt the property to new uses (new flooring, new appliances, new roof, new windows). Repairs expense in-year (Schedule E line 14). Improvements capitalize and depreciate over 5, 7, 15, or 27.5 years (Form 4562). Get this right at the purchase order — re-classification on audit is painful.
Can a PM enter an occupied unit to show it to vendors for bidding?
Yes, with two business days written notice under RCW 59.18.150(6). Notice must state purpose, date, and approximate time. Tenant cannot unreasonably withhold consent. Document the notice in your PM system; informal verbal agreements lose in litigation.
What insurance limits should we require for in-suite renovation work?
Minimum: $1M general liability per occurrence / $2M aggregate, $1M umbrella, $1M auto, WA L&I workers' comp in good standing. For multi-unit work over $50K, scale to $2M GL / $5M umbrella. Always require additional-insured endorsement (CG 20 10 + CG 20 37) — not just "named as additional insured" on the COI face. The endorsement is what actually provides coverage.
Do we need a permit for in-kind unit refresh (paint, flooring, fixtures)?
Most Puget Sound cities exempt in-kind cosmetic work. Permits ARE required for: electrical above 12V signal wiring, plumbing reroutes or fixture additions, structural changes, window replacement that changes header size, water heater swaps in some jurisdictions (Seattle SDCI yes, Bellevue no for like-for-like). When in doubt, call the city plan-review desk — five-minute call saves a stop-work order.
How do we protect the property from a sub filing a lien for the GC's non-payment?
RCW 60.04 — require conditional lien waivers (Form A) from EVERY tier of the work chain (GC + each sub + each material supplier) with every progress draw. Final 10% retention released only on unconditional final waivers (Form B). For projects over $50K, require a payment & performance bond. This single workflow eliminates 95% of mechanic's lien exposure on rental properties.
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We're set up as a pre-qualified vendor across major Puget Sound PM platforms — L&I, COI, W-9, and city licenses on file in 24 hours. office@golden-adu.com.