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Anita George

Can you collect unemployment if you have rental income in Washington state?

I got laid off from my job at a tech company last month and I'm thinking about filing for unemployment benefits. The thing is, I own a duplex and rent out one side for $1,800/month. I live in the other half. Will Washington ESD deny my claim because of this rental income? I've heard conflicting things about whether rental income affects your eligibility. The rental income doesn't come close to replacing my $4,200/month salary I lost, but I'm worried they'll say I'm not truly unemployed. Has anyone dealt with this situation before?

Rental income generally doesn't disqualify you from unemployment benefits in Washington. The key is that rental income is considered passive income, not earnings from employment. You should still be eligible as long as you meet the other requirements like being able and available for work.

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That's a relief! Do I need to report the rental income when I file my weekly claims?

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You should report it to be safe, but it typically won't reduce your benefits since it's not wages from work.

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I had rental income when I collected unemployment last year and had no issues. Washington ESD distinguishes between earned income (wages) and unearned income (rent, dividends, etc.). Rental income falls under unearned and doesn't affect your weekly benefit amount.

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Did you have to provide any documentation about the rental property when you applied?

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No, they didn't ask for rental documentation during the initial application process.

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Actually, if you're having trouble getting through to Washington ESD to verify this, I recently discovered Claimyr (claimyr.com) which helps you actually reach an agent by phone. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you need to speak with someone directly about your specific situation.

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Interesting, I'll look into that. The phone lines are always busy when I try calling.

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How does that service work exactly? Is it legit?

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It's basically a callback service that handles the waiting for you. Pretty straightforward and saves hours of redialing.

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Just to clarify the rules - rental income is NOT counted as wages for unemployment purposes in Washington. However, if you're actively involved in property management (like doing repairs, showing units, etc.) and it takes significant time, that could potentially affect your 'able and available' status. But passive rental income alone won't disqualify you.

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Good point about the property management aspect. I basically just collect rent and handle minor issues, nothing that would interfere with job searching.

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What if you have multiple rental properties? Does that change anything?

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Multiple properties still count as passive income unless you're running it as a full-time business with employees, licenses, etc.

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wait so rental income doesnt count against your benefits at all?? thats not fair, some people are making bank from rentals and still getting unemployment

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The system is designed to replace wages from employment, not all forms of income. Rental income doesn't replace lost wages in the same way.

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i guess that makes sense when you put it that way

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I'm in a similar situation with a small rental property. Filed for unemployment three weeks ago and included the rental income information in my application just to be transparent. No issues so far, claim was approved normally.

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Did you mention it in the initial application or wait until the weekly claims?

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I mentioned it during the initial phone interview just to be upfront about all income sources.

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Smart approach to be transparent from the start.

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Be careful though - if your rental income is substantial enough that you're not actually looking for work, they could question your 'able and available' status. The income itself won't disqualify you but your job search efforts still matter.

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My rental income is only about 40% of what I was making at my job, so I definitely need to find new employment.

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Yeah, as long as you're genuinely seeking work you should be fine.

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Just make sure you understand the difference between being a landlord vs running a property management business. If you have an LLC and it's structured as a business with significant time commitment, that's different than just collecting rent checks.

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It's just me renting out half of my duplex, nothing formal or business-like about it.

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Then you're definitely in the clear. That's classic passive rental income.

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I tried calling Washington ESD about this exact question last month and could never get through. Finally used that Claimyr service someone mentioned and got connected to an agent who confirmed rental income doesn't affect benefits. Worth the peace of mind.

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How long did it take with Claimyr to actually reach someone?

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They called me back within a few hours and had me connected to an agent pretty quickly after that.

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The rental income question comes up a lot. Washington state specifically excludes passive investment income from wage calculations. Your $1,800 rent won't reduce your unemployment benefits at all, but you still need to actively search for work and meet all other requirements.

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Perfect, that's exactly what I needed to know. I'll go ahead and file my claim this week.

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Good luck with your claim! The rental income shouldn't be an issue at all.

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My brother had rental income when he was on unemployment for 6 months last year. Never had any problems with Washington ESD. They care about wages from employment, not passive income streams.

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That's reassuring to hear real examples of people who've been through it successfully.

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Yeah, he was worried about it too but it turned out to be a non-issue.

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Just remember that even though rental income doesn't disqualify you, you still need to report ALL income sources when asked. Being upfront prevents any potential issues down the road if they audit your claim later.

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Absolutely, I plan to be completely transparent about everything.

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Transparency is always the best policy with unemployment claims.

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For what it's worth, I've been a landlord for 5 years and collected unemployment twice during that period. Never once did Washington ESD question the rental income or suggest it affected my eligibility. As long as you're genuinely seeking employment, you're good.

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That's great to hear from someone with extensive experience in both areas.

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Did you report the rental income on your weekly claims or just during the initial application?

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I reported it initially and they noted it in my file. Didn't need to report it weekly since it's not wages.

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The Washington ESD handbook specifically states that rental income from property you own is not considered wages for benefit calculations. You can find this in their policy manual if you want the official documentation.

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I'll look that up for my own reference. Thanks for pointing me to the official source.

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Having the official policy is always helpful if questions come up later.

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If you're still worried about it, that Claimyr service could help you get a definitive answer directly from Washington ESD. Sometimes hearing it straight from an agent puts your mind at ease better than forum advice.

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I might do that just to be 100% certain before I file. Better safe than sorry.

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Smart thinking. Official confirmation never hurts.

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Bottom line: passive rental income = OK for unemployment benefits. Active property management business = potential issues. Your situation sounds like straightforward passive income, so you should be fine to file your claim.

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Perfect summary. I feel much more confident about moving forward now. Thanks everyone!

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Glad we could help clear that up for you. Good luck with your job search!

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I went through something very similar last year when I got laid off from my marketing job. I had rental income from a small apartment I owned and was really stressed about whether it would affect my unemployment claim. Turns out Washington ESD was totally fine with it - they asked about it during my phone interview and just noted it as passive income. My benefits weren't reduced at all and the whole process went smoothly. The key thing they cared about was that I was actively job searching and available for work. Since your rental income is way less than your previous salary, you're clearly in need of unemployment benefits and should have no issues. Just be upfront about it when you file and you'll be good to go!

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When I called Washington ESD, I was told that I need to report rental net income. And it fell under Self Employment category, which would reduce the weekly benefit amount.

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That's concerning and contradicts what others have shared here. Did they specify why they classified rental income as self-employment? I'm wondering if it depends on factors like the number of properties you own or how actively involved you are in managing them. It would be helpful to understand what makes the difference between passive rental income and self-employment income in their eyes. @Yang Wang, do you remember what questions they asked that led to that classification?

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@Sean Matthews I called specifically to ask about if I should report rental income when I file the weekly claim. The WA ESD person did not even ask anything and said straight that yes, I should report all incomes. Then I asked him what category did the rental income belong to and he said Self Employment. But he did specify that I should report Net income.

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@Yang Wang This is really confusing because it goes against what everyone else has been saying. I m'wondering if different ESD agents are giving different information, or if there are specific circumstances that make rental income count as self-employment. Did you end up reporting it as self-employment income? And if so, did it actually reduce your weekly benefit amount? This is making me think I definitely need to get official clarification before I file my claim.

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This is really concerning to hear conflicting information from ESD agents. @Yang Wang, I'm curious - do you have multiple rental properties or just one? And are you actively involved in property management tasks beyond just collecting rent? I'm wondering if there's something about your specific situation that made them classify it as self-employment. It seems like we're getting inconsistent guidance, which makes it really important for everyone to get their individual situations clarified directly with ESD. Did you end up reporting it and see an actual reduction in your benefits?

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@Yang Wang That s'really helpful information, thank you for sharing your direct experience with ESD. This definitely shows there might be some inconsistency in how different agents interpret rental income. I m'now wondering if it depends on how you initially describe your rental situation or if there are specific criteria they use to determine whether it s'passive vs self-employment income. Did you notice any impact on your actual benefit amount when you reported it as self-employment? I think I m'going to use that Claimyr service others mentioned to get connected and ask very specific questions about my duplex situation before filing.

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@Yang Wang This is really eye-opening and honestly pretty frustrating to hear such conflicting information from ESD agents. Your experience suggests there might be some inconsistency in how they re'training their staff on rental income classification. I m'curious - when you reported it as self-employment income, did it actually end up reducing your weekly benefit amount? And did they ask any follow-up questions about the nature of your rental activities? This makes me think it s'crucial for anyone in this situation to get multiple opinions or speak with a supervisor to ensure they re'getting accurate guidance. The fact that you got such a definitive answer about self-employment classification while others have had completely different experiences is concerning.

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