Does rental income affect Washington ESD unemployment benefits eligibility?

Rental income is generally considered passive income and shouldn't affect your Washington ESD unemployment benefits. You're required to report ALL income on your weekly claims, which it sounds like you're already doing correctly. The key distinction is that rental income isn't considered 'wages' or 'earnings from work' - it's investment income.

Wait, are you sure about that? I thought ANY income had to be deducted from unemployment benefits. I've been scared to even think about side income because of this.

I had a similar situation last year and spent WEEKS trying to get through to Washington ESD to get a clear answer. The phone lines are absolutely impossible - I must have called 200+ times. Finally found this service called Claimyr (claimyr.com) that actually got me connected to an agent in like 10 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works. Best $20 I ever spent because the agent confirmed that my rental income was fine and didn't affect my benefits at all.

been getting rental income for 2 years while on and off unemployment, never had an issue. washington esd only cares about work income not passive stuff

The key thing to understand is the difference between 'earned' and 'unearned' income for unemployment purposes. Rental income falls under unearned/passive income, along with things like social security, pensions, rental income, interest, and dividends. Washington ESD's policy is that unearned income doesn't reduce your weekly benefit amount, but you still need to report it for tax and record-keeping purposes.

I'm a property manager and deal with this question ALL THE TIME from my landlord clients who end up on unemployment. Rental income is definitely passive and won't affect your UI benefits. The only time it becomes an issue is if you're spending significant time on property management activities - like if you're doing maintenance, showing units, handling tenant issues yourself. Then Washington ESD might consider it 'work' and it could affect your job search requirements.

UGH the Washington ESD website is so confusing about this stuff. I spent like an hour trying to find clear guidance on different types of income and gave up. Why can't they just have a simple FAQ that explains earned vs unearned income???

Just want to add that while rental income doesn't affect your weekly benefit amount, it WILL be reported to the IRS at the end of the year along with your unemployment benefits. So make sure you're setting aside money for taxes if you're not having taxes withheld from your UI payments. Both rental income and unemployment benefits are taxable.

I had a weird situation where Washington ESD initially flagged my rental income and put my claim into adjudication for like 6 weeks. Turned out to be a system error - the adjudicator confirmed that rental income shouldn't have triggered any review. But man, those 6 weeks without payments were rough.

For what it's worth, I've been a landlord for 15 years and have been on unemployment twice during that time (thanks, 2008 and 2020!). Never had any issues with my rental income affecting my benefits. Just keep doing what you're doing - report it honestly on your weekly claims and you'll be fine.

Quick question - does anyone know if this applies to Airbnb income too? I have a spare room I rent out occasionally but it's way more hands-on than traditional rental property.

The bottom line is that true passive rental income - where you're just collecting rent and not actively managing the property - is fine and won't reduce your unemployment benefits. Keep reporting it for transparency, but it shouldn't affect your weekly benefit amount. If Washington ESD ever questions it, just explain that it's passive investment income, not earnings from work.

I work as a benefits counselor and see this confusion all the time. Just to reinforce what others have said - rental income is classified as "unearned income" by Washington ESD and won't reduce your weekly benefit amount. The fact that you've been reporting it correctly on your weekly claims shows you're doing everything right. The system distinguishes between income from employment/self-employment (which does get deducted) versus passive income like rentals, social security, pensions, etc. Keep doing exactly what you're doing and don't stress about it!

This is such a helpful thread! I'm in a similar situation with rental income from a duplex I own. Been reporting it on my weekly claims but was getting nervous about whether I was doing it right. Reading all these responses from people with actual experience really helps clarify things. The distinction between earned vs unearned income makes total sense - my rental income is completely passive since I have a property management company handling everything. Thanks to everyone who shared their experiences, especially the benefits counselor who confirmed this is the right approach!

I'm dealing with this exact same situation right now! I have two rental properties that bring in about $2,800/month combined and I've been so worried about whether this disqualifies me from unemployment benefits. Reading through all these responses is incredibly helpful - especially hearing from the benefits counselor and people with years of experience managing rentals while on unemployment. I use a property management company too so it's completely hands-off for me. The distinction between earned vs unearned income makes perfect sense when explained this way. I've been reporting the rental income on my weekly claims but was losing sleep thinking I might be doing something wrong. This thread is a lifesaver - thank you everyone for sharing your experiences and knowledge!

I'm new to this community but wanted to share my experience since this thread has been so helpful! I've been collecting unemployment for about 3 months now and also have rental income from a small property I inherited. Like many others here, I was really stressed about whether I was handling it correctly. I've been reporting the rental income on my weekly claims (about $900/month) but was terrified it might disqualify me or reduce my benefits. Reading all these responses, especially from the benefits counselor and people with long-term experience, has been such a relief. The earned vs unearned income distinction finally makes sense to me now. My rental is managed by a local company so I literally just receive a check each month - totally passive. Thanks to everyone who took the time to share their knowledge and experiences. This kind of community support is invaluable when dealing with the confusing world of unemployment benefits!

I'm new here but this thread is exactly what I needed to find! I've been on unemployment for about 2 months and have rental income from a condo I bought as an investment a few years ago. Brings in around $1,500/month and I've been dutifully reporting it on my weekly claims, but I was getting really anxious that it might somehow disqualify me or reduce my benefits. Reading through everyone's experiences here - especially hearing from the benefits counselor and people who've been through this multiple times - has been incredibly reassuring. The passive vs earned income distinction finally clicked for me. I use a property management company so I'm completely hands-off, just like many others have described. It's amazing how much clearer this becomes when you hear from real people with actual experience rather than trying to decipher the confusing official documentation. Thank you all for creating such a helpful resource for those of us navigating this stressful situation!

I'm really glad I found this thread! I've been on unemployment for about 8 weeks now and have rental income from a small apartment building that brings in around $2,200/month. I've been reporting it on my weekly claims but was constantly worried that I was doing something wrong or that it might affect my benefit amount. Reading through all these experiences has been such a huge relief - especially the clarification about earned vs unearned income and hearing from the benefits counselor. Like many others here, I use a property management company so it's completely passive for me. It's incredible how much anxiety this stuff can cause when you're already dealing with unemployment stress. Thank you to everyone who shared their knowledge and experiences - this kind of real-world insight is so much more helpful than trying to navigate the confusing official resources!