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ContinueHow much can you collect as a deposit? When does it need to be returned? We answer all these questions and more in this state-by-state guide to security deposit laws.
Written by
Laura H
PUBLISHED ON
17
May
2023
Generally speaking, at the beginning of a tenancy, a landlord will generally collect a security deposit as a contingency should the property be damaged or the tenant fall into rent arrears. Upon termination or completion of the lease, if no damage has been done and the rent has been paid in full, the deposit will be returned to the tenant.
While that may sound simple, navigating security deposit laws can be a daunting task, as regulations can vary significantly from one jurisdiction to another. By breaking down the information on a state-by-state basis, we provide you with the knowledge you need to avoid any confusion that can arise from generalizing national regulations.
A few variations to security deposit laws by state include, the maximum deposit amount allowed, whether or not you have to pay interest on the deposit, when the deposit needs to be returned, and how long you have before you return the deposit.
Whether you're in Alabama or Wyoming, this state-by-state guide to security deposit laws will help equip you with the knowledge you need to understand the specific requirements and limitations that may affect you. However, it's important to remember that local regulations may also come into play. For a full picture of the guidelines applicable to you, it's recommended to consult with a legal professional.
Depending on where your rental property is located, there is varying legislation regarding how much money can be charged for a security deposit. It is common for there to be a maximum deposit allowed of one or two months’ rent but some states have no specific laws.
Once you have determined how much to charge, you should familiarize yourself with whether or not landlords are expected to pay interest on security deposits in your state. Some states require landlords to keep deposits in an interest-bearing account and others require a minimum interest amount to be paid (for example, 5%). More often than not, the tenant is entitled to any accrued interest on security deposits.
Related: What Can Landlords Deduct From The Security Deposit?
Below we break down the key security deposit laws that landlords need to know in each state.
Maximum deposit equivalent to: One month’s rent
Return deadline: 60 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Unpaid rent and damages beyond normal wear and tear
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: Two months’ rent (unless rent is over $2,000 a month)
Return deadline: 14 days if tenant gave proper notice to terminate tenancy, 30 days if not.
Interest on security deposits: n/a
What can be deducted from the deposit?: Deterioration or damage of the premises (and its contents, if applicable) beyond normal wear and tear.
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: One and a half months’ rent
Return deadline: 14 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Unpaid rent, damage to the unit (beyond normal wear and tear), or other expenses pertaining to the tenant's failure to comply with the terms of the rental agreement
Notes: n/a
Maximum deposit equivalent to: Two months’ rent
Return deadline: n/a
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage beyond normal wear and tear, cleaning costs, unpaid rent, late fees
Notes: Deposit limit applies to landlords with 6 or more properties
Maximum deposit equivalent to: Two months’ rent for unfurnished, three months’ for furnished
Return deadline: 21 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage beyond normal wear and tear, cleaning costs, unpaid rent, any future debts that may be incurred due to tenant's violation of lease terms, other breaches of lease terms
Notes: n/a
Maximum deposit equivalent to: No state law
Return deadline: One month, unless stated otherwise (can’t be over 60 days)
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage beyond normal wear and tear, repair, cleaning costs, unpaid rent, utility bills, abandonment of the property
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: Two months’ rent unless the tenant is over 62 years old. If the tenant is over 62 years old, one month’s rent.
Return deadline: 30 days
Interest on security deposits: Deposit to be placed in a Connecticut-based bank. Landlords must pay tenants interest annually or credit it towards rent.
What can be deducted from the deposit?: Damage beyond normal wear and tear, repair, cleaning costs, unpaid rent, utility bills, other charges associated with a violation of lease terms
Notes: n/a
Maximum deposit equivalent to: One month’s rent for leases of over a year. No limit for month-to-month leases.
Return deadline: n/a
Interest on security deposits: n/a
What can be deducted from the deposit?: Damages beyond normal wear and tear, unpaid rent or late fees, costs associated with re-renting the unit upon breaking the lease early
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: No state law
Return deadline: 15-60 days, depending on whether or not deductions are made
Interest on security deposits: Landlords must pay tenant incurred interest yearly and at the end of the lease (unless the tenant wrongfully terminates early)
What can be deducted from the deposit?: Damage other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
AWhat can be deducted from the deposit?: Damage and repairs other than normal wear and tear, cleaning costs, unpaid rent and late fees, unpaid utility bills, unpaid pet fees, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: One month’s rent
Return deadline: 14 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, cleaning costs, unpaid rent and late fees, failure to return any keys furnished by the landlord, costs pertaining to breaking the lease early, or other costs associated with violations of lease terms
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: No state law
Return deadline: 21 days and up to 30 days if agreed to by landlord and tenant
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 30-45 days depending on whether or not deductions are made
Interest on security deposits: Landlord to pay the tenant interest on the security deposit if held for at least 6 months and there are at least 25 units in the building. Interest can be paid or credited to rent every 12 months and must be paid to the tenant within 30 days from the termination of the lease.
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, cleaning costs, unpaid rent, unpaid utility bills, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 45 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, last month's rent (if agreed to by both parties), or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: Two months’ rent
Return deadline: 30 days
Interest on security deposits: Landlord must start paying tenant interest on deposit after a tenancy has been in effect for 5 years. If tenancy is under 5 years, the landlord is entitled to any accrued interest.
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, costs associated with gaining possession of unit that tenant has refused to surrender, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: One month’s rent for unfurnished properties, half a month’s rent for furnished
Return deadline: 30 days
Interest on security deposits: Landlord is entitled to any accrued interest on security deposit
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Additional pet deposits of up to half a month’s rent can be collected
Maximum deposit equivalent to: No state law
Return deadline: 30-60 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: One month
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: Two months’ rent
Return deadline: 21-30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: Two months’ rent
Return deadline: 45 days
Interest on security deposits: Landlords must pay interest on deposits of $50 or more when they have been held for at least 6 months
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: One month’s rent
Return deadline: 30 days
Interest on security deposits: Deposit must be placed in interest-bearing account (5% or bank rate). Interest is to be paid to the tenant annually.
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid water bills, or unpaid real estate taxes the tenant was required to pay (per the lease agreement)
Notes: n/a
Maximum deposit equivalent to: One and a half month’s rent
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: No state law
Return deadline: n/a
Interest on security deposits: Deposit must be placed in interest-bearing account (at least 1%). Interest to be paid to tenant
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 45 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, cleaning costs, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: Two months’ rent
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: No state law
Return deadline: 10-30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent and late fees, charge for the landlord's labor, unpaid utilities, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: One month’s rent
Return deadline: 14 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or unpaid utilities
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: Three months’ rent
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or cleaning costs
Notes: n/a
Maximum deposit equivalent to: One month’s rent or $100 (whichever is greater)
Return deadline: 30 days
Interest on security deposits: Deposit must be held in a dedicated accounting in a bank local to New Hampshire. Landlords must inform tenants of the funds (eg. bank, account number, interest) and pay tenants interest on deposits held for a year or longer
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid taxes, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: One and a half month’s rent
Return deadline: 30 days or 5 days if the tenant vacates due to fire, flood, etc.
Interest on security deposits: Deposit must be placed in interest-bearing account. Interest to be paid to tenant annually
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, or unpaid rent
Notes: n/a
Maximum deposit equivalent to: One month’s rent for leases of under a year. No state limit for leases over a year
Return deadline: 30 days
Interest on security deposits: Landlords must pay interest annually on deposits larger than one month’s rent
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utilities, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: No state law
Return deadline: 21-45 days
Interest on security deposits: Landlords must pay interest for deposits in buildings with 6 or more units. The landlord may keep up to 1% of the deposit amount, the rest of accrued interest is to be paid to tenant.
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts
Maximum deposit equivalent to: One and a half month’s rent on a month-to-month lease, two months’ rent for fixed leases longer than 2 months
Return deadline: 30 days
Interest on security deposits: Must be kept in a trust account in a North Carolina-based financial institution, or landlord may post a bond for the same amount with a company that has a North Carolina business license. No statute on interest.
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utilities, breach of lease agreement, court costs, costs of removing tenant's possessions after eviction, costs of re-renting the unit after a breach, or other costs associated with violations of lease terms
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: One month’s rent
Return deadline: 30 days
Interest on security deposits: Funds must be kept in an interest bearing account and landlords must pay tenant interest (at the end of the lease) if tenancy is longer than 9 months
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or cleaning costs
Notes: Additional security deposit of two months’ rent or $2,500 can be collected for pets
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: Landlords must pay interest at a rate of 5% per year if the tenancy is longer than 6 months.
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, or unpaid rent
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 45 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 31 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: Two months’ rent during the first year or one month’s rent after that
Return deadline: 30 days
Interest on security deposits: Landlords must pay interest on deposits over $100 after 2 years of tenancy
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: One month’s rent
Return deadline: 20 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, or unpaid rent
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: One month’s rent
Return deadline: 14-45 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, or unpaid rent
Notes: Additional security deposit can be collected for pets
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Law does not apply to counties with a population of under 75,000. Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, cleaning costs, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 14 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid utilities, unpaid rent, or cost of removing items after tenant moves out
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: Two months’ rent
Return deadline: 45 days
Interest on security deposits: Landlords must pay interest on deposit if they have it for over 13 months
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid utilities, or other costs associated with violations of lease terms
Notes: n/a
Maximum deposit equivalent to: No state law
Return deadline: 21 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 45-60 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utilities, costs associated with removing items after tenant has vacated property, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 21 days
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utilities, or other costs associated with violations of terms outlined in a separate Nonstandard Rental Provisions document
Notes: Check with city/council for deposit amounts
Maximum deposit equivalent to: No state law
Return deadline: 30 days (plus an additional 30 days if there are deductions due to damage)
Interest on security deposits: n/a
What can be deducted from the deposit?: Damage and repairs other than normal wear and tear, unpaid rent, cleaning costs, or other costs associated with violations of lease terms
Notes: Check with city/council for deposit amounts
We hope you found this blog interesting! However, do note that the information in this article does not constitute advice. This blog is for general informational and educational purposes only and should not be used as a substitute for competent legal and/or other advice from a licensed professional.
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