The Complete State-By-State Guide To Security Deposit Laws
How 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.
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.
How Much Can I Charge for a Security Deposit?
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.
Do Landlords Need to Pay Interest on Security Deposits?
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.
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
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. If the landlord deducts from the security deposit they must give an itemized list of the charges withheld within 60 days. (Ark. Code § 18-16-305)
Maximum deposit: 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
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. (Colo. Rev. Stat. §§ 38-12-103, 38-12-104)
Maximum deposit: 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
Maximum deposit: One month’s rent for leases of over a year. No limit for month-to-month leases.
Return deadline: 20 days
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. (Del. Code tit. 25, § 5514)
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. (Fla. Stat. § 83.49)
What 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 term.
Notes: Check with city/council laws for deposit amounts. (Ga. Code § 44-7-34)
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. (Haw. Rev. Stat. § 521-44)
Return deadline: 30 days if no deductions are made and 45 days if 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. (765 Ill. Comp. Stat. § 710/1)
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. (Ind. Code §§ 32-31-3-12, 32-31-3-14)
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
Maximum deposit: One month’s rent for unfurnished properties, one and a half months' 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. (Kan. Stat. § 58-2550)
Return deadline: 30 days if no deductions are made and 60 days if deductions are made.
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. (Ky. Rev. Stat. § 383.580)
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. (La. Rev. Stat. 9:3251)
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.
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, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Additional pet deposits of up to half a month’s rent can be collected. (Md. Code Real Prop., § 8-203.1)
Interest on security deposits: Must be placed in an interest-bearing account, interest to be paid yearly or deducted from rent, if agreed to by both parties. If tenancy is less than a year, interest is to be paid within 30 days of lease end date.
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: Tenant to receive a receipt of interest and notice of the bank’s name and location within 30 days of deposit. (Mass. Gen. Laws ch. 186, § 15B)
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: Landlords must provide notice of damages within 30 days. (Mich. Comp. Laws § 554.609)
Interest on security deposits: Landlords must pay interest annually or deduct it from rent owed
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (Minn. Stat. § 504B.178)
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. (Miss. Code §§ 89-8-21)
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Landlord must provide an itemized list of damages and their cost within 30 days. (Mo. Rev. Stat § 535.300)
Return deadline: 10 days if no deductions. 30 days if deductions are made. Landlord need not return the deposit if the tenancy was terminated pursuant to Mont. Code §§ 70-24-427 or 70-33-427 (eviction with a claim for rent and damages), and a landlord has a pending claim in court for actual damages.
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, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (Mont. Code §§ 70-24-427, 70-25-202, 70-33-427)
Maximum deposit: One month’s rent. If pets are allowed, one and a quarter months' 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, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
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
Interest on security deposits: Must be placed in a New Hampshire-based bank. Landlords must pay tenants interest annually or credit it towards rent.
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: Landlord must provide a signed receipt for deposit. (N.H. Rev. Stat. §§ 540-A:7, 540-B-10)
Interest on security deposits: Landlords must pay tenants interest annually or credit it towards rent
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: Landlord must place the security deposit in an interest-bearing account. (N.J. Stat. § 46:8-21.1)
Maximum deposit: One month’s rent for leases under a year. No limit for longer leases.
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, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Interest on security deposits: Landlords must place security deposits in an interest-bearing account and pay interest to tenants if there are more than six units in the building
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: Landlord must provide an itemized list of damages. (N.Y. Gen. Oblig. Law § 7-108)
Maximum deposit: Two months’ rent for leases of one year or more; one and a half months’ rent for leases of less than one year
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, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Additional pet deposits of up to one and a half months’ rent can be collected. (N.C. Gen Stat. § 42-52)
Maximum deposit: One month’s rent. If tenant has a pet, 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, unpaid utility bills, or other costs associated with violations of lease terms
Interest on security deposits: If the security deposit is over $50 or one month’s rent, landlord must pay tenant interest at a rate of 5% per annum
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (Ohio Rev. Code § 5321.16)
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. (Okla. Stat. tit. 41, § 115)
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. (Or. Rev. Stat. § 90.300)
Maximum deposit: Two months’ rent for the first year of tenancy. One month’s rent for subsequent years.
Return deadline: 30 days
Interest on security deposits: Landlord must place deposits in an escrow account if held for more than two years. Interest must 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 utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: The landlord must provide a signed receipt for the deposit. (68 Pa. Stat. § 250.512)
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
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (S.C. Code § 27-40-410)
Maximum deposit: One month’s rent, unless special conditions apply
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, or other costs associated with violations of lease terms
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. (Tenn. Code § 66-28-301)
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (Tex. Prop. Code § 92.103)
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (Utah Code § 57-17-3)
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. (Vt. Stat. tit. 9, § 4461)
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Landlord must provide an itemized list of damages within 45 days. (Va. Code § 55.1-1226)
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. (Wash. Rev. Code § 59.18.280)
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. (W.Va. Code § 37-6A-1)
What can be deducted from the deposit: Damage and repairs other than normal wear and tear, unpaid rent, unpaid utility bills, costs of re-renting the unit upon early termination of lease, or other costs associated with violations of lease terms
Notes: Check with city/council laws for deposit amounts. (Wis. Stat. § 704.28; Wis. Admin. Code § 134.06)
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(Wyo. Stat. § 1-21-1208)
The Easiest Way to Collect Security Deposits
Landlords can simplify their responsibilities by using property management software like Landlord Studio. With Landlord Studio you can easily and securely collect security deposits online, and generate security deposit receipts. This gives you a full record of the deposit and makes it easier for you to stay compliant. Plus, secure important documents like holding account information, and track interest payments.
On top of this, you can easily collect your monthly rent online with Landlord Studio to reduce the chances of late rent payments and ensure your tenants pay on time every single month.
The amount of a security deposit typically varies by state and local regulations, but it is generally equivalent to one to two months' rent.
Does Section 8 Pay Security Deposit?
Section 8 does not cover security deposits. Tenants are responsible for paying the security deposit, although some local assistance programs may offer help.
When is Security Deposit Due?
A security deposit is usually due at the time the lease agreement is signed, before the tenant moves in.
Does Security Deposit Increase with Rent Increase?
Whether a security deposit increases with rent depends on state and local laws as well as the terms of the lease agreement. In some areas, landlords may be allowed to increase the security deposit proportionately with rent increases.
Can Landlord Sue for Damages Beyond Security Deposit?
Yes, if the cost of damages exceeds the amount of the security deposit, landlords can sue the tenant for the additional amount needed to cover the damages.
Disclaimer
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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