At the beginning of a tenancy, a landlord will generally collect a security deposit to cover the cost of any damage that is done to the property or outstanding rent. 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.
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.
Related: What Can Landlords Deduct From The Security Deposit?
Security Deposit Laws By State
Below we break down the key security deposit laws that landlords need to know in each state.
Alabama
Maximum deposit equivalent to: One month’s rent
Return deadline: 60 days
Interest on security deposits: n/a
Notes: Additional security deposit can be collected for pets
Alaska
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
Notes: Additional security deposit can be collected for pets
Arizona
Maximum deposit equivalent to: One and a half months’ rent
Return deadline: 14 days
Interest on security deposits: n/a
Notes: n/a
Arkansas
Maximum deposit equivalent to: Two months’ rent
Return deadline: n/a
Interest on security deposits: n/a
Notes: Deposit limit applies to landlords with 6 or more properties
California
Maximum deposit equivalent to: Two months’ rent for unfurnished, three months’ for furnished
Return deadline: 21 days
Interest on security deposits: n/a
Notes: n/a
Colorado
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
Notes: Check with city/council laws for deposit amounts
Connecticut
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.
Notes: n/a
Delaware
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
Notes: Additional security deposit can be collected for pets
Florida
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)
Notes: Check with city/council laws for deposit amounts
Georgia
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
Notes: Check with city/council laws for deposit amounts
Hawaii
Maximum deposit equivalent to: One month’s rent
Return deadline: 14 days
Interest on security deposits: n/a
Notes: Additional security deposit can be collected for pets
Idaho
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
Notes: Check with city/council laws for deposit amounts
Illinois
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 six months and there are at least 25 units in the building. Interest can be paid or credited to rent every 12 months
Notes: Check with city/council laws for deposit amounts
Indiana
Maximum deposit equivalent to: No state law
Return deadline: 45 days
Interest on security deposits: n/a
Notes: Check with city/council laws for deposit amounts
Iowa
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.
Notes: n/a
Kansas
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
Notes: Additional pet deposits of up to half a month’s rent can be collected
Kentucky
Maximum deposit equivalent to: No state law
Return deadline: 30-60 days
Interest on security deposits: n/a
Notes: Check with city/council laws for deposit amounts
Louisiana
Maximum deposit equivalent to: No state law
Return deadline: One month
Interest on security deposits: n/a
Notes: Check with city/council laws for deposit amounts
Maine
Maximum deposit equivalent to: Two months’ rent
Return deadline: 21-30 days
Interest on security deposits: n/a
Notes: n/a
Maryland
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
Notes: n/a
Massachusetts
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.
Notes: n/a
Michigan
Maximum deposit equivalent to: One and a half month’s rent
Return deadline: 30 days
Interest on security deposits: n/a
Notes: n/a
Minnesota
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
Notes: Check with city/council laws for deposit amounts
Mississippi
Maximum deposit equivalent to: No state law
Return deadline: 45 days
Interest on security deposits: n/a
Notes: Check with city/council laws for deposit amounts
Missouri
Maximum deposit equivalent to: Two months’ rent
Return deadline: 30 days
Interest on security deposits: n/a
Notes: n/a
Montana
Maximum deposit equivalent to: No state law
Return deadline: 10-30 days
Interest on security deposits: n/a
Notes: Check with city/council laws for deposit amounts
Nebraska
Maximum deposit equivalent to: One month’s rent
Return deadline: 14 days
Interest on security deposits:
Notes: Additional security deposit can be collected for pets
Nevada
Maximum deposit equivalent to: Three months’ rent
Return deadline: 30 days
Interest on security deposits: n/a
Notes: n/a
New Hampshire
Maximum deposit equivalent to: One month’s rent or $100 (whichever is greater)
Return deadline: 30 days
Interest on security deposits: Landlords must pay interest on deposits held for a year or longer
Notes: n/a
New Jersey
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
Notes: n/a
New Mexico
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
Notes: n/a
New York
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.
Notes: Check with city/council laws for deposit amounts
North Carolina
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: n/a
Notes: Additional security deposit can be collected for pets
North Dakota
Maximum deposit equivalent to: One month’s rent
Return deadline: 30 days
Interest on security deposits: Landlords must pay tenant interest (at the end of the lease) if tenancy is longer than 9 months
Notes: Additional security deposit of two months’ rent or $2,500 can be collected for pets
Ohio
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.
Notes: Check with city/council for deposit amounts
Oklahoma
Maximum deposit equivalent to: No state law
Return deadline: 45 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Oregon
Maximum deposit equivalent to: No state law
Return deadline: 31 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Pennsylvania
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
Notes: n/a
Rhode Island
Maximum deposit equivalent to: One month’s rent
Return deadline: 20 days
Interest on security deposits: n/a
Notes: n/a
South Carolina
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
South Dakota
Maximum deposit equivalent to: One month’s rent
Return deadline: 14-45 days
Interest on security deposits: n/a
Notes: Additional security deposit can be collected for pets
Tennessee
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
Notes: Law does not apply to counties with a population of under 75,000. Check with city/council for deposit amounts
Texas
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Utah
Maximum deposit equivalent to: No state law
Return deadline: 30 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Vermont
Maximum deposit equivalent to: No state law
Return deadline: 14 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Virginia
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
Notes: n/a
Washington
Maximum deposit equivalent to: No state law
Return deadline: 21 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
West Virginia
Maximum deposit equivalent to: No state law
Return deadline: 45-60 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Wisconsin
Maximum deposit equivalent to: No state law
Return deadline: 21 days
Interest on security deposits: n/a
Notes: Check with city/council for deposit amounts
Wyoming
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
Notes: Check with city/council for deposit amounts
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.
