Key Takeaways
- State regulations: States have specific laws on security deposits, including limits and conditions for deductions. For instance, Iowa allows a two-month deposit, while Kansas limits it to one month.
- Return deadlines: Security deposits must generally be returned within 30 days, though some states, like Alabama, extend this to 60 days.
- Deductions and interest: Landlords can deduct for damages or unpaid rent, and 17 states require interest on deposits held over six months.
Landlords assume risks that prospective tenants may damage property or fail to pay rent for an extended period. All states permit property owners to collect security deposits.
However, each state limits the amount you can take, how long and under what circumstances you can keep the money after the tenant moves out, and how the money must be managed while held by the landlord.
The amount of security deposit you can collect from a tenant is influenced by several factors. These include:
- The duration of the tenant's stay
- Whether the property is furnished
- The property's location (private or public)
- Whether pets are allowed
Understanding these factors and your rights and responsibilities under your state's landlord-tenant laws is crucial before signing any rental lease agreement.
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Security Deposit Limits
Every landlord should require a new tenant to pay the security deposit before moving in. The following are key factors to consider in determining how much you should ask for and if you have exceeded the limit:
- Landlord-tenant laws: All states permit property owners to ask for a security deposit. However, most states limit how much you can request in your lease agreement. For example, Iowa and Alaska ask for a two-month rent deposit, while other states, such as Kansas and Alabama, ask for a month's rent.
- Monthly rent charges: Is your monthly rent price too high for a tenant to pay a two-month deposit? If so, you can consider asking for a month or two weeks' rent price.
- Competition: Consider setting your security deposit at a price similar to that of other property owners. This move protects you from losing a potential renter due to a high security deposit.
- The amenities offered: If you offer extra amenities such as a swimming pool and elevator, you may consider adding an amenity fee to a month's rent to cover repairs in case of damage.
Generally, find a balance to avoid charging too high to discourage prospective tenants or too low and incur additional expenses if the renter damages items, moves out early, or violates the lease agreement.
Do Landlords Need To Pay Interest on Security Deposits?
Seventeen states have laws that require landlords to pay interest on security deposits. They include:
- North Dakota
- Minnesota
- Iowa
- Illinois
- Arizona
- New Mexico
- Ohio
- Pennsylvania
- New York
- Maine
- Connecticut
- New jersey
- Maryland
- District of Columbia
- Florida
- New Hampshire
- Massachusetts
However, specific requirements must be met in various states. For instance, you must have more than two rental units and hold the money for more than six months. Additionally, the interest you give the tenant varies by state.
For example, Iowa requires you to provide the actual interest earned, Minnesota requires 1% interest on the security deposit per year, and Arizona requires 5% per year.
Security Deposit Laws by State
The security deposit laws in the United States vary significantly from state to state, impacting how much landlords can charge, whether they must pay interest, and the timeframe for returning deposits.
Below is a brief overview of key points for each state regarding landlord security deposits.
Alabama
Landlords in Alabama can charge a security deposit up to the equivalent of 1 month's rent. They must return the deposit within 60 days after the lease ends, and there is no requirement to pay interest on the deposit.
AL Code § 35-9A-201 (2023)
Alaska
In Alaska, landlords can charge up to 2 months' rent for a security deposit unless the rent exceeds $2,000 per month. Deposits must be returned within 14 days if no deductions are made or within 30 days if deductions are necessary.
Interest must be paid on deposits held for more than 2 years.
AK Stat § 34.03.070 (2023)
Arizona
Arizona allows landlords to charge a security deposit up to 1 and a ½ months' rent. The deposit must be returned within 14 business days after the lease ends, and there is no requirement for landlords to pay interest on the deposit.
AZ § 33-1321
Arkansas
Arkansas has no statutory limit on security deposits. Landlords must return the deposit within 60 days after the tenant vacates, and there is no requirement to pay interest.
AR Code § 18-16-304 (2020)
California
In California, landlords can charge up to 2 months' rent for unfurnished units and 3 months' rent for furnished units as a security deposit. The deposit must be returned within 21 days after the tenant moves out.
There is no requirement to pay interest unless specified by local ordinances.
CA Civ Code § 1950.5 (2023)
Colorado
Colorado does not have a statutory limit on security deposits. Landlords must return the deposit within 1 month unless otherwise agreed upon in writing (up to 60 days), and there is no requirement to pay interest.
Colo. Rev. Stat. §§ 38-12-103, 38-12-104
Connecticut
Connecticut allows landlords to charge up to 2 months' rent as a security deposit (1 month if the tenant is over 62 years old).
The deposit must be returned within 30 days or within 15 days of receiving the tenant's forwarding address, whichever is later. Interest is required at a rate set by the state.
CT Gen Stat § 47a-21. (2023)
Florida
Florida does not limit the amount charged for a security deposit. Florida state law on security deposit returns stipulates that landlords have 15 days to return the deposit if there are no claims against it or 30 days if there are claims. Interest payment is required only if specified in the lease agreement.
FL § Title VI.83.49
Georgia
Georgia limits security deposits to the equivalent of two months’ rent. Landlords must return the deposit within 1 month after termination of tenancy. There is no requirement for interest payments on deposits.
GA 24 HB 404
Hawaii
Hawaii limits security deposits to 1 month's rent. The deposit must be returned within 14 days after lease termination, and there is no requirement for paying interest.
HI Rev Stat § 521-44 (2023)
Idaho
Idaho does not impose a statutory limit on security deposits. The landlord must return the deposit within 21 days unless otherwise agreed (up to 30 days), with no obligation to pay interest.
ID Code § 6-321 (2023)
Illinois
Illinois has no statewide limit on security deposits, but requires Chicago landlords to pay interest on deposits held for more than six months. The return period is 45 days after lease termination, with specific requirements in Chicago.
(765 ILCS 710/1) (from Ch. 80, par. 101)
Indiana
Indiana does not specify a maximum amount for security deposits. Landlords have 45 days to return the deposit after lease termination, with no requirement for interest payments.
IN Code § 32-31-3-12 (2023)
Iowa
Iowa security deposit laws allow landlords to charge up to 2 months' rent as a security deposit. The landlord must return it within 30 days and pay annual interest if held longer than 5 years.
IO §562A.12
Kansas
Kansas limits security deposits to 1 month's rent for unfurnished units and 1 and a ½ months' rent for furnished units. The return period is 14 days after lease termination or within 30 days of receiving notice of forwarding address.
KS Stat § 58-2550 (2021)
Kentucky
Kentucky has no statutory limit on security deposits but requires landlords to return them within 30-60 days, depending on whether deductions are made. Interest payments are not required.
KY Rev Stat § 383.580 (2023)
Louisiana
Louisiana does not specify a maximum amount for security deposits. Landlords have 1 month after lease termination to return it, with no obligation for interest payments.
LA Rev Stat § 9:3251 (2023)
Maine
Maine limits security deposits to a maximum of 2 months' rent. Landlords must return the deposit within 30 days.
ME Rev Stat § 6032 (2023)
Maryland
Maryland limits security deposits to 2 months' rent and requires landlords to pay annual interest at a rate determined by law. The return period is 45 days post-lease termination.
MD. Real Property Code § 8-203 (2023)
Massachusetts
Massachusetts allows landlords to charge up to 1 month's rent as a security deposit, which must be kept in an interest-bearing account with annual payments to tenants. The return period is 30 days after lease termination.
MGL c. 186, § 15B
Michigan
Michigan limits security deposits to 1 and a ½ months' rent. Landlords have 30 days post-lease termination to return it and must include any accrued interest if held longer than six months.
MI Comp L § 554.602 (2023)
Minnesota
Minnesota has no statutory limit on security deposits but requires them to be returned within 3 weeks post-lease termination or five days if due to building condemnation. Interest payments are required annually.
504B.178
Mississippi
Mississippi does not specify a maximum amount for security deposits but requires them to be returned within 45 days post-lease termination without an obligation for interest payments.
MS Code § 89-8-21 (2020)
Missouri
Missouri limits security deposits to 2 months' rent and requires their return within 30 days post-lease termination without mandatory interest payments.
MO Rev Stat § 535.300 (2023)
Montana
In Montana, landlords must return the security deposit within 30 days after the termination of a tenancy.
MT Code § 70-25-202 (2023)
Nebraska
Nebraska allows landlords to charge up to 1 month's rent plus an additional pet-related amount as a security deposit. It must be returned within 14 days post-lease termination without mandatory interest payments.
NE Code § 76-1416 (2023)
Nevada
Nevada limits security deposits to 3 months' rent and mandates their return within 30 days post-lease termination without requiring interest payments.
NV Rev Stat § 118A.242 (2022)
New Hampshire
New Hampshire limits security deposits to 1 month's rent or $100, whichever is greater, with returns due within 30 days post-lease termination, including any accrued interest over three years if applicable.
NH Rev Stat § 540-A:6 (2023)
New Jersey
New Jersey caps security deposits at one and a ½ months' rent requiring annual interest payments at prevailing rates; returns are due within 30 days post-lease termination or 7 days upon tenant request during emergency relocations such as domestic violence situations.
NJ 46:8-19-26
New Mexico
New Mexico does not have a statutory limit on security deposits. Landlords must return the deposit within 30 days after the lease ends, and there is no requirement to pay interest.
NM Stat § 47-8-18 (2021)
New York
New York limits security deposits to 1 month's rent for residential leases. Landlords must return the deposit within 14 days after the tenant vacates, and interest must be paid if held in an interest-bearing account.
If a landlord fails to return the deposit within the aforementioned 14 days, a tenant may choose to send a New York security deposit demand letter to request its return formally.
NY Gen Oblig L § 7-108 (2022)
North Carolina
North Carolina allows landlords to charge up to 2 months' rent as a security deposit for leases longer than 2 months. The deposit must be returned within 30 days, with no requirement for interest payments.
NC § 42-Article 6
North Dakota
North Dakota limits security deposits to 1 month's rent, or 2 months if there are pets. The deposit must be returned within 30 days, and there is no requirement for interest payments.
ND § 47 - Chapter 47-16
Ohio
The Ohio security deposit limit is not specified. Landlords must return the deposit within 30 days after lease termination, and interest is required if the deposit exceeds $50 and is held for more than six months.
OH § 5321
Oklahoma
Oklahoma has no statutory limit on security deposits. The landlord must return the deposit within 45 days after the lease ends, with no obligation to pay interest.
41 OK Stat § 115 (2023)
Oregon
Oregon does not limit the amount that landlords can charge for a security deposit. The deposit must be returned within 31 days after lease termination, and there is no requirement for interest payments.
OR Rev Stat § 90.300 (2021)
Pennsylvania
Pennsylvania allows landlords to charge up to 2 months' rent during the first year and 1 month thereafter. The deposit must be returned within 30 days, and interest is required after 2 years.
68 Pa. Stat. § 250.511a
Rhode Island
Rhode Island limits security deposits to 1 month's rent. Landlords must return it within 20 days after lease termination, with no requirement for interest payments.
RI Gen L § 34-18-19. (2023)
South Carolina
South Carolina does not specify a maximum amount for security deposits. The landlord must return the deposit within 30 days after lease termination, with no obligation to pay interest.
SC Code § 27-40-410 (2023)
South Dakota
South Dakota has no statutory limit on security deposits. The landlord must return the deposit within 2 weeks if deductions are made or otherwise within 45 days, with no requirement for interest payments.
SD Codified L § 43-32-6.1 (2023)
Tennessee
Tennessee does not limit the amount of security deposits. Landlords must return them within 30 days after lease termination, with no requirement for interest payments.
TN Code § 66-28-301 (2021)
Texas
Texas has no statutory limit on security deposits. Landlords are required to return them within 30 days after lease termination, with no obligation to pay interest.
TX Section 92
Utah
Utah does not specify a maximum amount for security deposits. The landlord must return the deposit within 30 days after lease termination or 15 days after receiving the tenant's forwarding address, whichever is later, with no requirement for interest payments.
UT Code § 57-17-3 (2023)
Vermont
Vermont has no statutory limit on security deposits. Landlords must return them within 14 days after lease termination if there are deductions or otherwise within 60 days, with no obligation to pay interest.
9 V.S.A. § 4461
Virginia
Virginia allows landlords to charge up to 2 months' rent as a security deposit. The deposit must be returned within 45 days after lease termination, with no requirement for interest payments.
Va. Code § 55.1-1226
Washington
Washington does not limit the amount of security deposits but requires written notice of terms. Landlords must return them within 21 days after lease termination, with no obligation to pay interest.
WA Rev Code § 59.18.280 (2023)
West Virginia
West Virginia has no statutory limit on security deposits. The landlord must return them within 60 days after lease termination or 45 days from re-renting the unit, whichever comes first, without requiring interest payments.
WV Code § 37-6A-6 (2023)
Wisconsin
Wisconsin does not specify a maximum amount for security deposits but requires written notice of terms. The landlord must return them within 21 days post-lease termination without mandatory interest payments.
WI Stat § 704.28 (2023)
Wyoming
Wyoming has no statutory limit on security deposits. Landlords are required to return them within 30 days after lease termination or 15 days from receiving notice of forwarding address, if later, without requiring interest payments.
WY Stat § 1-21-1208 (2022)
Here are some maps to show security deposit laws across the US:


The following table provides all 50 states’ security deposit laws for maximum deposit and return deadlines. Follow the link provided for a more comprehensive look at all the landlord-tenant laws specific to security deposits.
Consider carefully the laws in your state to avoid legal challenges from tenants who believe you are overcharging them. Ensure you know the answer to this question: What legal reasons can a landlord have to deduct from a security deposit?
In addition, document the state of your rental unit before and after a renter moves out and provide a genuine security deposit receipt showing the deductions made.
You are obliged by law to return the entire security deposit if a tenant leaves the property in the same state they found it when they signed the lease agreement.
Make sure you have all the documents you need to help you start and maintain a good tenancy period.
Deadlines for Return
All states give a specific period for which a property owner must return the security deposit once the tenant moves out. The majority set it at 30 days. Alabama, Arkansas, and West Virginia give the longest deadline of 60 days.
Before returning the money, send the renter an itemized list of expenses and the deductions required. Ensure you gather receipts and invoices as you work on the rental unit, because some tenants may object to the deductions.
Security Deposit Deductions List
The deductions you make depend on whether the landlord-tenant laws in your state permit it and what you include in your rental lease agreement. Ideally, the landlord should not charge for everyday wear and tear. Examples of permissible deductions across all states are:
- Repair costs such as walls, floor rugs, clogged toilets, and windows
- Painting costs for damaged walls or if the tenant painted over the original color
- Cleaning costs for excessive mold, pet messes, excessive dirt, and pests
- Removal or disposal costs
- Rental or utility arrears
Helpful resources:
NY State Attorney General - Residential Tenants’ Rights Guide
CA Department of Justice - Know Your Rights as a California Tenant Security Deposits