Security Deposit Rules for Landlords and Property Managers

Security Deposit Rules for Landlords and Property Managers

Security Deposit Rules for Landlords and Property Managers

One thing that all landlords and property managers can agree on is that property damage is frustrating and inevitable. That is why security deposits are collected, to protect the property owner or manager in the case where the tenant fails to perform as outlined in the signed lease. But what are the rules for how a security deposit can be used and how long does a landlord or property manage have to return a security deposit by law?

Move in procedures for landlords and property mangers

First off, be sure upon  move in that you have done a thorough walk through with your tenant using a Move In – Move Out Form and note the condition of the property in writing with your tenant and have them sign the document. This can help eliminate disputes after the tenant vacates regarding existing damage versus damage done by the tenant.

How much can I charge for a security deposit?

State laws vary but typically a landlord or property manager cannot charge more than two times the monthly rent for a security deposit.

Can I deposit the security deposit into my checking account?

By law the security deposit collected by the landlord or property manager must be deposited into a specific account and not deposited into an account with the landlord’s personal or businesses monies. If a landlord or property manager has multiple units, multiple security deposits are permitted to be placed in the same account. Some states require the account must be an interest bearing account and that interest must be given to the tenant at the time the deposit is refunded.

 How long do I have to return the security deposit?

The Landlord or property manager must return the security deposit or give the tenants written notice of damages being claimed within the allotted time granted by each state (see below). The only exception is if the tenant fails to have provided in writing a forwarding address for the return of their security deposit.

What can the security Deposit be used for?

The Security deposit can be used to pay for unpaid rent or damages incurred by the tenant. The landlord can keep a security deposit for broken items at the property incurred by tenant, holes in walls, cleanup of items to be thrown away or leaving a property dirty as determined by the lease or move out agreement. It cannot be used to pay for normal wear and tear such a faded or chipped paint, worn carpet or worn finish on hard floors.

Security Deposit Rules by State

Alabama
Ala. Code § 35-9A-201
Exemption: Security deposit rules do not apply to a resident purchaser under a contract of sale (but do apply to a resident who has an option to buy), nor to the continuation of occupancy by the seller or a member of the seller’s family for a period of not more than 36 months after the sale of a dwelling unit or the property of which it is a part.
Limit: One month’s rent, except for pet deposits, deposits to cover undoing tenant’s alterations, deposits to cover tenant activities that pose increased liability risks.
Deadline for Landlord to Itemize and Return
Deposit: 35 days after termination of tenancy and delivery of possession.
Alaska
Alaska Stat. § 34.03.070
Limit: Two months’ rent, unless rent exceeds $2,000 per month.
Disclosure or Requirement: Orally or in writing, landlord must disclose the conditions under which landlord may withhold all or part of the deposit.
Separate Account: Required.
Advance notice of deduction: Not required.
Deadline for Landlord to Itemize and Return Deposit: 14 days if the tenant gives proper notice to terminate tenancy; 30 days if the tenant does not give proper notice.
Arizona
Ariz. Rev. Stat. Ann. § 33-1321
Exemption: Excludes, among others, occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser or a person who succeeds to his interest;occupancy by an employee of a landlord as a manager or custodian whose right to occupancy is conditionalupon employment in and about the premises.
Limit: One and one-half months’ rent.
Disclosure or Requirement: If landlord collects a nonrefundable fee, its purpose must be stated in writing. All fees not designated as nonrefundable are refundable.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 14 days; tenant has the right to be present at final inspection.
Arkansas
Ark. Code Ann. §§ 18-16-303 to 18-16-305
Exemption: Excludes, among others, occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser or a person who succeeds to his or her interest; occupancy by an employee of a landlord whose right to occupancy is conditional upon employment in and about the premises; and landlord
who owns five or fewer rental units, unless these units are managed by a third party for a fee.
Limit: Two months’ rent.
Advance notice of deduction: Not required.
Deadline for Landlord to Itemize and Return Deposit: 30 days.
California
Cal. Civ. Code §§ 1950.5, 1940.5(g)
Exemption: Excludes, among others, occupancy under a contract of sale of a dwelling unit or the property of which the unit is a part, if the occupant is the purchaser or a person who succeeds to his interest; and occupancy by a personal care assistant or other person who is employed by a person with a disability to assist and support such disabled person with daily living activities or housekeeping chores and is provided dwelling space in the personal residence of such disabled person as a benefit or condition of employment.
Limit: Two months’ rent (unfurnished); 3 months’ rent (furnished). Add extra one-half month’s rent for waterbed.
Advance notice of deduction: Required.
Deadline for Landlord to Itemize and Return Deposit: 21 days.
Colorado
Colo. Rev. Stat. §§ 38-12-102 to 38-12-104
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord to Itemize and Return
Deposit: One month, unless lease agreement specifies longer period of time (which may be no more than 60 days); 72 hours (not counting weekends or holidays) if a hazardous condition involving gas equipment requires tenant to vacate.
Connecticut
Conn. Gen. Stat. Ann. § 47a-21
Limit: Two months’ rent (tenant under 62 years of age);
one month’s rent (tenant 62 years of age or older).
Separate Account: Required.
Interest Payment: Interest payments must be made annually and at termination of tenancy. The interest
rate must be equal to the average rate paid on savings deposits by insured commercial banks, as published
by the Federal Reserve Board Bulletin, but not less than 1.5%.
Advance notice of deduction: Not required.
Deadline for Landlord to Itemize and Return Deposit: 30 days, or within 15 days of receiving
tenant’s forwarding address, whichever is later.
Delaware
Del. Code Ann. tit. 25, § 5514
Limit: One month’s rent on leases for one year or
more; no limit for month-to-month rental agreements
(may require additional pet deposit of up to one
month’s rent). No limit for rental of furnished units.
Separate Account: Required. Orally or in writing, the
landlord must disclose to the tenant the location of
the security deposit account.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 20 days.
District of Columbia
D.C. Code Ann. § 42-3502.17; D.C. Mun. Regs. tit. 14,
§§ 308 to 310
Exemption: Tenants in rent stabilized units as of July
17, 1985 cannot be asked to pay a deposit.
Limit: One month’s rent.
Disclosure or Requirement: In the lease, rental
agreement,
or receipt, landlord must state the terms
and conditions under which the security deposit was
collected (to secure tenant’s obligations under the
lease or rental agreement).
Separate Account: Required.
Interest Payment: Required. Interest payments at the
prevailing statement savings rate must be made at
termination of tenancy.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 45 days.
Florida
Fla. Stat. Ann. §§ 83.49, 83.43 (12)
Limit: No statutory limit.
Disclosure or Requirement: Within 30 days of receiving the security deposit, the landlord must disclose in writing whether it will be held in an interest- or non-interest-bearing account; the name of the account depository; and the rate and time of
interest payments. Landlord who collects a deposit must include a copy of Florida Statutes § 83.49(3) in the lease.
Separate Account: Required. Landlord may post a security bond securing all tenants’ deposits instead.
Interest Payment: Interest payments, if any (account need not be interest bearing) must be made annually
and at termination of tenancy. However, no interest is due a tenant who wrongfully terminates the tenancy
before the end of the rental term.
Advance notice of deduction: Required.
Deadline for Landlord to Itemize and Return
Deposit: 15 to 60 days depending on whether tenant disputes deductions.
Georgia
Ga. Code Ann. §§ 44-7-30 to 44-7-37
Exemption: Landlord who owns ten or fewer rental
units, unless these units are managed by an outside
party, need not supply written list of preexisting
damage, nor place deposit in an escrow account.
Rules for returning the deposit still apply.
Limit: No statutory limit.
Disclosure or Requirement: Landlord must give
tenant a written list of preexisting damage to the
rental before collecting a security deposit.
Separate Account: Required. Landlord must place
the deposit in an escrow account in a state or federally
regulated depository, and must inform the tenant
of the location of this account. Landlord
may post a
security bond securing all tenants’ deposits instead.
Advance notice of deduction: Required.
Deadline for Landlord
to Itemize and Return
Deposit: One month.
Hawaii
Haw. Rev. Stat. § 521-44
Limit: One month’s rent.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 14 days.
Idaho
Idaho Code § 6-321
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 21 days or up to 30 days if landlord and
tenant agree.
Illinois
765 Ill. Comp. Stat. 710/1 & 715/3
Limit: No statutory limit.
Interest Payment: Landlords who rent 25 or more
units in either a single building or a complex located
on contiguous properties must pay interest on
deposits held for more than six months.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: Landlords who rent 25 or more units in
either a single building or a complex located on
contiguous properties must pay interest on deposits
held for more than six months. The interest rate is
the rate paid for minimum deposit savings accounts
by the largest commercial bank in the state, as of
December 21 of the calendar year immediately
preceding the start of tenancy.
Indiana
Ind. Code Ann. §§ 32-31-3-9 to 32-31-3-19
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 45 days.
Iowa
Iowa Code Ann. § 562A.12
Limit: Two months’ rent.
Separate Account: Required.
Interest Payment: Interest payment, if any (account
need not be interest-bearing), must be made at
termination of tenancy. Interest earned during first
five years of tenancy belongs to landlord.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Kansas
Kan. Stat. Ann. §§ 58-2550, 58-2548
Limit: One month’s rent (unfurnished); one and
one-half months’ rent (furnished); for pets, add extra
one-half month’s rent.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Kentucky
Ky. Rev. Stat. Ann. § 383.580
Limit: No statutory limit.
Disclosure or Requirement: Orally or in writing,
landlord must disclose where the security deposit is
being held and the account number.
Separate Account: Required.
Advance notice of deduction: Required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 to 60 days depending on whether tenant
disputes deductions.
Louisiana
La. Rev. Stat. Ann. § 9:3251
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: One month.
Maine
Me. Rev. Stat. Ann. tit. 14, §§ 6031 to 6038
Limit: Two months’ rent.
Disclosure or Requirement: Upon request by the
tenant, landlord must disclose orally or in writing
the account number and the name of the institution
where the security deposit is being held.
Separate Account: Required.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days (if written rental agreement) or 21
days (if tenancy at will).
Maryland
Md. Code Ann. [Real Prop.] § 8-203, § 8-203.1
Limit: Two months’ rent.
Disclosure or Requirement: Landlord must provide a
receipt that describes tenant’s rights to move-in and
move-out inspections (and to be present at each),
and right to receive itemization of deposit deductions
and balance, if any; and penalties for landlord’s failure
to comply. Landlord may include this information in
the lease.
Separate Account: Required. Landlord may hold all
tenants’ deposits in secured certificates of deposit, or
in securities issued by the federal government or the
State of Maryland.
Interest Payment: Within 45 days of termination of
tenancy, interest must be paid (at annual rate of 3%,
not compounded) only on security deposits of $50 or
more. Deposit must be held in a Maryland banking
institution.
Advance notice of deduction: Required.
Deadline for Landlord
to Itemize and Return
Deposit: 45 days.
Massachusetts
Mass. Gen. Laws Ann. ch. 186, § 15B
Limit: One month’s rent.
Disclosure or Requirement: At the time of receiving
a security deposit, landlord must furnish a receipt
indicating the amount of the deposit; the name of
the person receiving it and, if received by a property
manager, the name of the lessor for whom the
security deposit is received; the date on which it is
received; and a description of the premises leased
or rented. The receipt must be signed by the person
receiving the security deposit.
Separate Account: Required. Within 30 days of
receiving security deposit, landlord must disclose the
name and location of the bank in which the security
deposit has been deposited, and the amount and
account number of the deposit.
Interest Payment: Landlord must pay tenant 5%
interest per year or the amount received from the
bank (which must be in Massachusetts) that holds
the deposit. Interest should be paid yearly, and
within 30 days of termination date. Interest will not
accrue for the last month for which rent was paid in
advance.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Michigan
Mich. Comp. Laws §§ 554.602 to 554.616
Limit: One and one-half months’ rent.
Disclosure or Requirement: Within 14 days of
tenant’s taking possession of the rental, landlord
must furnish in writing the landlord’s name and
address for receipt of communications, the name and
address of the financial institution or surety where
the deposit will be held, and the tenant’s obligation
to provide in writing a forwarding mailing address
to the landlord within 4 days after termination of
occupancy. The notice shall include the following
statement in 12-point boldface type that is at least
4 points larger than the body of the notice or lease
agreement: “You must notify your landlord in writing
within 4 days after you move of a forwarding address
where you can be reached and where you will receive
mail; otherwise your landlord shall be relieved of
sending you an itemized list of damages and the
penalties adherent to that failure.”
Separate Account: Required. Landlord must place
deposits in a regulated financial institution, and may
use the deposits as long as the landlord deposits with
the secretary of state a cash or surety bond.
Advance notice of deduction: Required. Tenants
must dispute the landlord’s stated deductions within
7 days of receiving the itemized list and balance, if
any, or give up any right to dispute them.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Minnesota
Minn. Stat. Ann. §§ 504B.175, 504B.178
Limit: No statutory limit.
Disclosure or Requirement: Before collecting rent
or a security deposit, landlord must provide a copy
of all outstanding inspection orders for which a
citation has been issued, pertaining to a rental unit
or common area, specifying code violations that
threaten the health or safety of the tenant, and all
outstanding condemnation orders and declarations
that the premises are unfit for human habitation.
Citations for violations that do not involve threats
to tenant health or safety must be summarized and
posted in an obvious place. With some exceptions,
landlord who has received notice of a contract
for deed cancellation or notice of a mortgage
foreclosure sale must so disclose before entering a
lease, accepting rent, or accepting a security deposit;
and must furnish the date on which the contract
cancellation period or the mortgagor’s redemption
period ends.
Interest Payment: Landlord must pay 1% simple,
noncompounded
interest per year. (Deposits
collected before 8/1/03 earn interest at 3%, up to
8/1/03, then begin earning at 1%.) Any interest
amount less than $1 is excluded.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: Three weeks after tenant leaves and landlord
receives forwarding address; five days if tenant must
leave due to building condemnation.
Mississippi
Miss. Code Ann. § 89-8-21
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 45 days.
Missouri
Mo. Ann. Stat. § 535.300
Limit: Two months’ rent.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Montana
Mont. Code Ann. §§ 70-25-101 to 70-25-206
Limit: No statutory limit.
Advance notice of deduction: Required. Tenant is
entitled to advance notice of cleaning charges, but
only if such cleaning is required as a result of tenant’s
negligence and is not part of the landlord’s cyclical
cleaning program.
Advance notice of deduction: Required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days; 10 days if no deductions.
Nebraska
Neb. Rev. Stat. § 76-1416
Limit: One month’s rent (no pets); one and onequarter
months’ rent (pets).
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 14 days.
Nevada
Nev. Rev. Stat. Ann. §§ 118A.240 to 118A.250
Limit: Three months’ rent; if both landlord and
tenant agree, tenant may use a surety bond for all or
part of the deposit.
Disclosure or Requirement: Lease or rental
agreement must explain the conditions under which
the landlord will refund the deposit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
New Hampshire
N.H. Rev. Stat. Ann. §§ 540-A:5 to 540-A:8; 540-B:10
Exemption: Entire security deposit law does not
apply to landlord who leases a single-family residence
and owns no other rental property, or landlord who
leases rental units in an owner-occupied building of
five units or fewer (exemption does not apply to any
individual unit in owner-occupied building that is
occupied by a person 60 years of age or older).
Limit: One month’s rent or $100, whichever is
greater; when landlord and tenant share facilities, no
statutory limit.
Disclosure or Requirement: Unless tenant has
paid the deposit by personal or bank check, or by a
check issued by a government agency, landlord must
provide a receipt stating the amount of the deposit
and the institution where it will be held. Regardless of
whether a receipt is required, landlord must inform
tenant that if tenant finds any conditions in the
rental in need of repair, tenant may note them on the
receipt or other written instrument, and return either
within five days.
Separate Account: Required. Upon request, landlord
must disclose the account number, the amount on
deposit, and the interest rate. Landlord may post a
bond covering all deposits instead of putting deposits
in a separate account.
Interest Payment: Landlord who holds a security
deposit for a year or longer must pay interest at a rate
equal to the rate paid on regular savings accounts in
the New Hampshire bank, savings & loan, or credit
union where it’s deposited. If a landlord mingles
security deposits in a single account, the landlord
must pay the actual interest earned proportionately
to each tenant. A tenant may request the interest
accrued every three years, 30 days before that year’s
tenancy expires. The landlord must comply with the
request within 15 days of the expiration of that year’s
tenancy.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days; for shared facilities, if the deposit
is more than 30 days’ rent, landlord must provide
written agreement acknowledging receipt and
specifying when deposit will be returned—if no
written agreement, 20 days after tenant vacates.
New Jersey
N.J. Stat. Ann. §§ 46:8-19, 44:8-21, 44:8-26
Exemption: Security deposit law does not apply to
owner-occupied buildings with three or fewer units
unless tenant gives 30 days’ written notice to the
landlord of the tenant’s wish to invoke the law.
Limit: One and one-half months’ rent. Any additional
security deposit, collected annually, may be no
greater than 10% of the current security deposit.
Separate Account: Required. Within 30 days of
receiving the deposit and every time the landlord
pays the tenant interest, landlord must disclose the
name and address of the banking organization where
the deposit is being held, the type of account, current
rate of interest, and the amount of the deposit.
Interest Payment: Landlord with 10 or more units
must invest deposits as specified by statute or place
deposit in an insured money market fund account,
or in another account that pays quarterly interest
at a rate comparable to the money market fund.
Landlords with fewer than 10 units may place deposit
in an interest-bearing account in any New Jersey
financial institution insured by the FDIC. All landlords
may pay tenants interest earned on account annually
or credit toward payment of rent due.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days; five days in case of fire, flood,
condemnation, or evacuation.
New Mexico
N.M. Stat. Ann. § 47-8-18
Limit: One month’s rent (for rental agreement of less
than one year); no limit for leases of one year or more.
Interest Payment: Landlord who collects a deposit
larger than than one month’s rent on a year’s lease
must pay interest, on an annual basis, equal to the
passbook interest.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
New York
N.Y. Gen. Oblig. Law §§ 7-103 to 7-108
Limit: No statutory limit for nonregulated units.
Disclosure or Requirement: If deposit is placed in a
bank, landlord
must disclose the name and address of
the banking organization where the deposit is being
held, and the amount of such deposit.
Separate Account: Statute requires that deposits not
be commingled with landlord’s personal assets, but
does not explicitly require placement in a banking
institution (however, deposits collected in buildings
of six or more units must be placed in New York bank
accounts).
Interest Payment: Landlord who rents out nonregulated
units in buildings with five or fewer units
need not pay interest. Interest must be paid at the
prevailing rate on deposits received from tenants who
rent units in buildings containing six or more units.
The landlord in every rental situation may retain
an administrative fee of 1% per year on the sum
deposited. Interest can be subtracted from the rent,
paid at the end of the year, or paid at the end of the
tenancy according to the tenant’s choice.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: “Within a reasonable time.”
North Carolina
N.C. Gen. Stat. §§ 42-50 to 42-56
Exemption: Not applicable to single rooms rented on
a weekly, monthly, or annual basis.
Limit: One and one-half months’ rent for month-tomonth
rental agreements; two months’ rent if term
is longer than two months; May add an additional
“reasonable” nonrefundable pet deposit.
Disclosure or Requirement: Within 30 days of the
beginning of the lease term, landlord must disclose
the name and address of the banking institution
where the deposit is located.
Separate Account: Required. The landlord may, at his
option, furnish a bond from an insurance company
licensed to do business in the state.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days; if landlord’s claim against the deposit
cannot be finalized within that time, landlord may
send an interim accounting and a final accounting
within 60 days of the tenancy’s termination.
North Dakota
N.D. Cent. Code § 47-16-07.1
Limit: One month’s rent (if tenant has a pet, not to
exceed the greater of $2,500 or amount equal to two
months’ rent).
Separate Account: Required.
Interest Payment: Landlord must pay interest if the
period of occupancy is at least nine months. Money
must be held in a federally insured interest-bearing
savings or checking account for benefit of the tenant.
Interest must be paid upon termination of the lease.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Ohio
Ohio Rev. Code Ann. § 5321.16
Limit: No statutory limit.
Interest Payment: Any deposit in excess of $50 or
one month’s rent, whichever is greater, must bear
interest on the excess at the rate of 5% per annum if
the tenant stays for six months or more. Interest must
be paid annually and upon termination of tenancy.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Oklahoma
Okla. Stat. Ann. tit. 41, § 115
Limit: No statutory limit.
Separate Account: Required.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Oregon
Or. Rev. Stat. § 90.300
Limit: No statutory limit. Landlord may not impose
or increase deposit within first year unless parties
agree to modify the rental agreement to allow for a
pet or other cause, and the imposition or increase
relates to that modification.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 31 days.
Pennsylvania
68 Pa. Cons. Stat. Ann. §§ 250.511a to 250.512
Limit: Two months’ rent for first year of renting; one
month’s rent during second and subsequent years of
renting.
Separate Account: Required.
Instead of placing deposits in a separate account,
landlord may purchase a bond issued by a bonding
company authorized to do business in the state.
Interest Payment: Tenant who occupies rental unit
for two or more years is entitled to interest beginning
with the 25th month of occupancy. Landlord must
pay tenant interest (minus 1% fee) at the end of the
third and subsequent years of the tenancy.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Rhode Island
R.I. Gen. Laws § 34-18-19
Limit: One month’s rent.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 20 days.
South Carolina
S.C. Code Ann. § 27-40-410
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
South Dakota
S.D. Codified Laws Ann. § 43.32-6.1, § 43-32-24
Limit: One month’s rent (higher deposit may be
charged if special conditions pose a danger to
maintenance of the premises).
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: Two weeks to return entire deposit or a
portion, and supply reasons for withholding; 45 days
for a written, itemized accounting, if tenant requests it.
Tennessee
Tenn. Code Ann. § 66-28-301
Exemption: Does not apply in counties having a
population of less than 68,000, according to the 1970
federal census or any subsequent federal census.
Limit: No statutory limit.
Separate Account: Required. Orally or in writing,
landlord must disclose the location of the separate
account used by landlord for the deposit.
Advance notice of deduction: Required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days
Texas
Tex. Prop. Code Ann. §§ 92.101 to 92.109
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days.
Utah
Utah Code Ann. §§ 57-17-1 to 57-17-5
Limit: No statutory limit.
Disclosure or Requirement: For written leases
or rental agreements
only, if part of the deposit is
nonrefundable, landlord must disclose this feature.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days, or within 15 days of receiving
tenant’s forwarding
address, whichever is later, but if
there is damage to the premises, 30 days.
Vermont
Vt. Stat. Ann. tit. 9, § 4461
Limit: No statutory limit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 14 days; 60 days if the rental is seasonal and
not intended as the tenant’s primary residence.
Virginia
Va. Code Ann. § 55-248.15:1
Exemption: Single-family residences are exempt
where the owner(s) are natural persons or their
estates who own in their own name no more than ten
single-family residences subject to a rental agreement.
Exemption applies to the entire Virginia Residential
Landlord and Tenant Act.
Limit: Two months’ rent.
Interest Payment: Landlord must accrue interest
on all money held as security at annual rate equal to
4% below the Federal Reserve Board discount rate
as of January 1 of each year. The deposit must begin
earning interest as of the date the rental agreement
is signed, but no interest is payable unless landlord
holds the deposit for over 13 months after the date
the rental agreement was signed and there has been
continuous occupancy of the same unit. Interest
must be paid upon termination of the tenancy.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 45 days; tenant has right to be present at
final inspection.
Washington
Wash. Rev. Code Ann. §§ 59.18.260 to 59.18.285
Exemption: Security deposit rules do not apply to a
lease of a single-family dwelling for a year or more, or
to any lease of a single-family dwelling containing a
bona fide option to purchase by the tenant, provided
that an attorney for the tenant has approved on the
face of the agreement any lease so exempted. Rules
also do not apply to occupancy by an employee of a
landlord whose right to occupy is conditioned upon
employment in or about the premises; or the lease
of single-family rental in connection with a lease of
land to be used primarily for agricultural purposes;
or rental agreements for seasonal agricultural
employees.
Limit: No statutory limit.
Disclosure or Requirement: In the lease, landlord
must disclose the circumstances under which all
or part of the deposit may be withheld, and must
provide a receipt with the name and location of
the banking institution where the deposit is being
held. No deposit may be collected unless the rental
agreement is in writing and a written checklist or
statement specifically describing the condition and
cleanliness of or existing damages to the premises and
furnishings is provided to the tenant at the start of
the tenancy.
Separate Account: Required.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 14 days.
West Virginia
W.Va. Code § 37-6A-1 et seq.
Deadline for Landlord
to Itemize and Return
Deposit: 60 days from the date the tenancy has
terminated, or within 45 days of the occupancy of
a subsequent tenant, whichever is shorter. If the
damage exceeds the amount of the security deposit
and the landlord has to hire a contractor to fix it, the
notice period is extended 15 days.
Wisconsin
Wis. Admin. Code ATCP 134.06, Wis. Stat. § 704.28
Exemption: Security deposit rules do not apply to a
dwelling unit occupied, under a contract of sale, by
the purchaser of the dwelling unit or the purchaser’s
successor in interest; or to a dwelling unit that the
landlord provides free to any person, or that the
landlord provides as consideration to a person
whom the landlord currently employs to operate or
maintain the premises.
Limit: Before accepting the deposit, landlord
must inform tenant of tenant’s inspection rights,
disclose all habitability defects and show tenant any
outstanding building and housing code violations,
inform tenant of the means by which shared utilities
will be billed, and inform tenant if utilities are not
paid for by landlord.
Disclosure or Requirement: Before accepting the
deposit, landlord must inform tenant of tenant’s
inspection rights.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: For unpaid rent, 30 days, or within 15 days
of receiving tenant’s forwarding address, whichever
is later; additional 30 days for deductions due to
damage.
Wyoming
Wyo. Stat. §§ 1-21-1207, 1-21-1208
Limit: No statutory limit.
Disclosure or Requirement: Lease or rental
agreement must state whether any portion of a
deposit is nonrefundable,
and landlord must give
tenant written notice of this fact when collecting the
deposit.
Advance notice of deduction: Not required.
Deadline for Landlord
to Itemize and Return
Deposit: 30 days, or within 15 days of receiving
tenant’s forwarding
address, whichever is later; 60
days if there is damage.

 

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