Nevada’s security deposit laws provide clear guidance for landlords on collecting, holding, and returning tenant funds. Landlords who understand these rules can avoid overcharging, improper handling of deposits, and disputes at move-out.
This guide explains everything property owners need to know, including maximum deposit limits, storage requirements, whether interest applies, lawful deductions, return timelines, dispute resolution, and more.
Statutes Regulating Nevada Security Deposits
Nevada places its rules for security deposits in Chapter 118A.240 of the Nevada Revised Statutes, which outlines how landlords and tenants manage deposits throughout a tenancy. These statutes guide limits on deposit amounts, explain allowed deductions, and set clear requirements for returning funds.
Maximum Security Deposit Amounts Under Nevada Law
Nevada limits security deposits for residential rentals by capping the total amount at 3 months’ rent. This statewide rule applies broadly to residential leases and helps landlords maintain consistent deposit practices.
While Nevada allows certain nonrefundable fees when clearly disclosed in the lease, those fees are generally subject to the same 3-month cap and do not permit landlords to collect additional amounts beyond the statutory limit. The state applies this rule uniformly, preventing local jurisdictions from setting different maximums.
Security Deposit Storage Regulations
Nevada does not require landlords to keep security deposits in a specific type of account or hold them separately, nor does the state require a formal receipt. Because Nevada gives property owners flexibility, landlords can choose to store tenant funds as they see fit.
Security Deposit Interest in Nevada
Nevada does not require landlords to use interest-bearing accounts for security deposits, nor does the state obligate property owners to pay interest to tenants on any amount held.
Making Security Deposit Deductions
Nevada landlords rely on security deposit deductions to keep their rentals well-maintained and ready for new tenants. When damage exceeds normal wear and tear or rent goes unpaid, deposit funds provide a reliable way to cover costs and make landlords whole.
When Landlords Can Deduct
Nevada landlords can draw from a tenant’s security deposit for the following reasons:
- Repairing damage that exceeds normal wear and tear
- Replacing items that the tenant damaged during the tenancy period
- Covering unpaid rent or other outstanding rental charges
- Paying for cleaning needed to return the unit to move-in condition
- Addressing costs tied to unauthorized alterations or modifications
When Landlords Can’t Deduct
Nevada landlords cannot draw from a tenant’s security deposit for the following reasons:
- Routine carpet wear that develops through ordinary tenant use
- Minor wall scuffs consistent with everyday occupancy patterns
- Appliance aging or decline that results from regular long-term use
- Fading paint that occurs through natural light exposure
- Basic cleaning needs that reflect ordinary turnover standards
Necessary Documentation to Accompany Deductions
Nevada law requires landlords to provide tenants with a written, itemized statement explaining any security deposit deductions, including charges for repairs, cleaning, or unpaid rent. Landlords must deliver this statement, along with any remaining deposit, within 30 days after the tenancy ends.
What to Do When Deductions are Greater Than the Deposit
When tenant damage exceeds the security deposit, landlords may seek payment of the remaining balance from the tenant. Landlords should send a written demand that includes an itemized deduction statement and retain supporting records such as receipts and invoices. If the tenant does not pay, the landlord can pursue the balance in the Nevada small claims court or hire a collections agency.
Returning Security Deposits to Tenants
Nevada law outlines clear rules for returning any remaining portion of a tenant’s security deposit after lawful deductions. These requirements help landlords manage move-out funds consistently and give both sides with a predictable process once a tenancy ends.
Required Timeline for Return
Nevada law requires landlords to return any remaining security deposit within 30 days after the tenancy ends and the tenant surrenders possession of the unit. If the landlord makes deductions, they must also provide a written, itemized statement within the same 30-day timeframe.
Method for Return
Nevada landlords usually return deposits by check or another method that creates a clear payment record. This approach helps document when and how the deposit was returned, reducing the risk of disputes.
Penalties for Late Return
Nevada law imposes strict penalties when landlords fail to return a security deposit or provide the required itemized statement within 30 days. Under the state’s landlord-tenant law, a landlord may be liable for the amount wrongfully withheld plus additional damages equal to that amount, effectively doubling the tenant’s recovery.
Security Deposit Disputes
Tenants who disagree with how a landlord handles their security deposit have the right to raise a dispute. They usually start by asking for clarification in writing, reviewing itemized deductions, and gathering their own records before deciding whether to negotiate, mediate, or file a claim in court.
As a landlord, prepare for possible disputes by using move-in and move-out checklist tools, staying current with accounting and bookkeeping, and including clear terms within all lease agreements. Thorough documentation, familiarity with Nevada security deposit laws, and strict attention to required timelines will also help keep you a step ahead of any disputes.
Using Condition Reports to Document Damage
Landlords should use move-in and move-out condition reports to track damage in the unit, clarify responsibility for said damage, and support transparent deductions.
To do so, consider using property management software to create digital reports with photos and videos directly from a smartphone. Capturing the unit’s condition before move-in and after move-out helps ensure accurate deductions and makes them far more difficult to challenge.
Sign up for a free TurboTenant account to simplify documentation and stay organized throughout every turnover.
FAQs: Nevada Security Deposit Law
Can a landlord deduct painting from a security deposit in Nevada?
Landlords may deduct painting costs only when a tenant causes damage that goes beyond normal wear and tear. Routine touch-ups or paint that is aging do not qualify. A deduction becomes valid only when repainting restores the unit to the condition recorded at move-in.
Are nail holes considered normal wear and tear in Nevada?
Nevada generally treats small nail holes as normal wear and tear. Landlords cannot deduct for minor holes from typical picture hanging. Larger holes or wall damage that requires repair fall outside of everyday use and may justify a deduction from the deposit.
Does the landlord or tenant have to pay for carpet cleaning in Nevada?
Tenants cover carpet cleaning costs only when they cause excessive dirt or damage. Routine turnover cleaning remains the landlord’s responsibility. Landlords also cannot deduct for normal carpet wear or standard cleaning that ensures the unit feels ready for the next renter.
What happens if a landlord doesn’t return a security deposit within 30 days in Nevada?
Nevada law requires landlords to return any remaining security deposit and provide a written, itemized statement of deductions within 30 days after the tenancy ends. If a landlord fails to meet this deadline, the landlord may be liable for the amount wrongfully withheld plus additional damages equal to that amount, effectively doubling the tenant’s recovery.
