Nevada Security Deposit Collections & Holdings

Nevada Security Deposit Collections & Holdings

Last Updated: February 27, 2023 by Ashley Porter

Quick Facts Answer
Maximum / Limit 3 Months’ Rent
Receipt Requirement Yes (upon request)
Inventory Requirement Yes
Interest Requirement None

To learn about laws on security deposit returns in Nevada, click here.

Maximum Security Deposit Allowed in Nevada

Nevada law limits the maximum security deposit to three months’ rent.

Landlords in Nevada can allow tenants to purchase a surety bond instead of (or in addition to) a security deposit as long as the surety bond and security deposit together do not exceed three months’ rent. However, landlords cannot require a surety bond. Tenants must have the option to provide a security deposit instead.

Laws that apply to security deposits also apply to surety bonds purchased in lieu of a security deposit.

Can Landlords Charge an Additional Pet Deposit in Nevada?

In Nevada, landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the total security deposit cannot exceed three months’ rent. Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit.”

This law does not prevent landlords from adding a monthly pet premium.

How Much Rent Can a Landlord Collect Upfront in Nevada?

Landlords in Nevada can collect the first month’s rent in advance. However, landlords can only collect three additional months’ rent in advance, whether called a “security deposit” or “prepaid rent.” “Last month’s rent” is considered part of the security deposit.

Security Deposit Collections in Nevada

When collecting a security deposit in Nevada, landlords must include the amount of the security deposit collected and the conditions for its return in the lease agreement.

Landlords in Nevada must also provide a signed inventory and condition of the rental unit. However, this requirement exists whether or not the landlord collects a security deposit.

Do Landlords Have to Provide a Receipt for the Security Deposit in Nevada?

Landlords in Nevada must provide a signed receipt for the security deposit upon request by the tenant.

What Obligations Do Landlords Have to Establish the Condition at Move-in in Nevada?

When collecting a security deposit, landlords in Nevada must provide the tenant with a written lease agreement including a signed inventory and condition of the rental unit and the conditions for the return of the deposit.

If the landlord wants to be able to charge a non-refundable cleaning fee, it must be included in the lease agreement. Other than a cleaning fee, no portion of the security deposit can be non-refundable.

Security Deposit Holdings in Nevada

Nevada law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Nevada does not.

Are Tenants Entitled to Interest on Their Security Deposit in Nevada?

Nevada law does not require landlords to provide interest on held security deposits.

How Are Security Deposits Accounted for in Nevada?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in Nevada?

When a property is sold in Nevada, the landlord must (before the deed is recorded) either:

  • Transfer the security deposit to the new owner and notify the tenant in writing of their successor’s name, address, and phone number; or
  • Return the security deposit to the tenant and notify the new owner in writing

In either case, the original landlord can make any allowed deductions first.

Sources

Security Deposit Collections in Other States