Security Deposit Law

Last Updated: November 9, 2024 by Roberto Valenzuela

Security deposit law covers rental agreements where a landlord holds a certain amount of the tenant’s money to cover (secure) potential unexpected expenses caused by the tenant during the course of the lease.

Security Deposit Laws

Security deposits mainly provide protection to landlords, but tenants enjoy many rights related to security deposits as well. Almost every state has security deposit laws to ensure tenants get treated fairly.

Laws regulating security deposits broadly can be divided into laws about collection, and laws about return. Laws about collection answer questions like:

  • What’s the maximum a landlord can collect as a security deposit?
  • How much information does the landlord have to give the tenant about the institution holding the deposit funds?
  • Is the tenant entitled to any interest payments on the deposit amount?
  • Can the landlord can ask for a separate amount as a pet deposit?
  • Does the tenant have a right to fill out an initial move-in checklist taking inventory of existing property conditions?

Security deposit return laws answer questions like:

  • What kinds of expenses are allowed deductions from a security deposit, and how does the landlord document valid charges?
  • What kinds of damage count as expected wear and tear?
  • Does a tenant have a right to a move-out inspection with the landlord to document any property damage?
  • How much time does the landlord get to return any unused deposit to the tenant?
  • What notification requirements apply for a security deposit return?
note

Security deposit laws often exist at the local level, even when they don’t at a state level. For example, Oregon as a state does not cap security deposits at a specific maximum, while the city of Portland does.

Security Deposit Collections Laws by State

This map shows the general default maximum for a security deposit from one state to another, and the grid links to individual state-by-state pages with more details.

Security Deposit Return Laws by State

This map shows the general maximum allowed time within which a landlord must return a tenant’s security deposit. The grid links to individual state-by-state pages with more details.