Utah Security Deposit Collections & Holdings

Utah Security Deposit Collections & Holdings

Last Updated: February 10, 2023 by Ashley Porter

Quick Facts Answer
Maximum / Limit No Limit
Receipt Requirement None
Inventory Requirement Yes (or Tenant Inspection)
Interest Requirement None

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

Maximum Security Deposit Allowed in Utah

There is no limit on how much a landlord can collect for a security deposit in Utah. While other states impose a maximum security deposit limit, such as one month’s rent, Utah does not.

Can Landlords Charge an Additional Pet Deposit in Utah?

In Utah, landlords can charge a pet deposit, except for service dogs and emotional support animals.

How Much Rent Can a Landlord Collect Upfront in Utah?

There is no limit on the amount of rent that can be collected upfront in Utah. Many states have a limit on the amount of rent that can be collected at once, but Utah does not.

Security Deposit Collections in Utah

When collecting a security deposit in Utah, landlords must complete one of three options: provide tenants with an inventory of damages, provide tenants with a blank checklist to complete and return, or give tenants the option to conduct an inspection of the rental unit.

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

Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in Utah.

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

Before the start of a lease term, landlords in Utah must do one of the following:

  • Provide tenants with a written inventory of the condition of the rental unit except for normal wear and tear
  • Provide tenants with a blank inventory checklist and give them a reasonable time to return the completed form
  • Allow the tenant to conduct a walk-through inspection
note

This requirement exists regardless of whether or not the landlord collects a security deposit. However, if damages are discovered through this process, the cost to repair them should not be deducted from the new tenant’s security deposit.

Security Deposit Holdings in Utah

Utah 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 Utah does not.

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

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

How Are Security Deposits Accounted for in Utah?

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

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

When a property is sold in Utah, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.

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