Landlords rely on the Utah security deposit law to manage turnovers smoothly, avoid disputes over damage, and keep communication clear with tenants. Understanding these rules helps property owners prevent common issues such as unclear charges or late refunds.
This guide outlines the essentials, including max amounts landlords can request, how to store deposits, interest requirements, lawful deductions, returning deposits, handling disputes, and more.
Statutes Regulating Utah Security Deposits
Utah’s security deposit rules appear in Title 57, Chapter 17 of the Utah Code, which governs how landlords collect deposits, issue itemized deduction notices, and return any remaining funds within the required timeline.
Maximum Security Deposit Amounts Under Utah Law
Utah sets no statewide limit on how much a landlord may collect as a security deposit. This amount stays consistent across rental types, lease lengths, and property categories because the law does not adjust the cap for any specific situation.
Utah law also offers no exceptions that restrict security deposit amounts. No known local jurisdictions create their own maximums that override the statewide rules.
Security Deposit Storage Regulations
Utah law does not require landlords to place security deposits in a particular type of account or provide a receipt. Property owners may hold these funds in any way they see fit, since the statutes do not require separate accounts, interest-bearing accounts, or disclosures about where the funds are stored.
Security Deposit Interest in Utah
Utah law does not require landlords to place security deposits in interest-bearing accounts. State statutes also do not require interest payments to tenants or call for any specific banking arrangements when holding these funds.
Making Security Deposit Deductions
Landlords rely on security deposit deductions to protect the property’s overall condition. Tenants sometimes leave damage beyond normal wear and tear, and landlords need funds available to repair it and return the unit to its previous condition before listing it again.
When Landlords Can Deduct
Utah landlords may draw from a tenant’s security deposit for the following reasons:
- Repair damage that exceeds normal wear and tear
- Restore areas harmed through improper or negligent tenant actions
- Address unauthorized changes that require the unit to return to its prior state
- Cover unpaid rent or other charges owed under the lease
- Pay for cleaning is needed to meet reasonable move-out conditions
When Landlords Can’t Deduct
Utah landlords may not draw from a tenant’s security deposit for the following reasons:
- Address conditions that existed before the tenant’s move-in
- Charge for improvements or upgrades that enhance the property beyond repairs
- Cover routine maintenance expected during normal property operations
- Deduct for ordinary aging or deterioration from regular use
- Bill tenants for services or responsibilities that the lease assigns to the landlord
Necessary Documentation to Accompany Deductions
Utah law requires landlords to provide tenants with a written, itemized statement explaining each deduction from the security deposit. The statutes do not require receipts or invoices, although tenants may request supporting documentation to learn more about specific charges.
What to Do When Deductions are Greater Than the Deposit
Sometimes tenants leave behind damage or unpaid charges that far exceed the security deposit. Utah landlords may request the remaining balance directly from the former tenant and should keep clear records of all repair costs or other amounts owed. State law does not set a specific deadline for demanding the additional payment.
If the tenant refuses to pay, landlords can enlist a collections agency or take the matter to Utah small claims court to pursue the debt.
Returning Security Deposits to Tenants
Utah law sets clear rules for returning any remaining security deposit funds after a landlord makes eligible deductions, which include:
Required Timeline for Return
Utah requires landlords to return the remaining deposit and provide an itemized deduction statement within 30 days after the tenancy ends or within 15 days after receiving the tenant’s written demand with a forwarding address, whichever date comes later. The timeline starts once the landlord receives that written demand.
Method for Return
A Utah landlord may return the deposit by mail or electronically when both parties agree to electronic delivery. State law also requires landlords to include a written, itemized list of deductions with the returned funds so the tenant understands exactly how the final refund amount was calculated.
Penalties for Late Return
Utah law allows tenants to recover the full deposit, an additional $100 penalty, and court costs and attorney fees if a landlord misses the required deadline or fails to follow proper return procedures.
Security Deposit Disputes
Tenants who disagree with how a landlord handles their security deposit have every right to raise a dispute. To do so, they usually start by reviewing the itemized deductions, requesting clarification in writing, and asking for any supporting documentation. If they can’t resolve the issue directly, they may turn to mediation or the court system.
As a landlord, prepare for security deposit disputes by using move-in and move-out checklist tools, staying on top of accounting and bookkeeping, and including clear terms within all future lease agreements. Strong documentation, familiarity with Utah law, and consistent attention to required timelines also help smooth out the process.
Using Condition Reports to Document Damage
Landlords in Utah benefit from using detailed move-in and move-out condition reports to document changes, set clear expectations, and simplify conversations with tenants.
To do so, use property management software to create digital reports with photos and videos directly from a smartphone. Careful documentation before move-in and after move-out makes security deposit deductions clear and difficult to dispute.
Sign up for a free TurboTenant account to collect deposits, organize reports, store essential records, and fortify every step of the deposit process.
FAQs: Utah Security Deposit Law
Can a landlord deduct painting from a security deposit in Utah?
A Utah landlord may deduct painting costs only when the tenant leaves damage beyond normal wear and tear. Routine repainting that occurs during standard turnover does not qualify, but excessive marks, stains, or tenant-caused damage can justify a deduction.
Are nail holes considered normal wear and tear in Utah?
Small nail holes from hanging lightweight items usually count as normal wear and tear in Utah, so they do not allow a deduction. Larger holes, anchors, or extensive wall damage may qualify as tenant-caused issues and can justify withholding part of the deposit.
Does the landlord or tenant have to pay for carpet cleaning in Utah?
A Utah landlord may charge the tenant for carpet cleaning only when the tenant leaves stains or heavy soil that goes beyond ordinary use. Routine cleaning needed during normal turnover usually remains the landlord’s responsibility and should not come out of the security deposit.
What happens if a landlord doesn’t return a security deposit within 30 days in Utah?
If a Utah landlord does not return the deposit or provide an itemized deduction list within 30 days, the tenant may recover the full deposit, a $100 penalty, and court costs and attorney fees. The law gives tenants clear remedies when landlords miss the required deadline.
