Only a few states let a tenant unilaterally withhold rent if a landlord doesn’t make timely repairs. It’s more common to do withholding through a court or other government escrow program. Some states allow unilateral withholding only if the landlord deliberately or negligently interrupts essential services like basic heating.
Different Standards for Rent Withholding
Two common standards define most rent withholding.
The more common standard is withholding into escrow. This is where the tenant pays rent into a government account instead of to the landlord. The supervising official distributes the money at the end of the rental dispute.
A few states allow unilateral withholding. This is where tenants can keep the owed rent money under their own care until the end of the rental dispute.
Withholding Into Escrow
About a quarter of U.S. states allow withholding into an escrow account. This lets tenants pay rent to a government escrow account rather than the landlord. Neither landlord nor tenant can access this account until their dispute ends.
Once the case gets decided or settled, the supervising official (usually the clerk of the court) distributes the funds. If the landlord wins, the landlord will usually get all the funds in the account. If the tenant wins, the funds usually get split. The landlord keeps only a percentage for the reasonable use of the unrepaired property.
Unilateral Withholding
In a few states, tenants don’t have to use a court process to withhold rent. They can withhold when a landlord fails to repair after proper notice.
Unilaterally withheld funds still can’t be spent on personal uses. Tenants still must pay the landlord as directed by the court, at the end of the dispute.
Even states which allow unilateral withholding discourage tenants from withholding the entire rent. Courts more often approve withholding a percentage rather than the full rental amount.
Withholding Versus Repair and Deduct
Most states do allow one narrow form of rent “withholding.” This is in the specific context where tenants contract for repairs themselves and deduct from the rent.
Laws allow this because funds aren’t being held back, but rather spent directly on the rental property. Most laws also set a maximum deduction significantly lower than the monthly rent.
States With Special Standards for Rent Withholding
Most states either disallow all withholding, allow it through an escrow program, or allow it unilaterally. The following states currently have more complex rules:
State | Standard(s) for Withholding |
Arizona | Can’t suspend rent payments unilaterally. However, there are no consequences for improper withholding, if done in good faith. |
Nebraska | Can suspend rent payments unilaterally. Only allowed while the landlord is deliberately or negligently interrupting an essential service like basic heating. |
North Dakota | Unilateral withholding technically allowed. In practice, courts will almost always find this improper. North Dakota tenants can generally only withhold into court escrow. |
Oklahoma | Can suspend rent payments unilaterally. Only allowed while the landlord is deliberately or negligently interrupting an essential service like basic heating. |
Oregon | Can suspend rent payments unilaterally. Only allowed while the landlord is deliberately or negligently interrupting an essential service like basic heating. |
Pennsylvania | Can withhold rent without a government process, but only in cities with a population below 210,000. Above that number, rent must go into a government-approved escrow. |
Rhode Island | Can suspend rent payments unilaterally. Only allowed while the landlord is deliberately or negligently interrupting an essential service like basic heating. |
Tennessee | Can’t withhold rent without a government process. Permission to withhold doesn’t have to come from a court. Other government agencies can also allow withholding. |
Utah | Can withhold rent without a government process. Can only do so by strict compliance with a special notice procedure. |
Consequences for Improper Rent Withholding
The most common consequence for improper rent withholding is eviction.
When rent gets withheld without a legal reason, courts see it as an ordinary rent default. This lets the landlord evict. Rent default also often allows a special, faster eviction process.
Withholding without official government sanction is one of the riskiest tenant remedies. It’s common for courts to allow eviction against withholding tenants, and uncommon for them to find withholding proper.