Security Deposit Limits

Security deposit limits are an important part of rental properties that provide financial protection for landlords while ensuring fairness for tenants. State laws regulate how much landlords can charge for security deposits, with most states capping the amount at one or two months’ rent. Some states set specific limits based on the length of the lease or the age of the tenant, while others have no statutory cap at all. Understanding these limits helps both landlords and tenants ensure compliance with local regulations and avoid potential disputes over rental agreements.

Understanding Security Deposits

A security deposit is a normal part of renting real estate. Your prospective rental unit is likely part of your landlord’s larger rental property. Accordingly, your landlord or property manager must protect the rental property. A security deposit helps them achieve this goal.

A security deposit is one way for your landlord to financially protect themselves against the following:

• Unpaid rent
• Damage that exceeds normal wear and tear
• Cleanup costs

Typically, renters pay the security deposit before they move in. State laws govern how the landlord treats the security deposit from receipt to after the tenant moves out.

State Laws Regarding Security Deposits

State laws govern almost all aspects of how landlords treat a security deposit. In most states, such as Maryland, landlords must do the following with a security deposit:

• Give the tenant a written receipt for the security deposit
• Place the security deposit in an interest-bearing separate bank account or trust account
• Return the security deposit within a specified timeframe after the tenant moves out
• State laws also govern the amount of money landlords can charge for a security deposit

Landlords who don’t meet the requirements with security deposits can face fines.

Security Deposit Limits

Each state sets security deposit policies. Some states have no limits on the amount a landlord can charge for a security deposit, while other states limit it to one month’s rent. States fall into one of the following categories:

• No limit on the security deposit
• Up to one month’s rent
• Up to a month and a half’s rent
• Up to two months’ rent
• Up to three months’ rent

While these are the maximum amounts a landlord can request for a security deposit, they can ask for less than the statutory maximum if they so choose. Local city or county ordinances may impose stricter rules than state law.

No Limit On Security Deposit

The following states have no limit on a security deposit. This means a landlord, property owner, or property management company can charge as much as they want for a security deposit.

• Colorado
• Florida
• Georgia
• Idaho
• Illinois
• Indiana
• Kentucky
• Louisiana
• Minnesota
• Mississippi
• Montana
• Ohio
• Oklahoma
• Oregon
• South Carolina
• Tennessee
• Texas
• Utah
• Vermont
• Washington
• West Virginia
• Wisconsin
• Wyoming

States That Limit a Security Deposit up to One Month’s Rent

• Leases of at least 12 months
  • Alabama
  • Delaware
• Leases of 12 months or less
  • District of Columbia
  • Hawaii
  • Massachusetts
  • Nebraska
  • New Hampshire
  • New Mexico
• Up to one month’s rent unless it is your first year of renting
  • New York
  • North Dakota
  • Pennsylvania
• Deposit is the same amount as your first month’s rent
  • Rhode Island
  • South Dakota
• Deposit of up to one month’s rent if you are over 62
  • Connecticut

States That Limit a Security Deposit to up to One and a Half Months’ Rent

• Arizona
• Michigan
• New Jersey
• North Carolina (for month-to-month tenancies)

States That Limit a Security Deposit to up to Two Months’ Rent

• Alaska (only if rent is less than $2000/month)
• Arkansas
• California (unfurnished)
• Connecticut (for those under 62)
• For tenancies over two months
  • Iowa
  • Kansas
  • Maine
  • Maryland
  • Missouri
  • North Carolina (for tenancies longer than two months)
  • Virginia (just two months’ rent)

States That Limit a Security Deposit to up to Three Months’ Rent

• California (furnished)
• Nevada

Landlords who exceed statutory limits on a tenant’s security deposits face legal repercussions, including fines and lawsuits. Tenants can seek relief in small claims court.

Timeframes for Return of Security Deposit

Your landlord must return your security deposit at the end of the lease after you move out of the rental property. Your lease agreement should have more specific information on how to get your security deposit back. In general, you should do the following:

• Notice: Give your landlord written notice of your intent to move out
• Forwarding address: Include a forwarding address in your written notice to receive your security deposit return
• Walkthrough or inspection: Schedule a time to do a walkthrough with the landlord or property manager to identify any possible damages

Give Written Notice Before Your Lease Ends

You should send your written notice via certified mail to ensure receipt. Your state’s laws will identify how long your landlord has to return your security deposit. This timeframe will differ from state to state. In many cases, landlords return the total amount of the security deposit, while others withhold a portion of the security deposit.

When Can Landlords Keep All or Part of a Security Deposit?

If your landlord decides to keep part of the security deposit, they must do so in accordance with your state’s laws. They must also provide you with an itemized list of deductions from your security deposit. They can only make deductions for damages beyond normal wear and tear. Normal wear and tear refers to the ordinary usage of a rental unit, including the following examples:

• Faded carpet
• Broken blinds
• Broken lightbulbs

Damages beyond normal wear and tear include the following examples:

• Holes in the wall
• Broken windows
• Broken tiles in the bathroom

Don’t Forget Your Interest

If your state requires landlords to place the security deposit in an interest-bearing account, the landlord must give you any interest collected during your tenancy.

For more information about the rights and responsibilities of tenants and landlords, see FindLaw’s Tenant Rights, Landlord Rights, and Landlord-Tenant Disputes sections.

Get Legal Help

The law limits the amount a landlord can require for a security deposit. If you have any questions about the amount a landlord asks for a security deposit, a landlord-tenant attorney can help. They are experts in landlord-tenant law and can give you sound advice. Speak with an experienced local landlord-tenant attorney today.

Security Deposit Limits: Additional Resources

Learn more about security deposit laws with these resources:

• The Difference Between Last Month’s Rent and a Security Deposit
• What Can a Landlord Deduct From a Security Deposit for Cleaning and Repairs?
• Security Deposit Laws Can Help Get Your Deposit Back