Security Deposit Laws by State

How security deposit limits work

A deposit limit sets the most a landlord may collect up front to cover unpaid rent or damage at the end of a tenancy. Where a state has one, it is usually written as a multiple of the monthly rent, such as one or two months' rent, rather than a fixed dollar figure. That keeps the limit in step with the rent you actually charge.

Some states set no statewide limit at all. The amount is then a matter for the lease and the local market, though a city or county can still have its own rule. The table above shows "No state cap" for those rows.

Example, Colorado: Landlords may not require a security deposit greater than two months' rent (C.R.S. § 38-12-102.5). (C.R.S. § 38-12-102.5, C.R.S. § 38-12-106 (pet deposit and pet rent))

Example, Florida: Florida law sets no limit on the amount of a residential security deposit; the amount is set by the lease (Fla. Stat. § 83.49). (Fla. Stat. § 83.49 (no amount limit))

What counts toward the limit

States differ on which charges count. In some states a pet deposit, key deposit or prepaid last month's rent is added to the security deposit, and the total must stay under the limit. Other states treat certain pet deposits or move-in fees separately. If you collect more than one charge at move-in, add them up and compare the total with your state's row and statute before you set the amounts in the lease.

Labels do not settle the question. Some states treat any money held to cover damage or unpaid rent as a security deposit, whatever the lease calls it. That includes a "cleaning fee" or "admin fee", and calling it nonrefundable may not change that.

Exceptions to the limit

Some limits change with the circumstances. Furnished and unfurnished units can have different limits. A limit can also depend on the tenant's age, whether the tenant has a pet or waterbed, the length of the lease, or how many units the landlord owns. The table marks these rows "with exceptions", and the state's deposit guide lists them.

Return deadlines and what starts the clock

Every return deadline is measured from a triggering event, and the trigger matters as much as the number of days. Common triggers are the day the tenant moves out and hands back the keys, the day the lease or tenancy ends, and the day the tenant gives a forwarding address or asks in writing. When a tenant leaves early or stays past the lease end, those dates can be weeks apart.

Calendar days or business days

Many deadlines are counted in calendar days, but some states count business days. Business days skip weekends and holidays, so the deadline lands later on the calendar. States also differ on what happens when the last day falls on a weekend or holiday. The safest habit is to mail or transfer the refund and the statement well before the final day, and keep proof of when you sent them.

Example, Arizona: Within 14 days, excluding weekends and legal holidays, after the tenancy ends and the tenant returns the keys and vacates, mail the tenant an itemized list of deductions plus any refund (A.R.S. § 33-1321(D)). (A.R.S. § 33-1321(D), A.R.S. § 33-1310(3))

Itemized statements of deductions

Many states require a landlord who keeps any part of the deposit to send a written, itemized list of each deduction. Some also require receipts, invoices or repair estimates. The list usually has to go out by the same deadline as the refund, and in some states a late or missing list means the landlord cannot keep anything at all.

Write each line so a stranger could check it. "Cleaning and repairs: $600" invites a dispute. "Replace cracked bedroom window: $240 (invoice attached)" does not. Deduct only for items you can show were caused during the tenancy, and refund the balance with the statement.

Example, Alabama: A landlord who keeps any part of the deposit must give the tenant a written itemized list of amounts withheld within the 60-day period (Ala. Code § 35-9A-201(b)-(c)). (Ala. Code § 35-9A-201(b)-(c))

Interest and where the deposit is held

Some states, and some cities, require landlords to keep deposits in a separate or interest-bearing account, pay interest to the tenant, or tell the tenant in writing where the deposit is held. These rules can depend on the number of units you own or how long you hold the deposit. Many other states have no interest rule. Check your state's deposit guide, and check local ordinances too, because city rules can go further than state law.

Example, Connecticut: Landlords must pay interest on security deposits at no less than the yearly deposit index (0.49% for 2026), paid or credited each tenancy anniversary and with the deposit at move-out (Conn. Gen. Stat. § 47a-21(i)). (Conn. Gen. Stat. § 47a-21(h), (i), CT Department of Banking, Deposit Index and Interest Rates (2026: 0.49%))

Normal wear and tear vs damage

Landlords can generally deduct unpaid rent and the cost of repairing damage beyond normal wear and tear. They cannot charge for the ordinary decline that comes with living in a home. Faded paint, light scuffs, minor carpet wear in walkways and loose fixtures are usually wear and tear. Holes in walls, pet stains, broken glass, burns and missing fixtures are usually damage.

Age and length of tenancy matter. An item near the end of its useful life when the tenant moved in is hard to charge in full to that tenant. The best evidence is a move-in and move-out checklist that both sides sign, backed by dated photos of each room. Our move-in/move-out checklist is built for this.

Common mistakes that cost landlords the deposit

• Missing the deadline. In many states a late refund or statement means the landlord cannot keep anything. Some states add a penalty that can be a multiple of the deposit. Put the deadline in your calendar on move-out day.
• No forwarding address. Ask for one in writing at move-out. In some states a missing forwarding address changes the deadline or what the landlord must do. If you have nothing else, send the refund to the last known address and keep proof of mailing.
• Mixing the deposit with rent. Treat the deposit as the tenant's money held for a purpose. Do not spend it as income. Do not let it quietly become last month's rent unless the lease and your state's rules allow that.
• "Nonrefundable" fees. Some states restrict nonrefundable deposits or treat them as part of the refundable deposit. Name each move-in charge clearly and confirm your state allows it.
• Deducting without proof. Charging for wear and tear, or for damage you cannot document, is the most common reason landlords lose deposit disputes.
• Selling without handling the deposits. Many states have rules on who owes the deposit after a sale. Transfer the deposits and the records, and tell the tenants in writing.

Example, Alabama: A landlord who fails to mail a refund or itemized accounting within 60 days must pay the tenant double the original deposit (Ala. Code § 35-9A-201(f)). (Ala. Code § 35-9A-201(f)-(g), Ala. Code § 35-9A-163(a)(1), (b) (lease may not waive deposit requirements; up to one month's rent plus attorney's fees if landlord knowingly enforces prohibited term))

What to put in the lease

• The deposit amount, and whether any other move-in charge (pet deposit, key deposit, last month's rent) is refundable.
• Where the deposit is held and any interest terms, if your state or city requires that disclosure.
• What the deposit can be used for, how the move-out inspection works, and how the tenant should give a forwarding address.
• When and how the refund and itemized statement will be sent, in line with your state's deadline.
• A reference to the signed move-in checklist and photos.

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