Security Deposit Rules for Landlords
Security deposits cause more landlord-tenant disputes than almost anything else. Most of them are avoidable if you know your state's limit, deadline and what counts as a legitimate deduction.
Limits and return deadlines by state
| State | Maximum deposit | Return deadline |
|---|---|---|
| California | 1 month's rent (2 months for qualifying small landlords) | 21 days |
| Texas | No cap | 30 days |
| Florida | No cap | 15 days (30 days to send notice of a claim) |
| New York | 1 month's rent | 14 days |
| Illinois | No statewide cap | 30–45 days (5+ unit buildings) |
| Georgia | 2 months' rent | 1 month |
| North Carolina | 1.5 months (month-to-month), 2 months (longer terms) | 30 days |
| Ohio | No cap (interest may apply) | 30 days |
| Pennsylvania | 2 months (year 1), 1 month after | 30 days |
| Arizona | 1.5 months' rent | 14 business days |
| Washington | No statewide cap | 30 days |
| Michigan | 1.5 months' rent | 30 days |
| New Jersey | 1.5 months' rent | 30 days |
| Colorado | See statute | 1 month (up to 60 days if lease says) |
What you can deduct
- Unpaid rent
- Damage beyond normal wear and tear
- Cleaning needed to return the unit to move-in condition (beyond normal wear and tear)
- Other charges the lease and state law allow (for example, unreturned keys)
Normal wear and tear vs damage
| Normal wear and tear (can't deduct) | Damage (can deduct) |
|---|---|
| Faded paint, minor scuffs | Holes in walls, unapproved paint colors |
| Worn carpet in walkways | Burns, pet stains, large tears |
| Loose door handles, minor scratches | Broken doors, windows or fixtures |
| Small nail holes from pictures | Large anchors or many holes |
How to avoid deposit disputes
- 1Do a move-in checklist with photos, signed by the tenant. Several states require one.
- 2Repeat it at move-out with dated photos of every room.
- 3Send an itemized statement with costs and receipts or estimates, before the deadline.
- 4Don't miss the deadline. In many states, missing it forfeits your right to keep any of the deposit and can mean penalties of two or three times the deposit.
- 5Follow holding rules. Some states require a separate or interest-bearing account and written notice of where the deposit is held.
Frequently asked questions
Can a landlord keep the whole security deposit?+
Only if the documented unpaid rent and damage equal or exceed it, and you send a proper itemized statement on time. Keeping a deposit without itemization is one of the most common reasons landlords lose in small claims.
Can the last month's rent be paid from the deposit?+
Not unless you agree. Most leases say the deposit can't be used as last month's rent. A tenant who does this without agreement still owes the rent, but it's often cheaper to deal with in the final accounting than to fight.
Do landlords have to pay interest on security deposits?+
In some states and cities, yes, including New Jersey, and Ohio and Pennsylvania in certain circumstances, plus cities like Chicago. Many states have no interest requirement.
Related resources
Let Ping send the reminders for you
Ping emails your tenants before rent is due, on the due date, and follows up automatically if it's late. Free while we're in early access.