Security Deposit Limits: State Guide

Why Do Landlords Need Security Deposits?

Security deposit limits are an important part of renting a property. They provide financial protection for landlords while ensuring fairness for tenants.

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 do so.

Rental property owners use security deposits to protect themselves from: 

• 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 landlords handle the security deposit from receipt through move-out.

State Laws Determine the Rules for Security Deposits

State laws govern almost every aspect 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 security deposit requirements can face fines.

Security Deposit Limits

Each state sets security deposit policies. Some states have no limit on the amount a landlord can charge for a security deposit, while others 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 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 One and a Half Months’ Rent

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

States That Limit a Security Deposit 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 Three Months’ Rent

• California (furnished)
• Nevada

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

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:

• 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 varies by state. In many cases, landlords return the full security deposit, while others withhold a portion.

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

If your landlord keeps 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 may deduct only for damages beyond normal wear and tear. Normal wear and tear refers to the ordinary usage of a rental unit, including:

• Faded carpet
• Broken blinds
• Broken lightbulbs

Damages beyond normal wear and tear include:

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

Your Security Deposit May Gain 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. If you receive more back than your original security deposit, this is likely why.

Get Legal Help With a Security Deposit

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 as a security deposit, a landlord-tenant attorney can help. They are experts in landlord-tenant law and can provide expert legal guidance tailored to your situation and state laws.

FindLaw’s directory of landlord-tenant lawyers can connect you with qualified legal help near you. Because state law is relevant, your attorney should be licensed in the state where the rental property is. Enter your city or ZIP code for a list of legal professionals in your area. Your search results will also show important details about prospective attorneys, like ratings, languages spoken, and whether they offer free consultations.

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?
• How To Get Your Deposit Back