Guidelines for Returning Security Deposits

Nothing causes landlords and tenants quite as much angst as navigating the rules around security deposits. This article provides an overview of those rules to help both landlords and tenants understand their rights and responsibilities regarding security deposits. 

While this article hopes landlords and tenants can avoid disputes by clarifying the security deposit guidelines, should a dispute arise, or you have questions about your particular circumstances, contact a local and experienced landlord-tenant lawyer. Laws vary from state to state and county to county, and answers can hinge on specific facts, so a local landlord-tenant attorney will be your best source for legal advice, support, and, if necessary, legal representation. 

How Long Does a Landlord Have To Return a Security Deposit?

The timeframe for returning a security deposit varies from state to state in the United States. Generally, landlords must return a tenant’s security deposit between 14 to 60 days after the tenancy ends. The exact timeframe should be included in your lease terms.

Landlords, check your state law to ensure compliance. Tenants, be sure to provide a forwarding address. Landlords can usually deduct unpaid rent from security deposits. Contact a landlord-tenant lawyer if the landlord fails to return your security deposit.

What Is Considered Normal Wear and Tear on a Security Deposit?

Normal wear and tear is the expected and reasonable decline in a property’s condition due to everyday use. Normal wear and tear typically includes carpet wear from walking, faded paint and minor scuffs on walls, an average decline in kitchen appliances, and some corrosion on bathtubs and sinks. Landlords cannot deduct everyday wear and tear from security deposits, as normal wear and tear is part of living at the property. Most leases explicitly say this. 

Can a Landlord Keep a Security Deposit for Cleaning?

Yes, a landlord can keep a security deposit for cleaning, but only if the cleaning is necessary to fix issues above and beyond normal wear and tear. Examples of cleaning costs that a landlord can deduct from a security deposit include excessive trash removal, intense cleaning of kitchen appliances from long-term neglect, water damage, or any excessive dirt. 

What Is the Maximum Security Deposit Allowed by Law?

The maximum amount of the security deposit a landlord can charge varies from state to state. Security deposits usually range from between the equivalent of one month’s rent to two months’ rent. Most states set the maximum security deposit between one month and two months, depending on the rental agreement’s length and the tenants’ age. Landlords and tenants should consult local laws to determine the maximum allowable security deposit. 

Some states allow a security deposit to be used for the first month’s rent and the last month’s rent of the rental property.

Do I Get Interest on My Security Deposit?

Most states’ landlord-tenant laws require landlords to deposit security deposits in interest-bearing accounts called escrow accounts. The landlord must then return the interest earned to the tenant at the end of the lease. Some states, like New York, even require that the escrow account be placed and how much interest it must earn. 

Many states also have laws regarding the written notice a landlord must provide the renter regarding interest.

What Happens if I Break My Lease and Don’t Get My Security Deposit Back?

If you break your lease, you may not be entitled to get your security deposit back. It depends on your reason for breaking the lease terms as well as state and local landlord-tenant laws. Landlords may be entitled to keep part or all of the security deposit to cover the rent for the remaining lease term or until they find a new tenant. 

Can a Landlord Deduct for Painting the Apartment From My Security Deposit?

The answer to this question depends on the situation. If the apartment needs to be painted because the tenant caused excessive damage or made unauthorized alterations, the landlord may deduct the costs from the security deposit. However, the landlord should not use the security deposit for this purpose if the painting is part of regular maintenance due to ordinary wear and tear—a couple of scuff marks and a few holes. 

What Should I Do if My Landlord Refuses To Return My Security Deposit?

If your landlord refuses to return your security deposit or a portion of the security deposit, the first step is to ask them why. If the landlord does not have a valid reason or if you disagree with either their reasoning or the amount they withheld, you should talk to the landlord.

Be friendly and non-confrontational, and provide evidence supporting your case, like photographs from when you moved in. Many states require landlords to produce itemized lists of the cost of repairs and an itemized statement of damages. If you can’t resolve the issue, or if the landlord is negotiating the return of the security deposit in bad faith, you should seek legal assistance.

Understanding your rights and responsibilities regarding security deposits will hopefully make the transition go smoothly. If not, consult a local and experienced landlord-tenant lawyer.