Definition
Security deposits are money held from tenants to cover damage or unpaid rent. State laws specify limits, holding requirements, and return timelines.
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Security deposits are regulated by state law, which specifies maximum amounts (often 1-2 months rent), holding requirements, and return timelines. Landlords must typically return deposits within 30-60 days of move-out with an itemized list of any deductions. Deposits must be held separately from operating funds and cannot be used for normal wear and tear.
Pro Tip
Always document property condition with photos before tenant move-in.
Example
A landlord holds a $1,500 security deposit, deducts $400 for wall damage and carpet cleaning, and returns $1,100 within 45 days