Definition
Security deposit laws vary by jurisdiction—most limit deposits to 1-2 months rent, require separation from operating funds, and mandate return timelines. Violations cause liability.
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Laws vary significantly by jurisdiction. Most limit deposits to 1-2 months of rent, require separation from operating funds, mandate interest payment, and specify return timelines (30-60 days). Failure to comply can result in civil liability, often with damages multiplied by 2-3x. Landlords must provide itemized deductions for any deposit withholding.
Pro Tip
Know your state's specific security deposit law.
Example
A state requires deposits returned within 45 days with itemized deductions; a landlord withholding $300 without documentation may face $600-$900 liability