Security Deposit Laws by State: Limits, Deadlines and Deductions

Security deposit laws are set by each state, so the answer depends on where the rental is. Most states regulate three things: how much a landlord can collect, how many days the landlord has to return the deposit after move-out, and what can be deducted. The deadlines in the eight states covered below range from 14 days in New York to 45 days in Illinois. Some states cap the deposit at one month's rent, others set no limit in the statute, and nearly all of them bar deductions for normal wear and tear and require a written, itemized list of any charges. The table and checklist below show how the rules compare.

The three rules every state covers

Before looking at individual states, it helps to know the questions every statute answers:

• The limit. Is there a maximum deposit, and is it tied to the monthly rent?
• The deadline. How many days after the tenant moves out must the landlord return the deposit or send a list of deductions?
• The deductions. What can be kept, how it must be documented, and what happens if the landlord gets it wrong?

Many states also add rules about where the money is held, whether interest is owed and what the tenant must do, such as giving a forwarding address.

Security deposit rules in 8 major states

Sources: California Civil Code 1950.5 as amended by AB 12, New York General Obligations Law 7-108, Texas State Law Library and Texas Property Code 92.109, Florida Statutes 83.49, Illinois Security Deposit Return Act, Washington RCW 59.18.280, Massachusetts General Laws c.186 s.15B, New Jersey DCA security deposit bulletin.

State notes worth knowing

California. AB 12 limits most deposits to one month's rent from July 1, 2024. The law makes an exception for certain small landlords, such as an individual, or an LLC owned only by individuals, with no more than two residential rental properties, who may charge up to two months. The full conditions are in the statute. The landlord has 21 days after the tenant vacates to return the deposit with an itemized statement.

New York. A deposit may not exceed one month's rent, and the landlord must offer the tenant a chance to inspect the unit before move-out. If the landlord misses the 14-day itemized statement, the statute says the landlord forfeits any right to keep part of the deposit.

Texas. The 30-day clock runs from the date the tenant surrenders the unit, but the Texas State Law Library notes the landlord is not obligated to return the deposit until the tenant provides a written forwarding address. Tenants should send one in writing.

Florida. Deposits must be held in a separate Florida bank account or covered by a surety bond. A landlord who wants to keep part of the deposit must send written notice within 30 days, and the tenant then has 15 days to object.

Massachusetts. The deposit goes into a separate interest-bearing account in a Massachusetts bank, and the landlord owes interest at 5% a year or the lower rate the bank pays. The landlord must also give the tenant a statement of the unit's condition within 10 days after the tenancy begins.

New Jersey. Deposits are capped at one and a half months' rent, and any yearly increase in the deposit may not exceed 10% of the current deposit. The money must be held in an interest-bearing account, and the tenant must be told where it is.

What can and cannot be deducted

The details vary, but the pattern is consistent. Texas law, for example, says a landlord "may not retain any portion of a security deposit to cover normal wear and tear," and California, New York, Washington and Massachusetts use similar language.

Most statutes also require the landlord to put deductions in writing. Texas requires "an itemized and written list of the deductions," and California, New York, Illinois and New Jersey have similar requirements. Good records at move-in, such as photos and a signed condition checklist, are what make these deductions easy to support or to challenge.

Security deposit checklist

For landlords

• Look up your state's statute and any city rules before you set the deposit
• Keep the deposit within the legal limit for your state
• Hold the money the way your state requires, including a separate or interest-bearing account where needed
• Complete a move-in condition report with dated photos, signed by the tenant
• Put the return deadline for your state in your calendar the day the tenant moves out
• Send an itemized list of deductions, with receipts or estimates where you have them

For renters

• Ask how much the deposit is and where it will be held
• Photograph every room on move-in day and keep a copy of the condition report
• Give your landlord a written forwarding address when you move out
• Note your state's return deadline and follow up in writing if it passes

If you are getting ready to rent out your first unit, our first-time landlord checklist covers the rest of the setup. To pick the right tenant and the right price, read how to screen tenants and how much rent to charge.

Do it with Blurben

Blurben is an AI real-estate companion on WhatsApp and iMessage. It works alongside landlords, renters and investors from finding the place, through checking the lease and the agreement, to connecting with local services such as movers, cleaners and inspectors. Tell it the state and city of your rental and ask it to summarize the deposit rules that apply there, build a move-in checklist, or draft a polite follow-up when a deposit deadline has passed. Ask Blurben on WhatsApp or iMessage at any step.

This article is general information, not legal advice. Security deposit laws change and cities can add their own rules; check the current statute for your state or speak with a local attorney or tenant organization before acting.