Landlord-Tenant Security Deposit Laws: Limits, Uses, and Deductions Explained

Most landlords require a security deposit before a tenant moves in. The deposit acts as financial assurance for the property owner: If a tenant causes damage to the property or fails to pay rent owed, the landlord can use the deposit to cover these financial losses. Given how much money is potentially at stake, security deposits are often a major source of friction between landlords and tenants.

Key Security Deposit Rules and State Regulations

Fortunately, many states impose fairly strict rules on how landlords can collect and use deposits and how they must return them when tenants move out. These laws are designed to protect both the tenant's funds and the landlord's property. Each state has its own security deposit laws—there are no rules that apply nationally.

Some states and cities even require landlords to hold deposits in a separate, dedicated account; some mandate that landlords pay the tenant interest on the funds. Landlords who violate state or local security deposit laws are often subject to substantial financial penalties, which sometimes amount to several times the security deposit amount.

Maximum Security Deposit Limits

A key area of regulation is the maximum amount a landlord can legally charge for a security deposit.

States Without Security Deposit Limits

Twenty states don't set any limits on deposits. In these locations, landlords are theoretically free to charge as much deposit as they wish. However, unless the rental market is especially tight, landlords generally won't find many takers if they charge a security deposit exceeding one or two months' rent.

States With Security Deposit Limits

All the other states, plus Washington, D.C., cap security deposits—usually at one or two months' rent. In some states, the specific deposit limit that applies to your rental might depend on various factors established by state or local law, including:

• Tenant age: Senior citizens have a lower statutory deposit ceiling in some states.
• Furnishings in rental: Some states allow landlords to charge a higher security deposit for furnished rentals to account for the additional items of value.
• Pets: Many states allow landlords to charge an additional deposit to cover damage caused by pets (a "pet deposit"). Whether the amount designated as a pet deposit counts toward the overall security deposit cap depends on the law.
• Landlord size: In a few states, small landlords (for example, those who own no more than four rental properties) are exempt from security deposit limits and regulations.

Can Landlords Increase Security Deposits?

A landlord's ability to increase the deposit legally depends on the type of tenancy.

Fixed-Term Leases

If the landlord and tenant signed a fixed-term lease—for example, for one year—the landlord generally may not raise the security deposit during the term, unless the lease itself explicitly allows for an increase (most leases don't). A landlord who wants to raise the security deposit will have to wait until the lease expires to increase the deposit by having the tenant sign a new lease. The new deposit must still be at or below any state limit. Often, when a landlord increases rent, they are also able to increase the security deposit.

Month-to-Month Rental Agreements

If the tenancy is a month-to-month tenancy, the landlord can increase the security deposit (as long as it's within the state limit) by giving the tenant the amount of notice required to change a month-to-month agreement. In most states, this means that the landlord must give the tenant 30 to 90 days' written notice. Some states, though, don't specify how much notice the landlord must give. In those states, a landlord would be on safe grounds to raise the security deposit by giving the tenant 30 days' written notice.

It's also important to note that special rules regarding increases to security deposits might apply in areas with rent control.

What Landlords Can Legally Deduct From a Security Deposit

Landlords are legally bound in most states to refund a tenant's security deposit within a designated amount of time, unless there is a valid reason to withhold all or part of it.

The Deposit Return Deadline

Most states give landlords a set amount of time (usually ranging from 14 to 30 days) after the tenant moves out to either:

• return the deposit in full or
• provide an itemized written statement of deductions and refund the remaining balance (if any).

Usually, landlords must send the refund and accounting to the tenant's forwarding address. In some states, landlords don't have to send the refund or accounting until the tenant has provided a forwarding address in writing, so it's always a good idea for tenants to provide landlords with a forwarding address as soon as they move out.

Valid Reasons Landlords Can Withhold Security Deposits

Although state laws vary on the details, landlords can almost always withhold all or part of the security deposit to cover:

• Unpaid rent: Any rental payments or fees legally due and outstanding.
• Damage beyond normal wear and tear: "Normal wear and tear" is the inevitable deterioration that occurs from everyday living in a rental. Stains, rips, breaks, and similar damage probably is not normal wear and tear, but fading, and general wear probably is. Tenants are responsible for any damage that occurs while they're living at the rental, even if it's caused by a guest.
• Excessive cleaning: Tenants have a duty to return the rental in a clean condition that is comparable to the condition the rental was in when they moved in. Typically, this does not include professional cleans (such as carpet cleaning) unless the tenant agreed to this in the lease or rental agreement.
• Missing property or fixtures: For a furnished rental, the security deposit can be used to replace any missing (or damaged) personal property belonging to the landlord. Likewise, if the tenant removes any fixtures (items that are built into the rental, such as shelving or light fixtures), the landlord can use the security deposit to replace them.

Replenishing the Security Deposit During the Tenancy

Landlords don't always need to wait until the tenant moves out to tap into the security deposit. The landlord can use the security deposit during the tenancy to fix damage that is caused by the tenant as soon as it comes to the landlord's attention. After using part or all of the deposit in this way, the landlord can legally require the tenant to replenish the deposit back to its original full amount.

A tenant who breaks something or causes damage during the tenancy should check their lease or rental agreement before attempting to remedy the situation themselves. Leases often require tenants to notify the landlord in writing of the problem rather than trying to DIY it. Failing to follow the requirements of the lease could have serious consequences for the tenant—it could even provide the landlord with grounds to evict the tenant in extreme situations.

Are Nonrefundable Fees and Pet Deposits Legal?

Some landlords attempt to collect a fee separate from the security deposit that they designate as "nonrefundable." These fees are often for pets or cleaning. For example, many leases will require the tenant to pay a nonrefundable "professional cleaning fee" when they move out.

A few states limit or prohibit landlords from charging any fee or deposit that isn't refundable. For example, California—which has one of the strictest laws—bans nonrefundable fees outright. (Cal. Civ. Code § 1950(n) (2025).) However, most state security deposit statutes are silent on the subject of nonrefundable fees, or allow them only for specific, clearly defined purposes, such as an application fee or a pet fee. For example, the state of Washington requires landlords to specifically state that a fee is nonrefundable and explain what it is for. If the fee isn't described as "nonrefundable" in writing, it is treated as a refundable deposit. (Wash. Rev. Code § 59.18.285 (2025).)

Any landlord who wishes to charge a nonrefundable fee should check state law to find out whether the fee counts toward the overall security deposit limit, if one exists.

Next Steps In Dealing With Security Deposits

Security deposit laws are designed to balance the interests of both the landlord and the tenant. For tenants, the key is to protect the deposit by maintaining the property and fulfilling all lease obligations to ensure your right to a full, timely refund. For landlords, it's vital to limit deductions to valid reasons such as damage that goes beyond ordinary wear and tear and to return the security deposit in the manner required by law. Understanding these reciprocal duties—the tenant's duty to protect the rental and the landlord's duty to account for and properly return the funds—is the best way to avoid financial disputes.