Security Deposit
In one sentence
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
Plain English
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
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Example
When moving into an apartment, a tenant pays $1,500 as a security deposit. After moving out, the landlord inspects and finds a large hole in the wall. The landlord deducts $300 for repairs and returns $1,200 to the tenant within 30 days, with an itemized list of the damage.
Used in a sentence
“The landlord must return the security deposit within 45 days or provide a written explanation of any deductions.”
How Security Deposit differs by state
Security Deposit can apply differently depending on the state. Click a state to see local specifics.
Alabama
Alabama has no statewide security deposit law; landlords follow common law with minimal statutory protection.
Alaska
Alaska requires landlords to return deposits within 30 days and provide an itemized list of any deductions.
Arizona
Arizona requires return of deposits within 30 days with an itemized accounting; interest accrues on deposits held over one year.
Arkansas
Arkansas requires deposit return within 30 days with itemized deductions; deposits are generally not interest-bearing.
California
California requires return within 21 days, limits deductions to actual damages and unpaid rent, and mandates interest on deposits.
Colorado
Landlords must return deposits within one month and itemize deductions in writing.
Connecticut
Landlords must pay interest on deposits held over one year and return funds within 30 days.
Delaware
Landlords must return deposits within 20 days and pay interest on deposits held over two years.
Florida
Landlords must return deposits within 15 days and may not deduct for normal wear and tear.
Georgia
Georgia has minimal deposit protections; landlords need not pay interest or hold deposits separately.
Hawaii
Landlords must return deposits within 14 days and provide an itemized accounting of any deductions.
Idaho
Idaho has minimal security deposit regulations; landlords must return deposits but timeline and deduction rules vary by lease agreement.
Illinois
Landlords must return deposits within 30–45 days and pay interest; deposits over $20,000 require a separate account.
Indiana
Indiana requires landlords to return deposits within 45 days with an itemized statement of any deductions.
Iowa
Landlords must return deposits within 30 days and provide written explanation of deductions; deposits must earn interest.
Kansas
Landlords must return deposits within 30 days and itemize any deductions in writing.
Kentucky
Landlords must return deposits within 30–45 days and may deduct only for actual damages, not normal wear.
Louisiana
Landlords must return deposits within one month; no specific interest requirement, but deposits are protected as lessor property.
Maine
Landlords must return deposits within 30 days and pay interest annually; deposits must be held in separate accounts.
Maryland
Landlords must return deposits within 45 days and hold them in escrow; interest accrues if held over one year.
Massachusetts
Landlords must hold deposits in separate accounts and pay annual interest to tenants.
Michigan
Landlords must return deposits within 30 days and provide itemized deductions in writing.
Minnesota
Landlords must return deposits within 5 business days and pay interest on deposits held over one year.
Mississippi
Mississippi imposes no statewide security deposit regulations; local ordinances may apply.
Missouri
Landlords must return deposits within 30 days with itemized deductions or forfeit the right to withhold.
Montana
Landlords must return deposits within 30 days and provide an itemized list of deductions.
Nebraska
Landlords must return deposits within 45 days and may not charge for normal wear and tear.
Nevada
Landlords must return deposits within 30 days and pay interest on deposits held over one year.
New Hampshire
Landlords must return deposits within 30 days and hold deposits in a separate, interest-bearing account.
New Jersey
Landlords must place deposits in escrow accounts and return them within 30 days with interest.
New Mexico
Landlords must return deposits within 30 days and provide an itemized list of deductions.
New York
Landlords must place deposits in interest-bearing accounts and return them within one to six years depending on lease length.
North Carolina
North Carolina has no statewide security deposit law; landlord-tenant rules are governed by common law and lease terms.
North Dakota
Landlords must return deposits within 30 days and provide an itemized statement of any deductions claimed.
Ohio
Ohio requires deposits be held in escrow and returned within 30 days with an itemized deduction list.
Oklahoma
Landlords must return deposits within 30 days and provide an itemized list of deductions.
Oregon
Landlords must return deposits within 31 days and pay interest on deposits held over one year.
Pennsylvania
Landlords must place deposits in escrow and return them within 30 days with interest.
Rhode Island
Landlords must return deposits within 30 days and pay interest on deposits held over one year.
South Carolina
Landlords must return deposits within 30 days but are not required to pay interest.
South Dakota
Landlords must return deposits within 30 days or provide written notice of deductions.
Tennessee
Landlords must return deposits within 30 days and pay interest if held over one year.
Texas
Landlords must return deposits within 30 days and may deduct only for actual damages and unpaid rent.
Utah
Landlords must return deposits within 30 days with itemized deductions for damages or unpaid rent.
Vermont
Landlords must return deposits within 30 days and pay interest; deposits are held in trust.
Virginia
Landlords must return deposits within 45 days and provide an itemized list of deductions.
Washington
Landlords must return deposits within 30 days and pay interest on deposits held over one year.
West Virginia
West Virginia has minimal security deposit regulations; landlords face few statutory requirements for return timelines.
Wisconsin
Landlords must return deposits within 21 days and pay interest on deposits held over five years.
Wyoming
Wyoming requires return within 30 days but allows broad deductions for any lease violation or damage.
District of Columbia
Landlords must pay interest on security deposits and return them within 30 days of move-out.
Related terms
Tenant Rights
Legal protections and entitlements that renters have regarding their leased property and living conditions.
Eviction
The legal process by which a landlord removes a tenant from rental property.
Breach of Contract
Failure to do what a contract requires, without a valid legal excuse.
Damages
Money awarded by a court to compensate a party for losses caused by a breach or wrongdoing.
Mitigation
A duty to reduce or minimize losses caused by the other party's breach.
Homestead Exemption
A legal protection that shields a primary residence from creditors' claims up to a certain value.
Implied Warranty of Habitability
A landlord's legal duty to maintain rental property in safe, livable condition.
Adverse Possession
Gaining legal ownership of land by occupying it openly and continuously for a set period.
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.