Security Deposit Laws by State: What Renters Need to Know
A state-by-state breakdown of security deposit limits, return timelines, and your rights as a renter. Know the rules before you sign.
You moved out, cleaned the apartment, handed over the keys — and then waited. And waited. Six weeks later, you get a check for half your deposit with a vague note about “cleaning fees.” Sound about right?
You’re in good company. A 2024 Rent.com survey found that 26% of renters lost part of their security deposit, most often due to cleaning charges. And according to Zillow, 41% of renters report at least one move-out disagreement over costs for repairs, damages, or maintenance.
The frustrating part? Most of these disputes happen because renters don’t know their rights — and landlords count on that. Security deposit laws vary wildly from state to state, and knowing the rules in yours can be the difference between getting your money back and losing it.
How Security Deposits Work
A security deposit is money you pay upfront — usually before or at move-in — that your landlord holds as protection against unpaid rent or property damage beyond normal wear and tear. When you move out, the landlord is supposed to return the deposit, minus any legitimate deductions, within a timeframe set by state law.
Simple in theory. Messy in practice.
State-by-State Deposit Limits
Not every state caps how much a landlord can charge. Here’s how the major states break down:
States With Deposit Limits
| State | Maximum Deposit |
|---|---|
| California | 1 month’s rent (as of July 2024) |
| New York | 1 month’s rent |
| Illinois (Chicago) | 1.5 months’ rent |
| Pennsylvania | 2 months’ rent (year 1), 1 month’s rent (year 2+) |
| Massachusetts | 1 month’s rent |
| New Jersey | 1.5 months’ rent |
| Virginia | 2 months’ rent |
| Colorado | No statutory limit (local rules may apply) |
States With No Deposit Limit
Several states — including Florida, Texas, Ohio, Kentucky, Louisiana, Indiana, Minnesota, and Mississippi — have no statutory cap on security deposits. That means a landlord could technically charge three or four months’ rent upfront, though market competition usually keeps deposits reasonable.
If you’re in one of these states, your room rental agreement becomes even more important. Make sure the deposit amount, what it covers, and the return process are spelled out clearly. Tools like pen.sh can help you generate an agreement that covers all of this.
Return Timelines: When You Should Get Your Money Back
This is where landlords most often violate the law — either by returning deposits late or not providing the required itemized statement of deductions. Here are the timelines for the most common states:
| State | Return Deadline | Itemized Statement Required? |
|---|---|---|
| California | 21 days | Yes |
| New York | 14 days | Yes |
| Texas | 30 days | Yes |
| Florida | 15-30 days (varies by claim) | Yes |
| Illinois | 30-45 days | Yes |
| Pennsylvania | 30 days | Yes |
| Ohio | 30 days | Yes |
| Colorado | 30 days (or per lease, up to 60) | Yes |
Miss these deadlines, and landlords face real consequences. In Pennsylvania, failing to return the deposit within 30 days means the landlord forfeits the right to keep any portion and can be held liable for double the deposit amount plus attorney’s fees. Similar penalties exist in California, Illinois, and many other states.
What Landlords Can (and Can’t) Deduct
This is the core of most deposit disputes. Here’s how to think about it:
Legitimate Deductions (Landlord CAN Keep Money For)
- Large holes in walls (beyond nail holes)
- Burn marks on flooring, countertops, or walls
- Broken windows, mirrors, or fixtures
- Stains, tears, or pet damage to carpet
- Broken enamel in bathtubs, sinks, or toilets
- Unpaid rent or utility balances
- Unapproved paint jobs or modifications
- Pet urine damage to flooring or walls
Normal Wear and Tear (Landlord CANNOT Deduct For)
- Faded paint from sunlight
- Minor scuffs on walls
- Small nail holes from picture hanging
- Slightly worn carpet in walkways
- Loose door hinges from regular use
- Gradual discoloration of fixtures
- Minor scratches from everyday use
The rule of thumb: if a condition was caused by the tenant’s neglect, misuse, or abuse — not from normal living — it’s likely deductible. Everything else is the landlord’s responsibility.
2026 Law Changes Worth Knowing
California (AB 414)
Starting in 2026, California revised how landlords deliver security deposit refunds and move-out statements. Landlords and tenants may agree to electronic delivery, but without that agreement, first-class mail is required. Also, landlords must now provide documentation (photos, receipts, invoices) supporting any deductions.
Illinois (Chicago)
Chicago’s RLTO requires deposits be held in a separate, interest-bearing account. The 2025 interest rate is 0.01%. Landlords must provide a written receipt at collection time — failure to comply entitles the tenant to immediate return of the deposit.
Colorado
Colorado now requires a walk-through inspection (in person or via video) before lease termination. Landlords must identify damage in writing during the walk-through. If they skip it, they forfeit the right to withhold any portion of the deposit.
How to Protect Your Deposit
Whether you’re renting a full apartment or a single room, these steps dramatically improve your chances of getting your deposit back:
1. Document Everything at Move-In
Take timestamped photos and video of every room, wall, floor, fixture, and appliance. Email them to yourself and your landlord so there’s a dated record. Some states (like Colorado) now require landlords to offer a formal walk-through inspection.
2. Get It in Writing
Your room rental agreement should specify the exact deposit amount, what it covers, how deductions are calculated, and the return timeline. Don’t rely on verbal promises. If the agreement doesn’t cover deposits in detail, that’s a red flag.
For state-specific guidance on what your agreement should include, RoomAgreement.com’s security deposit guides break down the requirements.
3. Request a Move-Out Walk-Through
Even if your state doesn’t require it, ask for one. Walk through the property with your landlord, note any issues together, and get them in writing. This eliminates the “I found damage after you left” surprise.
4. Clean Thoroughly
“Cleaning fees” are the number one reason deposits get docked. Leave the place as clean as (or cleaner than) you found it. Take photos after cleaning as proof.
5. Send Your Forwarding Address in Writing
Landlords can’t return what they can’t deliver. Send your new address via email or certified mail before you move out. This also starts the legal clock on their return deadline.
6. Know the Penalties
If your landlord misses the deadline or makes bad-faith deductions, you may be entitled to:
- Double the deposit (California, Pennsylvania, Colorado, and others)
- Triple damages (some jurisdictions)
- Attorney’s fees (most states)
Small claims court is designed for exactly these cases. Filing fees are typically $30-$75, no lawyer needed.
Room Rentals: Special Considerations
If you’re renting a room (not a full apartment), the same security deposit laws generally apply — but there are wrinkles:
- Live-in landlords may have different rules in some states. Owner-occupied properties with fewer than a certain number of units are sometimes exempt from specific tenant protections.
- Shared spaces make it harder to assign damage. Your room agreement should specify which areas you’re responsible for and document their condition at move-in.
- Subletting situations get complicated. If you’re paying a deposit to a primary tenant (not the property owner), that person may not be subject to the same landlord obligations. Get everything in writing.
What to Do If Your Deposit Isn’t Returned
- Send a demand letter. A polite but firm written request citing your state’s security deposit law and the deadline that was missed. This resolves many disputes on its own.
- File in small claims court. If the demand letter doesn’t work, small claims court is fast, affordable, and designed for exactly this. Bring your move-in photos, move-out photos, the agreement, and any communication with the landlord.
- Know your state’s penalties. Many states award double or triple damages for willful violations, which makes landlords much more motivated to settle.
Put It in Your Agreement
The best protection is prevention. Before you hand over a deposit, make sure your room rental agreement spells out:
- Exact deposit amount
- What the deposit covers (and what it doesn’t)
- Return timeline after move-out
- Required documentation for deductions
- How and where the deposit is held
- Move-in condition documentation process
Create your room rental agreement on pen.sh to make sure your deposit terms are clear, complete, and compliant with your state’s laws. It takes minutes and could save you thousands.
pen.sh is not a law firm. For complex legal situations, consult a licensed attorney in your state.