Home Legal Advice Safety Deposit Legal guidelines by State

Safety Deposit Legal guidelines by State

224
0

Accumulating a safety deposit is without doubt one of the greatest methods for landlords and property managers to make sure that tenants will take excellent care of a property and pay all of their lease. Relying on the place the rental unit is situated, there could also be state limitations on how a lot of a deposit could be requested, what sort of account the funds are stored in, and the way lengthy the deposit could be held after the tenant strikes out. Some state legal guidelines even require an itemized record of bills when deductions are made, and others have particular guidelines for pet-related fees. In all instances, it’s necessary to grasp your rights and responsibilities earlier than signing a Lease Agreement.

If you’re a landlord or a tenant, this state-by-state information to safety deposit legal guidelines gives extra particulars on the necessities and restrictions which will apply to you—however remember that native guidelines generally exist, as nicely. For a full image of the rules associated to your distinctive property, it’s best to talk to a lawyer.

Alabama

  • Quantity limits: 1 month’s lease (further deposit could also be required for pets, tenant alterations, or something that might enhance landlord’s legal responsibility)
  • Deadline for return: 60 days
  • Acceptable causes for deductions: Unpaid lease and damages past regular put on and tear
  • Upkeep of funds: (no statutory tips)

Alaska

  • Quantity limits: 2 months’ lease (excluding rents that exceed $2,000 monthly)
  • Deadline for return: 14 days with correct notification by tenant, and 30 days with out correct notification by tenant or if landlord intends to make deductions
  • Acceptable causes for deductions: Deterioration of the premises (and its contents, if relevant) apart from regular put on and tear or that ensuing from landlord’s failure to uphold their obligations
  • Upkeep of funds: Have to be deposited in a financial institution or escrow account, and landlord should present tenant with phrases and situations of deductions and refund

Arizona

  • Quantity limits: 1 1/2 months’ lease
  • Deadline for return: 14 days
  • Acceptable causes for deductions: Unpaid lease, harm to the unit (past regular put on and tear), or different bills pertaining to the tenant’s failure to adjust to the phrases of the rental settlement
  • Upkeep of funds: (no statutory tips)

Arkansas

  • Quantity limits: 2 months’ lease (solely applies to landlords who personal 6 or extra properties or who’ve another person handle or gather lease on their properties)
  • Deadline for return: 60 days (similar exemptions for quantity limits apply)
  • Acceptable causes for deductions: Harm past regular put on and tear, cleansing prices, unpaid lease, late charges
  • Upkeep of funds: (no statutory tips)

California

  • Quantity limits: 2 months’ lease (Three months’ lease if furnished)
  • Deadline for return: 21 days
  • Acceptable causes for deductions: Harm past regular put on and tear, cleansing prices, unpaid lease, any future money owed which may be incurred as a consequence of tenant’s violation of lease phrases, different breaches of lease phrases 
  • Upkeep of funds: (no statutory tips)

Colorado

  • Quantity limits: (no statutory tips)
  • Deadline for return: 30 days if unspecified, and as much as 60 days if lease specifies
  • Acceptable causes for deductions: Harm past regular put on and tear, restore, cleansing prices, unpaid lease, utility payments, abandonment of the property 
  • Upkeep of funds: (no statutory tips)

Connecticut

  • Quantity limits: 2 months’ lease for tenants beneath 62 years of age, and 1 month’s lease for tenants 62 and older
  • Deadline for return: 30 days, or inside 15 days of receiving tenant’s forwarding deal with (whichever is later)
  • Acceptable causes for deductions: Harm past regular put on and tear, restore, cleansing prices, unpaid lease, utility payments, different prices related to a violation of lease phrases
  • Upkeep of funds: Have to be put into an escrow account with a Connecticut-based monetary establishment, and landlord should pay accrued curiosity to the tenant upon the primary anniversary of their tenancy so long as the tenant is updated on their lease (any further curiosity have to be paid out every successive anniversary and upon termination of the lease)

Delaware

  • Quantity limits: 1 month’s lease for leases of 1 12 months or extra, no restrict within the first 12 months for month-to-month leases (however 1 month’s lease after that), no restrict for furnished leases, and tenant might elect to supply a surety bond as an alternative of a deposit
  • Deadline for return: 20 days
  • Acceptable causes for deductions: Damages past regular put on and tear, unpaid lease or late charges, prices related to re-renting the unit upon breaking the lease early
  • Upkeep of funds: Have to be put into an escrow account with a federally insured, Delaware-based monetary establishment, and landlord should inform the tenant concerning the location of the funds 

District of Columbia

  • Quantity limits: 1 month’s lease
  • Deadline for return: 45 days
  • Acceptable causes for deductions: To cowl any prices related to violations of the lease settlement (resembling harm, cleansing, unpaid lease), however the causes for deductions have to be said within the lease settlement or a written receipt for the deposit
  • Upkeep of funds: Have to be deposited into an interest-bearing account with a monetary establishment based mostly within the District of Columbia (and this account have to be used solely for safety deposits), and landlord should pay the tenant accrued curiosity after 1 12 months

Florida

  • Quantity limits: (no statutory tips)
  • Deadline for return: 15 days, or 30 days if landlord intends to make deductions
  • Acceptable causes for deductions: Harm apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be deposited right into a separate checking account with a Florida-based monetary establishment (if it’s interest-bearing, accrued curiosity have to be paid to the tenant yearly and on the finish of the lease time period), or landlord might put up a surety bond for the quantity of the deposit

Georgia

  • Quantity limits: (no statutory tips)
  • Deadline for return: 1 month
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, cleansing prices, unpaid lease and late charges, unpaid utility payments, unpaid pet charges, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be put into an escrow account with a state- or federally insured, Georgia-based monetary establishment, and landlord should inform the tenant concerning the location of the funds, or landlord might put up a surety bond for the quantity of the deposit 

Hawaii

  • Quantity limits: 1 month’s lease
  • Deadline for return: 14 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, cleansing prices, unpaid lease and late charges, failure to return any keys furnished by the owner, prices pertaining to breaking the lease early, or different prices related to violations of lease phrases
  • Upkeep of funds: (no statutory tips)

Idaho

  • Quantity limits: (no statutory tips)
  • Deadline for return: 21 days, or as much as 30 days if each events agree
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, different prices related to violations of lease phrases
  • Upkeep of funds: (no statutory tips)

Illinois

  • Quantity limits: (no statutory tips)
  • Deadline for return: 30 days if landlord intends to make deductions, and 45 days if landlord intends to return it in full
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, cleansing prices, unpaid lease, unpaid utility payments, or different prices related to violations of lease phrases 
  • Upkeep of funds: Landlords with 25 or extra models in the identical constructing or complicated should pay curiosity on deposits held for greater than 6 months, payable to the tenant inside 30 days of the termination of a 1-year lease

Indiana

  • Quantity limits: (no statutory tips)
  • Deadline for return: 45 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utility payments, final month’s lease (if agreed to by each events), or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Iowa

  • Quantity limits: 2 month’s lease
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, prices related to gaining possession of unit that tenant has refused to give up, or different prices related to violations of lease phrases 
  • Upkeep of funds: Deposits have to be positioned in a devoted account with a monetary establishment (any accrued curiosity is the property of the owner)

Kansas

  • Quantity limits: 1 month’s lease if unfurnished, 1 1/2 months’ lease if furnished, and an extra 1/2 month’s lease for pets
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be held in a devoted account in a federally insured monetary establishment (any accrued curiosity is the property of the owner)

Kentucky

  • Quantity limits: No statutory limits, however earlier than gathering a deposit, the owner should present the tenant with an inventory of pre present damages and inform them of their proper of inspection
  • Deadline for return: 30 days, or as much as 60 days if tenant disputes deductions
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be held in a devoted account in a state- or federally insured monetary establishment (landlord should inform the tenant of the identify and deal with of the monetary establishment, and the account quantity)

Louisiana

  • Quantity limits: (no statutory tips)
  • Deadline for return: 1 month
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utility payments, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Maine

  • Quantity limits: 2 month’s lease
  • Deadline for return: 30 days if there’s a written/signed rental settlement, and 21 days for tenancy-at-will
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in a devoted checking account that’s protected from their collectors (within the occasion of a foreclosures or different such motion), and landlord should present tenant with the identify of the monetary establishment the place the deposit is situated and the account quantity if requested  

Maryland

  • Quantity limits: 2 months’ lease
  • Deadline for return: 45 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Deposits have to be positioned in a devoted account inside 30 days of their receipt (all deposits exceeding $50 have to be positioned in an account that bears a minimum of 3% annual curiosity, accruing each 6 months), held as a certificates of deposit at a monetary establishment, or landlord might put up a surety bond for the quantity of the deposit  

Massachusetts

  • Quantity limits: 1 month’s lease
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid water payments, or unpaid actual property taxes the tenant was required to pay (per the lease settlement)
  • Upkeep of funds: Have to be positioned in a devoted, interest-bearing account in a Massachusetts-based monetary establishment, and accrued curiosity have to be paid to the tenant yearly (both 5% or the financial institution’s rate of interest)

Michigan

  • Quantity limits: 1 1/2 months’ lease
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utility payments, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be positioned in an escrow account or held as a surety bond 

Minnesota

  • Quantity limits: (no statutory tips)
  • Deadline for return: Three weeks after tenant receives forwarding deal with
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be positioned in an interest-bearing (a minimum of 1%) account 

Mississippi

  • Quantity limits: (no statutory tips)
  • Deadline for return: 45 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, cleansing prices, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Missouri

  • Quantity limits: 2 months’ lease
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Montana

  • Quantity limits: (no statutory tips)
  • Deadline for return: 30 days, or 10 days if landlord doesn’t intend to make any deductions
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease and late charges, cost for the owner’s labor, unpaid utilities, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Nebraska

  • Quantity limits: 1 month’s lease, plus an extra quarter-month’s lease as a pet deposit
  • Deadline for return: 14 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or unpaid utilities
  • Upkeep of funds: (no statutory tips)

Nevada

  • Quantity limits: Three months’ lease for personal housing, and 1 month’s lease for public housing (tenant’s have the choice of taking out a surety bond as an alternative if each events agree)
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or cleansing prices
  • Upkeep of funds: (no statutory tips)

New Hampshire

  • Quantity limits: 1 month’s lease, except it’s a shared facility—resembling a boarding home—through which case there isn’t a restrict
  • Deadline for return: 30 days, or 20 days if no written settlement
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid taxes, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be held in a devoted account in a financial institution situated in New Hampshire, and should present details about the funds (financial institution, account quantity, rate of interest, and so forth.) upon tenant’s request

New Jersey

  • Quantity limits: 1 1/2 months’ lease, and landlord might enhance deposit if lease is elevated (however not more than 10% in a given 12 months)
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, or unpaid lease
  • Upkeep of funds: Have to be positioned in a cash market fund in a New Jersey-based funding firm, or in an interest-bearing checking account (if landlord owns 10 or extra models, the rate of interest have to be equal to or better than the rate of interest for the financial institution’s cash market accounts); tenant have to be paid curiosity on deposit yearly

New Mexico

  • Quantity limits: 1 month’s lease for leases lower than 1 12 months; for leases of 1 12 months or extra, both 1 month’s lease or any quantity better than that if it’s in an interest-bearing account and the tenant is paid the curiosity yearly 
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utilities, or different prices related to violations of lease phrases 
  • Upkeep of funds: If charging greater than 1 month’s lease as a deposit, it have to be put into an account that earns an rate of interest equal to or better than the passbook rate of interest on New Mexico financial savings accounts 

New York

  • Quantity limits: 1 month’s lease, except it’s topic to the Metropolis Lease and Rehabilitation Legislation or the Emergency Housing Lease Management Legislation
  • Deadline for return: 14 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in a devoted financial savings account based mostly in New York, and should earn the typical rate of interest within the space if landlord owns rental property with 6 or extra models (landlord might preserve an annual charge of as much as 1% of the deposit quantity, and the tenant is paid the remainder of any accrued curiosity yearly)

North Carolina

  • Quantity limits: 2 weeks’ lease for week-to-week, 1 1/2 months’ lease for month-to-month, 2 months’ lease for leases exceeding 2 months, and a “affordable, non-refundable” pet deposit (no particular restrict) 
  • Deadline for return: 30 days, or 60 days (whole) if a dispute over deductions extends past 30 days 
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utilities, breach of lease settlement, court docket prices, prices of eradicating tenant’s possessions after eviction, prices of re-renting the unit after a breach, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in a belief account in a North Carolina-based monetary establishment, or landlord might put up a bond for a similar quantity with an organization that has a North Carolina enterprise license

North Dakota

  • Quantity limits: 1 month’s lease, further pet deposit of as much as $2,500 or 2 months’ lease (whichever is bigger), and as much as 2 months’ lease for tenants with felony convictions
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or cleansing prices  
  • Upkeep of funds: Have to be stored in a devoted interest-bearing financial savings account (accrued curiosity is payable to the tenant after 9 months)

Ohio

  • Quantity limits: No restrict, however deposits better than 1 month’s lease should bear curiosity at or better than 5% if tenant stays on the property for six months or extra (accrued curiosity is payable to the tenant yearly)
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, or unpaid lease
  • Upkeep of funds: No necessities, except deposit is bigger than 1 month’s lease, through which case it have to be positioned into an interest-bearing account

Oklahoma

  • Quantity limits: (no statutory tips)
  • Deadline for return: 45 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in an escrow account in a federally insured monetary establishment based mostly in Oklahoma

Oregon

  • Quantity limits: No restrict, however landlord might enhance deposit quantity inside the first 12 months of the lease provided that each events conform to affordable will increase (resembling a brand new pet) within the lease settlement
  • Deadline for return: 31 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Pennsylvania

  • Quantity limits: 2 months’ lease for first 12 months, 1 month’s lease for every successive 12 months, and landlord might not enhance deposit quantity (even when lease has elevated) if tenant has rented a given property for five or extra years
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in an escrow account in a federally or state-regulated monetary establishment, or landlord might put up a assure bond for the quantity; landlord should inform tenant of the identify and deal with of the financial institution and the quantity of the deposit

Rhode Island

  • Quantity limits: 1 month’s lease
  • Deadline for return: 20 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

South Carolina

  • Quantity limits: No limits, however landlord might cost totally different deposits for various tenants provided that the models aren’t comparable and should notify all tenants of the discrepancy  
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, or unpaid lease
  • Upkeep of funds: (no statutory tips)

South Dakota

  • Quantity limits: 1 month’s lease, however the next quantity could also be required if tenant presents “particular situations” that “pose a hazard to the upkeep of the premises” (resembling a pet)
  • Deadline for return: 2 weeks, and an itemized accounting of deductions inside 45 days if requested
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, or unpaid lease
  • Upkeep of funds: (no statutory tips)

Tennessee

  • Quantity limits: (no statutory tips)
  • Deadline for return: (no statutory tips)
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in a devoted account in a monetary establishment regulated by the state or federal authorities 

Texas

  • Quantity limits: (no statutory tips)
  • Deadline for return: 30 days, however landlord just isn’t required to return deposit if lease settlement requires written discover of intention to vacate premises and fails to take action
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Utah

  • Quantity limits: No limits, and landlord might cost a nonrefundable deposit so long as it’s clearly said within the lease settlement or one other doc that’s signed by each events
  • Deadline for return: 30 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, cleansing prices, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Vermont

  • Quantity limits: (no statutory tips)
  • Deadline for return: 14 days, however 60 days if it’s a seasonal rental and never a main residence
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid utilities, unpaid lease, or price of eradicating objects after tenant strikes out
  • Upkeep of funds: (no statutory tips)

Virginia

  • Quantity limits: 2 months’ lease
  • Deadline for return: 45 days, however deductions have to be itemized inside 30 days (45 days if prices exceed deposit quantity)
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid utilities, or different prices related to violations of lease phrases 
  • Upkeep of funds: Landlord should preserve itemized data of all safety deposits

Washington

  • Quantity limits: (no statutory tips)
  • Deadline for return: 21 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, or different prices related to violations of lease phrases 
  • Upkeep of funds: Have to be stored in a devoted belief account, a financial savings account in a state- or federally regulated monetary establishment, or in an escrow account with an agent based mostly in Washington 

West Virginia

  • Quantity limits: (no statutory tips)
  • Deadline for return: 60 days, or inside 45 days of occupancy by new tenant (whichever is shorter), and 15 days could also be added if harm exceeds deposit quantity and requires skilled work   
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utilities, prices related to eradicating objects after tenant has vacated property, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Wisconsin

  • Quantity limits: (no statutory tips)
  • Deadline for return: 21 days
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, unpaid utilities, or different prices related to violations of phrases outlined in a separate Nonstandard Rental Provisions doc
  • Upkeep of funds: (no statutory tips)

Wyoming

  • Quantity limits: (no statutory tips)
  • Deadline for return: 30 days if utilized to unpaid lease, or inside 15 days of receiving tenant’s forwarding deal with if later than that, and an extra 30 days if deductions are made for harm  
  • Acceptable causes for deductions: Harm and repairs apart from regular put on and tear, unpaid lease, cleansing prices, or different prices related to violations of lease phrases 
  • Upkeep of funds: (no statutory tips)

Keep protected

Whether or not you’re a property proprietor or a renter, it is very important know your rights and tasks in the case of safety deposits. You probably have any questions, ask a lawyer or discover extra sources for landlords and tenants.

This text accommodates common authorized data and doesn’t include authorized recommendation. Rocket Lawyer just isn’t a legislation agency or an alternative to an lawyer or legislation agency. The legislation is complicated and modifications usually. For authorized recommendation, please ask a lawyer.




LEAVE A REPLY

Please enter your comment!
Please enter your name here