It varies by state. California caps security deposits at 1 month’s rent (as of July 2024), and New York limits them to 1 month’s rent for most residential units. Other states like Texas and Florida have no statutory cap—landlords can charge whatever the market allows. VeriRent’s security deposit calculator shows the exact limits for all 50 states so you never overcharge or undercollect.

Timelines range from 14 to 60 days after move-out depending on the state. California requires return within 21 days. New York gives landlords 14 days. Alabama allows up to 60 days. Missing the deadline can mean forfeiting the right to claim any deductions—and in some states, owing the tenant penalty damages on top of the full deposit.

Landlords can typically deduct for unpaid rent, damage beyond normal wear and tear, cleaning costs if the unit isn’t returned in reasonable condition, and early lease termination fees where allowed by state law. Normal wear and tear—scuffed floors, faded paint, minor nail holes—cannot be deducted. Most states require an itemized statement of deductions sent to the tenant within the return deadline.

In most states, the landlord forfeits the right to claim any deductions and must return the full deposit. Some states impose penalty damages: Texas allows 3× the wrongfully withheld amount plus $100, Colorado imposes 3× the deposit, and Georgia allows 3× the deposit as well. Tenants can sue in small claims court to recover the deposit plus any statutory penalties.

Only in some states and cities. Massachusetts, Maryland, and the District of Columbia require interest on deposits. Cities like Chicago and San Francisco have their own interest requirements regardless of state law. Where required, landlords must pay accrued interest annually or at move-out. Failure to pay required interest can void the landlord’s right to keep any portion of the deposit.