Ultimate Landlord Guide

Landlord Responsibilities (Nationwide Overview)

Federal requirements

As a landlord, you must comply with numerous federal laws that apply regardless of your property’s location. The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability at every stage of the rental process—from advertising and tenant screening to lease terms and eviction. Violations can result in substantial fines and lawsuits, making it critical to establish consistent, objective screening criteria and treat all applicants equally. Beyond anti-discrimination laws, federal lead-based paint disclosure requirements mandate that landlords of pre-1978 housing provide specific disclosure forms, educational pamphlets, and allow inspection opportunities before lease signing. Additional federal requirements may include compliance with the Americans with Disabilities Act for certain properties, adherence to the Service Members Civil Relief Act for military tenants, and following Federal Trade Commission guidelines when conducting background checks under the Fair Credit Reporting Act.

Health & safety obligations

Landlords bear fundamental responsibility for maintaining rental properties in safe, habitable condition throughout the tenancy. This includes ensuring basic utilities function properly, maintaining structural integrity, providing adequate heating and weatherproofing, addressing water leaks and moisture issues promptly, and keeping common areas secure and well-lit. You must install and maintain working smoke detectors and, in many jurisdictions, carbon monoxide detectors in appropriate locations. Rental units must meet local building codes and health standards, with properly functioning plumbing, electrical systems, and sanitation facilities. When tenants report health or safety hazards—from broken locks to gas leaks to pest infestations—landlords typically have specific timeframes within which repairs must be completed, with shorter windows for emergency situations. Failure to maintain habitable conditions can result in tenant withholding of rent, repair-and-deduct actions, constructive eviction claims, or municipal code violations with associated fines.

Notice requirements 

Proper notice is the foundation of lawful landlord-tenant communication and a prerequisite for most legal actions. Notice requirements vary significantly by state and by the type of action you’re taking, but common scenarios include providing advance notice before entering a tenant’s unit for inspections or repairs (typically 24-48 hours), giving written notice before increasing rent or modifying lease terms, and serving legally compliant notices before initiating eviction proceedings. Month-to-month tenancies generally require 30 to 60 days’ notice for termination without cause, while fixed-term leases may require 30 to 90 days’ notice of non-renewal depending on your jurisdiction. Payment default notices, lease violation notices, and eviction notices must follow strict formatting, delivery method, and timeline requirements that vary by state. Using incorrect notice periods or improper service methods can invalidate your notice entirely and delay legal proceedings by weeks or months while you start the process over.

Eviction standards 

Eviction is a legal process that allows landlords to regain possession of their property when tenants violate lease terms or fail to vacate after proper notice. While specific procedures vary dramatically by jurisdiction, evictions generally follow a similar pattern: the landlord serves appropriate written notice giving the tenant an opportunity to cure the violation or vacate, files a court action if the tenant doesn’t comply, attends a hearing where both parties present evidence, and obtains a judgment and writ of possession if successful. Common grounds for eviction include nonpayment of rent, lease violations, property damage, illegal activity, or expiration of the lease term without renewal. However, landlords must never resort to “self-help” eviction tactics like changing locks, removing belongings, shutting off utilities, or physically removing tenants—these actions are illegal in all states and expose you to substantial liability. The eviction process timeline can range from three weeks in landlord-friendly states to six months or longer in tenant-protective jurisdictions, and you may need to factor in additional time for appeals or emergency stays.

Getting Started as a Landlord

Choosing the right property

Your success as a landlord begins with selecting the right investment property. Consider location factors like employment opportunities, school districts, crime rates, and proximity to amenities that attract quality tenants. Analyze local rental market conditions including average rents, vacancy rates, and tenant demand to ensure positive cash flow potential. Property type matters significantly—single-family homes often attract longer-term tenants and appreciate well, while multi-family units provide diversification and economies of scale for maintenance and management. Evaluate the property’s condition honestly, accounting for immediate repairs and anticipated capital improvements in your financial projections. Consider whether the property fits your management style: are you prepared for the hands-on involvement required by a fixer-upper, or does a newer, low-maintenance property better match your available time and skills? 

Use our Simplified Property Management for FREE to evaluate potential investments systematically, comparing multiple properties against your financial goals and management capacity

Beyond the physical property, research local landlord-tenant laws thoroughly before purchasing. Some jurisdictions impose strict rent control limits, mandatory lease renewal requirements, or tenant-friendly eviction procedures that can dramatically impact your ability to manage the property profitably. Understand local occupancy standards, required disclosures, and inspection requirements. Calculate all costs accurately, including mortgage payments, property taxes, insurance, maintenance reserves, property management fees if applicable, and vacancy allowances. Many new landlords underestimate expenses and overestimate rental income, leading to negative cash flow and financial stress.

Review our Landlord-Tenant law guides to understand the regulatory environment in your target market

Rental strategies (long-term vs. mid-term vs. short-term)

Long-term rentals, typically defined as lease terms of one year or longer, offer stability and predictability with lower turnover costs, reduced marketing needs, and consistent monthly income. These traditional rentals work well for residential properties in established neighborhoods and generally face fewer regulatory restrictions than short-term options. Long-term tenants handle their own utilities, furnish their own space, and maintain day-to-day property upkeep, reducing your operational involvement. However, long-term leases also mean locked-in rental rates that can’t be adjusted quickly when market conditions change, and problem tenants may require lengthy eviction processes before you can regain possession. 

Our Residential Lease Agreement Template includes all essential provisions for long-term tenancies, while our state eviction procedure guides help you understand the timeline and process should tenant problems arise.

Mid-term rentals, ranging from one to twelve months, have gained popularity for housing traveling professionals, relocating families, and corporate assignments. These furnished rentals command premium rates compared to traditional long-term leases while avoiding the intensive management and regulatory challenges of short-term vacation rentals. Mid-term strategies work particularly well near hospitals, universities, corporate campuses, and military bases where temporary housing demand exists year-round. 

Consider our Month-to-Month Lease Template designed specifically for mid-term rental arrangements.

Short-term rentals through platforms like Airbnb and VRBO can generate significantly higher revenue in tourist destinations or business travel markets, but require substantially more management time, face increasing regulatory restrictions in many cities, and involve higher operational costs for cleaning, restocking, and guest communication. Evaluate which strategy aligns with your property’s location, your available time, local regulations, and your risk tolerance before committing to a rental approach.

Our Short-Term Rental Agreement Template covers short-term bookings, while our prorated rent calculator  helps you determine optimal pricing for any rental strategy you choose.

Insurance Types 

Standard homeowners insurance doesn’t provide adequate coverage for rental properties, making specialized landlord insurance essential for protecting your investment. Landlord policies, also called dwelling fire policies, cover property damage from covered perils, loss of rental income during repairs, and liability protection when tenants or guests are injured on your property. These policies typically offer replacement cost or actual cash value coverage for the dwelling, other structures, and landlord-owned appliances and furnishings. Unlike homeowner policies, landlord insurance doesn’t cover tenants’ personal belongings—they need their own renters insurance for that protection.

Download our Renters Insurance Requirement Addendum to include mandatory or recommended renters insurance provisions in your lease agreements.

Consider umbrella liability insurance once your net worth or rental portfolio reaches a level where the standard $1-2 million liability limits on landlord policies seem insufficient. Umbrella policies provide additional liability coverage that kicks in after your underlying policy limits are exhausted, protecting your personal assets in catastrophic claim situations. Many experienced landlords also establish limited liability companies (LLCs) to hold rental properties, creating legal separation between personal assets and investment property liabilities. While LLC structures offer liability protection and potential tax benefits, they also involve formation costs, annual fees, and ongoing compliance requirements. Consult with insurance professionals and attorneys in your state to determine the right combination of coverage and legal structure for your specific situation and risk exposure. This overview provides general information only and shouldn’t substitute for professional legal or financial advice tailored to your circumstances.

Setting up banking + accounting

Successful landlords maintain strict separation between personal and rental property finances from day one. Open dedicated business checking and savings accounts exclusively for rental income and expenses, making tax preparation, bookkeeping, and financial analysis far simpler. Deposit all rent payments directly into your rental account and pay all property-related expenses from this account, creating a clear financial trail that substantiates tax deductions and simplifies audits. Consider establishing a separate savings account as a reserve fund for unexpected repairs, vacancy periods, and capital improvements—many experts recommend maintaining reserves equal to six months of rental income or at least $1,000 per door.

Download our Rent Receipt Template to document every payment from day one, and use our Security Deposit Receipt Template to properly record and disclose all deposits collected.

Implement a systematic accounting approach from your first rental transaction. Whether you use property management software, accounting applications like QuickBooks, or detailed spreadsheets, consistently track all income sources (rent, late fees, parking fees, pet rent) and categorize expenses properly (repairs, maintenance, property management, insurance, taxes, utilities, advertising, legal fees, and professional services). Our property income and expense tracker, rent payment ledger, and monthly owner’s statement template provide comprehensive systems for organizing your financial records from your first rental transaction.

 Retain all receipts, invoices, and documentation for at least seven years to support tax deductions if questioned. Distinguish between repairs that are immediately deductible expenses and capital improvements that must be depreciated over time. Review our landlord tax deductions guide to understand which expenses qualify for immediate deduction versus depreciation, and download our annual tax preparation checklist to organize documentation throughout the year.

Consider working with a CPA who specializes in rental property taxation, especially as your portfolio grows, to ensure you’re maximizing available deductions while maintaining compliance with IRS regulations.

Essential Resources for New Landlords

Starting your landlord journey with the right systems and documentation sets you up for long-term success. 

• Financial templates: Rent receipts, payment ledgers, expense trackers, and owner’s statements
• Property setup tools: Inspection checklists, maintenance schedules, and property information sheets
• Tenant management forms: Applications, screening checklists, and move-in documentation
• Legal compliance guides: State-specific landlord-tenant laws and required disclosures

Marketing Your Rental Property

How to write a listing

An effective rental listing balances comprehensive property information with engaging marketing copy that attracts qualified tenants while filtering out poor fits. Start with a clear, attention-grabbing headline that highlights your property’s best features—location, updated amenities, or exceptional value. In the description, lead with the most compelling selling points: modern kitchens, recent renovations, in-unit laundry, parking availability, pet-friendly policies, or proximity to public transportation and employers. Be specific rather than vague: instead of “spacious kitchen,” describe “chef’s kitchen with granite countertops, stainless steel appliances, and breakfast bar seating.”

Use our Rental Listing Template  to ensure you include all essential property details while maintaining compelling marketing language that attracts quality tenants.

Provide all essential information tenants need to self-qualify: exact number of bedrooms and bathrooms, square footage if available, monthly rent amount, security deposit, utility responsibilities, lease term, move-in date, pet policies with associated fees, parking details, and application requirements. Include neighborhood information highlighting nearby schools, shopping, restaurants, parks, and transportation options. Be transparent about any limitations or quirks—disclosing these upfront saves everyone time by preventing applications from tenants whose needs don’t match your property.  Download our Fair Housing compliant listing guide and rental listing checklist to ensure your advertisements include all necessary information while avoiding prohibited language that could trigger discrimination claims.

Always ensure your listing language complies with Fair Housing laws by avoiding any references to protected classes or discriminatory preferences. Never indicate preferences related to race, religion, family status, disability, or other protected characteristics, and use objective property descriptions and qualification criteria only.

Our rental property description templates provide pre-written, legally compliant language highlighting common property features without Fair Housing violations.

Photography guidelines

Professional-quality photos can double your response rate and reduce vacancy time significantly. Before photographing, ensure the property is completely clean, decluttered, and staged attractively—this means removing personal items, organizing closets, cleaning windows, and making beds with fresh linens. Take photos during daytime with natural light streaming in, opening curtains and blinds to brighten rooms. Turn on all lights to supplement natural lighting and eliminate dark corners. Shoot from room corners using a wide-angle lens to capture as much space as possible, and take photos at waist height for the most flattering perspective.

Download our Property Photography Checklist to ensure you capture every essential shot and angle that maximizes your listing’s appeal.

Capture 20-30 high-quality images covering every room from multiple angles, including overview shots and detail photos of attractive features like updated fixtures, hardwood floors, or custom tile work. Don’t forget exterior photos showing curb appeal, landscaping, parking areas, and any amenities like pools, patios, or storage sheds. Consider including neighborhood shots of nearby parks, shopping, or attractive streetscapes. Avoid using flash photography which creates harsh shadows and an amateur appearance. If photography isn’t your strength, hiring a professional real estate photographer for $100-200 can dramatically improve your listing’s performance and attract higher-quality tenants willing to pay premium rents.

Once you have professional photos, use our Rental Listing Optimization Guide to learn which images to feature first and how to sequence photos for maximum impact on listing platforms.

Best listing websites

Maximize your property’s exposure by listing on multiple high-traffic rental platforms simultaneously. Zillow Rentals, Apartments.com, and Rent.com attract millions of monthly searches and should be your primary listing destinations. Facebook Marketplace has become increasingly important for rental listings, particularly for single-family homes and individual units where landlords interact directly with tenants. 

Use our Multi-Platform Listing Distribution Guide to efficiently post your property across all major rental sites simultaneously, maximizing exposure while minimizing duplicate effort.

Consider posting on specialized platforms that match your property type: Furnished Finder for mid-term rentals to traveling professionals, Corporate Housing by Owner for business travelers, and local university housing boards for student-targeted properties. Many metropolitan areas have dominant local listing sites that renters in your market check first—research your specific area to identify these regional players. Don’t overlook the value of old-fashioned yard signs, particularly for properties in high-traffic locations where potential tenants actively drive neighborhoods looking for vacancies. Each listing should link back to your property management website where you can capture leads, provide additional information, and enable online applications, creating a marketing funnel that converts prospects into qualified tenants efficiently.

Our Rental Property Landing Page Template helps you create a dedicated page for each property with photo galleries, detailed information, and integrated Online Rental Application Forms that streamline the inquiry-to-application process.

Screening funnels

An effective screening funnel qualifies prospects systematically while respecting Fair Housing requirements and making efficient use of your time. Begin with comprehensive listings that clearly communicate property features, rental terms, and basic qualification standards—this initial filter discourages unqualified applicants from contacting you. When prospects inquire, provide a pre-screening questionnaire covering income level, employment status, rental history, and any potential red flags before scheduling property showings. Download our Tenant pre-qualification questionnaire to standardize your initial screening conversations and quickly identify applicants worth scheduling for property tours. 

This saves time by preventing tours with applicants who don’t meet your basic standards. Use our Property Showing Checklist to prepare for tours professionally and collect essential information from every prospect who visits your rental.

During or immediately after property tours, provide rental applications to interested, qualified prospects using our Comprehensive Rental Application Template that collects all information needed for thorough background and credit screening. Make the application process straightforward with clear instructions, required documentation lists, and transparent timelines for decisions. Collect application fees that cover your actual screening costs for credit reports and background checks. Process applications in the order received using consistent, objective criteria applied equally to all applicants. Our Tenant Screening Checklist and Rental Application Evaluation Scorecard  ensure

you apply the same standards to every applicant, protecting you from Fair Housing discrimination claims. Promptly communicate with all applicants about their status, providing adverse action notices to rejected applicants as required by the Fair Credit Reporting Act. Use our Tenant approval letter template, Tenant rejection letter template, and Adverse action notice template to communicate professionally with all applicants while maintaining FCRA compliance. 

This systematic approach protects you legally while efficiently identifying the best tenant for your property. Access our Complete tenant screening guide for detailed instructions on evaluating credit reports, conducting background checks, verifying employment and income, and making final selection decisions that comply with all federal and state fair housing requirements.

Tenant Screening & Fair Housing Compliance

Credit checks

Credit reports provide critical insight into applicants’ financial responsibility and ability to pay rent consistently. Most landlords require minimum credit scores between 580 and 650, though standards vary by market competitiveness and property quality. More important than the score itself is understanding the credit report’s contents: look for patterns of on-time payments, particularly for rent and utilities in previous residences. Red flags include recent evictions, collections from previous landlords, high debt-to-income ratios that leave little room for rent payments, and multiple accounts in collections or charged off status.

Use our Credit Report Evaluation Guide to understand what each section of a credit report means and how to identify legitimate concerns versus acceptable credit histories.

Obtain credit reports through tenant screening services that comply with Fair Credit Reporting Act requirements. Our FCRA Compliance Checklist ensures you follow all federal requirements when conducting background and credit checks, avoiding costly violations. You must get written authorization from applicants before pulling credit reports, charge no more than actual costs, and provide adverse action notices if you deny an application based partially or entirely on credit information. 

Download our Tenant Screening Authorization Form and Adverse Action Notice Template to maintain FCRA compliance throughout your screening process.

Don’t dismiss applicants solely on credit scores without considering context—medical collections, identity theft, or financial hardships from job loss may not predict future rent payment behavior. Some excellent tenants have lower credit scores due to limited credit history, student loans, or past financial challenges they’ve since overcome. Consider the complete picture including income stability, rental references, and explanations for negative credit items when making decisions. Our Tenant Credit Evaluation Scorecard helps you weigh multiple factors consistently, creating defensible screening decisions that consider context beyond raw credit scores.

Criminal background guidance

Criminal background checks help landlords assess safety risks, but you must conduct them carefully within Fair Housing boundaries. The Department of Housing and Urban Development guidance states that blanket policies rejecting all applicants with any criminal history may violate Fair Housing Act because they disproportionately impact protected classes. Instead, evaluate criminal history considering the nature and severity of the offense, how long ago it occurred, and its relevance to tenancy and neighbor safety.

Use our Criminal Background Screening Guide and Individualized Assessment Worksheet  to document your evaluation process and demonstrate HUD-compliant decision-making if challenged.

Focus criminal screening on serious offenses like violent crimes, sexual offenses, significant property crimes, or drug manufacturing—behaviors that pose direct threats to other residents’ safety. Many landlords use lookback periods of five to seven years, recognizing that older convictions have less predictive value for current behavior. Consider evidence of rehabilitation including completed sentences, education, stable employment, and positive rental references since the conviction. 

Our Criminal History Evaluation Form provides a structured framework for assessing rehabilitation evidence and documenting individualized screening decisions.

Document your reasoning for any denial based on criminal history, demonstrating you conducted individualized assessment rather than applying blanket bans. Be aware that some states and localities have “ban the box” laws limiting when and how you can inquire about criminal history, and federal public housing assistance recipients receive additional protections regarding criminal screening.

Check our State-specific Criminal Screening Requirements to understand limitations and requirements in your jurisdiction before requesting criminal background information.

Avoiding discrimination violations

Fair Housing law prohibits discrimination based on seven protected classes: race, color, national origin, religion, sex, familial status, and disability. Many states and cities add additional protected classes such as source of income, sexual orientation, gender identity, marital status, age, or military status. Violations can occur at any rental stage—advertising language suggesting preferences for particular groups, asking prohibited questions during screening, applying different qualification standards to different applicants, or providing different lease terms based on protected characteristics.

Download our Fair Housing compliance checklist  to audit your rental process from advertising through lease signing, identifying potential discrimination risks before they become violations.

Protect yourself by establishing objective, written screening criteria before marketing your property and applying them consistently to every applicant. 

Never ask questions about family planning, marital status, religious practices, national origin, or disabilities during the application process. Avoid subjective standards like “good neighborhood fit” or “professional tenants only” which can mask discriminatory intent. Make reasonable accommodations for disabled applicants including allowing service or assistance animals despite no-pet policies, permitting minor modifications at tenant expense, and adjusting application procedures when disabilities affect the process. Document all application decisions with legitimate business reasons, and maintain all applications and supporting documentation for at least three years. If accused of discrimination, your consistent application of objective criteria provides your strongest defense.

Access our Fair Housing defense documentation guide  to learn what records prove non-discriminatory practices and how to organize evidence if discrimination claims arise.

Income and employment verification

Income verification confirms applicants can afford your rent and other housing expenses without financial strain. Most landlords require gross monthly income at least 2.5 to 3 times monthly rent—for example, a $1,500 apartment requires $3,750 to $4,500 monthly income or $45,000 to $54,000 annually. Request recent pay stubs covering at least one month, previous year’s tax returns for self-employed applicants, offer letters for applicants starting new jobs, or benefits statements for those on fixed incomes like Social Security or disability.

Use our Income Verification Checklist and Employment Verification Form to systematically confirm income claims and document your verification efforts.

Contact employers directly to verify employment, position, income, and employment dates, getting permission from applicants first. Our Employer Verification Phone Script and Employment Verification Letter Template streamline the confirmation process professionally.

Watch for red flags like income that seems barely sufficient when combined with known debts, employment gaps without reasonable explanation, or frequent job changes suggesting instability. For self-employed applicants, tax returns provide the most reliable income documentation—bank statements alone can be misleading and are easier to fabricate. 

Download our Self-employed Income Analysis Worksheet to evaluate tax returns correctly, calculating actual income available for rent after business expenses and deductions.

Accept alternative income sources like child support, alimony, investment income, or public assistance equally to employment income, as Fair Housing laws prohibit discrimination based on lawful income source in many jurisdictions. Some applicants may have co-signers or guarantors to meet income requirements—verify their income and creditworthiness using the same standards applied to primary applicants.

Use our Guarantor/co-signer Agreement Template and Guarantor Application form to properly document these arrangements and ensure co-signers understand their legal obligations.

Security Deposits

What security deposits can legally cover

Security deposits protect landlords against financial losses when tenants fail to fulfill lease obligations. In most jurisdictions, you can deduct from security deposits for unpaid rent, costs to repair damage beyond normal wear and tear, cleaning necessary to return the unit to move-in condition, and in some states, other financial obligations specified in the lease such as unpaid utilities or late fees. Understanding the distinction between normal wear and tear versus actual damage is critical—normal wear includes faded paint, worn carpet in high-traffic areas, minor scuffs on walls, and hardware that wears out from regular use. These are considered landlord responsibilities that cannot be charged to security deposits.

Damage that exceeds normal wear includes holes in walls beyond small nail holes, carpet stains or burns, broken fixtures or appliances, damaged doors or cabinets, broken windows, missing items like blinds or light fixtures, and excessive filth requiring professional cleaning beyond routine move-out cleaning. Document property condition meticulously at move-in with photos, videos, and detailed checklists signed by tenants. 

Document property condition meticulously at move-in with photos, videos, and our Comprehensive Move-in Inspection Checklist signed by tenants to establish baseline property condition.

At move-out, conduct another thorough inspection using our Move-out Inspection Form to document any damage, compare it to move-in condition captured on your Move-In Checklist, and photograph everything systematically.

Provide itemized deduction statements to tenants within required timeframes using our Security Deposit Itemized Deduction Template that includes space for receipts or estimates for repairs, contractor invoices, or actual costs incurred. Never use security deposits for general property upgrades, improvements you’d make anyway between tenants, or damage that existed before the tenancy began. 

Issue our Security Deposit Receipt Template immediately upon collecting deposits, clearly documenting the amount received, how it will be held, and the conditions for return as required by state law.”

State-by-state maximums

Security deposit limits vary dramatically by state, with some imposing no restrictions while others cap deposits at one or two months’ rent. States like California, Maryland, and Massachusetts generally limit deposits to no more than one or two months’ rent, though limits may increase for furnished units or when tenants have pets. Other states like New York regulate deposits differently depending on building size or rent-stabilized status. Some jurisdictions allow additional pet deposits or fees but cap total deposits including all fees and advance rent payments.

Check your specific state’s statutes carefully because “security deposit” definitions vary—some states include last month’s rent, non-refundable fees, or pet deposits in their maximum limits, while others treat these as separate charges. A few states prohibit non-refundable fees entirely, requiring all money collected to be refundable security deposits unless used for legitimate deductions. Violating your state’s maximum deposit limit can result in penalties, mandatory refunds of excess amounts, and awards of attorney’s fees to tenants who sue. Stay informed about any legislative changes to deposit laws in your state, as these regulations occasionally change and you may need to adjust your practices for new leases.

Our state landlord-tenant law hubs are updated regularly to reflect legislative changes affecting security deposits and other rental requirements.”

Security Deposit Maximums by State

STATE	SECURITY DEPOSIT MAXIMUM	STATUTE
Alabama	1x monthly rent	Ala. Code § 35-9A-201(a)
Alaska	2x monthly rent. If rent exceeds $2,000/month it can be more.	Alaska Stat. § 34.03.070(a)
Arizona	1.5x monthly rent	Ariz. Rev. Stat. § 33-1321(a)
Arkansas	2x monthly rent	Ark. Code § 18-16-304
California	1x monthly rent. If agreement term is 6+ months an advance payment of 6x monthly rate minimum is allowed. Add’tnl amounts are allowed based on agreement amongst parties of upgrades, furnishings, etc.	Cal. Civ. Code § 1950.5(c)
Colorado	2x monthly rent	Colo. Rev. Stat. § 38-12-102.5
Connecticut	2x monthly rent if tenant is under 62 years of age. If tenant is 62+ years old 1x month rent is the maximum.	Conn. Gen. Stat. § 47a-21(b)
Delaware	1x monthly rent where the tenancy is a minimum of 1 year. If the unit is furnished, then the aforementioned does not apply.	25 Del. Code § 5514(a)
Florida	No maximum	Fla. Stat. § 83.49
Georgia	2x monthly rent maximum	Ga. Code § 44-7-30.1
Hawaii	1x monthly rent maximum + any amount agreed to by both parties for damages caused by pets.	HRS § 521-44(b)
Idaho	No statute
Illinois	No state-wide statute.
Indiana	No statute. Usually it’s 1x monthly rent
Iowa	2x monthly rent	Iowa Code § 562A.12
Kansas	1x monthly rent	K.S.A. § 58-2550
Kentucky	No maximum. Usually it’s 1-2x monthly rent.
Louisiana	No maximum. 1-2x monthly rent is common in other states.
Maine	2x monthly rent	14 M.R.S. § 6032
Maryland	1x monthly rent. Certain circumstances allow 2x monthly rent, like if the tenant qualifies for utility assistance through the Dept of Human Services.	Md. Code, Real Prop. § 8-203(b)(1)(2)
Massachusetts	1x monthly rent	MGL c.186 § 15B
Michigan	1.5x monthly rent	MCL § 554.602
Minnesota	No statute. Common practice is 1-1.5x monthly rent
Mississippi	No statute. Common practice is anywhere between 1-2x monthly rent.
Missouri	2x monthly rent	Mo. Rev. Stat. § 535.300
Montana	No maximum. Common practice is 1-2x monthly rent
Nebraska	1x monthly rent	Neb. Rev. Stat. § 76-1416
Nevada	3x monthly rent	NRS § 118A.242
New Hampshire	1x monthly rent	RSA § 540-A:6
New Jersey	Landlords cannot charge more than 1.5X one month’s rent for a security deposit. The amount collected annually as additional security cannot be greater than 10 percent of the current security deposit.	N.J.S.A. § 46:8-21.2
New Mexico	Landlords or owners are permitted to demand a reasonable deposit from the tenant to recover damages, if any, caused to the premises by the tenant during his term of residency.	NMSA § 47-8-18
New York	No deposit should exceed one month’s rent.	NY Gen. Oblig. Law § 7-108
North Carolina	Security deposits can not exceed an amount equal to two weeks’ rent if a tenancy is week to week, one and one-half months’ rent if a tenancy is month-to-month, and two months’ rent for lease terms greater than month-to-month.	N.C.G.S. § 42-51
North Dakota	Landlords are permitted to require up to one (1) months’ rent as a security deposit unless certain tenant circumstances apply.	N.D.C.C. § 47-16-07.1
Ohio	No statute.
Oklahoma	No statute.
Oregon	No limit	ORS § 90.300
Pennsylvania	Landlords may require a sum not in excess of two months’ rent to be deposited in escrow for the payment of damages to the leasehold premises and/or default in rent thereof during the first year of any lease. See statute for second and subsequent years.	68 P.S. § 250.511a
Rhode Island	Cannot exceed one (1) month’s rent	R.I. Gen. Laws § 34-18-19
South Carolina	No statute.
South Dakota	Any deposit of money intended to ensure the performance of a residential rental agreement, or any portion of it, is considered a security deposit. A landlord (lessor) may not require or accept a security deposit, under any name, that exceeds the value of one month’s rent. A higher deposit may be agreed upon if special conditions exist that could jeopardize the maintenance of the premises.	S.D. Codified Laws § 43-32-6.1
Tennessee	No designated maximum security deposit.	Tenn. Code § 66-28-301
Texas	No statute.
Utah	Utah does not limit the amount a landlord can charge a renter for a security deposit.	Utah Code § 57-17-3
Vermont	No statute.
Virginia	No interest is required. Prior to 2015, it was four percentage points annually below the FDR (Federal Discount Rate)	Va. Code § 55.1-1226
Washington	No statute.
West Virginia	Landlords are allowed to collect a security deposit equal to a maximum of two months’ rent at the time of signing the lease agreement.	W. Va. Code § 37-6A-2
Wisconsin	There is no statutory cap on the amount a landlord may charge for a security deposit on residential leases. Landlords have the flexibility to set the security deposit amount at their discretion.	Wis. Admin. Code ATCP § ATCP 134.06
Wyoming	No statute

Interest requirements 

Some states mandate that landlords pay interest on security deposits, treating these funds as belonging to tenants rather than landlord assets available for general use. Requirements vary widely—some states like Connecticut and New York require interest regardless of deposit amount, while others like New Hampshire and Iowa only require interest if deposits exceed certain thresholds or are held for minimum time periods. Interest rates may be tied to state formulas, specific percentage requirements, or actual rates earned if deposits are held in interest-bearing accounts.

Security Deposit Interest

STATE	SECURITY DEPOSIT INTEREST	STATUTE
Alabama	No statute
Alaska	No statute
Arizona	No statute
Arkansas	No statute
California	No state-wide statute. However, certain city laws require landlords to pay interest on security deposits collected.
Colorado	No statute
Connecticut	Any accrued interest must be paid to tenant at termination of tenancy. Interest rate must be average rate paid by insured commercial banks.	Conn. Gen. Stat. § 47a-21(i)
Delaware	No statute
Florida	Security deposit can be placed in a non-interest bearing account. If placed in interest-bearing account, the tenant receives 75% of the avg interest rate.	Fla. Stat. § 83.49(1)(b)
Georgia	No statute
Hawaii	Not required to be paid by landlord	Hawaii Residential Landlord-Tenant Code (Questions and Answers, Deposits) Pg. 29 1st Question
Idaho	No statute
Illinois	If a landlord owns 25 or more units in a single building or complex of buildings on a contiguous parcel they must pay interest to the lessee. Local ordinances may differ.	765 ILCS 715/1
Indiana	No statute
Iowa	Interest earned from a security deposit account is the landlord’s property for the 5 years of tenancy.	Iowa Code § 562A.12(2)
Kansas	No statute
Kentucky	No statute
Louisiana	No statute
Maine	No statute
Maryland	Due to the tenant within 45 days of termination of tenancy.	Md. Code, Real Prop. § 8-203(e)
Massachusetts	5% or any interest amount paid by the bank must be paid to the tenant for leases that are a minimum of 1 year. The interest must be paid each year of tenancy.	Mass. Gen. Laws ch. 186 § 15B
Michigan	No statute
Minnesota	1% annually computed from the first day of the month following the deposit payment until it’s returned.	Minn. Stat. § 504B.178(Subd.2.)
Mississippi	No statute
Missouri	Any interest earned is property of the landlord	Mo. Rev. Stat. § 535.300(2)
Montana	No statute
Nebraska	No statute
Nevada	No statute
New Hampshire	If deposit is held for a minimum of 1 year, interest must be paid to the tenant at the rate set by the bank or institution.	N.H. Rev. Stat. § 540-A:6(IV)
New Jersey	Interest on deposit or pre-paid rent is required. It remains the financial property of the tenant and shall be paid to the tenant in cash, or credited toward rent due, on the renewal or anniversary of tenant’s lease or, if notified in writing before the anniversary, on January 31st of the calendar year.	N.J. Stat. § 46:8-19
New Mexico	If the landlord demands or receives a deposit in an amount greater than one month’s rent, the landlord shall be required to pay to the resident annually an interest equal to the interest permitted to savings and loan associations in the state by the federal home loan bank board on such deposit.	N.M. Stat. § 47-8-18
New York	For rental properties containing six or more family dwelling units, the landlords receiving security deposits are required to deposit them in an interest bearing account in a banking organization within the state. The account shall earn interest at a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area.	N.Y. Gen. Oblig. Law § 7-103
North Carolina	No statute
North Dakota	The security deposit money must be deposited in a federally insured interest-bearing savings or checking account for the benefit of the tenant. The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, minus any withholdings due to tenant non-compliance of the rental agreement. Interest is not required for leases less than nine (9) months.	N.D. Cent. Code § 47-16-07.1
Ohio	Security deposits exceeding fifty dollars or one month’s rent, whichever is greater, will accrue interest on the excess at a rate of five percent (5%) per year, provided the tenant occupies the premises for six months or more. Interest will be calculated and paid annually by the landlord to the tenant.	Ohio Rev. Code § 5321.16
Oklahoma	Interest is not required to be paid stemming from the deposit.	Okla. Stat. tit. 41 § 115
Oregon	No statute
Pennsylvania	Landlords are entitled to receive as administrative expenses – sum equal to one per cent per annum upon the security deposit, which shall be in lieu of all other administrative and custodial expenses.	68 P.S. § 250.511(b)
Rhode Island	No statute
South Carolina	No statute
South Dakota	No statute
Tennessee	No statute
Texas	No statute
Utah	No statute
Vermont	There is no statewide statute specifying interest accrued by a security deposit, though towns and municipalities in Vermont are allowed to adopt ordinances authorizing the interest payments.	Vt. Stat. tit. 9 § 4461(g)
Virginia	No statute
Washington	The landlord is entitled to receipt of interest paid on trust account deposits, unless otherwise agreed to by both parties in writing.	Wash. Rev. Code § 59.18.270
West Virginia	No statute
Wisconsin	No statute
Wyoming	No statute

Landlords in states with interest requirements must typically provide annual interest statements to tenants, showing deposits held and interest accrued. Interest may need to be paid annually, offset against rent, or returned with the deposit at move-out, depending on state law. Some jurisdictions require deposits to be held in separate, specific account types—never commingled with operating funds or personal money. Failing to pay required interest can result in penalties, forfeiture of the right to retain any portion of the deposit for damages, and potential multiplication of damages in lawsuits. Even if your state doesn’t require interest payments, clearly disclosing whether interest will be paid and at what rate in the lease agreement prevents misunderstandings and demonstrates professionalism.

Deposit return timelines

States impose strict deadlines for returning security deposits after tenants vacate, typically ranging from 14 to 60 days depending on jurisdiction. These timelines usually begin when the tenant surrenders possession and returns keys, not when the lease term ends. Missing your state’s deadline can trigger significant penalties including forfeiture of all deductions, mandatory return of the full deposit, multiplication of damages by two or three times the deposit amount, and payment of the tenant’s attorney’s fees if they sue successfully.

Deadline for Returning Security Deposit

STATE	DEADLINE FOR RETURNING SECURITY DEPOSIT	STATUTE
Alabama	Within 60 days of the termination of tenancy.	Ala. Code § 35-9A-201(b)
Alaska	14 days after termination of tenancy if there are no deductions. 30 days if there are deductions.	Alaska Stat. § 34.03.070(g)
Arizona	Within 14 days of the termination of tenancy excluding weekends and legal holidays.	Ariz. Rev. Stat. § 33-1321(d)
Arkansas	Within 60 days of the termination of tenancy. Landlord must mail via first class to last known address with any payment.	Ark. Code § 18-16-305(a)(1)
California	21 days after tenant vacates property.	Cal. Civ. Code § 1950.5(g)
Colorado	1 Month. Not to exceed 60 days	Colo. Rev. Stat. § 38-12-103(1)
Connecticut	Within 21 days after termination of tenancy.	Conn. Gen. Stat. § 47a-21(d)
Delaware	Within 20 days of the lease terminating	25 Del. C. § 5514(e)
Florida	15 days if there are no deductions. If something is being deducted, landlord must notify tenant within 30 days of rental agreement termination.	Fla. Stat. § 83.49(3)
Georgia	30-days. If any deductions will be taken from the deposit, the landlord must provide written statement with reasons for retaining the amount.	O.C.G.A. § 44-7-34
Hawaii	Within 14 days after termination of tenancy.	Haw. Rev. Stat. § 521-44(c)
Idaho	21 days if no time frame is specified in the agreement. Can be up to 30.	Idaho Code § 6-321
Illinois	30 days	765 ILCS 710/1
Indiana	45 days after lease termination.	Ind. Code § 32-31-3-12
Iowa	30 days	Iowa Code § 562A.12(3)
Kansas	14 days but no longer than 30 days.	Kan. Stat. § 58-2550(b)
Kentucky	30 days with deductions. 60 days without deductions.	Ky. Rev. Stat. § 383.580
Louisiana	1 month	La. Stat. tit. 9 § 3251
Maine	30 days with a written lease agreement. 21 days for a tenancy at will.	14 M.R.S. § 6033(2)
Maryland	Within 45 days after termination of tenancy.	Md. Code, Real Prop. § 8-203(e)
Massachusetts	Within 30 days after termination of tenancy.	Mass. Gen. Laws ch. 186 § 15B(4)
Michigan	Within 30 days after termination of tenancy.	Mich. Comp. Laws § 554.610
Minnesota	3 weeks after termination of tenancy or within 5 days of when the tenant leaves arising from legal condemnation.	Minn. Stat. § 504B.178(Subd. 3.)(a)(1)(2)
Mississippi	Within 45 days of tenancy terminating.	Miss. Code § 89-8-21
Missouri	Within 30 days after termination of tenancy.	Mo. Rev. Stat. § 535.300(3)
Montana	30-days	Mont. Code § 70-25-202
Nebraska	Within 14 days after termination of tenancy.	Neb. Rev. Stat. § 76-1416
Nevada	Within 30 days after termination of tenancy.	Nev. Rev. Stat. § 118A.242
New Hampshire	Within 30 days after termination of tenancy.	N.H. Rev. Stat. § 540-A:7
New Jersey	Landlords are required to return security deposits plus any interest earned during the term within thirty (30) days of the lease termination. See statute for provisions relating to certain situations that may affect the return deadline.	N.J. Stat. § 46:8-21.1
New Mexico	Landlords are required to return security deposits to the tenant within thirty (30) days from the lease termination date, minus any withholdings.	N.M. Stat. § 47-8-18(C)
New York	Landlords must return security deposits to tenants no latger than 14 days after the lease termination and tenant move out.	N.Y. Gen. Oblig. Law § 7-108(1-a)(e)
North Carolina	Deposits must be returned within 30 days of lease termination, unless landlord requires additional time to access damages due to tenant non-compliance of lease. An interim notice of an additional 30-day notice must be provided to the tenant, not to exceed 60 days.	N.C. Gen. Stat. § 42-52
North Dakota	Landlords have 30 days to return the remaining security deposit (plus interest) within 30 days of the termination of the rental agreement.	N.D. Cent. Code § 47-16-07.1
Ohio	The security deposit, minus any deductions for tenant non-compliance must be returned to the tenant within thirty days after termination of the rental agreement and delivery of possession.	Ohio Rev. Code § 5321.16(B)
Oklahoma	Security deposit must be returned within 45 days from the lease termination date and move out. Tenants must request in writing within six (6) months of move-out that the deposit be returned, otherwise the deposit can be kept by the landlord.	41 O.S. § 115(B)
Oregon	Within 31 days after termination of tenancy.	Or. Rev. Stat. § 90.300(12)
Pennsylvania	The security deposit must be returned within 30 days of the termination of the lease or upon release and acceptance of the dwelling unit, whichever comes first.	68 P.S. § 250.512
Rhode Island	The landlord is required to deliver the itemized notice, along with the amount of the security deposit owed to the tenant, within twenty (20) days following the later of the termination of the tenancy, the delivery of possession of the dwelling unit, or the tenant providing the landlord with a forwarding address for the purpose of receiving the security deposit.	R.I. Gen. Laws § 34-18-19
South Carolina	Deposits must be returned within 30 days after the termination of the tenancy and the delivery of possession and demand from the tenant, whichever is later.	S.C. Code § 27-40-410
South Dakota	Every lessor will return the security deposit to the tenant, or furnish to the tenant, a written statement showing the specific reason for the withholding of the deposit or any portion thereof within two weeks after the termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions.	S.D. Codified Laws § 43-32-24
Tennessee	A landlord must return the security deposit within 30 days after the tenant vacated the premises.	Tenn. Code § 66-28-301
Texas	The landlord must refund a security deposit to the tenant on or before the 30th day following the date the tenant surrenders the premises.	Tex. Prop. Code § 92.103
Utah	The landlord must return the security deposit no later than 30 days after the day on which a renter vacates and returns possession of a rental property to the owner or the owner’s agent, The owner or the owner’s agent shall deliver the security deposit to the renter at the renter’s last known address.	Utah Code § 57-17-3
Vermont	Landlords are required to return the tenant’s security deposit, along with an itemized statement detailing any deductions, within 14 days after the tenant vacates the rental property. For tenants renting a property on a seasonal basis, the security deposit and the accompanying statement must be returned within 60 days of the tenant’s termination of the rental lease.	9 V.S.A. § 4461(c)
Virginia	The deadline for a landlord to return a security deposit is 45 days from lease termination.	Va. Code § 55.1-1226
Washington	Landlords must return the security deposit within 21 days.	Wash. Rev. Code § 59.18.280
West Virginia	Landlords must return a tenant’s security deposit within 60 days after the end of the tenancy or within 45 days of the new tenant’s occupancy, whichever is sooner.	W. Va. Code § 37-6A-2
Wisconsin	Landlords must return a tenant’s security deposit within 21 days after the rental agreement concludes, or within 21 days from when a new tenant’s lease begins (if the landlord re-rents the property before the original lease terminates).	Wis. Admin. Code ATCP § ATCP 134.06 (2)
Wyoming	Landlords are required to return a tenant’s security deposit within 30 days after the rental agreement ends or within 15 days after receiving the tenant’s new mailing address, whichever is later. If the rental unit has suffered damage beyond normal wear and tear caused by the tenant, the landlord has an additional 30 days to return the deposit. For utility deposits, landlords must return them within 10 days once the tenant provides proof that all utility bills have been paid. If such proof is not provided, or if the landlord is required to make utility payments on the tenant’s behalf, deadlines and procedures are outlined in the statute.	Wyo. Stat. § 1-21-1208(a)

When returning deposits, you must provide itemized statements detailing any deductions with descriptions of work performed, associated costs, and often original receipts or contractor invoices. Some states require you to return the remaining balance with the itemized statement, while others allow you to send the statement first and follow up with payment. Send all deposit returns and accounting statements via certified mail or other trackable methods to prove compliance with deadlines if disputes arise. If you withhold the entire deposit, you still must provide the required accounting statement within deadline—silence or delays waive your right to make legitimate deductions in many states. Research your specific state’s requirements for deposit return procedures, required statement contents, acceptable deduction types, and strict compliance with timelines to avoid costly penalties.

Separate Security Deposit Bank Account

Some states mandate that landlords hold security deposits in dedicated, separate bank accounts rather than commingling these funds with personal or business accounts. This requirement ensures that tenant funds remain identifiable and protected, particularly if the landlord faces financial difficulties or bankruptcy. Landlords may be required to disclose the name and address of the financial institution holding the deposit, along with the account number. Commingling security deposits with other funds can result in forfeiture of the deposit or other legal consequences.

STATE	SEPARATE SECURITY DEPOSIT BANK ACCOUNT	STATUTE
Alabama	No statute
Alaska	Yes	Alaska Stat. § 34.03.070(c)
Arizona	No statute
Arkansas	No statute
California	No statute
Colorado	No state-wide statute. Local ordinances may impose specific requirements.
Connecticut	Yes	Conn. Gen. Stat. § 47a-21(h)
Delaware	Yes	Del. Code tit. 25 § 5514(b)
Florida	Yes	Fla. Stat. § 83.49
Georgia	Yes. Security deposit must be placed in an escrow account only for that purpose and notification needs to be given to tenant.	Ga. Code § 44-7-31
Hawaii	No statute
Idaho	If managed by a third-party it must be maintained in a separate account.	Idaho Code § 6-321(4)
Illinois	No state-wide statute. However, local ordinances, like in Chicago, may have specific requirements.
Indiana	No statute
Iowa	Yes	Iowa Code § 562A.12(2)
Kansas	No statute
Kentucky	Yes	Ky. Rev. Stat. § 383.580(1)
Louisiana	No statute
Maine	Yes	Me. Stat. tit. 14 § 6038
Maryland	Yes	Md. Code, Real Prop. § 8-203(a)
Massachusetts	Yes. Receipt must be given to tenant within 30 days indicating the name and location of the bank where it’s being held.	Mass. Gen. Laws ch. 186 § 15B(3)
Michigan	Not required. A landlord may use the deposit money however they want provided that they deposit a cash or surety bond with the secretary of state.	Mich. Comp. Laws § 554.604
Minnesota	No statute
Mississippi	No statute
Missouri	No statute
Montana	No statute
Nebraska	No statute
Nevada	No statute
New Hampshire	Yes	N.H. Rev. Stat. § 540-A:6(II)(a)
New Jersey	All money from a security deposit must be deposited or invested in one interest-bearing or dividend-yielding account as long as all other statutory requirements are followed, and it cannot be co-mingled with the landlord’s personal property. See statute for provisions relating to landlords owning 10 or more units.	N.J. Stat. § 46:8-19
New Mexico	No statute
New York	Security deposits cannot be mingled with a landlord’s personal funds or become an asset of the person receiving the funds. For rental properties containing six or more family dwelling units, the landlords receiving security deposits are required to deposit them in an interest bearing account in a banking organization within the state.	N.Y. Gen. Oblig. Law § 7-103
North Carolina	Security deposits shall be deposited in a trust account with a licensed and federally insured depository institution with the state. Landlords may also furnish a bond from an insurance company licensed to do business within the state.	N.C. Gen. Stat. § 42-50
North Dakota	The security deposit money must be deposited in a federally insured interest-bearing savings or checking account for the benefit of the tenant. The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, minus any withholdings due to tenant non-compliance of the rental agreement.	N.D. Cent. Code § 47-16-07.1
Ohio	No statute
Oklahoma	Security deposits must be kept in an escrow account for the tenant. The account must be in a federally insured financial institution within the State of Oklahoma.	Okla. Stat. tit. 41 § 115
Oregon	No statute
Pennsylvania	A separate bank account is required. See statute for provisions.	68 Pa. Stat. § 250.511b
Rhode Island	No statute.
South Carolina	No statute.
South Dakota	No statute.
Tennessee	A landlord of residential property requiring security deposits prior to occupancy is required to deposit all tenants’ security deposits in an account used only for that purpose.	Tenn. Code § 66-28-301
Texas	No statute.
Utah	No statute.
Vermont	No statute.
Virginia	No statute.
Washington	A separate bank account is required to hold security deposits.	Wash. Rev. Code § 59.18.270
West Virginia	No statute.
Wisconsin	No statute.
Wyoming	No statute.

Non-Refundable Fees

Non-refundable fees are distinct from security deposits and are typically used to cover specific costs such as cleaning, administrative processing, or lease preparation. The legality and permissible types of non-refundable fees vary significantly by jurisdiction, with some states prohibiting them entirely while others allow them under certain conditions. Landlords must clearly distinguish non-refundable fees from refundable security deposits in the lease agreement to avoid disputes. Tenants should carefully review their lease to understand which payments are refundable and which are not.

STATE	NON-REFUNDABLE FEES	STATUTE
Alabama	No statute
Alaska	No statute
Arizona	Must be stated in writing. Any fee not mentioned as non-refundable is refundable.	Ariz. Rev. Stat. § 33-1321(b)
Arkansas	No statute
California	An agreement cannot state security deposits as “non-refundable”	Cal. Civ. Code § 1950.5(m)
Colorado	No statute. Check rental agreement for any specifications.
Connecticut	No statute
Delaware	Not allowed unless it’s an optional service fee for actual services rendered such as amenity fee.	Del. Code tit. 25 § 5311
Florida	No statute
Georgia	No statute
Hawaii	No statute
Idaho	No statute
Illinois	No statute
Indiana	No statute
Iowa	No statute
Kansas	No statute
Kentucky	No statute
Louisiana	No statute
Maine	No statute
Maryland	No statute
Massachusetts	Not allowed unless stated in the lease and agreed to by tenant.	Mass. Gen. Laws ch. 186 § 15B(1)(b)(iii)(B)(I)
Michigan	No statute
Minnesota	No statute
Mississippi	No statute
Missouri	No statute
Montana	No statute
Nebraska	No statute
Nevada	The lease agreement must state if there’s any nonrefundable fees, such as a cleaning fee.	Nev. Rev. Stat. § 118A.242(8)
New Hampshire	No statute
New Jersey	No statute
New Mexico	No statute
New York	No statute
North Carolina	No statute
North Dakota	No statute
Ohio	No statute
Oklahoma	No statute
Oregon	Non-refundable fees are prohibited.	ORS § 90.300
Pennsylvania	No statute
Rhode Island	No statute
South Carolina	No statute
South Dakota	No statute.
Tennessee	No statute.
Texas	No statute.
Utah	Non-refundable deposits are permitted, but only if disclosed in writing at the time of the landlord’s acceptance of the deposit.	Utah Code §§ 57-17-2
Vermont	No statute.
Virginia	No statute.
Washington	Non-refundable fees are permitted, but they must be part of the security deposit. They must be clearly specified as “non-refundable fees” in the written lease agreement.	Wash. Rev. Code § 59.18.285
West Virginia	Non-refundable pet and application fees are permitted if both the landlord and tenant agree in writing that the fees are non-refundable.	W. Va. Code § 37-6A-1
Wisconsin	No statute.
Wyoming	There is no specific law that regulates the types of non-refundable fees a landlord can charge a tenant. However, if a landlord does include non-refundable fees, the rental agreement must clearly specify whether any part of the security deposit is non-refundable.	Wyo. Stat. § 1-21-1207

Receipt of Security Deposit

Several states require landlords to provide tenants with a written receipt when collecting a security deposit. This receipt should include the amount received, the date of payment, the name of the person who received the funds, and information about where the deposit will be held. Some jurisdictions require specific language or disclosures to be included in the receipt, such as the tenant’s right to a move-in inspection. Providing proper receipts helps prevent disputes and ensures both parties have documentation of the transaction.

STATE	RECEIPT OF SECURITY DEPOSIT	STATUTE
Alabama	No statute.
Alaska	No statute.
Arizona	No statute.
Arkansas	No statute.
California	No statute.
Colorado	No statute.
Connecticut	Required for cash payments	Conn. Gen. Stat. § 47a-3a(c)
Delaware	No statute.
Florida	Yes	Fla. Stat. § 83.49
Georgia	No statute.
Hawaii	No statute.
Idaho	No statute.
Illinois	No statute.
Indiana	No statute.
Iowa	No statute.
Kansas	No statute.
Kentucky	No statute.
Louisiana	No statute.
Maine	If received in cash, yes.	Me. Stat. tit. 14 § 6022
Maryland	Yes. Landlord must provide a receipt.	Md. Code, Real Prop. § 8-203.1
Massachusetts	Yes. Receipt required.	Mass. Gen. Laws ch. 186 § 15B(2)
Michigan	Yes	Mich. Comp. Laws § 554.603
Minnesota	No statute.
Mississippi	No statute.
Missouri	No statute.
Montana	No statute.
Nebraska	No statute.
Nevada	No statute.
New Hampshire	Landlord must give receipt with security deposit amount and the place where it’s being held. If the payment is with a check then no receipt is required.	N.H. Rev. Stat. § 540-A:6
New Jersey	Landlord must notify the tenant in writing within thirty (30) days of deposit to which financial institution the deposit is being held, the current interest rate, and the amount of the deposit. If the deposit is ever moved, a 30-day notice must be provided. Annual interest payments must be recorded, as well as a thirty (30) day notice if the property is sold.	N.J. Stat. § 46:8-19
New Mexico	No statute.
New York	Landlords are required to notify in writing each of the persons making such security deposit or advance, giving the name and address of the banking organization in which the deposit of security money is made, and the amount of the deposit(s) made.	N.Y. Gen. Oblig. Law § 7-103
North Carolina	No statute.
North Dakota	No statute.
Ohio	No statute.
Oklahoma	No statute.
Oregon	Landlords must provide tenants with a receipt for any security deposit(s) paid.	ORS § 90.300
Pennsylvania	No statute.
Rhode Island	No statute.
South Carolina	No statute.
South Dakota	No statute.
Tennessee	No statute.
Texas	No statute.
Utah	No statute.
Vermont	No statute.
Virginia	Landlords are not required to provide a written receipt for a security deposit.	Va. Code § 55.1-1226
Washington	The landlord shall provide a written receipt for all deposits and must provide written notice of the name, address, and location of the depository (and any subsequent change thereof).	Wash. Rev. Code § 59.18.270
West Virginia	No statute.
Wisconsin	If paid in cash, or requested by the tenant, a written receipt is required.	Wis. Admin. Code §§ 134.06(2)
Wyoming	No statute.

Require Written Description / Itemized List of Damages and Charges

Most states require landlords to provide tenants with a written, itemized statement explaining any deductions made from the security deposit. This statement must typically include a description of each item of damage or charge, the cost of repair or cleaning, and any remaining balance being returned to the tenant. Some jurisdictions require landlords to include copies of receipts or invoices for repairs. Failure to provide a proper itemized statement within the required timeframe can result in the landlord forfeiting the right to withhold any portion of the deposit.

STATE	REQUIRE WRITTEN DESCRIPTION / ITEMIZED LIST OF DAMAGES AND CHARGES	STATUTE
Alabama	Yes. A list itemizing the amounts withheld must be sent via first class mail to the tenant’s last known forwarding address within 60 days.	Ala. Code § 35-9A-201(d)
Alaska	Yes. Within 30 days of termination of tenancy.	Alaska Stat. § 34.03.070(g)
Arizona	Yes required within 14 days of tenancy termination.	Ariz. Rev. Stat. § 33-1321(d)
Arkansas	Yes	Ark. Code § 18-16-305(a)
California	Yes	Cal. Civ. Code § 1950.5(g)
Colorado	Yes	Colo. Rev. Stat. § 38-12-103(1)
Connecticut	Yes	Conn. Gen. Stat. § 47a-21(d)
Delaware	Yes	25 Del. C. § 5514(f)
Florida	Yes	Fla. Stat. § 83.49(3)
Georgia	Yes	O.C.G.A. § 44-7-34
Hawaii	Yes	Haw. Rev. Stat. § 521-44(c)
Idaho	Yes	Idaho Code § 6-321
Illinois	Yes	765 ILCS 710/1
Indiana	Yes	Ind. Code § 32-31-3-14
Iowa	Yes	Iowa Code § 562A.12(3)
Kansas	Yes	Kan. Stat. § 58-2550(b)
Kentucky	No statute
Louisiana	Yes	La. Stat. tit. 9 § 3251
Maine	Yes	14 M.R.S. § 6033(2)
Maryland	Yes	Md. Code, Real Prop. § 8-203
Massachusetts	Yes	Mass. Gen. Laws ch. 186 § 15B(4)
Michigan	Yes	Mich. Comp. Laws § 554.609
Minnesota	No statute
Mississippi	Yes	Miss. Code § 89-8-21
Missouri	Yes	Mo. Rev. Stat. § 535.300
Montana	Yes	Mont. Code § 70-25-202
Nebraska	Yes	Neb. Rev. Stat. § 76-1416
Nevada	Yes	Nev. Rev. Stat. § 118A.242
New Hampshire	Yes	N.H. Rev. Stat. § 540-A:7
New Jersey	Tenant must be notified by personal delivery, registered, or certified mail of the interest or earnings on the deposit minus any itemized deductions and cost of each deduction.	N.J. Stat. § 46:8-21.1
New Mexico	Landlords must provide a written statement of deductions from the deposit and the balance shown by the statement to be due, within thirty (30) days of the termination of the rental agreement.	N.M. Stat. § 47-8-18(C)
New York	Partial security deposits can be lawfully retained for the reasonable and itemized costs due to non-payment of rent, damage caused by the tenant beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings.	N.Y. Gen. Oblig. Law § 7-108(1-a)(e)
North Carolina	Landlords must deliver in writing the itemized list of any damages and mail or deliver to the tenant, along with the balance of the security deposit, no later than 30 days after termination of the tenancy.	N.C. Gen. Stat. § 42-52
North Dakota	The remaining portion of a security deposit not paid to the lessee upon termination of the lease must be itemized by the lessor. Itemized list and amount due must be delivered or mailed to the lessee at the last address provided, along with a written notice within thirty days after termination of the lease and delivery of possession by the lessee. The notice must contain a statement of any amount still due the lessor or the refund due the lessee.	N.D. Cent. Code § 47-16-07.1
Ohio	Any deduction from the security deposit shall be itemized and identified by the landlord in a written notice delivered to the tenant together with the amount due within thirty (30) days after the termination of the rental agreement.	Ohio Rev. Code § 5321.16(B)
Oklahoma	Security deposit held by a landlord may be applied to the payment of accrued rent and the amount of damages which the landlord has suffered by reason of the tenant’s noncompliance with this act and the rental agreement. All damages and costs must be itemized by the landlord in a written statement delivered by mail with a return receipt requested.	41 O.S. § 115(B)
Oregon	Required.	Or. Rev. Stat. § 90.300(12)
Pennsylvania	Landlords must provide a tenant with a written list of any damages to the dwelling unit for which the landlord claims the tenant is liable when returning the security deposit from escrow.	68 P.S. § 250.512
Rhode Island	An itemized list of damages and charges is required.	R.I. Gen. Laws § 34-18-19
South Carolina	Yes, deduction from the security/rental deposit must be itemized by the landlord in a written notice to the tenant together with the amount due.	S.C. Code § 27-40-410
South Dakota	Within forty-five days after termination of the tenancy, upon request of the lessee, the lessor must provide the lessee with an itemized list of any deposit withheld.	S.D. Codified Laws § 43-32-24
Tennessee	A landlord is required to inspect the property and make a detailed list of any damages beyond normal wear and tear. Tenants have the right to a mutual inspection.	Tenn. Code § 66-28-301
Texas	The landlord must give the balance of the security deposit, if any, together with a written description and itemized list of all deductions to the tenant. The landlord is not required to give the tenant a description and itemized list of deductions if: (1) the tenant owes rent when he surrenders possession of the premises; and (2) there is no controversy concerning the amount of rent owed.	Tex. Prop. Code § 92.104
Utah	If the owner or the owner’s agent made any deductions from the deposit or prepaid rent, a written notice that itemizes and explains the reason for each deduction must be presented to the renter.	Utah Code § 57-17-3
Vermont	The itemizes list of damages must accompany the security deposit when it is returned to the tenant following the termination of a lease.	9 V.S.A. § 4461(c)
Virginia	The security deposit and any deductions, damages, and charges shall be itemized by the landlord in a written notice given to the tenant, together with any amount due to the tenant, within 45 days after the termination date of the tenancy or the date the tenant vacates the dwelling unit, whichever occurs last.	Va. Code § 55.1-1226
Washington	The landlord is required to provide a tenant with an itemized list of damages and charges in writing.	Wash. Rev. Code § 59.18.280
West Virginia	If the property has sustained damage beyond normal wear and tear which requires a third-party contractor’s involvement, the landlord must notify the tenant in writing within the original deadline (60 days or 45 days). Following this notice, landlords have an additional 15 days to provide an itemized statement detailing the damage and associated repair costs.	W. Va. Code § 37-6A-2
Wisconsin	If any portion of a security deposit is withheld by a landlord, the landlord must, within the time period and in the manner specified under sub. (2), deliver or mail to the tenant a written statement accounting for all amounts withheld. The statement must describe each item of physical damages or any other claims made against the security deposit, and the amount withheld as reasonable compensation for each item or claim.	Wis. Admin. Code ATCP § ATCP 134.06(4)
Wyoming	Yes	Wyo. Stat. § 1-21-1208(a)

Permitted Uses of the Deposit

Security deposits can generally be used to cover unpaid rent, repair damage beyond normal wear and tear, cleaning costs to restore the unit to its original condition, and other lease violations that result in financial loss to the landlord. Normal wear and tear, which includes minor scuffs, faded paint, and worn carpeting from ordinary use, cannot be deducted from the deposit. Some states also allow deductions for early lease termination costs, unpaid utilities, or storage and disposal of abandoned property. Landlords should document the condition of the property at move-in and move-out to support any deductions.

STATE	RULE	STATUTE
Alabama	Applicable to owed rent and damages beyond normal wear and tear due to the tenant’s noncompliance with Ala. Code § 35-9A-301	Ala. Code § 35-9A-201(b)
Alaska	Applicable to unpaid accrued rent and damages due to tenant’s noncompliance with AS 34.03.120.	Alaska Stat. § 34.03.070(b)
Arizona	May be used for provisions detailed in the property management agreement.	Ariz. Rev. Stat. § 33-1321(g)
Arkansas	Applicable to unpaid accrued rent and damages as a result of tenant’s noncompliance with rental agreement.	Ark. Code § 18-16-305(2)
California	Default rent, repairs, cleaning.	Cal. Civ. Code § 1950.5(b)
Colorado	Default rent, repairs beyond normal wear and tear, and abandonment of premises.	Colo. Rev. Stat. § 38-12-103(1)
Connecticut	Applicable to damages caused by tenant’s noncompliance with obligations outlined in agreement, and accrued interest.	Conn. Gen. Stat. § 47a-21(d)(1)(A)(B)
Delaware	Damages caused to premises beyond normal wear and tear. Rent owed and any late fees. To cover reasonable expenses due to renovations and re-renting due to tenant’s noncompliance with agreement terms.	Del. Code tit. 25 § 5514(c)
Florida	No statute
Georgia	Nonpayment of rent or late payment fees, cleaning fees, pet fees, damages etc.	Ga. Code § 44-7-34
Hawaii	Default rent, damages including damages caused by tenant, and amounts owed for utilities	Haw. Rev. Stat. § 521-44(a)
Idaho	Any contingencies outlined in the rental agreement or deposit arrangement. Commonly used for damages beyond “normal wear and tear”, pet deposits, cleaning etc.	Idaho Code § 6-321(1)
Illinois	No specific statute but typically can be used for rent, damages, repairs, etc.
Indiana	Accrued rent, damages due to tenant’s noncompliance, unpaid utilities	Ind. Code § 32-31-3-13
Iowa	Default rent, restore damages beyond regular wear and tear, recover expenses.	Iowa Code § 562A.12(3)(a)(1)(2)(3)
Kansas	rent and damages	Kan. Stat. § 58-2550(b)
Kentucky	Owed rent. At times it’s allowed to use it for damages due to tenant’s noncompliance.	Ky. Rev. Stat. § 383.580(6)
Louisiana	Remedy tenant’s default or wear beyond normal wear and tear.	La. Stat. tit. 9 § 3251
Maine	Storing and disposing of unclaimed property, and nonpayment of rent and utilities.	Me. Stat. tit. 14 § 6033(2)(B)
Maryland	Unpaid rent and damages caused by tenant or guests of tenant beyond normal wear and tear.	Md. Code, Real Prop. § 8-203(g)
Massachusetts	Unpaid rent, unpaid water charges, unpaid increase in real estate taxes, reasonable amounts to repair damages. etc.	Mass. Gen. Laws ch. 186 § 15B(4)
Michigan	Damages beyond normal wear and tear, owed rent, unpaid utilities, and rent due for premature termination by the tenant	Mich. Comp. Laws § 554.607
Minnesota	Default rent and restore premises beyond normal wear and tear.	Minn. Stat. § 504B.178
Mississippi	Unpaid rent, damages beyond ordinary wear and tear, cleaning, other reasonable expenses.	Miss. Code § 89-8-21(3)
Missouri	Default rent, damages beyond regular wear and tear, damages sustained as a result of tenant terminating early.	Mo. Rev. Stat. § 535.300
Montana	Unpaid rent, late charges, utilities, cleaning.	Mont. Code Ann. § 70-25-201
Nebraska	No specific statute, but usually it can be used for owed rent, and damages beyond regular wear and tear.
Nevada	Rent, damages beyond regular wear and tear, and reasonable cleaning costs.	Nev. Rev. Stat. § 118A.242
New Hampshire	Damages beyond regular wear and tear	N.H. Rev. Stat. § 540-A:7
New Jersey	No statue, though typically all or a portion of the deposit can be used for damages incurred by noncompliance of the tenant.
New Mexico	Security deposits can only be used for past-due rent and utility costs owed, damages incurred due to tenant’s non-compliance with the rental agreement.	N.M. Stat. Ann. § 47-8-18
New York	Partial security deposits can be lawfully retained for the reasonable and itemized costs due to non-payment of rent, damage caused by the tenant beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings.	N.Y. Gen. Oblig. Law § 7-108
North Carolina	See statute.	N.C. Gen. Stat. § 42-51
North Dakota	Deposits can be used for unpaid rent, damage to the rental unit caused by the tenants or their pets, or other reasonable expenses to get the unit back to its original state minus normal “wear and tear.”	N.D. Cent. Code § 47-16-07.1
Ohio	Money from the security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant’s noncompliance with section 5321.05 of the Revised Code or the rental agreement.	Ohio Rev. Code § 5321.16
Oklahoma	Security deposit can be used to cover the costs of owed rent or damages caused by the tenant’s noncompliance with the rental agreement or statutes.	Okla. Stat. tit. 41 § 115
Oregon	None
Pennsylvania	Landlords must provide a tenant with a written list of any damages to the dwelling unit for which the landlord claims the tenant is liable. Delivery of the list must be accompanied by payment of the difference between any sum deposited in escrow, including any unpaid interest. The difference represents the payment of damages for the dwelling unit and the actual amount of damages to the dwelling unit caused by the tenant.	68 Pa. Stat. § 250.512
Rhode Island	The security deposit can be used for any amount of unpaid accrued rent, the amount due, if any, for reasonable cleaning expenses, for reasonable trash disposal expenses and the amount of physical damages to the premises, other than ordinary wear and tear, that the landlord has suffered by reason of the tenant’s noncompliance .	R.I. Gen. Laws § 34-18-19
South Carolina	Deposits may be used for unpaid rent or fees, or damages which the landlord has incurred losses by reason of the tenant’s noncompliance with the lease agreement.	S.C. Code § 27-40-410
South Dakota	The lessor may withhold from the security deposit only such amounts as are reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement or to restore the premises to their condition at the commencement of the tenancy. This includes ordinary wear and tear excepted.	S.D. Codified Laws § 43-32-24
Tennessee	No statute.
Texas	The landlord may deduct damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease from the security deposit.	Tex. Prop. Code § 92.104
Utah	No statute.
Vermont	Landlords are permitted to use all or part of the security deposit to cover the following expenses: 1. Nonpayment of rent: If the tenant fails to pay rent owed. 2. For any damage caused by the tenant that exceeds the expected wear and tear associated with regular use. 3. Unpaid utility charges: For utility bills that the tenant was responsible for paying directly to the landlord but did not pay. 4. Costs of removing abandoned property: Expenses incurred by the landlord for removing belongings left behind by the tenant after vacating the rental unit.	Vt. Stat. tit. 9 § 4461(b)
Virginia	Landlords can use a tenant’s security deposit to cover unpaid rent, including late fees, and other certain costs. See statute.	Va. Code § 55.1-1226
Washington	No statute.
West Virginia	Landlords are permitted to withhold specific amounts from a tenant’s security deposit to cover the following: Unpaid Rent: Any outstanding rent due, including reasonable late fees outlined in the rental agreement. Damage Repairs: Costs associated with repairs due to the tenant’s noncompliance with lease terms, excluding normal wear and tear. Unpaid Utilities: Amounts for utility bills that the landlord paid but were the tenant’s responsibility according to the lease. Removal and Storage of Personal Property: Expenses for removing and storing the tenant’s belongings, if necessary. Other Repairs and Third-Party Services: Costs to fix additional damages outlined in the lease, including charges for third-party repairs of tenant-caused damages.	W. Va. Code § 37-6A-2(b)
Wisconsin	No statute.
Wyoming	Landlords are permitted to use part or all of a tenant’s security deposit to cover unpaid rent, damages caused by the tenant that go beyond normal wear and tear, cleaning fees, and other expenses specified in the rental agreement.	Wyo. Stat. § 1-21-1208(a)

Security Deposit Withholdings

Landlords may withhold all or part of a security deposit when tenants leave the property damaged, fail to pay rent, or breach other lease terms that result in financial loss. However, withholdings must be reasonable, well-documented, and directly related to actual costs incurred by the landlord. Disputes often arise over what constitutes damage versus normal wear and tear, making thorough documentation essential. Tenants who believe deductions are improper may have legal recourse to recover wrongfully withheld funds, potentially including additional damages and attorney’s fees.

STATE	SECURITY DEPOSIT CAN BE WITHHELD	STATUTE
Alabama	Yes	Ala. Code § 35-9A-201(c)
Alaska	Yes	Alaska Stat. § 34.03.070(g)
Arizona	Yes	Ariz. Rev. Stat. § 33-1321(d)
Arkansas	Yes	Ark. Code § 18-16-305(2)
California	Yes	Cal. Civ. Code § 1950.5(b)
Colorado	Yes	Colo. Rev. Stat. § 38-12-103(1)
Connecticut	Yes	Conn. Gen. Stat. § 47a-21(d)(2)(B)
Delaware	Yes	Del. Code tit. 25 § 5514(f)
Florida	Yes. With written notice within 30 days of termination of rental agreement	Fla. Stat. § 83.49(3)(a)
Georgia	Yes	Ga. Code § 44-7-34
Hawaii	Yes. A written notice of amount withheld must be provided to the tenant along with evidence of the costs for remedying defaults. If the tenant abandons property or wrongfully quits agreement without notice the landlord does not need to give the security deposit back.	Haw. Rev. Stat. § 521-44(c)(d)
Idaho	Yes. The landlord must provide an itemized list of the deductions and purpose for each one.	Idaho Code § 6-321
Illinois	Yes	765 Ill. Comp. Stat. 710/1
Indiana	Yes	Ind. Code § 32-31-3-12
Iowa	Yes	Iowa Code § 562A.12
Kansas	Yes	Kan. Stat. § 58-2550
Kentucky	Yes	Ky. Rev. Stat. § 383.580
Louisiana	Yes	La. Rev. Stat. § 9:3251
Maine	Yes	Me. Rev. Stat. tit. 14 § 6033
Maryland	Yes	Md. Code, Real Prop. § 8-203(g)
Massachusetts	Yes	Mass. Gen. Laws ch. 186 § 15B
Michigan	Yes	Mich. Comp. Laws § 554.607
Minnesota	Yes	Minn. Stat. § 504B.178
Mississippi	Yes	Miss. Code § 89-8-21
Missouri	Yes	Mo. Rev. Stat. § 535.300
Montana	Yes	Mont. Code § 70-25-201
Nebraska	Yes	Neb. Rev. Stat. § 76-1416
Nevada	Yes	Nev. Rev. Stat. § 118A.242
New Hampshire	Yes	N.H. Rev. Stat. § 540-A:7
New Jersey	None
New Mexico	Security deposits can be withheld as long as the landlord follows the stipulations of the statute.	N.M. Stat. § 47-8-18
New York	Partial security deposits can be lawfully retained for the reasonable and itemized costs due to non-payment of rent, damage caused by the tenant beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings.	N.Y. Gen. Oblig. Law § 7-108
North Carolina	Deposits can be withheld due to non-payment of rent or damages incurred to the rental property by non-compliance of the tenant.	N.C. Gen. Stat. § 42-51
North Dakota	Deposits can be used for unpaid rent, damage to the rental unit caused by the tenants or their pets, or other reasonable expenses to get the unit back to its original state minus normal “wear and tear.”	N.D. Cent. Code § 47-16-07.1
Ohio	Money from the security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant’s noncompliance with section 5321.05 of the Revised Code or the rental agreement. Written notice of the itemized deductions must be delivered to the tenant together with the amount due within thirty (30) days after the termination of the rental agreement.	Ohio Rev. Code § 5321.16
Oklahoma	None
Oregon	None
Pennsylvania	Delivery of the list must be accompanied by payment of the difference between any sum deposited in escrow, including any unpaid interest. The difference represents the payment of damages for the dwelling unit and the actual amount of damages to the dwelling unit caused by the tenant.	68 Pa. Stat. § 250.512
Rhode Island	The security deposit can be used for any amount of unpaid accrued rent, the amount due, if any, for reasonable cleaning expenses, for reasonable trash disposal expenses and the amount of physical damages to the premises, other than ordinary wear and tear, that the landlord has suffered by reason of the tenant’s noncompliance. The landlord must provide an itemized list of any monies kept from the deposit.	R.I. Gen. Laws § 34-18-19
South Carolina	No statute.
South Dakota	The lessor may withhold from the security deposit only such amounts as are reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement or to restore the premises to their condition at the commencement of the tenancy. This includes ordinary wear and tear excepted.	S.D. Codified Laws § 43-32-24
Tennessee	No landlord shall be entitled to retain any portion of a security deposit if the security deposit was not deposited in an account as required by subsection (a) and a listing of damages is not provided as required by subsection (b).	Tenn. Code § 66-28-301
Texas	The landlord may deduct damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease from the security deposit.	Tex. Prop. Code § 92.104
Utah	If the owner or the owner’s agent made any deductions from the deposit or prepaid rent, a written notice that itemizes and explains the reason for each deduction must be presented to the renter.	Utah Code §§ 57-17-3
Vermont	Yes, it can be withheld under certain circumstances.	Vt. Stat. tit. 9 § 4461
Virginia	None
Washington	No statute.
West Virginia	If the property has sustained damage beyond normal wear and tear which requires a third-party contractor’s involvement, the landlord must notify the tenant in writing within the original deadline (60 days or 45 days). Following this notice, landlords have an additional 15 days to provide an itemized statement detailing the damage and associated repair costs.	W. Va. Code § 37-6A-2(c)
Wisconsin	A landlord may withhold portions of a tenant’s security deposit only for specific, necessary expenses related to the rental property. These allowable deductions include: Costs to repair tenant-caused damage, waste, or neglect of the property (with certain exceptions). Any unpaid rent owed by the tenant, per state statute s. 704.29. Utility charges the tenant agreed to pay for services provided by the landlord but not covered in the rent. Utility costs directly billed to the tenant by a government-owned utility, but for which the landlord may be held liable if the tenant fails to pay. Unpaid monthly municipal fees assessed against the tenant by local authorities, for which the landlord may become liable if the tenant does not pay. Other specific charges as outlined in a nonstandard rental provision document signed by the tenant.	Wis. Admin. Code ATCP § ATCP 134.06(3a)
Wyoming	Yes.	Wyo. Stat. § 1-21-1208(a)

Record Keeping of Deposit Withholdings

Landlords should maintain detailed records of all security deposit transactions, including the initial collection, any interest payments, and final disposition of funds. Documentation should include move-in and move-out inspection reports, photographs or videos of property condition, repair invoices and receipts, and correspondence with tenants. These records are essential for defending against tenant claims and demonstrating compliance with legal requirements. Most experts recommend retaining security deposit records for several years after the tenancy ends, as statutes of limitations for related claims can extend well beyond the lease term.

STATE	RECORD KEEPING OF DEPOSIT WITHHOLDINGS	STATUTE
Alabama	No statute
Alaska	Yes	Alaska Stat. § 34.03.070(g)
Arizona	Yes	Ariz. Rev. Stat. § 33-1321(d)
Arkansas	No statute
California	Yes	Cal. Civ. Code § 1950.5(g)(2)
Colorado	Yes	Colo. Rev. Stat. § 38-12-103(1)
Connecticut	Yes	Conn. Gen. Stat. § 47a-21(d)(2)(B)
Delaware	No statute specifies keeping records of the withholdings. Refer to statute regarding what must be provided when withholding an amount.	Del. Code tit. 25 § 5514(f)
Florida	No statute
Georgia	Yes	Ga. Code § 44-7-33
Hawaii	Yes. Written evidence of costs such as estimates or invoices for materials and services is required.	Haw. Rev. Stat. § 521-44(c)
Idaho	Yes	Idaho Code § 6-321(2)
Illinois	Yes	765 ILCS 710/1(a)
Indiana	No statute
Iowa	Yes	Iowa Code § 562A.12(3)(b)
Kansas	Yes	Kan. Stat. § 58-2550(b)
Kentucky	No statute
Louisiana	No statute
Maine	No statute
Maryland	Yes	Md. Code, Real. Prop. § 8-203(g)(1)
Massachusetts	Yes. 2 years of records must be kept for each dwelling unit.	Mass. Gen. Laws ch. 186 § 15B(2)(d)(iii)
Michigan	No statute
Minnesota	No statute
Mississippi	No statute
Missouri	No statute
Montana	No statute
Nebraska	No statute
Nevada	No statute
New Hampshire	No statute
New Jersey	No statute
New Mexico	No statute
New York	No statute
North Carolina	No statute
North Dakota	No statute	N.D. Cent. Code § 47-16-07.1
Ohio	No statute
Oklahoma	No statute
Oregon	No statute
Pennsylvania	No statute
Rhode Island	No statute
South Carolina	Yes, deduction from the security/rental deposit must be itemized by the landlord in a written notice to the tenant together with the amount due.	S.C. Code § 27-40-410
South Dakota	No statute.
Tennessee	No statute.
Texas	No statute.
Utah	No statute.
Vermont	No statute.
Virginia	Landlords must keep detailed records of security deposit deductions for at least two years.	Va. Code § 55.1-1226
Washington	Not statute.
West Virginia	Deposit withholdings records must be kept for one year after the conclusion of the tenancy. The landlord must allow the tenant or tenant’s authorized agent (or attorney) to inspect the records within 72 hours of a written request.	W. Va. Code § 37-6A-3
Wisconsin	No statute.
Wyoming	Landlords are required to mail an itemized list of deposit withholdings and provide it to the tenant along with the security deposit.	Wyo. Stat. § 1-21-1208(a)

Failure to Comply

Landlords who fail to comply with security deposit laws may face significant consequences, including forfeiture of the right to retain any portion of the deposit regardless of actual damages. Many states impose penalties such as double or triple the deposit amount, plus attorney’s fees and court costs, for willful violations. Tenants may file claims in small claims court to recover wrongfully withheld deposits without needing to hire an attorney. In some jurisdictions, repeated or egregious violations can result in additional fines, loss of rental licenses, or other administrative penalties.

STATE	FAILURE TO COMPLY	STATUTE
Alabama	The landlord’s failure to mail the security deposit or itemized list within 60 days entitles the tenant to receive up to twice the amount of the security deposit paid.	Ala. Code § 35-9A-201(f)
Alaska	Tenant may be able to recover 2x the amount withheld.	Alaska Stat. § 34-03.070(d)
Arizona	May entitle the tenant to recover property and 2x the amount withheld.	Ariz. Rev. Stat. § 33-1321(e)
Arkansas	The tenant may recover the property, money owed, 2x amount held in damages, and attorney fees.	Ark. Code § 18-16-306
California	May subject landlord to claim damages of 2x security deposit + actual damages	Cal. Civ. Code § 1950.5(l)
Colorado	If landlord does not comply then they forfeit the right to withhold the security deposit. A landlord may also be liable for triple the amount of the deposit plus attorney & court costs.	Colo. Rev. Stat. § 38-12-103(3)(a)
Connecticut	None
Delaware	Failure by the landlord to return deposit entitles tenant to double the amount. Failure by tenant to provide last known address relieve’s landlord’s liability for the double the amount.	Del. Code tit. 25 § 5514
Florida	If landlord doesn’t serve notice with intent to claim against security deposit, the right is forfeited.	Fla. Stat. § 83.49(3)(a)
Georgia	Landlord could be liable to the tenant 3x the amount improperly withheld + attorney fees.	Ga. Code § 44-7-35
Hawaii	If landlord does not notify tenant within 14 days they forfeit the right to retain any portion of the security deposit.	Haw. Rev. Stat. § 521-44
Idaho	A landlord may be liable to tenant if they fail to return a security deposit.	Idaho Code § 6-320(a)(4)
Illinois	If a landlord fails to provide an itemized list, receipts, invoices etc for withholdings they may be liable for up to 2x the amount of the security deposit + attorney’s fees and court costs.	765 Ill. Comp. Stat. 710/1
Indiana	Tenant may recover the security deposit and reasonable attorney fees.	Ind. Code § 32-31-3-16
Iowa	The landlord may be liable for up to 2x monthly rental amount + damages, and attorney fees.	Iowa Code § 562A.12
Kansas	If landlord fails to comply, then the tenant is able to recover the portion of the deposit that is due plus 1 1/2x the amount withheld.	Kan. Stat. § 58-2550(c)
Kentucky	If the landlord does not keep the deposit in a separate account they are not entitled to retain any of it.	Ky. Rev. Stat. § 383.580
Louisiana	If landlord fails to comply with La. Stat. tit. 9 § 3251, the tenant can recover the portion that was wrongfully retained plus $300 or 2x the amount of the wrongfully retained portion (whichever is greater.)	La. Rev. Stat. § 9:3252
Maine	If landlord fails to notify the tenant of intent to retain security deposit or to return the deposit in general they forfeit the option to withhold any of it.	Me. Stat. tit. 14 § 6033(3)
Maryland	Failure to comply on the landlord’s behalf means they forfeit the right to withhold any portion of the security deposit.	Md. Code, Real Prop. § 8-203
Massachusetts	Landlord forfeits right to withhold any portion of the deposit	Mass. Gen. Laws ch. 186 § 15B
Michigan	Failure to notify the tenant of deposit withholdings within 30 days of tenancy terminating means the landlord forfeits the right to make a claim against the deposit.	Mich. Comp. Laws § 554.610
Minnesota	Landlord may be liable for a fine of up to $500.	Minn. Stat. § 504B.178
Mississippi	$200 fee + damages	Miss. Code § 89-8-21
Missouri	If landlord fails to comply then tenant may be eligible to recover damages twice the amount wrongfully withheld.	Mo. Rev. Stat. § 535.300
Montana	Results in landlord forfeiting any withholding on the deposit.	Mont. Code § 70-25-203
Nebraska	If the landlord fails to comply, the tenant may recover the property, money owed, and court costs + attorney fees.	Neb. Rev. Stat. § 76-1416
Nevada	Landlord may be liable to tenant for the entire security deposit and a sum fixed by the court.	Nev. Rev. Stat. § 118A.242(6)(a)(b)
New Hampshire	Landlord may be liable for 2x the security deposit amount plus any interest owed.	N.H. Rev. Stat. § 540-A:8
New Jersey	If a landlord is found in non-compliance of the rental agreement terms, the tenant can be awarded up to two times (2X) the amount of said dollar amount plus any attorney costs.	N.J. Stat. § 46:8-21.1
New Mexico	No statute.
New York
North Carolina	If landlords fail to comply with statute, tenants can sue for wrongful withholding to recover the deposit, damages and attorney fees. Failure to comply forfeits all rights to retain any part of the deposit.	N.C. Gen. Stat. § 42-55
North Dakota	A lessor is liable for triple the monetary value of any security deposit money withheld without reasonable justification	N.D. Cent. Code § 47-16-07.1
Ohio	If the landlord fails to comply with the stipulations of this act, the tenant may recover the property and money due him, in addition to the damages in an amount equal to the amount wrongfully withheld. The tenant is also eligible to recover reasonable attorneys fees.	Ohio Rev. Code § 5321.16
Oklahoma	Misappropriation of a security deposit is unlawful and punishable by a term in a county jail not to exceed six (6) months and with a fine not to exceed twice the dollar amount misappropriated from the escrow account.	Okla. Stat. tit. 41 § 115
Oregon	Tenants may recover the money due in an amount equal to twice the amount if the landlord fails to return all or any portion of prepaid rent.	Or. Rev. Stat. § 90.300
Pennsylvania	Landlords who fail to provide a written list to the tenant within 30 days shall forfeit all rights to withhold any portion of the deposit, including any unpaid interest. If they fail to provide the remaining deposit, after withholdings, within 30 days, the landlord shall be liable to double the amount by which the sum deposited in escrow, including any unpaid interest.	68 Pa. Stat. § 250.512
Rhode Island	If the landlord fails to comply with the regulations regarding the return of the security deposit, the tenant has the right to recover the amount due, along with damages equal to twice (2X) the amount that was wrongfully withheld, as well as reasonable attorney fees.	R.I. Gen. Laws § 34-18-19
South Carolina	The tenant is permitted to recover the property and money in an amount equal to three times (3X) the amount wrongfully withheld and reasonable attorney’s fees if the landlord fails to to comply with the statute.	S.C. Code § 27-40-410
South Dakota	A lessor of residential premises who fails to comply with this section forfeits the right to withhold any portion of the deposit. If the lessor retains the deposit in bad faith, including failure to provide the required written statement and itemized accounting, they can be liable for punitive damages up to and including $200.	S.D. Codified Laws § 43-32-24
Tennessee	No statute.
Texas	No statute.
Utah	If the owner or his agent in bad faith fails to provide the renter the notice required in Section 57-17-3, the renter may recover the full security deposit, a civil penalty of $100, and any associated court costs.	Utah Code § 57-17-5
Vermont	If the landlord fails to return the deposit within 14 days of lease termination, the landlord forfeits the right to withhold any part of the security deposit. If the landlord willfully withholds the security deposit without cause, they can be liable for twice the amount of the security deposit, plus any attorney’s fees and related court costs.	Vt. Stat. tit. 9 § 4461(e)
Virginia	If the landlord willfully fails to comply with this section, the court shall order the return of the security deposit to the tenant, together with actual damages and reasonable attorney fees, unless the tenant owes rent to the landlord, in which case the court shall order an amount equal to the security deposit credited against the rent due to the landlord.	Va. Code § 55.1-1226
Washington	If the landlord collects a security deposit without providing the mandatory written checklist of the commencement of the tenancy, the landlord is liable to the tenant for the entirety of the deposit amount. The prevailing party is entitled to recover court costs and reasonable attorneys’ fees.	Wash. Rev. Code § 59.18.260
West Virginia	If a landlord intentionally fails to return the security deposit as required, a tenant may take legal action to recover any unreturned portion of the deposit. The tenant may also be eligible for damages up to one and a half times the amount that was wrongfully withheld. In cases where the tenant still has outstanding rent owed to the landlord, the court may apply any awarded amount toward that unpaid rent.	W. Va. Code § 37-6A-5
Wisconsin	No statute.
Wyoming	Tenants may recover the entire security deposit amount, including court costs, if the security and utility deposits are not returned within the specified deadlines confirmed in the statute.	Wyo. Stat. § 1-21-1208(c)

Lease Agreements

Required clauses

Every Lease Agreements must include certain fundamental terms to create a legally binding contract and clearly establish rental relationship expectations. Essential required elements include complete identification of all parties (landlord/property owner and all adult tenants), full property address with unit number if applicable, lease commencement and termination dates with clear specification of whether it’s a fixed-term or month-to-month tenancy, and exact monthly rent amount with due date and acceptable payment methods. The lease must specify security deposit amount, any other fees or deposits collected, and how these funds will be held and returned. Include clear terms about late fees with specific amounts and when they’re assessed, returned check fees, and any applicable grace periods.

Download our Residential lease agreement template that includes all essential provisions in state-compliant format and  verify your existing lease contains every required element.

Beyond these basics, many states mandate specific provisions including disclosures about lead-based paint hazards for pre-1978 housing using our Lead-based paint disclosure addendum, landlord and tenant maintenance responsibilities clearly delineated in our maintenance responsibility addendum, procedures and notice requirements for landlord entry into the unit specified in our right of entry clause template, and explanation of how and when rent increases or lease term changes can occur.

Some jurisdictions require specific language about tenant rights, security deposit return procedures, or prohibited landlord actions. Include clear policies about utilities and who pays for each service, occupancy limits specifying maximum number of occupants, and whether subletting or assignment is permitted and under what conditions. Failing to include legally required clauses can render lease provisions unenforceable or expose you to penalties for non-compliance with state statutes.

Recommended clauses

Beyond legally required minimum terms, experienced landlords include additional provisions that protect their interests and prevent common disputes. Consider adding detailed maintenance and repair clauses that specify tenant responsibilities for minor repairs, basic upkeep, and prompt reporting of problems, while outlining your obligations and response timelines for different repair types.

Use our tenant maintenance checklist,  maintenance log and landlord repair timeline addendum to clearly delineate responsibilities and set expectations for property upkeep.Include explicit rules about property alterations, requiring written permission before any painting, fixture changes, or modifications. Address smoke and carbon monoxide detector requirements with tenant responsibilities to maintain working batteries and report malfunctions immediately.

Consider clauses covering renter’s insurance requirements, strongly encouraging or mandating coverage that protects tenant belongings and provides liability coverage that benefits both parties using our renters insurance requirement addendum that specifies minimum coverage amounts and proof-of-insurance obligations.

Include clear noise and nuisance provisions with quiet hours, restrictions on disturbing neighbors, and consequences for violations using our quiet enjoyment and nuisance clause that establishes enforceable community standards.” Address parking allocation, storage access, and use of common areas to prevent conflicts in multi-unit properties with our parking and storage addendum and common area rules addendum. Include pest control responsibilities and procedures, defining who handles different infestation types and prevention obligations using our pest control responsibility addendum that clarifies when landlords versus tenants pay for treatment.Consider early termination provisions that allow lease breaks under specific conditions with defined penalties or procedures, giving you flexibility while maintaining some financial protection through our early lease termination addendum that protects your interests while offering tenants exit options.

The more comprehensive your lease, the clearer expectations become and the fewer disputes you’ll face throughout the tenancy.

Application Fees

STATE	APPLICATION FEES	STATUTE
Alabama	No statute
Alaska	No statute
Arizona	No statute
Arkansas	No statute
California	$30 maximum, may be adjusted based on Consumer Price Index.	Cal. Civ. Code § 1950.6(b)
Colorado	Not allowed unless the landlord uses the fee amount to cover application processing cost.	Colo. Rev. Stat. § 38-12-903
Connecticut	Not allowed	Conn. Gen. Stat. § 47a-4d
Delaware	Cannot exceed 10% of monthly rent or $50 for manufactured homes.	Del. Code tit. 25 § 7020(d)
Florida	No statute
Georgia	No statute
Hawaii	Allowed for personal reference checks, tenant reports, criminal background check, and credit reports. The landlord must provide a receipt to prospective tenant with a breakdown of the costs and refund any unused portion.	Hawaii Residential Landlord-Tenant Code (Rental Application Screening Fee) Pg. 1 Paragraph 1
Idaho	No statute
Illinois	The landlord may not charge an application fee if the tenant provides a reusable screening report that meets certain criteria.	765 ILCS 705/25(b) Text of Section from P.A. 103-840
Indiana	No statute
Iowa	No statute
Kansas	No statute
Kentucky	No statute
Louisiana	No statute
Maine	The landlord cannot charge a flat application fee. Instead, he can ask the tenant to pay for either a background check, credit check, or any other screening process.	Me. Stat. tit. 14 § 6030-H
Maryland	$25 maximum	Md. Code, Real. Prop. § 8-213(b)(1)(i)
Massachusetts	No statute
Michigan	No statute
Minnesota	The landlord can only request a fee if a unit is already available or available within a reasonable timeframe. The fee must be returned if the applicant gets rejected. Receipt must be provided.	Minn. Stat. § 504B.173
Mississippi	No statute
Missouri	No statute
Montana	No statute
Nebraska	No statute
Nevada	No statute
New Hampshire	Landlord must disclose the amount of fee for application costs such as credit and criminal background checks. If the prospective tenant is not accepted, the fee shall be returned within 30 days.	N.H. Rev. Stat. § 540-A:3(VIII)
New Jersey	None
New Mexico	No statute
New York	Landlords may charge a fee to reimburse costs associated with conducting a background check and credit check, provided the cumulative fee for such checks is no more than the actual cost of the background check and credit check or twenty dollars, whichever is less. Landlords must waive the fee if the potential tenant provides a copy of a background check or credit check conducted within the past thirty days.	N.Y. Real Prop. Law § 238-a
North Carolina	No statute
North Dakota	No statute
Ohio	No statute
Oklahoma	No statute
Oregon	Landlords may require screening application fees solely to cover the costs of obtaining information about an applicant. They can only charge a single applicant once within any 60-day period, regardless of how many applications submitted.	ORS § 90.295
Pennsylvania	No statute
Rhode Island	Landlords, or people representing the landlord shall not be allowed to require or demand any prospective tenant to pay for a rental application fee.	R.I. Gen. Laws § 34-18-59
South Carolina	No statute
South Dakota	No statute. However, any fees must be within reason and non-refundable.
Tennessee	There are no specific limits on the amount landlords can charge for rental application fees in Tennessee.
Texas	Landlords are permitted to request a nonrefundable sum of money to offset the costs of screening an applicant for acceptance as a tenant.	Tex. Prop. Code § 92.351
Utah	No statute.
Vermont	Application fees are prohibited by state law.	Vt. Stat. tit. 9 § 4456a
Virginia	If an applicant fails to rent a unit due to their own actions after submitting an application deposit, the landlord must return the deposit within 20 days, subtracting any damages or expenses incurred. If the application deposit was made using cash, a certified check, cashier’s check, or postal money order, the landlord must refund the deposit within 10 days if the failure to rent the unit is due to the landlord rejecting the application. Landlords are permitted to charge non-refundable application fees to cover the costs of screening applicants.	Va. Code § 55.1-1204
Washington	No statute.
West Virginia	No statute.
Wisconsin	No statute.
Wyoming	No statute.

State-specific requirements

Landlord-tenant law varies dramatically across the 50 states, making state-specific lease provisions essential for legal compliance. Some states mandate specific disclosures be included in every lease: information about sexual offenders residing nearby using our Sex Offender Disclosure Notice , whether the property is in a flood zone with our flood zone disclosure addendum, bed bug history of the unit documented in our bed bug disclosure and policy addendum, presence of mold or prior mold remediation disclosed via our mold disclosure addendum, smoking policies particularly in multi-unit buildings established with our smoke-free housing addendum, and any rent control or stabilization protections that apply.”

Several states require specific language about security deposits including how they’re held, whether interest will be paid, and the process for return with deductions—all covered in our security deposit disclosure addendum.

State laws may dictate maximum late fees, required grace periods before late fees apply, restrictions on non-refundable fees or charges, and limits on application fees or administrative charges. Some states mandate specific procedures for rent increases including minimum notice periods and restrictions on mid-lease increases. Review our rent increase notice requirements by state before implementing any rent changes to ensure compliance with required notice periods and allowable increase limits. Eviction procedures, notice requirements, and prohibited lease terms vary by state—some jurisdictions forbid certain provisions like confession of judgment clauses, waiver of tenant rights, or mandatory arbitration clauses. Always ensure your lease complies with state statutes by having it reviewed by a local real estate attorney, and update it whenever state laws change to maintain enforceability and avoid penalties for using prohibited provisions.

Access our state landlord-tenant statute directory where each state is clickable and directs you to comprehensive state-specific lease requirements, prohibited clauses, and mandatory disclosures for your jurisdiction.”

Renewal rules

Addressing lease renewal well before the current term expires prevents confusion and gives both parties planning time. Most leases either automatically convert to month-to-month tenancy at the end of the fixed term or require specific renewal action by one or both parties. Decide which approach works better for your situation: automatic renewal with either party able to terminate with proper notice provides simplicity, while requiring active renewal gives you natural opportunity to adjust rent, revise terms, or decline to renew. Many landlords provide renewal offers 60-90 days before lease expiration, allowing time for negotiation and giving tenants adequate notice if you choose not to renew. Use our lease renewal offer letter template to formally propose continued tenancy with updated terms, or our lease non-renewal notice template to inform tenants you’re not extending the lease when it expires.”

Your renewal approach should comply with state requirements for non-renewal notices, which often require 30-90 days’ notice before the lease end date if you’re not offering renewal. Some jurisdictions limit your ability to refuse renewal except for specific legal causes, while others allow termination without stating reasons.If continuing the tenancy, decide whether to execute a completely new Residential Lease Agreement or a lease renewal addendum that extends the term while maintaining other original provisions.

Include clear renewal procedures in the original lease explaining what happens at term end, required notice periods from either party, and how rent adjustments for renewal will be determined, whether by mutual agreement, preset escalation clauses, or market rate assessment.

Addendums every landlord should attach

Lease addendums allow you to address property-specific situations, comply with special regulations, or establish clear policies about particular issues without cluttering your main lease agreement. A Lead-Based Paint Disclosure Addendum is federally required for all pre-1978 housing, providing specific warnings and information about lead hazards with EPA-approved language and tenant acknowledgment. Pet addendums establish clear terms when allowing animals: types and number permitted, weight or size restrictions, additional deposits or monthly pet rent, liability for pet damage, and specific rules about noise, waste cleanup, and leash requirements.

Other valuable addendums include Mold Disclosure and Prevention Addendums that shift appropriate maintenance responsibility to tenants for moisture control and mold prevention, Smoking Policy Addendums that designate the unit and property as entirely smoke-free, Bed Bug Addendums that establish prevention responsibilities and protocols if infestations occur, and maintenance responsibility addendums that detail exactly which maintenance tasks fall to tenants versus landlord.

Consider HOA rules addendums when rental property is in a community association, crime-free housing addendums that commit tenants to lawful behavior and establish immediate violation consequences, and utilities responsibility addendums that clarify billing, payment responsibilities, and procedures for each utility service. Move-in/move-out inspection checklists document property condition at both transition points, creating crucial evidence about damage timing and condition changes during the tenancy.

Rent Collection & Late Fees

Accepted payment methods

Modern rent collection requires offering multiple convenient payment options while maintaining clear records and minimizing your processing burden. Most landlords now accept online payments through ACH bank transfers, debit cards, or rent payment platforms that automate collection and provide instant payment confirmation. These digital methods reduce mail delays, check bounce risks, and manual deposit work while providing transparent payment history for both parties. Generate professional Rent Receipts instantly for every payment received, creating automatic documentation that satisfies IRS requirements and resolves tenant payment disputes.

Personal checks remain acceptable but carry bounced check risks, require manual deposit trips, and delay confirmation that payment cleared successfully. Money orders and cashier’s checks offer guaranteed funds but require in-person collection or mail delivery and manual deposit. Use our rent payment tracking ledger to record all payments regardless of method, maintaining comprehensive financial records for tax purposes and potential eviction proceedings.

Cash payments pose significant challenges: you must provide immediate receipts, secure the funds carefully, risk theft during collection or transport, and maintain meticulous records since cash transactions lack the automatic documentation of electronic methods. Many landlords refuse cash entirely or accept it only during regular business hours with strict receipt procedures. Whatever methods you accept, clearly specify them in your lease using our payment methods and procedures addendum that documents acceptable payment forms, where payments should be sent or made, processing timelines, and any fees associated with specific payment methods

Never accept partial rent payments without written agreement, as accepting anything less than full rent can complicate eviction proceedings by being construed as acceptance of payment and waiver of eviction rights for that period. If you must accept partial payment, use our partial rent payment agreement form that explicitly reserves your right to pursue eviction for the remaining balance.

Payment Methods

STATE	PAYMENT METHODS	STATUTE
Alabama	No statute
Alaska	No statute
Arizona	No statute
Arkansas	No statute
California	Landlords shall allow tenants to pay by a form of payment that is neither cash, or electronic transfers. If an issued check has insufficient funds, the landlord may require a cash payment for 3 months maximum	Cal. Civ. Code § 1947.3
Colorado	No statute. Check rental agreement for any specifications.
Connecticut	No statute but common methods are electronic transfers, cash, check, etc.
Delaware	No statute but common methods are electronic transfers, cash, check, etc. If the landlord takes cash payment they are required to provide a receipt to tenant within 15 days.	Del. Code tit. 25 § 5501(e)
Florida	No statute
Georgia	No statute
Hawaii	No statute
Idaho	No statute. Refer to lease agreement for specifications.
Illinois	No statute. If there’s a specific method the landlord requires it should be outlined in the agreement.
Indiana	No statute. Common forms of payment accepted are ACH transfers, checks, cash, etc.
Iowa	No statute
Kansas	No statute
Kentucky	No statute
Louisiana	No statute
Maine	No statute
Maryland	No statute
Massachusetts	No statute
Michigan	No statute
Minnesota	No statute
Mississippi	No statute
Missouri	No statute
Montana	Payable at landlord’s address or via electronic funds.	Mont. Code § 70-24-201(2)
Nebraska	No statute
Nevada	No statute
New Hampshire	No statute
New Jersey	No statute
New Mexico	No statute
New York	No statute
North Carolina	No statute
North Dakota	No statute
Ohio	A landlord and a tenant may include any terms and conditions, including any term relating to rent, the duration of an agreement, and any other provisions governing the rights and obligations of the parties that are not inconsistent with or prohibited by Chapter 5321. of the Revised Code or any other rule of law in the rental agreement.	Ohio Rev. Code § 5321.06
Oklahoma	No statute
Oregon	No statute
Pennsylvania	No statute
Rhode Island	No statute.
South Carolina	No statute.
South Dakota	There is no requirement for a specific payment method for rent.
Tennessee	Tenants are able to pay rent in various methods, but must be approved by the landlord.
Texas	None
Utah	No statute.
Vermont	No statute.
Virginia	No statute.
Washington	No statute.
West Virginia	No statute.
Wisconsin	No statute.
Wyoming	No statute.

Grace periods

Grace periods are voluntary landlord extensions beyond the stated rent due date before late fees apply or eviction proceedings can begin, though they’re required by law in some jurisdictions. Most leases specify rent is due on the first of each month, with late fees beginning after a grace period that commonly ranges from 3 to 5 days. Grace periods account for mail delays, weekend processing delays, or minor timing issues without immediately penalizing tenants. However, “grace period” doesn’t mean rent isn’t technically due on the specified date—it simply means you’ve agreed not to charge late fees until the grace period expires. Document your grace period policy clearly in your lease and communicate it during tenant onboarding using our rent due date and grace period disclosure that prevents confusion about when rent is actually owed versus when penalties begin.

Rent is Due

STATE	RENT IS DUE	STATUTE
Alabama	Due at the beginning of the month unless otherwise agreed to between landlord and tenant.	Ala. Code § 35-9A-161(c)
Alaska	At the beginning of any term of one month or less unless otherwise agreed by all parties.	Alaska Stat. § 34.03.020(c)
Arizona	At the beginning of any term of one month or less unless otherwise agreed by all parties.	Ariz. Rev. Stat. § 33-1314(c)
Arkansas	As defined in the terms of the rental agreement. Periodic rent is due at the beginning of one month’s term or less if it’s a week-to-week scenario.	Ark. Code § 18-17-401
California	Due at the end of the term if lease is less than one year.	Cal. Civ. Code § 1947
Colorado	No statute. Check rental agreement for any specifications.
Connecticut	Rent is payable without demand or notice at the time and place agreed upon in the rental agreement.	Conn. Gen. Stat. § 47a-3a
Delaware	Rent is due at the beginning of the term unless otherwise agreed.	25 Del. C. § 5502
Florida	Due at the beginning of the rent period unless otherwise stated in the terms of agreement.	Fla. Stat. § 83.46(1)
Georgia	No statute. Usually between the 1st and 5th day.
Hawaii	Due at the beginning of the month unless otherwise stated in the rental agreement.	Haw. Rev. Stat. § 521-21(b)
Idaho	No statute. Refer to lease agreement for specifications.
Illinois	No statute. Usually it’s due at the beginning of each month, or week depending on the type of agreement.
Indiana	No statute but usually it’s due at the beginning of each month. If it’s a week-to-week lease then the beginning of each week.
Iowa	At the beginning of the month or each term i.e week to week unless otherwise stated in the rental agreement.	Iowa Code § 562A.9(3)
Kansas	Due at the beginning of each term of tenancy unless otherwise stated in the agreement. I.e each week or month depending on the type of agreement.	Kan. Stat. § 58-2545(c)
Kentucky	At the beginning of each month, or each week in the case of a week-to-week lease unless different terms are agreed to in the rental agreement.	Ky. Rev. Stat. § 383.565
Louisiana	At the beginning of the term unless otherwise stated in the lease agreement.	La. Civ. Code art. 2703
Maine	No statute. Generally at the beginning of the month or term of lease
Maryland	As stated in the lease agreement. Usually at the beginning of the month or week depending on the type of agreement.
Massachusetts	No statute. Usually it’s at the beginning of the month or each term, unless otherwise stated in the lease.
Michigan	No specific statute. Common practice is at the beginning of each month or term if week-to-week for example unless otherwise stated in the lease agreement.
Minnesota	No specific statute. Common practice is at the beginning of each month or term if week-to-week for example unless otherwise stated in the lease agreement.
Mississippi	No statute. Generally at the beginning of the month or term of lease
Missouri	No statute. Usually it’s due at the beginning of the term i.e beginning of the week, or month.
Montana	At the beginning of the month or week depending on the type of lease unless otherwise stated in the lease.	Mont. Code § 70-24-201(2)
Nebraska	At the beginning of the month or term if less than a month unless otherwise stated in the rental agreement.	Neb. Rev. Stat. §§ 76-1414(3)
Nevada	At the beginning of the month or term if less than a month unless otherwise stated in the rental agreement.
New Hampshire	At the beginning of the month or term if less than a month unless otherwise stated in the rental agreement.
New Jersey	Rent is due as it is stated in the rental agreement.
New Mexico	Tenants must pay rent according to the schedule as stated in the rental agreement.	N.M. Stat. § 47-8-15
New York	No statute.
North Carolina	No statute. The lease simply expires per the terms in the rental agreement.
North Dakota	Rent shall be paid monthly at the end of the term, or as otherwise agreed to in the lease.	N.D. Cent. Code § 47-16-20
Ohio	Rent is due according to the terms of the rental agreement.	Ohio Rev. Code § 5321.06
Oklahoma	Rent is due at the time and place agreed to by all parties of the rental agreement.	Okla. Stat. tit. 41 § 109
Oregon	Rent is payable without demand or notice at the time and place agreed upon by the parties in the rental agreement.	ORS § 90.220
Pennsylvania	No statute. Typically rent is paid at the beginning of the month.
Rhode Island	Rent payments are due as agreed in the lease. If no agreement, rent must be paid at the beginning of the month.	R.I. Gen. Laws § 34-18-15
South Carolina	Rent is due without the need for demand or notice, and must be paid at the time and location specified in the lease agreement.	S.C. Code § 27-40-310(c)
South Dakota	Rent is due on a monthly basis at the end of each billing cycle (month).	S.D. Codified Laws § 43-32-12
Tennessee	Unless otherwise agreed by both parties, rent is payable at the beginning of any term of one (1) month or less and otherwise in equal monthly installments at the beginning of each month. Upon agreement, rent shall be uniformly apportionable from day to day.	Tenn. Code § 66-28-201
Texas
Utah	No statute.
Vermont	Rent is due without demand or notice on a date and location the parties agree to in the lease agreement.	Vt. Stat. tit. 9 § 4455(a)
Virginia	No statute.
Washington	No statute.
West Virginia	No statute.
Wisconsin	No statute.
Wyoming	No statute.

Check your state law before establishing grace periods, as some states mandate minimum grace periods before late fees can be assessed. Review our late fee and grace period requirements by state to ensure your policy complies with minimum grace periods, maximum fee limits, and other state-specific rent collection regulations.

Be consistent in applying your grace period policy to all tenants equally, as selective enforcement could be seen as discrimination. Communicate clearly in the lease when rent is actually due versus when late fees begin to avoid confusion. Some landlords prefer not to include grace periods, instead setting rent due dates several days earlier than desired to account for delays, or charging late fees immediately after the due date per state regulations. Whatever approach you choose, document it clearly in writing and enforce it consistently to maintain credibility with all tenants. Use our rent collection policy template to create comprehensive written procedures covering due dates, grace periods, late fees, and enforcement that you can reference when tenant payment issues arise.

Late fee limits

Late fees compensate landlords for additional administrative burden and encourage timely rent payment, but excessive late fees can be challenged as punitive rather than compensatory. State laws typically regulate late fees either by setting maximum dollar amounts, limiting fees to specific percentages of monthly rent, or requiring that fees bear reasonable relationship to actual costs incurred. Common maximum late fee structures include $50 to $100 flat fees, 5-10% of monthly rent, or combination approaches with initial flat fees and daily fees after certain dates.

Some states distinguish between flat late fees assessed once and daily or weekly late fees that continue accumulating until rent is paid. A few jurisdictions prohibit late fees entirely until rent is several days late, effectively mandating grace periods.To avoid enforceability challenges, structure your late fees conservatively within your state’s limits and clearly state them in the lease using our late fee policy clause that includes state-compliant language and proper disclosure formatting.”

Never increase late fees mid-lease without proper notice and lease modification. If you need to adjust late fees for renewals or new leases, our rent and fee increase notice template ensures you provide required notice periods and compliant disclosure language.” Document when late fees are assessed, why they were charged, and maintain records of all communication about late payments. If tenants challenge late fees as excessive, courts evaluate whether fees are genuine pre-estimated damages or improper penalties, so ensuring your fees align with actual costs and state limits is critical for enforceability. 

Late Fees

STATE	RULE	STATUTE
Alabama	No statute
Alaska	The law doesn’t specify a maximum late fee, so the usury rate applies per year. No fees are enforceable unless previously agreed too.	The Alaska Landlord and Tenant Act Page 4
Arizona	$5 per day if rent is not paid by the sixth day from the due date.	Ariz. Rev. Stat. § 33-1414(c)
Arkansas	No statute
California	No statute
Colorado	$50 or 5% of rent maximum after rent is 7 days late.	Colo. Rev. Stat. § 38-12-105
Connecticut	$5/day maximum $50 or 5% of delinquent rent payment	Conn. Gen. Stat. § 47a-15a
Delaware	Late fee shall not exceed 5% of monthly rent.	Del. Code tit. 25 § 5501(d)
Florida	No statute
Georgia	No statute. Usually, they are detailed in the rental agreement.
Hawaii	Shall not exceed 8% of rent due.	Haw. Rev. Stat. § 521-21(f)
Idaho	No statute. Refer to lease agreement for specifications.
Illinois	$20 or 20% of the rent amount, whichever is greater, provided that it was stated in the agreement beforehand.	770 ILCS 95/7.10(c)
Indiana	No statute
Iowa	$12/day maximum $60/month for rent that doesn’t exceed $700/month. If the rent exceeds $700/month then the late fee can be $20/day up to $100/month.	Iowa Code § 562A.9(4)
Kansas	No statute. Usually they need to be specified in the lease agreement.
Kentucky	No statute
Louisiana	No statute, however, they must be stated in the lease.	Attorney General’s Guide to Louisiana’s Landlord & Tenant Laws (Non-payment of Rent) Pg. 11
Maine	A maximum fee of 4% of the monthly rent is allowed as long as it’s stated on the rental agreement.	Me. Stat. tit. 14 § 6028
Maryland	5% of rent maximum. If tenancy is weekly then $3/day maximum not to exceed $12/month.	Md. Code, Real. Prop. § 8-208(d)(3)(i)(ii)
Massachusetts	Can be imposed 30 days after rent is due	Mass. Gen. Laws ch. 186 § 15B(1)(c)
Michigan	No statute
Minnesota	8% of rent maximum. Amount must be stated in the lease.	Minn. Stat. § 504B.177
Mississippi	No statute. Usually needs to be stated in the lease.
Missouri	No statute. Usually it needs to be stated in the lease.
Montana	No statute. However, if any late fees are to be imposed it must be stated in the lease.
Nebraska	No statute. However, it’s common practice to state any late fees in the lease agreement.
Nevada	No statute. However, it’s common practice to state any late fees in the lease agreement.
New Hampshire	No statute. However, it’s common practice to state any late fees in the lease agreement.
New Jersey	Late fees are permitted, though the provision and terms must be stated in the rental agreement.
New Mexico	Late fess must adhere to the terms of the lease, but cannot be more than ten (10%) percent of the total amount due for the term in default.	N.M. Stat. § 47-8-15
New York	No statute
North Carolina	The parties may agree to a late fee not inconsistent with the provisions of this statute, to be chargeable only if any rental payment is five (5) calendar days or more late, with the first day being the day after the rent was due. See statute for tiered fees.	N.C. Gen. Stat. § 42-46
North Dakota	Late fees may be imposed only if it is a provision originally stated in the lease agreement. The stipulations of the fees including the amount and when it can be charged must be included in the lease.
Ohio	No statute, but case law permits limited fees if included and specified in the lease.	Ohio Rev. Code § 5321.06
Oklahoma	No statute. Some case law is allowed with certain restrictions.
Oregon	Late fees are allowed if documented in the lease. See statute for stipulations.	ORS § 90.260
Pennsylvania	No statute.
Rhode Island	No statute.
South Carolina	No statute, but late fees are permitted and can be considered “rent” for the purposes of debt collection.	S.C. Code § 27-40-210
South Dakota	No statute. However, lessors may add language regarding late fees in the lease.
Tennessee	A landlord is permitted to charge a fee for late payment of rent beginning after the fifth day that rent is due. It shall not exceed ten percent (10%) of the amount of rent past due.	Tenn. Code § 66-28-201
Texas	Landlords must allow a two-day grace period before charging late fees. Late fees must also be disclosed in the lease, and cannot be more than 12% of the rent for properties with less than five units, or 10% for properties with more than four units.	Tex. Prop. Code § 92.019
Utah	No statute.
Vermont	No statute, though the 1991 Vermont Supreme Court ruling in Highgate Associates, Ltd. v. Lorna Merryfield established a prohibition against late fees which are charged as penalties. Late fees charged as actual compensation for costs incurred by landlords as a result of delayed rent payments are the only acceptable times that a late fee can be charged.
Virginia	Landlords are permitted charge late fees for rent if the written rental agreement includes a “Late Fees” clause.	Va. Code § 55.1-1204
Washington	No statute.
West Virginia	Late fees are allowed, though they must be specified in the lease.	W. Va. Code § 37-6A-2
Wisconsin	Late fees are allowed, but all fees must be disclosed in the lease.	Wis. Stat. Ann. §§ 704.17
Wyoming	No statute.

Returned check rules

Bounced checks create administrative hassles and highlight potential financial problems with tenants, making clear returned check policies essential. Most leases include returned check fees to recover bank charges and compensate for your additional collection efforts using our returned check fee clause that specifies exact fee amounts and complies with state limitations.

State laws may limit these fees to your actual bank charges, multiples of bank charges, or specific dollar maximums like $25-50. When checks bounce, you must typically notify tenants immediately using our returned check notice template, demand payment by certified funds within a specific timeframe, and assess applicable returned check fees plus any late fees that have accrued documented in our returned check demand letter.

After one or two bounced checks, most landlords require certified funds only (money orders, cashier’s checks, or electronic payments) for all future rent payments from that tenant, eliminating bounce risk going forward. Some states allow you to recover actual costs and damages resulting from bounced checks beyond just the check fee, while others treat bounced checks as automatic material lease violations that can form grounds for eviction after proper notice.”Include clear language in your lease about returned check consequences: applicable fees, requirement to replace the payment with certified funds within a short timeframe, conversion to certified-funds-only status after bounced checks, and potential eviction if replacement payment isn’t received timely. Our comprehensive returned check policy addendum covers all aspects of bounced check handling including fees, replacement requirements, and escalation procedures.

Taking a bounced check to small claims court or pursuing criminal bad check charges may be options in extreme situations, though eviction for non-payment is typically the faster, more effective remedy. If pursuing collection, use our small claims court guide for unpaid rent and bad check affidavit template to document your case properly.

STATE	RETURNED CHECK FEES	STATUTE
Alabama	$30 + additional fees	Ala. Code § 8-8-15
Alaska	No statute
Arizona	$25 + any fees charged by financial institution.	Ariz. Rev. Stat. § 44-6852
Arkansas	$30 fee per check + any additional bank fees.	Ark. Code § 5-37-304(a)(3)
California	$25 for first check and $35 for each subsequent check	Cal. Civ. Code § 1719
Colorado	Fees vary depending on situation. Please refer to statute	Colo. Rev. Stat. § 13-21-109
Connecticut	Amount to be determined by the court and/or the bank.	Conn. Gen. Stat. § 52-565a(b)(c)
Delaware	$50 for the first instance within 1 year, not exceeding $250.	Del. Code tit. 6 § 1301A(a)
Florida	No statute
Georgia	May be liable for 2x the amount of the check with a limit of $500 + court costs. Payee can charge $30 or 5% fee (whichever greater) to cover fees incurred by their financial institution.	Ga. Code § 13-6-15(a)(b)
Hawaii	$30 maximum	Haw. Rev. Stat. § 490:3-506.5
Idaho	A tenant may be liable for the check amount plus damages of $100 or triple the check (whichever is greater)	Idaho Code § 1-2301A
Illinois	$25, or all costs & expenses plus attorney’s fees.	810 ILCS 5/3-806
Indiana	$25 for first check; $35 for subsequent checks	Ind. Code § 24-4.5-7-202
Iowa	$30 maximum	Iowa Code § 554.3512
Kansas	$100 and damages 3x the amount of the check not to exceed $500.	Kan. Stat. § 60-2610(a)(1)(2)
Kentucky	$50 maximum.	Ky. Rev. Stat. § 514.040(5)
Louisiana	$25 or 5% of face value of check	La. Stat. tit. 9 § 2782
Maine	The check holder may be compensated for the amount of the check, court costs, processing fees, and 12% interest per annum.	Me. Stat. tit. 14 § 6071
Maryland	No statute
Massachusetts	If the amount is less than $2,500 the penalty is $25. If it exceeds that amount, the fee is 1% of the check amount.	Mass. Gen. Laws ch. 60 § 57A
Michigan	$25 if paid within 7 days. $35 if paid within 30 days. May be liable for up to 2x the amount of the check, plus fees of $250.	Mich. Comp. Laws § 600.2952
Minnesota	$30 fee	Minn. Stat. § 604.113
Mississippi
Missouri	$25 for checks less than $100. $50 for checks between $100-249. 10% of face amount as a fee not to exceed $75.	Mo. Rev. Stat. § 570.120
Montana	$30 fee	Mont. Code § 27-1-717
Nebraska	$10 + any handling fees.	Neb. Rev. Stat. §§ 28-611(5)
Nevada	3x the amount of check. No less than $100 and not to exceed $500.	Nev. Rev. Stat. § 41.620(1)(b)
New Hampshire	Issuer must pay amount of check plus any fees associated within 14 days of receiving notice that the check was denied.	N.H. Rev. Stat. § 638:4
New Jersey	Thirty five (35) days after a demand for remedy due to a bad check, landlords can charge $100 or triple the face amount of the check, whichever is greater. Maximum $500.	N.J. Stat. § 2A:32A-1
New Mexico	A fee of $20 can be charged for any bad or bank returned check.	N.M. Admin. Code § 14.5.5.15
New York	Landlords may collect a fee for a dishonored check for no more than twenty dollars ($20) if specified in the lease.	N.Y. Gen. Oblig. Law § 5-328
North Carolina	For a check on which payment has been refused by the payor bank because of insufficient funds or because the drawer did not have an account at that bank, the check holder may charge and collect a processing fee, not to exceed thirty-five dollars ($35.00).	N.C. Gen. Stat. § 25-3-506
North Dakota	Subject to a fee of no more than $40.00 to the check holder.	N.D. Cent. Code § 6-08-16
Ohio	If a check has been returned or dishonored for any reason, the collection agency may charge and receive check collection charges at a maximum of thirty dollars or ten per cent of the face amount of the check’s value, whichever is greater.	Ohio Rev. Code § 1319.16
Oklahoma	No statute.
Oregon	The amount of the fee may not exceed $35.00 plus any amount that a bank has charged the landlord for the attempt to process the dishonored check.	ORS § 90.302
Pennsylvania	Landlords can charge up to $50 for a returned check fee for a rent payment. If the financial institution processing the bad check charges more than $50, the landlord can charge the actual amount of the fee.
Rhode Island	(1) A service charge not to exceed $25.00; (2) A collection fee of twenty-five dollars ($25.00); (3) An amount equal to three (3) times the amount of the check or $200 (whichever is greater) and in no case more than one thousand dollars ($1,000).	R.I. Gen. Laws § 6-42-3
South Carolina	Landlords can charge a maximum fee of $30 for a bounced or returned check. This fee may be charged for each occurrence of a bounced or return check.	S.C. Code § 34-11-70
South Dakota	Returned check fees cannot exceed $40.00. Written notice of the fee must be provided to the lessee.	S.D. Codified Laws § 57A-3-422
Tennessee	The landlord is authorized to assess a handling charge against the check maker in an amount not to exceed $30.00.	Tenn. Code § 47-29-102
Texas	See statute.	Tex. Prop. Code § 92.1031
Utah	$20	Utah Code § 7-15-2
Vermont	No statute.
Virginia	$50 plus additional costs of collection and attorney’s fees	Va. Code § 8.01-27.1
Washington	Returned check fees are allowed, but must not exceed $40.00, or the face amount of the check – whichever is less.	Wash. Rev. Code § 62A.3-515
West Virginia	Returned check fee is $25.00 per returned check.	W. Va. Code § 61-3-39
Wisconsin	No statute.
Wyoming	Landlords are permitted to charge a fee no greater than $30.	Wyo. Stat. § 1-1-115 (b)

 

Understanding Emergency Entry Without Notice