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Being a landlord comes with all kinds of benefits, but it sometimes means navigating confusing regulations and legal guidelines.

One of the more important of those guidelines is how you handle your tenant’s security deposits. 

The problem? Rules differ across all 50 states and knowing exactly what rules and regulations you need to follow can be… confusing to figure out, to say the least.

Regulations can include:

  • How much security deposit you can collect
  • Where you’re allowed to store those security deposits 
  • What you’re allowed to deduct 
  • And how soon you need to return all or part of the tenant’s security deposit from lease-end 

Keep reading to find out everything you need to know about escrow accounts for security deposits, as well as your state or municipality’s specific rules and regulations regarding security deposits. 

Landlords required escrow account

Escrow accounts for security deposits

Many states require landlords to use an escrow account for security deposits, but it depends on what state the property is located.

In those states where escrow accounts are required for security deposits, specific rules often apply. Such as:

  • The funds must be deposited into a financial institution located within said state
  • And you must inform the tenant of the location of the funds

Check below to find out the specific rules for security deposits in your state. 

Requirements by state

If you’ve been looking for information about security deposits and how to handle them, it can be pretty confusing.

That’s because not only does every state have rules and regulations that you need to follow, most states have different rules.  

In fact, rules can differ wildly between states.

To that end, we’ve organized a list of rules regarding the handling of security deposits for all 50 states. 

Information is organized into 4 categories based on:

  • Is an escrow account required: Yes/No
  • Additional guidelines: If yes, the additional guidelines that apply. 
  • Security deposit amount: Maximum of [X] amount
  • What can you deduct funds for: [Items]
  • Deadline for returning security deposit funds (after lease-end): X days

Just scroll down to find your state and its specific security deposit guidelines.

For more information on landlord tenant laws and rental laws in each of the 50 states, check out our resources page: Real Estate Rental Laws in the US

Note: While this information is a good starting point, it’s important to contact your local municipality or a lawyer in the area to make sure you’re following your state’s laws. 

Does my state require escrow account

Alabama 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 1 months’ rent
  • What can you deduct funds for: Repairs (minus wear-and-tear), unpaid rent
  • Deadline for returning security deposit funds (after lease-end): 60 days

Read more on Alabama rent and security deposit-related laws: Alabama Landlord Tenant Laws & Rights for 2022

Alaska 

  • Is an escrow account required: Yes
  • Additional guidelines: Must provide tenant with conditions of refund and information on potential deductions
  • Security deposit amount: Maximum of 2 months’ rent
  • What can you deduct funds for: Repairs minus normal wear-and-tear or landlord-caused damages
  • Deadline for returning security deposit funds (after lease-end): 14 days unless proper notification isn’t received from the tenant, in which case 30 days. 

Arizona 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 1.5 months’ rent
  • What can you deduct funds for: Repairs minus normal wear-and-tear, lease violations
  • Deadline for returning security deposit funds (after lease-end): 14 days

Read more on Arizona rent and security deposit-related laws: Arizona Landlord Tenant Laws & Rights for 2022

Arkansas 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 2 months’ rent if you own six or more properties or if you have a property manager collect rent on your behalf 
  • What can you deduct funds for: Repairs minus normal wear-and-tear, lease violations, cleaning costs
  • Deadline for returning security deposit funds (after lease-end): 60 days

Read more on Arkansas rent and security deposit-related laws: Arkansas Landlord Tenant Laws & Rights for 2022.

California 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 2 months’ rent
  • What can you deduct funds for: Repairs minus normal wear-and-tear, lease violations, cleaning costs
  • Deadline for returning security deposit funds (after lease-end): 21 days

Read more on California rent and security deposit-related laws: California Landlord Tenant Laws & Rights for 2022

Colorado 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Repairs minus normal wear-and-tear, lease violations, cleaning costs, abandonment of property 
  • Deadline for returning security deposit funds (after lease-end): Up to 60 days if specified within the lease, 30 if not

Read more on Colorado rent and security deposit-related laws: Colorado Landlord Tenant Laws & Rights for 2022

Connecticut 

  • Is an escrow account required: Yes
  • Additional guidelines: Funds must be kept in a Connecticut-based financial institution and interest paid out to the tenant annually 
  • Security deposit amount: Maximum of 2 months’ rent for tenants under age 62, or 1 months’ rent for tenants 62 or older
  • What can you deduct funds for: Repairs minus normal wear-and-tear, lease violations, cleaning costs
  • Deadline for returning security deposit funds (after lease-end): 30 days, or 15 days from the day you receive the tenant’s forwarding address

Read more on Connecticut rent and security deposit-related laws: Connecticut Landlord Tenant Laws & Rights for 2022

Delaware

  • Is an escrow account required: Yes
  • Additional guidelines: Must be placed with a Delaware-based financial institution, landlord must provide the tenant with information on the location of the funds
  • Security deposit amount: Maximum of 1 months’ rent for 1-year leases or longer, no limit for month-to-month, first year leases, or furnished rentals. Tenant may offer a surety bond instead of paying a deposit. 
  • What can you deduct funds for: Repairs minus normal wear-and-tear, lease violations, early lease termination
  • Deadline for returning security deposit funds (after lease-end): 20 days

Read more on Delaware rent and security deposit-related laws: Delaware Landlord Tenant Laws & Rights for 2022

Florida 

  • Is an escrow account required: Yes
  • Additional guidelines: Account must be with a Florida-based institution, accrued interest must be paid out to tenant annually
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Repairs minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days, 15 days if there are no deductions to be made

Read more on Florida rent and security deposit-related laws: Florida Landlord Tenant Laws & Rights for 2022

Georgia 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be placed with a Georgia-based financial institution, landlord must inform tenant of the location of the funds
  • Security deposit amount: 1 month
  • What can you deduct funds for: Repairs minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills, pet fees, early lease violations
  • Deadline for returning security deposit funds (after lease-end): X days

Read more on Georgia rent and security deposit-related laws: Georgia Landlord Tenant Laws & Rights for 2022

Hawaii 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: 1 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, cleaning costs, early lease termination
  • Deadline for returning security deposit funds (after lease-end): 14 days

Read more on Hawaii rent and security deposit-related laws: Hawaii Landlord Tenant Laws & Rights for 2022

Idaho 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 21 days

Read more on Idaho rent and security deposit-related laws: Idaho Landlord Tenant Laws & Rights for 2022

Illinois

  • Is an escrow account required: No official guidelines
  • Additional guidelines: Interest must be paid to tenants with deposits older than 6 months if the landlord has more than 25 units in the same building
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 30 days if making deductions, 45 days if not

Read more on Illinois rent and security deposit-related laws: Illinois Landlord Tenant Laws & Rights for 2022

Indiana 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 45 days

Read more on Indiana rent and security deposit-related laws: Indiana Landlord Tenant Laws & Rights for 2022

Iowa 

  • Is an escrow account required: Yes
  • Additional guidelines: Accrued interest must be paid out to tenant
  • Security deposit amount: 2 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Iowa rent and security deposit-related laws: Iowa Landlord Tenant Laws & Rights for 2022

Kansas 

  • Is an escrow account required: Yes
  • Additional guidelines: Accrued interest must be paid out to tenant
  • Security deposit amount: Maximum of 1 month, 1.5 months for furnished, and 1.5 months with pets
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days

Kentucky 

  • Is an escrow account required: Yes
  • Additional guidelines: Must present the tenant with a list of pre-existing damages, must be placed in a state or federally insured institution, must inform the tenant of the accounts location
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days, or up to 60 days if the tenant disputes any deductions

Louisiana 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Louisiana rent and security deposit-related laws: Louisiana Landlord Tenant Laws & Rights for 2022

Maine 

  • Is an escrow account required: Yes
  • Additional guidelines: Required to be kept in a bank account which is safe from creditors, and landlord must let tenant know where the account is located
  • Security deposit amount: Maximum of 2 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 21 days for tenancy-at-will, 30 days with a rental agreement

Maryland 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be placed in an interest-bearing account (3% or more every 6 months) or post a surety bond for the deposit amount
  • Security deposit amount: Maximum of 2 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 45 days

Read more on Maryland rent and security deposit-related laws: Maryland Landlord Tenant Laws & Rights for 2022

Massachusetts 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be an interest-bearing account and must pay interest out annually, but be a Massachusetts-based financial institution  
  • Security deposit amount: Maximum of 1 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid water utility bills
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Massachusetts rent and security deposit-related laws: Massachusetts Landlord Tenant Laws & Rights for 2022

Michigan 

  • Is an escrow account required: Yes (or held in a surety bond)
  • Security deposit amount: Maximum of 1.5 month’s rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Michigan rent and security deposit-related laws: Michigan Landlord Tenant Laws & Rights for 2022

Minnesota 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be an interest-bearing account (1% or greater)
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 21 days after receiving forwarding address

Mississippi 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 45 days

Missouri 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 2 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 30 days

Montana

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, late fees
  • Deadline for returning security deposit funds (after lease-end): 10 days if no deductions, 30 days deductions will be made

Nebraska 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 1 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 14 days

Nevada 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 3 months’ rent, 1 month if public housing
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, cleaning costs
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Nevada rent and security deposit-related laws: Nevada Landlord Tenant Laws & Rights for 2022

New Hampshire 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be a New Hampshire-based financial institution, must let tenant know where the funds are located upon request
  • Security deposit amount: Maximum of 1 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 20 days if no tenancy-at-will, 30 days with a written agreement

New Jersey 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be a money market or interest-bearing checking account via a New Jersey-based financial institution, must pay tenant interest annually, if landlord owns 10 or more units and places the deposits in a checking account the interest rate must be equal to the institution’s money markets
  • Security deposit amount: Maximum of x
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on New Jersey rent and security deposit-related laws: New Jersey Landlord Tenant Laws & Rights for 2022

New Mexico 

  • Is an escrow account required: Yes, but only if you’re requiring more than 1 months’ rent
  • Security deposit amount: No limit if the lease is 1 year or more, 1 months’ rent if the lease is less than one year
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on New Mexico rent and security deposit-related laws: New Mexico Landlord Tenant Laws & Rights for 2022.

New York 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be placed with a New York-based financial institution, if landlord owns 6 or more units the account must earn interest based on the area’s average rate
  • Security deposit amount: No limit if subject to the Emergency Housing Rent Control Law or City Rent and Rehabilitation Law. Maximum of 1 months’ rent if not
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 14 days

Read more on New York rent and security deposit-related laws: New York Landlord Tenant Laws & Rights for 2022

North Carolina 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be a North Carolina-based financial institution
  • Security deposit amount: Maximum of 2 months’ rent for 2-month or greater lease terms, 1.5 months for month-to-month terms
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills, eviction/removal fees, legal fees
  • Deadline for returning security deposit funds (after lease-end): 30 days, with up to a 30 day extension if there is a dispute

Read more on North Carolina rent and security deposit-related laws: North Carolina Landlord Tenant Laws & Rights for 2022

North Dakota 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be kept in an interest-bearing account 
  • Security deposit amount: Maximum of 1 months’ rent, 2 months’ rent or $2,500 (whichever is greater) for pet deposit, and up to 2 months’ rent for tenants who have a felony conviction
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, cleaning fees
  • Deadline for returning security deposit funds (after lease-end): 30 days

Ohio 

  • Is an escrow account required: No, if deposit is less than 1 month’s rent. Yes, if greater than. 
  • Additional guidelines: Must be kept an interest-bearing account
  • Security deposit amount: None
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Ohio rent and security deposit-related laws: Ohio Landlord Tenant Laws & Rights for 2022

Oklahoma 

  • Is an escrow account required: Yes
  • Additional guidelines: Must be an Oklahoma-based financial institution
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 45 days

Oregon 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No limit
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 31 days

Read more on Oregon rent and security deposit-related laws: Oregon Landlord Tenant Laws & Rights for 2022

Pennsylvania

  • Is an escrow account required: Yes
  • Additional guidelines: Landlord must provide the tenant the name and address of the bank and the deposit amount
  • Security deposit amount: Maximum of 2 months’ rent for the first year, 1 months’ rent for years 2 and on. If the tenant has rented the property for 5 or more years, the deposit can not be increased further. 
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days

Rhode Island 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 1 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 20 days days

South Carolina 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • Additional guidelines: Landlords may only charge differing amounts to tenants if the units are not comparable to one another and they must notify all tenants of said discrepancy. 
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days

South Dakota 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: Maximum of 1 months’ rent, with the ability to charge more in the event of circumstances that may cause damage to the property such as with a pet
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 14 days

Tennessee

  • Is an escrow account required: Yes
  • Additional guidelines: Can be a state or federal institution 
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): No official guidelines 

Read more on Tennessee rent and security deposit-related laws: Tennessee Landlord Tenant Laws & Rights for 2022

Texas 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 30 days, unless lease requires written notice of intention to vacate premises and tenant does not send a notice before vacating 

Read more on Texas rent and security deposit-related laws: Texas Landlord Tenant Laws & Rights for 2022

Utah 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, cleaning fees
  • Deadline for returning security deposit funds (after lease-end): 30 days

Read more on Utah rent and security deposit-related laws: Utah Landlord Tenant Laws & Rights for 2022

Vermont 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 14 days for primary residence, 60 days for seasonal/non-primary residence

Virginia 

  • Is an escrow account required: No
  • Additional guidelines: Itemized records are required for all security deposits
  • Security deposit amount: Maximum of 2 months’ rent
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 45 days, with a 30-day deadline for itemizing those deductions 

Read more on Virginia rent and security deposit-related laws: Virginia Landlord Tenant Laws & Rights for 2022

Washington

  • Is an escrow account required: Yes
  • Additional guidelines: Guidelines are pretty open. Can be a state or federally regulated financial institution, a dedicated trust account, or an escrow account through a Washington institution or agent
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations
  • Deadline for returning security deposit funds (after lease-end): 21 days

Read more on Washington rent and security deposit-related laws: Washington Landlord Tenant Laws & Rights for 2022

West Virginia 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 60 days, with an optional 15 additional days if the deposit amount doesn’t fully cover damages

Wisconsin 

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, unpaid utility bills
  • Deadline for returning security deposit funds (after lease-end): 21 days

Wyoming

  • Is an escrow account required: No official guidelines
  • Security deposit amount: No official guidelines
  • What can you deduct funds for: Damages minus normal wear-and-tear, unpaid rent, lease violations, cleaning fees
  • Deadline for returning security deposit funds (after lease-end): 30 days, with an additional 30 days if deductions are made due to damages

For more information on landlord/tenant laws and rental laws in each of the 50 states, check out our resources page: Real Estate Rental Laws in the US.

Opening an escrow account

Opening an escrow account for security deposits can be as easy as opening multiple checking accounts, all depending on how you’d prefer to do it.

Many banks allow you to open a major checking account with multiple connected savings accounts. 

Once you find the right account for you, setting up is generally pretty easy.

Here’s how to get started:

1. Choose an account

You’ll ideally want to find an account designed for landlords for the purpose of storing security deposits, but there are general accounts that also work as good starter options. 

Services like Capital One’s 360 Performance Savings Account are one good example of a general account.

It serves the purpose well as you can create one main account with several dozen connected savings accounts. 

Beyond that, more tailored services exist for security deposit escrow accounts. 

Examples of services that offer this kind of tailored account include: 

2. Set up your account

If you’ve set up a business banking account, this isn’t typically all that much different. 

If the account is designed as a security deposit escrow account, you may need to provide your tenant’s information for each account that you’re opening.

3. Transfer the security deposit funds

Lastly, simply transfer the funds into the appropriate account.

Make sure the amounts line up and regardless of what account you use, you have an easy way to view and access those accounts in the event that you need to release deposit funds to a tenant. 

FAQs

Q. How long does a landlord have to return a security deposit?

Typically starting upon the tenant’s end of lease date, a landlord has a specified number of days based upon their state’s laws to return that tenant’s security deposit.

Once the landlord has calculated:

  • Damages and other repairs (not including normal wear-and-tear)
  • Unpaid rent
  • And any other lease violations 

The remainder of the security deposit must be returned to the tenant.

In some states, such as California, that time period is 21 days. In others, such as Indiana, that’s 45 days.

However, the most common time period by far is 30 days from the end-of-lease date. 

Q: What happens if a landlord does not return a security deposit in the required number of days?

The consequence for not refunding a tenant’s security deposit depends on whether the tenant decides to take action.

However, a tenant can seek remediation and sue you for the unreturned security deposit amount, as well as seek claims against the landlord that can result in a larger amount owed than just the original security deposit. 

For this reason, it’s important to maintain a separate escrow account for all security deposits as well as save supporting documentation such as inspections reports in case a tenant disputes their deposit upon exiting their lease. 

Additional Resources:

David Bitton

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!