Security Deposits: Limits, Deadlines, and Deductions
By LandlordShark Editorial Team · Published · Last reviewed November 1, 2026
General information, not legal advice
Landlord-tenant rules differ by state and city. Check your local statutes or talk to a licensed attorney before acting. Full disclaimer.Security deposit disputes are among the most common landlord-tenant conflicts, and in many states a mistake can cost you the deposit plus penalties. Deposit law is set mainly by states, so this guide covers the common patterns and where to look up your own rules.
What a security deposit is for
A deposit secures the tenant’s obligations under the lease. You can generally use it for:
- Unpaid rent
- Damage beyond normal wear and tear
- Cleaning needed to return the unit to its move-in level of cleanliness, where state law allows
- Other charges the lease and state law allow
You generally cannot use it to cover normal wear and tear, such as faded paint after a multi-year tenancy or carpet worn by ordinary foot traffic.
Four rules most states share
- Limits on the amount. Some states cap the deposit, often at one or two months’ rent. Others have no cap.
- Where it is held. Some states require a separate account, and some states or cities require interest to be paid to the tenant.
- A deadline to return it. After move-out you must return the deposit, along with an itemized list of any deductions, within a set number of days.
- Itemization. Deductions usually need to be listed in writing, sometimes with receipts or estimates.
State examples
These examples show how much the rules differ. Confirm the current rule before you rely on it.
| State | Typical cap | Return deadline after move-out |
|---|---|---|
| California | One month’s rent for most landlords since July 1, 2024; a small landlord (a natural person, or an LLC whose members are all natural persons, owning no more than two rental properties with no more than four units total) may charge up to two months, except to a service member (Civ. Code 1950.5) | 21 calendar days |
| New York | One month’s rent for most rentals (GOL 7-108) | 14 days, with an itemized statement |
| Texas | No statutory cap; the deposit sections of the Property Code define a deposit but set no maximum | 30 days after the tenant surrenders the unit (Prop. Code 92.103) |
| Florida | No statutory cap | 15 days if no deductions; 30 days to send written notice of a claim by certified mail, or by email if both parties signed an email-notice addendum (Fla. Stat. 83.49, 83.505) |
Legal heads-up
Missing a deadline or skipping the itemized statement can cost you the right to withhold anything and may expose you to penalties. Look up your state's landlord-tenant statute or your attorney general's landlord guide, and check city rules too.Document everything from day one
Most deposit fights are won or lost on evidence.
- Move-in inspection: complete a written checklist with dated photos or video, and have the tenant sign it.
- Move-out inspection: repeat the same walkthrough in the same order.
- Receipts and quotes: keep invoices for any work you deduct.
- Forwarding address: get it in writing before the tenant leaves.
Normal wear and tear vs damage
| Normal wear and tear | Damage |
|---|---|
| Minor scuffs on walls | Large holes or crayon on walls |
| Faded paint or light carpet wear | Pet stains, burns, or tears |
| Small nail holes from pictures | Broken fixtures or doors |
| Loose door handles from age | Missing appliances or fixtures |
How to handle a move-out
- Schedule a walkthrough and compare it to the move-in checklist.
- Total unpaid rent and legitimate repair costs.
- Send the itemized statement and any remaining deposit by the deadline.
- Keep a copy of everything for at least as long as your state’s statute of limitations.
If a dispute reaches small claims court, a clear paper trail is your best evidence.