Iowa Statewide Rule
Iowa Security Deposit Law: 2-Month Cap, 30-Day Return
Key Facts
- Deposit cap
- 2 months' rent
- Return deadline
- 30 days after termination and receipt of tenant's mailing address
- Itemized statement
- Required; failure within 30 days forfeits right to withhold any deposit
- Statute
- Iowa Code 562A.12
- Penalty
- Bad faith: punitive damages up to twice the monthly rent, plus actual damages and attorney fees
Summary
Iowa caps a security deposit at two months' rent. Under Iowa Code 562A.12, a landlord must return the deposit, or a written statement of deductions, within 30 days after the tenancy ends and the landlord receives the tenant's mailing address. A landlord who misses the 30-day deadline forfeits all right to withhold any portion of the deposit.
562A.12 Rental deposits. 1. A landlord shall not demand or receive as a security deposit an amount or value in excess of two months' rent. 2. All rental deposits shall be held by the landlord for the tenant, who is a party to the agreement, in a bank or savings and loan association or credit union which is insured by an agency of the federal government. Rental deposits shall not be commingled with the personal funds of the landlord. Notwithstanding the provisions of chapter 543B, all rental deposits may be held in a trust account, which may be a common trust account and which may be an interest-bearing account. Any interest earned on a rental deposit during the first five years of a tenancy shall be the property of the landlord. 3. a. A landlord shall, within thirty days from the date of termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the rental deposit to the tenant or furnish to the tenant a written statement showing the specific reason for withholding of the rental deposit or any portion thereof.
Full Breakdown
Iowa Code 562A.12 governs rental deposits. Subsection 1 states a landlord "shall not demand or receive as a security deposit an amount or value in excess of two months' rent." Within 30 days from termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, the landlord must return the deposit or furnish a written statement showing the specific reason for withholding (562A.12(3)). Deductions are limited to unpaid rent or other funds due, restoring the unit to its original condition (ordinary wear and tear excepted), and recovering possession from a non-good-faith holdover tenant. A landlord who fails to give the written statement within 30 days "shall forfeit all rights to withhold any portion of the rental deposit" (562A.12(4)). The landlord bears the burden of proving the reason for any withholding.
Violations & Penalties
Under Iowa Code 562A.12(7), bad-faith retention of a deposit subjects the landlord to punitive damages not to exceed twice the monthly rental payment, in addition to actual damages. Section 562A.12(8) lets the court award reasonable attorney fees to the prevailing party in any action on the rental agreement.
Frequently Asked Questions
How much can a landlord charge for a security deposit in Iowa?
How long does a landlord have to return a security deposit in Iowa?
What can a landlord deduct from a security deposit in Iowa?
Sources
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