Iowa Security Deposit Law
Iowa rules on security deposits for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-22.
Short answer: Two months' rent. Iowa Code § 562A.12(1)
The rules in Iowa
| Security deposit limit | Two months' rent. Deposits must be held in a federally insured bank, savings and loan, or credit union and not commingled with the landlord's personal funds. Source: Iowa Code § 562A.12(1) |
|---|---|
| Deposit return deadline | Within 30 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the deposit or give a written statement of the specific reasons for withholding. If no address is provided within one year, the deposit reverts to the landlord. Source: Iowa Code § 562A.12(3)-(4) |
| Itemized deductions | Written statement showing the specific reason for withholding any portion; if withheld for restoration, it must specify the nature of the damages. Allowed deductions: unpaid rent or other funds due under the lease, restoring the unit to move-in condition (ordinary wear and tear excepted), and costs of recovering possession from a tenant who fails in bad faith to vacate. Landlord bears the burden of proof. A landlord who fails to send the statement within 30 days forfeits all rights to withhold any portion (§ 562A.12(4)). Source: Iowa Code § 562A.12(3) |
| Interest on deposits | No interest owed to the tenant for the first five years of a tenancy; deposits may be held in an interest-bearing account and interest earned during the first five years belongs to the landlord. The statute does not expressly state who owns interest after year five. Source: Iowa Code § 562A.12(2) |
| Penalty for withholding | Bad-faith retention: actual damages plus punitive damages of up to twice the monthly rent; court may award reasonable attorney fees to the prevailing party. Source: Iowa Code § 562A.12(7)-(8) |
Free calculators
- Security Deposit Deadline Calculator — See when your landlord must return your deposit, and the penalty your state sets if they don't.
Templates
Related questions
- How long does a landlord have to return a security deposit?
- How much can a landlord charge for a security deposit?
- What can a landlord charge for at move-out (cleaning, painting, carpet)?
Iowa vs. neighboring states
| State | Security deposit limit | Deposit return deadline | Itemized deductions |
|---|---|---|---|
| Iowa | Two months' rent. Iowa Code § 562A.12(1) | Within 30 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the deposit or give a written statement of the specific reasons for withholding. If no address is provided within one year, the deposit reverts to the landlord. Iowa Code § 562A.12(3)-(4) | Written statement showing the specific reason for withholding any portion; if withheld for restoration, it must specify the nature of the damages. Allowed deductions: unpaid rent or other funds due under the lease, restoring the unit to move-in condition (ordinary wear and tear excepted), and costs of recovering possession from a tenant who fails in bad faith to vacate. Landlord bears the burden of proof. Iowa Code § 562A.12(3) |
| Illinois | No statewide legal limit on the amount of a security deposit. Illinois AG fact sheet 'Landlord and Tenant Rights and Laws' (01/24) | If the landlord withholds anything for damage, an itemized statement with estimated or actual repair costs and paid receipts is due within 30 days after the tenant vacates (or possession ends, whichever is later); if no statement is given, the full deposit must be returned within 45 days after the tenant vacates. 765 ILCS 710/1 | Itemized statement of damage with estimated or actual repair/replacement cost for each item, with paid receipts (or copies) attached, delivered within 30 days by personal delivery, postmarked mail, or email to a verified address; if estimates are used, paid receipts must follow within 30 days. If receipts are unavailable through no fault of the landlord, a verified statement explaining why is allowed. 765 ILCS 710/1(a)-(b) |
| Minnesota | No statewide cap on the amount of a security deposit. Minn. Stat. § 504B.178 | Within three weeks after the tenancy ends (and after the landlord receives the tenant's mailing address or delivery instructions), return the deposit with interest or give a written statement of reasons for withholding. Within 5 days if the tenant must leave because the building is legally condemned (unless the tenant's own willful, malicious, or irresponsible conduct caused it). Minn. Stat. § 504B.178, subd. 3 | If any amount is withheld, the landlord must give a written statement showing the specific reason for the withholding. Deductions are limited to amounts reasonably necessary to cover rent or other payment defaults by the tenant, or to restore the unit to its move-in condition, ordinary wear and tear excepted. Minn. Stat. § 504B.178, subd. 3 |
| Missouri | Landlord may not demand or receive a security deposit of more than two months' rent. RSMo 535.300.1 | Within 30 days after the tenancy ends, the landlord must return the full deposit or send an itemized list of damages along with any remaining balance. Mailing to the tenant's last known address satisfies the duty. RSMo 535.300.3 | Required. Withholding must be listed in a written itemized list of damages. Allowed deductions: unpaid rent; restoring the unit beyond ordinary wear and tear; carpet cleaning if the lease contains the required notice and a receipt is provided within 30 days; actual losses from the tenant's inadequate termination notice if the landlord tried to mitigate. RSMo 535.300.3-.4 |
| Nebraska | One month's periodic rent (any security however labeled). A separate pet deposit of up to one-fourth of one month's periodic rent may also be charged. Neb. Rev. Stat. § 76-1416 | 14 days after the tenancy terminates (balance plus written itemization delivered or mailed; if no forwarding address is given, mail first-class to the last-known address). Neb. Rev. Stat. § 76-1416 | Required: a written itemization of the amounts withheld must accompany the returned balance within 14 days. Neb. Rev. Stat. § 76-1416 |
| South Dakota | One month's rent, unless landlord and tenant agree to a larger deposit where special conditions pose a danger to maintenance of the premises. SDCL 43-32-6.1 | 21 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions: return the deposit or give a written statement of the specific reasons for withholding. SDCL 43-32-24 | Written statement of the specific reason for any withholding within 21 days; if the tenant requests it, an itemized accounting of any amount withheld within 45 days after the tenancy ends. Deductions are limited to unpaid rent, other money owed under an agreement, and restoring the premises to move-in condition (ordinary wear and tear excepted). SDCL 43-32-24 |
| Wisconsin | No statutory cap on the amount of a security deposit. Wis. Admin. Code ATCP 134.06; Wis. Stat. § 704.28 | 21 days. If the tenant leaves on the termination date, the clock starts on that date. If the tenant leaves or is evicted early, it starts on the termination date, or when a new tenancy begins if the landlord re-rents first. If the tenant leaves after the termination date, it starts when the landlord learns the tenant has left or been removed. Wis. Stat. § 704.28(4); Wis. Admin. Code ATCP 134.06(2) | If anything is withheld, the landlord must give a written statement describing each item of damage or claim and the amount withheld for it, within the same 21-day deadline and by the same delivery method as the deposit. Normal wear and tear may never be deducted. Deductions not listed in § 704.28(1) are allowed only through a separate 'NONSTANDARD RENTAL PROVISIONS' document. Wis. Admin. Code ATCP 134.06(3)-(4); Wis. Stat. § 704.28(1)-(2) |
City rules that may add to state law
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Compare security deposits in all 50 states and DC →
Iowa Security Deposit Law FAQ
How much can a landlord charge for a security deposit in Iowa?
Two months' rent. (Iowa Code § 562A.12(1))
How long does a landlord have to return a security deposit in Iowa?
Within 30 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the deposit or give a written statement of the specific reasons for withholding. If no address is provided within one year, the deposit reverts to the landlord. (Iowa Code § 562A.12(3)-(4))
Does a landlord in Iowa have to give an itemized list of deposit deductions?
Written statement showing the specific reason for withholding any portion; if withheld for restoration, it must specify the nature of the damages. Allowed deductions: unpaid rent or other funds due under the lease, restoring the unit to move-in condition (ordinary wear and tear excepted), and costs of recovering possession from a tenant who fails in bad faith to vacate. Landlord bears the burden of proof. (Iowa Code § 562A.12(3))
Does a landlord have to pay interest on a security deposit in Iowa?
No interest owed to the tenant for the first five years of a tenancy; deposits may be held in an interest-bearing account and interest earned during the first five years belongs to the landlord. (Iowa Code § 562A.12(2))
What happens if a landlord in Iowa wrongfully keeps a security deposit?
Bad-faith retention: actual damages plus punitive damages of up to twice the monthly rent; court may award reasonable attorney fees to the prevailing party. (Iowa Code § 562A.12(7)-(8))
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.