What Is a Security Deposit?
A security deposit is money a tenant pays a landlord at the start of a rental that the landlord holds in case of unpaid rent or damage beyond normal wear and tear. It generally belongs to the tenant and must be returned after move-out, minus allowed deductions. How much a landlord can charge, what can be deducted, and how quickly the deposit and an itemized list of deductions must be returned are set by state (and sometimes local) law.
What the law says
- California's courts describe a security deposit as money, usually 1 to 2 months' rent, that a landlord holds in case the tenant causes damage or leaves rent unpaid. California Courts Self-Help Guide, Guide to security deposits in California
- Example (California): a security deposit belongs to the tenant; the landlord may hold it until the tenant moves out and must then return it, minus allowed expenses. If the landlord sells the property, the landlord must either return the deposit or transfer it to the new owner. California Attorney General, Consumer Alert: Know Your Rights as a California Tenant, Security Deposits
- California limits deposits to one month's rent after July 1, 2024; a landlord who is a natural person (or an LLC whose members are all natural persons) owning no more than two residential rental properties with no more than four total units may charge up to two months' rent. California Attorney General, Consumer Alert: Know Your Rights as a California Tenant, Security Deposits
- In California, a deposit may be used only for past-due rent; repairing damage caused by the tenant or guests, not including ordinary wear and tear; cleaning to return the unit to its move-in level of cleanliness; and replacing or restoring the landlord's personal property if the rental agreement allows it. California Attorney General, Consumer Alert: Know Your Rights as a California Tenant, Security Deposits
- In California, within 21 days after move-out the landlord must return the deposit or send an itemized statement of deductions with the balance; when deductions exceed $125, copies of invoices or receipts must be attached. California Courts Self-Help Guide, Guide to security deposits in California
- California tenants may ask for an inspection before move-out, held within the two weeks before the move, so the landlord can identify intended deductions and the tenant has a chance to fix problems first. California Attorney General, Consumer Alert: Know Your Rights as a California Tenant, Security Deposits
- In California, if a landlord kept a deposit in bad faith, a court may award the tenant actual losses plus up to twice the amount of the deposit. California Attorney General, Consumer Alert: Know Your Rights as a California Tenant, Security Deposits
- Example (New York): a security deposit is limited to no more than one month's rent, which means a landlord cannot ask for both last month's rent and a security deposit. New York State Attorney General, Tenants
- New York landlords must treat deposits as trust funds belonging to tenants and may not mix them with their own money; landlords of buildings with six or more apartments must keep deposits in an interest-bearing New York bank account. New York State Attorney General, Tenants
- New York law requires landlords to return security deposits, or give an itemized list of any deductions, within 14 days after the tenant vacates; otherwise the deposit must be returned in full. New York State Attorney General, press release (Dec. 13, 2024)
FAQ
Can a landlord keep my deposit for normal wear and tear?
In California, no: deductions for repairs may not include ordinary wear and tear, and deposits also may not be used for damage that was already there at move-in.
How long does a landlord have to return a deposit?
It depends on the state. California allows 21 days after move-out; New York allows 14 days after the tenant vacates.
Do I earn interest on my security deposit?
In New York, deposits in buildings with six or more apartments must be kept in an interest-bearing account; the landlord may keep 1% of the deposit a year for administrative expenses, and the rest of the interest belongs to the tenant.
Can a landlord raise the deposit when the rent goes up?
In New York, if the lease is renewed at a higher rent or the rent rises during the lease, the landlord may collect enough to bring the deposit up to the new monthly rent.
What can I do if my deposit isn't returned?
In California, a tenant can sue, and the landlord must prove the deductions were reasonable; if the deposit was kept in bad faith, the court can add up to twice the deposit amount.
Related
- Do I Need a Lawyer for an Eviction?
- The Fair Housing Act: Your Rights Against Housing Discrimination
- How to Apply for Section 8: Eligibility, Waitlists and Income Limits
- Can a Section 8 Tenant Be Evicted? Rules and Notices
- Section 8 Income Limits Explained (2026)
- Section 8 Inspection: What Inspectors Check (NSPIRE)
- Renting to Section 8 Tenants: Rules for Landlords
- Section 8 Payment Standards and Fair Market Rent Explained
- Moving With a Section 8 Voucher (Portability): How It Works
- Can You Lose Your Section 8 Voucher? Reasons and Hearings
- What Are Squatters' Rights?
- Landlord-Tenant Law by state
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.