Lease Clause Guide

Security Deposit Rules
by City

How much can be charged, what it covers, when you get it back, and how to fight wrongful deductions - by city and state. Select your city below for a guide written specifically for your local laws and rental market.

Why City-Specific Guides Matter

Landlord-tenant law varies dramatically by state - and even by city. A Security Deposit Rules in New York City operates under completely different rules than the same clause in Austin, Texas or Miami, Florida. Generic national advice isn't enough. Pick your city below for accurate, local guidance.

2 months
highest - Georgia
1 month
lowest - California
8
of 16 states set no figure - your lease decides

How much deposit a landlord can take, state by state

8 of these 16 states set a figure; the other 8 leave it to your lease.

GeorgiaO.C.G.A. § 44-7-30.1
2 months
ArizonaA.R.S. § 33-1321
1.5 months
CaliforniaCal. Civ. Code § 1950.5
1 month
New YorkN.Y. Gen. Oblig. Law § 7-108
1 month
TexasTex. Prop. Code § 92.103
No cap
FloridaFla. Stat. § 83.49
No cap
Illinois765 ILCS 710/1
No cap
WashingtonRCW 59.18.260
No capstate
ColoradoC.R.S. § 38-12-103
No cap
TennesseeTenn. Code Ann. § 66-28-301
No cap
Pennsylvania68 P.S. § 250.511a; 68 P.S. § 250.512
OregonORS 90.300
No cap (state)
MassachusettsM.G.L. c. 186, § 15B; 940 CMR 3.17(4)
NevadaNRS 118A.242
District of Columbia14 DCMR §§ 308-311; D.C. Code § 42-3502.17
OhioOhio Rev. Code § 5321.16(A), (B), (C); Columbus City Codes § 4551.04; Columbus City Codes § 4551.05
No cap (interest rule)
1 month
3 months
1 month
2 months
Each state links to that city's full guide. Figures are the state rule; where a city ordinance is stricter, the city guide says so. Verify current law before relying on it.

A security deposit is still your money - the landlord is only holding it, and in most states they have to return every dollar they can't justify in writing. A deposit is not a fee, and it does not become the landlord's property just because they're holding it. What changes from place to place is the cap on the amount, the deadline to give it back, and what counts as a fair deduction.

Some states cap the deposit at one month's rent, one allows two, and plenty set no cap at all. Return deadlines run from 14 days in New York to 30 days across much of the country. This page explains how the clause works everywhere and what to look for in your own lease - then send yourself to your city page for the exact numbers where you rent.

What does a security deposit clause actually do?

The security deposit clause is the part of your lease that says how much you pay up front, what the landlord may take it for, and when the rest comes back. It exists to cover unpaid rent and damage beyond normal wear and tear - not the routine cost of turning the unit over for the next tenant.

The label on the money matters less than you'd think. Arizona counts security “however denominated,” including prepaid rent, toward the same capped total, so calling something a move-in fee doesn't automatically turn it into a different kind of money.

What a deposit is normally allowed to cover is narrower than most leases imply:

Plenty of states won't let a landlord simply spend the money in the meantime. Florida requires a separate Florida account or a surety bond, with the arrangement disclosed to you within 30 days; Tennessee requires a separate account with the bank identified to you in writing at signing; Washington requires a trust account plus written notice of the depository's name and address.

One more boundary worth knowing: residential rules are not commercial rules. Most generic deposit language floating around online comes from business-to-business leases, where two companies can negotiate whatever they want. Your apartment is governed by tenant statutes that set a floor your signature can't lower.

Where is the deposit clause in my lease?

Look for headings like “Security Deposit,” “Deposits and Fees,” or “Move-In Costs” - then check the addenda, because pet deposits and cleaning fees usually hide there. Add every up-front dollar together before you compare it to anything, since some caps measure the whole pile rather than the line item called “deposit.”

Then read for four things: the amount, what the landlord may deduct, the deadline to return it, and whether any part is labeled nonrefundable. These phrasings are the ones worth slowing down for:

Check whether a move-in checklist is mentioned anywhere. Washington won't let a landlord collect a deposit at all unless the rental agreement is in writing and both parties sign a checklist describing the unit's condition, and Georgia requires move-in and move-out inspection lists.

If your lease is silent on the deadline or the deduction rules, you haven't lost anything. The statute fills the gap, and the statute is what a judge applies - a lease that says nothing about returning your money does not mean the landlord keeps it.

Clause decoder

Security Deposit Clause Example - What the Wording Looks Like in a Real Lease

The sample clause below is real lease language - a court quoted it word for word, and then ruled on it. What the judge decided is at the bottom of this block.

Real clause - quoted in a published court opinion

Find the equivalent paragraph in your own lease and read the two side by side. The wording will differ; the moving parts rarely do.

THE TENANT MAY NOT APPLY OR DEDUCT ANY PORTION OF THE SECURITY DEPOSIT FROM THE LAST MONTH’S RENT OR USE OR APPLY SUCH SECURITY DEPOSIT AT ANY TIME IN LIEU OF PAYMENT OF RENT. IF TENANT FAILS TO COMPLY WITH THIS SECTION, THE SECURITY DEPOSIT SHALL BE FORFEITED AND THE LANDLORD MAY RECOVER THE RENT DUE…

Quoted from the published opinion in Burgess v. Stroud, 17 Kan. App. 2d 560, 840 P.2d 1206 (1992). Judicial opinions are not subject to copyright; the lease language is reproduced in limited part for commentary under 17 U.S.C. § 107.

1

“APPLY OR DEDUCT ANY PORTION OF THE SECURITY DEPOSIT”

The mechanism worth understanding is why a clause like this exists, because it is not stinginess and knowing the reason tells you how hard it will be to move. A deposit is security that has to still be there at the end; spending it on the final month's rent empties it in the exact month the unit is most likely to be damaged, which is the month the furniture is being carried out of it. The drafting follows from that. Reaching any portion rather than the whole is deliberate, so a half-measure gets no better treatment than the full one, and it is drafted as a restriction on your conduct rather than on the landlord's, which means it says nothing at all about what the landlord may do with the same money.

Tenant-favourable“The deposit may be applied to the final month's rent only by written agreement signed by both parties.”
What this lease said“APPLY OR DEDUCT ANY PORTION OF THE SECURITY DEPOSIT”
Landlord-favourable“Under no circumstances may Tenant direct application of the deposit to any obligation, and any attempt to do so is a material breach.”
2

“AT ANY TIME IN LIEU OF PAYMENT OF RENT”

The phrase widens the ban in two directions at once. At any time means the rule is not just about your last month, so a tenant in a tight month who asks for one rent payment to come out of the deposit is inside the same prohibition. In lieu of payment reaches beyond formally deducting it, and covers the practical version most renters would actually try, which is simply not paying and pointing at the money the landlord already holds. What the clause does not touch is worth seeing too, and this is where reading your own copy pays. It is about rent. Whether you can withhold or offset against something else, and whether the deposit can be reached at all in the middle of a tenancy, are separate questions, and the answer to them is largely a matter of state law rather than of this paragraph.

If money is short, the difference between asking and assuming is the whole case. A written request that the landlord agrees to in writing takes you outside a clause like this one; a unilateral decision leaves you inside it, in arrears, and holding the burden of explaining why.
Tenant-favourable“Tenant may not apply the deposit to rent; Landlord will consider a written payment plan on request.”
What this lease said“AT ANY TIME IN LIEU OF PAYMENT OF RENT”
Landlord-favourable“Any application of the deposit toward rent, in whole or part, is an incurable default entitling Landlord to immediate possession.”
3

“IF TENANT FAILS TO COMPLY WITH THIS SECTION”

Notice how much weight this condition carries. Everything after it is triggered by a failure to comply, which sounds automatic and is not, because someone still has to identify the thing you did that counts as the failure. That was the pivot of this case: the clause was read strictly, and inaction was held not to be enough to set it off. Two questions follow for your own lease. First, what exactly is the conduct that triggers it, since a clause hinged on a specific act is far narrower than one hinged on any breach of the agreement. Second, does the paragraph require the landlord to do anything before the trigger operates, such as give written notice or an opportunity to cure. A condition with no notice step lets the landlord decide the trigger has occurred without ever telling you, and the first you hear of it is the accounting after you have moved out.

Tenant-favourable“No default arises under this section unless Landlord has given written notice and Tenant has failed to cure within ten days.”
What this lease said“IF TENANT FAILS TO COMPLY WITH THIS SECTION”
Landlord-favourable“Any failure to comply, whether by act or omission, immediately triggers the remedies in this section without notice.”
4

“THE SECURITY DEPOSIT SHALL BE FORFEITED”

Forfeiture is a strong word and it is chosen deliberately: it means the money is gone as a consequence, without anyone having to show what was lost. That is the difference between this and the ordinary deduction machinery, which asks what the damage was, what it cost to put right, and what the itemised list looks like. A forfeiture clause tries to skip all of it. The transferable lesson from what happened to this one is that clauses which take property away are read narrowly, so the landlord's route to keeping the money runs through proving the trigger, not through pointing at the sentence. In your own copy, look for whether forfeiture appears anywhere at all, whether it is described as being in addition to actual damages, and whether the paragraph also promises you an itemised statement, which is the document any argument about your deposit is eventually conducted over. How far a lease can go here, and what the landlord's deadlines are for returning or accounting for the money, are set by state law and the city guides below take them one at a time.

Whatever the clause says, the record you build is the same. Dated photographs of every room on the day you move in and the day you leave, the forwarding address in writing, and a copy of the keys handover. A deposit dispute is decided on evidence of condition, and that evidence can only be collected before the door closes behind you.
Tenant-favourable“Landlord may deduct only documented, itemised amounts actually owed, and shall provide the itemisation with any balance returned.”
What this lease said“THE SECURITY DEPOSIT SHALL BE FORFEITED”
Landlord-favourable“The deposit shall be forfeited in full upon any breach, in addition to Landlord's right to recover all damages.”
What the court did with it

The forfeiture was reversed, because the clause was never triggered. The trial court had allowed the landlord to keep the whole $400 deposit; on appeal the court held that a forfeiture of this kind “impose[s] a drastic remedy and must be strictly construed”, and therefore requires affirmative action by the tenant rather than mere inaction or silence. The reasoning is what travels. A clause that says a deposit is forfeited on breach still has to be read against what the tenant actually did, and a landlord who keeps the money has to be able to point at the act that set the clause off.

One court, one lease, one state. That answer is not automatically yours, and your lease may be worded to land differently. Use this to know what to look for and what to ask - your state's tenant hotline or a local tenant attorney can answer it for your document.

How much can a landlord charge as a deposit?

There's no national limit, and the spread between states is enormous. California and New York cap deposits at one month's rent, Arizona at one and a half, and Georgia at two - while Texas, Florida, Illinois, Colorado, Tennessee, and Washington set no statutory cap at all, which means the number is whatever the lease says and the market will bear.

The caps come with exceptions. California lets a small landlord - a natural person, or an LLC whose members are all natural persons, owning no more than two properties totaling four units - charge two months instead of one, though that exception never applies to a service member, who keeps the one-month limit.

Some caps count more than the deposit itself. Arizona's limit covers security “however denominated,” including prepaid rent, and a tenant can only pay above it voluntarily and in writing.

The caps are newer than you think

Georgia had no cap whatsoever until HB 404, the Safe at Home Act, took effect July 1, 2024, and it applies to leases entered into or renewed on or after that date. California's one-month rule is equally recent - AB 12 landed the same day and erased the old furnished-versus-unfurnished split.

Cities sometimes go far past their state. Seattle caps the security deposit plus nonrefundable move-in fees at one month's rent combined, limits move-in fees to 10% of the first month's rent and pet deposits to 25%, and lets tenants pay those costs in up to six equal monthly installments - none of which Washington state law requires. Your city page is where that layer lives.

What varies most from state to state?

Three things swing hardest: the return deadline, what starts the clock, and the penalty when a landlord blows it.

On deadlines, New York gives the landlord 14 days, California 21 calendar days, and Texas, Illinois, Washington, Colorado, and Georgia 30 days. Arizona's is 14 days excluding weekends and legal holidays, and Colorado stretches to 60 only if the lease specifically says so.

The trigger matters as much as the count. In Texas the 30 days doesn't begin until you give a written forwarding address; in Arizona the clock needs termination, delivery of possession, and your demand; in Georgia it runs from when the landlord regains possession.

Penalties range from ruinous to nonexistent. Texas exposes a bad-faith landlord to $100 plus three times the amount wrongfully withheld plus attorney's fees, Georgia to three times the wrongful amount plus fees, Colorado to treble damages plus fees, Arizona to twice the amount withheld, and Illinois to twice the deposit plus costs and fees. New York does something different: miss the 14-day deadline and the landlord forfeits any right to keep any part of the deposit.

Coverage is the sleeper variable nobody checks. Illinois's Security Deposit Return Act only reaches residential buildings with five or more units, and Tennessee's landlord-tenant act only applies in counties over 75,000 people - so identical landlord behavior can be clearly illegal in one building and barely regulated in the one down the street.

What do landlords get wrong about deposits?

The most common move is billing you for normal wear and tear. Faded paint, carpet worn thin by ordinary walking, and small nail holes are the cost of renting a place out - Colorado's HB25-1249, effective January 1, 2026, says so outright by barring deductions for normal wear and tear.

Second is the one-line deduction: “cleaning and repairs, $850.” Statutes generally demand a written itemized statement explaining what was kept and why, and Illinois goes further by requiring paid receipts within 30 days after that itemized statement.

Third is inflation of the number. Colorado's new law presumes bad faith when a landlord keeps 125% or more of the actual damages, which tells you how routine over-billing had become.

The money you probably don't know you're owed

Interest is the quietest one. New York City buildings of six or more units - nearly all NYC housing - must hold deposits in a New York interest-bearing account with the landlord keeping only a 1% annual administrative fee; Chicago pays annual interest at the City Comptroller's published rate on deposits held over six months; Los Angeles rent-stabilized units owe annual interest, 3.03% for 2026, on deposits held at least a year.

Mixing your money with the landlord's is its own violation. Chicago's RLTO requires a written receipt and a separate federally insured Illinois interest-bearing account with no commingling, and hands the tenant two times the deposit plus interest when a landlord breaks those rules - even though Chicago sets no dollar cap on the deposit itself.

Which deposit terms are not enforceable?

A lease can give you more protection than the statute; it generally can't give you less. Clauses that waive your statutory deposit rights are the first thing a court disregards, because landlord-tenant law sets a floor your signature doesn't move.

Automatic deductions are the classic overreach. A clause saying your deposit “will be applied to cleaning and repainting” tries to skip both the itemization and the actual-cost showing that statutes require.

Be careful with that last one, because some response windows are entirely real. Florida gives you 15 days to object after the landlord's certified-mail claim notice, and Tennessee lets a landlord keep the deposit if you fail to respond within 60 days of the refund notice sent to your last known address.

When a term is unenforceable, the rest of the lease usually survives. You don't get out of paying rent because the deposit clause overreached - the bad clause simply doesn't get enforced against you.

How does my deposit work at move-out?

Move-out is where deposits are won or lost, and almost all of it happens before you hand over the keys. Photograph or video every room the day you leave - empty, cleaned, timestamped - because your move-out photos are the only evidence that competes with the landlord's invoice.

Ask to be present at the inspection. New York lets you request a walk-through before you move out and attend it; Tennessee gives the landlord five days after your written notice to vacate to tell you about your right to attend the move-out inspection, which must happen the day you vacate or within four days after; Georgia requires a move-out inspection list.

Put a forwarding address in writing and keep proof you sent it. In Texas the 30-day refund clock doesn't start until the landlord has your written forwarding address, and Tennessee sends refund notices to your last known address.

Some states need you to speak first. Arizona's clock starts only after termination, delivery of possession, and your demand, so send a dated written demand instead of waiting politely.

Then watch your mail closely. A Florida landlord must send certified-mail notice of an intended claim within 30 days or lose the right to claim any of it, and you have 15 days to object once that notice lands. If the deadline passes with nothing, that silence is often worth more to you than the deposit itself.

Red flags to watch for

What to do, step by step

  1. 1

    Total your real move-in cost

    Add the deposit, prepaid rent, pet deposit, and every fee into one number. That combined figure is what caps in places like Arizona and Seattle actually measure.

  2. 2

    Photograph the unit before unpacking

    Document every wall, floor, appliance, and fixture on day one, timestamped. Get a signed move-in condition checklist if your state or landlord offers one.

  3. 3

    Look up your state and city rules

    Check your cap, your return deadline, and whether local law adds interest, installment rights, or extra notices. City rules often beat state law.

  4. 4

    Give written notice and a forwarding address

    Send both in writing and keep proof of delivery. In Texas the 30-day refund clock does not start until the landlord has your written forwarding address.

  5. 5

    Attend the move-out inspection

    Ask to be present, take timestamped photos of the empty unit, and get any inspection list in writing before you hand over the keys.

  6. 6

    Demand in writing, then escalate

    If the deadline passes or the deductions are vague, send a dated written demand citing your state's deposit statute. Small claims court is the next step, and penalties can be several times the amount withheld.

Frequently asked questions

how long does my landlord have to return my deposit
Depends on your state - 14 days in New York, 21 calendar days in California, and 30 days in Texas, Illinois, Washington, Colorado, and Georgia. Some clocks don't start until you give a written forwarding address or make a written demand.
can my landlord keep my deposit for cleaning
Only for cleaning beyond normal wear and tear. Routine turnover cleaning, faded paint, and worn carpet are the landlord's cost, not yours. Colorado bars deductions for normal wear and tear as of January 1, 2026.
is charging two months rent as a deposit legal
Depends entirely on your state. Georgia caps deposits at two months' rent, Arizona at one and a half, California and New York at one - while Texas, Florida, Illinois, Colorado, Tennessee, and Washington set no cap at all.
landlord never sent an itemized list what do i do
Send a written demand right away. Most states require a written itemized statement before a landlord can keep anything. In New York, missing the 14-day deadline forfeits the landlord's right to keep any part of the deposit.
do i get interest on my security deposit
Sometimes, and it's usually a city rule. NYC buildings with six or more units must hold deposits in an interest-bearing account, Chicago pays interest on deposits held over six months, and LA rent-stabilized units owe 3.03% for 2026.
can i use my security deposit as last month's rent
Generally no, unless your lease allows it. The deposit is there to cover damage and unpaid rent after you leave. Skipping rent can trigger late fees and an eviction filing even if your deposit would have covered it.

Sources and further reading

Primary statutes this guide relies on, by state. Statutes change - confirm the current text before you act on it.

  • Texas - Tex. Prop. Code § 92.103
  • California - Cal. Civ. Code § 1950.5
  • New York - N.Y. Gen. Oblig. Law § 7-108
  • Florida - Fla. Stat. § 83.49
  • Illinois - 765 ILCS 710/1
  • Washington - RCW 59.18.260
  • Colorado - C.R.S. § 38-12-103
  • Arizona - A.R.S. § 33-1321
  • Georgia - O.C.G.A. § 44-7-30.1
  • Tennessee - Tenn. Code Ann. § 66-28-301
  • Pennsylvania - 68 P.S. § 250.511a; 68 P.S. § 250.512

General references:

Select Your City

Austin, Texas

Security Deposit Rules explained for Austin renters - covering Texas law, local ordinances, red flags, and your rights.

Los Angeles, California

Security Deposit Rules explained for Los Angeles renters - covering California law, local ordinances, red flags, and your rights.

New York City, New York

Security Deposit Rules explained for New York City renters - covering New York law, local ordinances, red flags, and your rights.

Miami, Florida

Security Deposit Rules explained for Miami renters - covering Florida law, local ordinances, red flags, and your rights.

Chicago, Illinois

Security Deposit Rules explained for Chicago renters - covering Illinois law, local ordinances, red flags, and your rights.

Seattle, Washington

Security Deposit Rules explained for Seattle renters - covering Washington law, local ordinances, red flags, and your rights.

Denver, Colorado

Security Deposit Rules explained for Denver renters - covering Colorado law, local ordinances, red flags, and your rights.

Phoenix, Arizona

Security Deposit Rules explained for Phoenix renters - covering Arizona law, local ordinances, red flags, and your rights.

Atlanta, Georgia

Security Deposit Rules explained for Atlanta renters - covering Georgia law, local ordinances, red flags, and your rights.

Nashville, Tennessee

Security Deposit Rules explained for Nashville renters - covering Tennessee law, local ordinances, red flags, and your rights.

Philadelphia, Pennsylvania

Security Deposit Rules by City explained for Philadelphia renters - covering Pennsylvania law, local ordinances, red flags, and your rights.

San Francisco, California

Security Deposit Rules by City explained for San Francisco renters - covering California law, local ordinances, red flags, and your rights.

Boston, Massachusetts

Security Deposit Rules by City explained for Boston renters - covering Massachusetts law, local ordinances, red flags, and your rights.

Portland, Oregon

Security Deposit Rules by City explained for Portland renters - covering Oregon law, local ordinances, red flags, and your rights.

Browse Other Lease Clauses

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Legal Disclaimer: LeaseDecoded provides general educational information only. Nothing on this site constitutes legal advice. Laws vary by location and change frequently. Always consult a licensed attorney in your state for advice about your specific situation.