Ultimate guide to security deposits for renters 2024

For most, getting security deposits back is not just a “nice thing” to happen or a bit of “fun money.” It’s money needed to help cover moving expenses. Many renters get frustrated when trying to get their deposit back. Some even give up trying. But why should you? It is your money. 

Your lease legally defines what portion of your deposit may be due back to you after moving out and when it needs to be paid to you. While state and local laws vary, most should expect their deposit back within thirty days of moving out, along with an itemized list of deductions.

With the average rent now being $1900 in the U.S. for a two-bedroom apartment, many can expect to pay around that much for the deposit too, making the move-in cost nearly $4000(!) including additional fees. Having almost two grand tied up in a deposit for the lease term is a lot of money.   

This guide explores everything about security deposits, your legal rights to your security deposit refund, and alternative options for securing the security deposit if you are financially challenged.

Our research shows that many renters are hazy and unclear about their rights and how to get their security deposit back. Nearly half don’t expect anything at all.  Many feel like they are at the mercy of the property management company when trying to get their deposit back. But that is not true. Renters have rights.

Your lease will define how much deposit is required and how much is refundable and what portion may not be refundable. Many move-in packages also include a move-in checklist to help you record the status of the rental unit before you move in. The lease should also define the move-out process and how long the rental company has to return your deposit.

In a well-known study, it was discovered that 40 percent of Americans could not come up with the cash funds to handle a $400 emergency expense. That also means many also find security deposits to be cost-prohibitive. Part of understanding security deposits is learning how much a landlord can legally ask for a security deposit. We’ve found that local laws vary. Your state or local laws may limit how much can be charged. If you think your potential landlord is asking for too much, check out your renters rights on Roost or consult with a local housing advocate.

Most renters are so excited to move into a new place or stressed by the moving process that they forget to take the time to do the things they need to do to help them get their deposit back later. Before you move your belongings into your new place, take a few very important minutes to carefully review the apartment before you move in.

One of the most important steps to getting your deposit back is ensuring that your previous landlord has your new mailing address on time. Many state laws provide the landlord with protection if they don’t know your new address or are not informed within the legally allowed amount of time. If you don’t know your next address, give them a trusted temporary mailing address. Make sure to document how and when you shared your mailing address with your previous landlord.

If you hit hard times and have to move early because your roommate moves out, you lose your employment or become ill, or a family emergency occurs, you may face a situation of not getting your full deposit back. If you move out before your lease is up, you may have to pay the remainder of your lease. If your roommate damages the apartment, you may have to pay for repairs. Or, if you move out owing money for back rent, your landlord may keep your deposit or take you to court in an attempt to recoup their losses.

You do not want to end up in this situation. But if it happens, try to communicate with your landlord about getting out of your lease without owing a bunch of money. If they know they can rent the apartment quickly, they may let you out of the lease. Or, they may allow another renter to take over the remainder of your lease. Whatever the situation, talk with your landlord about it before they take legal action.

If you cannot pay your deposit or simply do not want your money tied up in someone else’s savings account for a year or more, you may benefit from exploring deposit alternatives. You may be able to find an apartment, especially a new apartment development, that offers down payment insurance or an alternative to paying a traditional down payment. You will still need good credit for this option, but you will not be required to pay as much upfront. If your credit is marginal or you have other issues, you may need to consider getting a lease guarantor.

Renters often have a lot of questions about security deposits. You are not alone if you are wondering the whats and whys about security deposits. And why wouldn’t you? It is your money tied up in another’s savings account earning interest while you cannot access it. If you are the type that always pays your rent and leaves an apartment pristine when you move out, it is normal to be frustrated about giving up access to your hard-earned cash for “no reason.”

The better you understand the legalities tied to security deposits, the better chance you have of receiving your deserved portion of your deposit back. And if you don’t, you know what legal actions you can take if needed.

Security deposits: Frequently asked questions

When do I pay the security deposit?

You will be asked to pay the security deposit as part of the lease signing process. Most landlords today prefer it be paid online, via ACH or debit/credit card payment.

When will I get my security deposit back? 

When you receive the returnable portion of your security deposit is governed by state law, typically 15-31 days after you move out.  It will also be defined in your lease agreement. It’s always a good idea to send a security deposit request letter with your forwarding address as part of the move-out process. 

Can I legally use my security deposit as last month’s rent?

In most cases, only if your landlord allows it. Your lease will likely be able to answer this question for you. The security deposit is intended to cover repairs and cleaning costs. If you don’t pay your rent, of course, they will keep it to cover your rent. But you may end up with an additional bill for cleaning and repairs. Laws vary, so you’ll want to review your local tenant-landlord laws for more information.

How do I manage security deposit refunds with a roommate?

To avoid problems with your roommate, how the deposit refund will be managed should be defined in your roommate agreement. If the apartment is in your name, meaning the roommate is not on the official lease, you are responsible for paying your roommate their deposit back after they move. If you are both on the lease, and both choose to end the tenancy, the landlord will pay back the deposit. If just one roommate moves out early, the other roommate will have to pay the deposit back.

What can a landlord deduct from security deposits?

What expenses a landlord can deduct from the security deposit is defined in your lease agreement. While they cannot charge you for normal wear and tear, they can deduct for cleaning costs, unpaid bills, and repair costs.  The landlord should provide you with an itemized list of the expenses. Local laws vary, so review your local tenant-landlord laws for specific information.

Can I sue my property management company for withholding my security deposit?

Yes, you can. However, you should try other means first. Send them a demand letter and document all communications. Ask them for an itemized list that explains why they are not returning your security deposit. If your landlord does not pay you and doesn’t explain to you why, you can file against them in your local small claims court.

How long do you have to sue for a security deposit? 

This varies by your local area. In some states, you have years to file. Many states allow you to file up to four years later. You will need to consult your state’s statute of limitation laws to learn more. If you win your case, you may also be awarded court fees.

How do I get my security deposit back from my roommate?

Your first step to recovering your deposit is to review your lease. Either your agreement with the landlord or your roommate agreement. If you paid your roommate directly, they are responsible for returning the proper portion of the deposit to you. If you signed a lease with the landlord, the landlord is responsible for returning your portion of the deposit. If you are moving out before the lease is up, you may not be eligible to receive your deposit until the end of the tenancy.

What kind of deposits can a landlord collect from me when I move in?  

Generally, a landlord can collect an unreturnable deposit (such as for carpet cleaning), a returnable portion, and perhaps a pet deposit. The unreturnable portion you will not receive back. It is intended for routine cleaning after you move out. The returnable part is intended to cover unpaid bills, damages, or unreturned property (such as furnishing in a furnished apartment). Your pet deposit may be returned if your pet doesn’t cause any damage to the apartment or landscaping.

What kind of fees can the landlord charge me?

Your landlord may charge you various fees such as late, amenity (gym, laundry), early termination, online credit card processing, application, attorney, parking, and storage fees. Here are 9 hidden fees to watch out for.

What is “normal wear and tear?”

In most cases, landlords cannot charge for what is considered normal “wear and tear.” Typical damage for regular use is to be expected, such as mild carpet damage, fading paint, and aging appliances. If you cause excessive damages such as holes in walls or heavily stained carpet, you may be charged for those types of damages.

Is there a requirement that the landlord pay me the interest accrued on my deposit money?

This varies by location and more. If your landlord is required to pay you accrued interest, it should be stated in your lease. If you do not see this information in your lease, check out our easy reference state-by-state summary.

Am I entitled to get my security deposit back if I break my lease? 

In most cases, if you break your lease early, the landlord may be entitled to keep your deposit to go towards the unpaid rent. For example, if your lease ends December 31 and you move out in October, the landlord will attempt to collect the November and December rent.  They may allow you to apply the security deposit as part of it. 

Does my landlord have to show receipts for damage deducted from my deposit or charged to me? 

Only a few states require this, but that doesn’t mean you can’t ask your landlord for proof of damages and receipts. It will also help if you took pictures before you moved as proof of the status of the rental before you moved in. If your landlord does not provide proof, you may be able to file against them in small claims court.