- Home
- State laws
- Iowa
- Security deposits
Iowa security deposit law
Checked against the Iowa statutes on October 1, 2026 General information, not legal advice
Key numbers
- Security deposit limit
- 2 months' rent
- security deposit; Rentari also counts a refundable pet deposit toward the limit
- Iowa Code § 562A.12(1)
- Deposit refund deadline
- 30 days
- after the tenancy ends and you get the tenant's address
- Iowa Code § 562A.12(3)
- Bad-faith deposit penalty
- Up to 2x rent
- punitive damages on top of actual damages
- Iowa Code § 562A.12(7)
Security deposit limit
You may not demand or receive a security deposit of more than two months' rent. A rental deposit is any money that secures performance of the rental agreement, other than a deposit that is only an advance payment of rent.
Iowa Code § 562A.12(1) Iowa Code § 562A.6(12)
- Because the definition covers any money that secures the tenant's performance, Rentari reads a refundable pet deposit as part of the two months. Iowa Code § 562A.6(12) Iowa Code § 562A.12(1)
The Rentari Iowa lease states the deposit and keeps every refundable deposit, a pet deposit included, within two months' rent, and Rentari stops a lease whose combined security and pet deposits are above that.
Returning the deposit
Within 30 days from the date the tenancy ends and you receive the tenant's mailing address or delivery instructions, return the deposit or give the tenant a written statement showing the specific reason for keeping any part of it. You may keep only what is reasonably needed to cover unpaid rent or other money due under the rental agreement, to restore the unit to its condition at the start of the tenancy (ordinary wear and tear excepted), or to recover the cost of regaining possession from a tenant who did not act in good faith in failing to leave after noncompliance and notice.
- If you keep any part of the deposit to restore the unit, the statement must also give the nature of the damages. Iowa Code § 562A.12(3)
- If you give no written statement within the 30 days, you forfeit all rights to keep any part of the deposit. Iowa Code § 562A.12
- If the tenant gives no mailing address or delivery instructions within one year after the tenancy ends, the deposit reverts to you. Iowa Code § 562A.12
- Keeping a deposit, or any part of it, in bad faith exposes you to punitive damages of up to twice the monthly rent on top of actual damages. Iowa Code § 562A.12(7)
- In an action on a rental agreement, the court may award reasonable attorney fees to the prevailing party. Iowa Code § 562A.12(8)
The lease states the 30-day clock from the end of the tenancy and receipt of the tenant's address, the only reasons money may be kept, the forfeiture, the one-year rule and the bad-faith penalty.
Deposit account and interest
Hold every rental deposit for the tenant in a bank, savings and loan association or credit union insured by an agency of the federal government, and do not commingle it with your personal funds. A trust account is permitted but not required. Interest earned on a deposit during the first five years of a tenancy belongs to you.
The lease says the deposits are held in a federally insured bank, savings and loan association or credit union apart from the landlord's personal funds, and that interest earned in the first five years belongs to the landlord.
Move-in condition
Partly readUse a dated condition record at move-in to show the home’s starting condition. Iowa HHS housing guidance recommends writing down and photographing existing damage and having the landlord sign and date it. This is practical recordkeeping guidance; this page does not establish a mandatory Iowa inspection form or statutory checklist deadline.
Iowa HHS: housing and apartment-tour guidance
- Work room by room and record existing stains, cracks, worn finishes, appliance condition and missing items. Keep wide photos for context and close-ups for damage. Give both sides the same dated checklist and photos, note any disagreement, and keep repair requests separate so documenting a defect is not mistaken for fixing it. Compare with the move-out record when explaining a proposed deposit deduction. Iowa HHS: housing and apartment-tour guidance
The lease refers to any move-in condition report and, as a lease term, asks the tenant to report damage already present in writing within any period the law sets or, if none, within seven days of move-in.
Questions
Is there a limit on security deposits in Iowa?
Yes. You may not demand or receive more than two months' rent as a security deposit. Rentari counts a refundable pet deposit toward the two months, because a rental deposit is any money that secures the tenant's performance other than advance rent.
How long do I have to return a security deposit in Iowa?
30 days from the date the tenancy ends and you receive the tenant's mailing address or delivery instructions. Within that time, return the deposit or give a written statement of the specific reason for keeping any part of it.
What happens if I miss the deposit deadline?
If you give no written statement within the 30 days, you forfeit the right to keep any part of the deposit. Keeping it in bad faith can add punitive damages of up to twice the monthly rent.