Nebraska security deposit law

You may not demand or receive security, however it is labeled, of more than one month's periodic rent. When appropriate you may also take a pet deposit of up to one-fourth of one month's periodic rent, but you may not charge an added deposit or fee for a service animal of a tenant with a disability (the tenant stays liable for damage the animal causes). The limit does not apply to housing agencies under the Nebraska Housing Agency Act.

Neb. Rev. Stat. § 76-1416(1) Neb. Rev. Stat. § 20-131.04

• The cap covers security "however denominated", so giving a charge another name does not take it outside the one-month limit. Neb. Rev. Stat. § 76-1416(1)
• Prepaid rent is treated alongside the deposit at move-out: both may be applied to unpaid rent and damages. Neb. Rev. Stat. § 76-1416(2)
• A tenant with a disability who has a service animal may not be charged an additional deposit or extra compensation for the animal, but is liable for any damage it does to the premises. Neb. Rev. Stat. § 20-131.04

When the tenancy ends you may apply prepaid rent and the deposit to unpaid rent and to damages caused by the tenant's noncompliance with the lease or with the tenant's duties under 76-1421. Deliver or mail the balance, with a written itemization, within 14 days after the tenancy terminates.

Neb. Rev. Stat. § 76-1416(2) Neb. Rev. Stat. § 76-1421

• The clock runs from the date the tenancy terminates. The tenant's address only decides where the refund goes: if the tenant gave no mailing address or instructions, mail the balance and the itemization by first-class mail to the tenant's last-known mailing address. Neb. Rev. Stat. § 76-1416(2)
• If the mailing comes back undeliverable, or the refunded balance is still outstanding after one year, it becomes abandoned property that you report and pay to the State Treasurer under the Uniform Disposition of Unclaimed Property Act. Neb. Rev. Stat. § 76-1416(2)
• If you do not follow these rules, the tenant may recover the money due, court costs and reasonable attorney's fees. If your failure was willful and not in good faith, the tenant may also recover liquidated damages of one month's periodic rent or twice the deposit, whichever is less. Neb. Rev. Stat. § 76-1416(3)
• A tenant is not liable for damages directly related to being removed by a government order because the home was unfit due to your negligence or neglect. Neb. Rev. Stat. § 76-1416(4)
• Whoever holds the landlord's interest when the tenancy ends is bound by these rules. If you sell, you stay liable for the deposit and prepaid rent unless you assign them to the buyer and give the tenant written notice of the assignment. Neb. Rev. Stat. § 76-1416(5) Neb. Rev. Stat. § 76-1420(1)
• If the tenant lawfully ends the lease because of your noncompliance, a fire or casualty, or an unlawful ouster, you must return all prepaid rent and recoverable security. Neb. Rev. Stat. § 76-1425(4) Neb. Rev. Stat. § 76-1429(2) Neb. Rev. Stat. § 76-1430

Nebraska does not require you to keep deposits in a separate account or to pay interest on them. The Act, read whole, sets neither rule.

Neb. Rev. Stat. §§ 76-1401 to 76-1449

• The deposit section sets only the amount limit, the uses at move-out, the 14-day return and the penalties. Neb. Rev. Stat. § 76-1416

The Act, read whole, does not require a move-in inspection or a written condition checklist. At move-out the tenant must leave the unit as clean as it was when the tenancy began, except for ordinary wear and tear, so a dated record of the starting condition helps you prove deductions.

Neb. Rev. Stat. §§ 76-1401 to 76-1449

• The tenant must keep the part of the premises the tenant uses as clean and safe as its condition permits and must not deliberately or negligently damage the premises. Neb. Rev. Stat. § 76-1421(2) Neb. Rev. Stat. § 76-1421(6)
• Make the starting-condition record useful at move-out: label photos by room and date, note existing marks or broken items, and keep the checklist with any repair requests and replies. Give both sides a chance to record differences promptly. A photo file helps explain a later claim; it does not make ordinary wear chargeable or replace the required deposit accounting. Neb. Rev. Stat. § 76-1416(2) Neb. Rev. Stat. § 76-1421