Utah security deposit law

Utah does not cap the amount of a security deposit. If any part of a deposit is non-refundable and there is a written agreement, say so in writing to the tenant when you take the deposit.

Utah Code ch. 57-17 Utah Code § 57-17-2

• The deposit rules apply to deposits however they are labeled, so a cleaning or pet deposit is held to the same return rules. Utah Code § 57-17-1
• Whoever holds the owner's interest when the tenancy ends is bound by the deposit rules, so a buyer of the property takes on the return duty. Utah Code § 57-17-4

No later than 30 days after the tenant vacates and returns possession, mail or deliver to the tenant's last known address, or send electronically by a means the tenant gave you, the balance of the deposit, the balance of any prepaid rent, and a written notice that itemizes and explains each deduction. You may deduct rent, damage beyond reasonable wear and tear, other costs and fees the contract provides for, and cleaning of the unit.

Utah Code § 57-17-3 Utah Code § 57-17-5

• If you miss the deadline, the tenant may serve a notice to provide deposit disposition, substantially in the statutory form, by personal delivery, substitute service or posting at the address in the lease, or by registered or certified mail. You then have five business days to comply. Utah Code § 57-17-3(3) to (5)
• If you still do not comply, the tenant may recover the full deposit, the full prepaid rent and a $100 civil penalty, and sue to enforce. A court awards costs and attorney fees to the prevailing party only if the other side acted in bad faith. Utah Code § 57-17-5(1), (2)
• A tenant who never serves the notice is not entitled to that relief, and either side may still recover other damages it is owed. Utah Code § 57-17-5(3), (4)
• If you cannot deliver possession on the agreed date and the tenant ends the agreement in writing, return all prepaid rent and any deposit as promptly as reasonable. Utah Code § 57-22-4.1

Utah's deposit law does not require a separate account for security deposits and does not require you to pay interest on them.

Utah Code ch. 57-17

• Licensing rules for real estate brokers and property managers were not read for this page. Utah Code ch. 57-17

Before signing the rental agreement, do one of three things: give the prospective tenant a written inventory of the unit's condition, excluding ordinary wear and tear; give the tenant a form to record the condition and allow a reasonable time after move-in to complete and return it; or offer a walkthrough inspection.

Utah Code § 57-22-4(6)

• A tenant may not use your failure to follow this rule to excuse the tenant's own compliance with the rental agreement or as a basis for a lawsuit against you. Utah Code § 57-22-4(9)
• For a useful condition record, identify the unit and inspection date, note each existing defect and attach clear room-by-room photographs. Record which inventory, returnable form or walkthrough option was offered, give both sides a copy of the resulting record and keep later repair messages with it. This is a practical recordkeeping checklist; it does not require all three statutory options. Utah Code § 57-22-4(6)