When moving to a new rental, you’ll likely need to pay a security deposit. But how much is this often?
A security deposit is typically equal to one month’s rent, but the amount varies based on location, credit history, and landlord policies. In some cases, it may be as low as $500 or as high as three to six months’ rent, especially in high-demand rental markets or for tenants with limited rental history.
Understanding security deposit costs, refund policies, and ways to negotiate a lower deposit can help renters avoid unexpected expenses. This guide covers everything tenants need to know about security deposits.
What Is a Security Deposit and Why Is It Required?
A security deposit is an upfront payment made to a landlord before moving into a rental. It serves as financial protection in case of:
- Unpaid rent or utility bills
- Property damage beyond normal wear and tear
- Lease violations
If there are no deductions, the security deposit is fully refundable at the end of the lease.
Security Deposit vs. Non-Refundable Move-In Fees
| Feature | Security Deposit | Move-In Fee |
| Refundability | Refundable (if no damages or unpaid rent) | Non-refundable |
| Purpose | Covers damages beyond normal wear and tear, unpaid rent, and lease violations | Covers administrative costs, cleaning, and maintenance |
| Typical Cost Range | 1-2 months’ rent (varies by state and landlord) | $200 – $500 (varies by location and property type) |
| Legal Regulations | Subject to state laws regarding limits, holding accounts, and refund timelines | Generally not regulated, but must be disclosed upfront |
| When Paid? | Before move-in and held until lease ends | One-time fee paid before move-in |
| How It’s Used? | Held in escrow and returned if conditions are met | Goes directly to the landlord and is not returned |
Unlike security deposits, non-refundable move-in fees:
- Are lower, usually between $200 and $500
- Cannot be refunded, even if there is no damage
- Cover administrative costs, cleaning, or maintenance
Some landlords charge both a security deposit and a move-in fee, so it is important to read the lease agreement carefully.
How Much Is a Security Deposit When Moving to a New Rental?
Average Cost: One Month’s Rent
In most cases, the security deposit is equal to one month’s rent. However, this can vary due to several factors.
Factors That Affect the Security Deposit Amount
- Location – In high-demand areas, deposits tend to be higher
- Credit Score and Rental History – Tenants with a poor credit score or no rental history may be required to pay a higher deposit
- Pets – Many landlords charge a refundable pet deposit or a non-refundable pet fee
- Furnished Rentals – Fully furnished properties often require higher security deposits to cover potential damage
Rare Cases: Deposits of Up to Six Months’ Rent
Some landlords require security deposits of up to six months’ rent, particularly in:
- Luxury or high-end rentals
- Areas with high demand and competitive housing markets
- Situations where tenants have no credit or rental history
Can You Get Your Security Deposit Back When Moving Out?
When a Security Deposit Is Refundable
Tenants can receive a full refund of their security deposit if they:
- Pay all rent and fees in full before moving out
- Leave the rental unit clean and undamaged
- Provide proper notice as required in the lease agreement
Refund Timeline
The timeline for security deposit refunds varies by state, but most landlords are required to return the deposit within 14 to 60 days after move-out. Some states also require an itemized list of deductions if any amount is withheld.
Security Deposit Refund Process
| Stage | Steps | Actions to Take | Possible Outcomes |
| 1. Move-Out Preparation | 1 | Provide proper notice as per lease terms | Ensures compliance with lease |
| 2 | Pay all outstanding rent and utility bills | Prevents deductions for unpaid rent | |
| 3 | Schedule a move-out inspection with the landlord | Identifies potential deductions early | |
| 4 | Deep clean the rental unit | Avoids cleaning fee deductions | |
| 5 | Repair minor damages (e.g., nail holes, scuffs) | Reduces maintenance deductions | |
| 6 | Take photos/videos of the unit’s condition | Serves as evidence in case of disputes | |
| 2. Landlord’s Review & Refund Process | 7 | Landlord inspects the unit after move-out | Determines if deductions are needed |
| 8 | Landlord calculates deductions (if applicable) | Tenant may receive a full or partial refund | |
| 9 | Tenant receives security deposit refund | Refund issued within 14-60 days per state law | |
| 3. Refund Outcome | Full Refund | No deductions applied | Deposit returned in full |
| Partial/No Refund | Deductions applied | Proceed to dispute process | |
| 4. Disputing Unfair Deductions | 10 | Request an itemized list of deductions | Ensures transparency in charges |
| 11 | Compare deductions with lease agreement and state laws | Determines if charges are valid | |
| 12 | Provide evidence (photos, videos, receipts) | Strengthens dispute claim | |
| 13 | Send a formal dispute letter to the landlord | Officially requests refund reconsideration | |
| 14 | File a claim in small claims court if unresolved | Legal action taken if dispute is not resolved |
Common Deductions Landlords Make and How to Avoid Them
- Unpaid rent or utility bills – Make sure all payments are settled before moving out
- Damage beyond normal wear and tear – Document the property’s condition before and after moving in
- Cleaning fees – Clean the unit thoroughly before vacating
- Repairs – Fix minor damages before the final inspection
Are There Limits on Security Deposits?
State Regulations on Security Deposit Limits
Some states have laws that cap security deposits at one or two months’ rent, while others do not impose any limits.
Differences Based on Lease Type
- Long-term leases (12+ months) – Often have lower security deposit requirements
- Month-to-month leases – May require a higher deposit for added security
Laws on Interest and Separate Deposit Accounts
Some states require:
- Security deposits to be kept in a separate escrow account
- Landlords to pay interest on security deposits held for a certain period
Security Deposit Limits by State
Security deposit regulations vary by state, with some capping the maximum deposit amount while others have no restrictions. The refund timeline also differs based on local laws. According to American Landlord and iPropertyManagement, the following table outlines the security deposit limits and refund timelines across different states.
| State | Maximum Allowed Deposit | Refund Timeline |
| Alabama | One month’s rent, plus additional for pets or modifications. | 60 days after lease termination. |
| Alaska | Two months’ rent; no limit if rent exceeds $2,000/month. | 14-30 days depending on lease terms. |
| Arizona | One and a half months’ rent. | 14 days after move-out. |
| Arkansas | Two months’ rent; no limit for small landlords. | 60 days from lease termination. |
| California | One month’s rent for unfurnished, two months’ for furnished. | 21 days to return deposit. |
| Colorado | One month for mobile homes; two months for other housing. | 30-60 days depending on lease. |
| Connecticut | Two months’ rent (one month for tenants 62+). | 30 days or 15 days after tenant’s address is provided. |
| Delaware | One month’s rent, no limit for short-term leases. | 20 days after lease termination. |
| District of Columbia | One month’s rent. | 45 days after move-out. |
| Florida | No limit. | 15-60 days based on dispute status. |
| Georgia | No limit. | 30 days after lease termination. |
| Hawaii | One month’s rent plus pet deposit. | 14 days after move-out. |
| Idaho | No limit. | 21-30 days based on agreement. |
| Illinois | No limit. | 30-45 days for units with five or more tenants. |
| Indiana | No limit. | 45 days after tenant moves out. |
| Iowa | Two months’ rent. | 30 days after lease ends. |
| Kansas | One month (unfurnished); one and a half (furnished). | 30 days after lease termination. |
| Kentucky | No limit. | 30-60 days depending on deductions. |
| Louisiana | No limit. | One month after move-out. |
| Maine | Two months’ rent. | 21-30 days depending on agreement. |
| Maryland | One month’s rent. | 45 days after tenant vacates. |
| Massachusetts | One month’s rent. | 30 days after lease ends. |
| Michigan | One and a half months’ rent. | 30 days after tenant vacates. |
| Minnesota | No limit. | Three weeks or five days if condemned. |
| Mississippi | No limit. | 45 days after lease ends. |
| Missouri | Two months’ rent. | 30 days after lease termination. |
| Montana | No limit. | 10-30 days depending on deductions. |
Can a Landlord Require More Than One Month’s Rent?
Situations Where Landlords May Request a Higher Deposit
- Tenants with poor credit or no rental history
- High-risk tenants, such as freelancers or self-employed individuals with variable income
- Renters with pets or additional occupants
- Luxury rentals or properties in competitive markets
- Fully furnished apartments where landlords want extra financial protection
Can the Security Deposit Be Used for the Last Month’s Rent?
No, Unless Stated in the Lease
Security deposits are meant to cover damages or unpaid rent but are not intended to replace the last month’s rent. Tenants who attempt to use the deposit for rent without permission may face legal action from the landlord.
When Will the Security Deposit Be Returned?
Typical Timeline for Refunds
Most landlords return the security deposit within 30 to 60 days after the tenant moves out. Some states have shorter timelines, such as 14 days, while others allow up to two months.
Steps to Ensure a Smooth Refund Process
- Document the property’s condition at move-in and move-out
- Provide a forwarding address for the refund
- Request a move-out inspection before leaving
- Leave the unit clean and free of damage
How to Dispute Unfair Deductions
- Request an itemized list of deductions
- Refer to state rental laws to determine if the charges are legal
- Send a formal dispute letter to the landlord
- Take legal action in small claims court if necessary
What Happens If a Security Deposit Is Moved to a Different Account?
Landlord Notification Requirements
Landlords must notify tenants in writing if the security deposit is transferred to another account.
State Laws on Security Deposit Accounts
Some states require:
- Deposits to be held in a separate escrow account
- Interest to be paid on deposits held for extended periods
Tenant Rights If a Landlord Fails to Follow Security Deposit Laws
If a landlord fails to follow legal requirements, tenants may be entitled to a full refund or additional penalties.
Do All Rentals Require a Security Deposit?
No-Deposit Rental Options
Some landlords offer no-deposit rentals, but they may charge:
- Non-refundable move-in fees instead of a deposit
- Security deposit insurance, where tenants pay a small monthly fee instead of a lump sum
Situations Where a Deposit May Be Waived
- Tenants with strong rental history and good credit
- Corporate leases where a company assumes financial responsibility
- Government-subsidized housing programs
What Additional Fees Should Renters Expect?
Common Move-In Costs
- First month’s rent, plus sometimes last month’s rent
- Application fees for background and credit checks
- Pet deposits or pet rent
- Parking fees and utility setup charges
How to Negotiate a Lower Security Deposit
Strategies for Negotiation
- Offer to pay multiple months’ rent upfront in exchange for a lower deposit
- Provide proof of good credit and rental history
- Suggest a co-signer or security deposit bond
- Ask for a payment plan to spread out deposit costs
How to Document the Property Condition Before Moving In
Steps to Prevent Disputes Over the Deposit
- Take detailed photos and videos of every room
- Complete a move-in inspection checklist and have the landlord sign it
- Report pre-existing damage in writing
- Keep copies of all documents for future reference
Move-In Inspection Checklist
Tenant Name: ____________________
Property Address: ____________________
Move-In Date: ____________________
Landlord/Property Manager: ____________________
General Areas
✔ Walls: Check for cracks, stains, holes, or peeling paint.
✔ Floors: Look for scratches, stains, loose tiles, or carpet damage.
✔ Ceilings: Note water stains, cracks, or mold.
✔ Doors & Windows: Test locks, handles, and look for cracks or drafts.
✔ Lights & Electrical: Ensure all switches and outlets function properly.
Kitchen
✔ Appliances: Check stove, oven, refrigerator, and dishwasher for functionality.
✔ Sink & Faucets: Look for leaks, water pressure issues, and drainage problems.
✔ Cabinets & Countertops: Check for scratches, stains, or loose hinges.
Bathroom
✔ Toilet: Flush to check for proper operation.
✔ Sink & Shower: Test water pressure and look for leaks.
✔ Mirrors & Fixtures: Check for cracks or damage.
✔ Ventilation: Ensure fan or window is working to prevent mold.
Bedrooms & Living Areas
✔ Closets: Test sliding doors, shelves, and handles.
✔ Windows: Open and close to check functionality.
✔ Heating & Cooling: Verify A/C, heating, and vents are working.
Additional Areas
✔ Balcony/Patio: Look for railing stability and flooring damage.
✔ Laundry Room: Test washer and dryer (if applicable).
✔ Parking Space: Confirm assigned space and condition.
Final Takeaways
- Security deposits are usually equal to one month’s rent but vary based on location and risk factors
- State laws regulate security deposit amounts, refunds, and deductions
- Proper documentation can help tenants get their full deposit back
- Negotiation strategies may help reduce the deposit amount
- Renters should review lease agreements carefully to avoid unexpected fees
By understanding tenant rights and security deposit policies, renters can better protect their money and avoid unnecessary expenses.
