In Iowa, landlords can charge up to two 2 months' rent.
Security deposit rules in {{ state }}
Limit: In Iowa, landlords may collect a tenant security deposit of up to two months’ rent. This limit applies regardless of the tenant’s credit history, rental record, or whether pets are allowed. Any tenant deposit amount exceeding this limit is prohibited. The total deposit amount must be clearly stated in the lease agreement, and best practice is to store it in a dedicated security deposit bank account in Iowa to ensure compliance and transparency.
Return Deadline: The landlord must return the tenant security deposit within 30 days after the tenant vacates the property and provides a forwarding address. If deductions are made, an itemized statement outlining all charges must be included. Failure to return the tenant deposit or provide the statement within 30 days may make the landlord liable for up to twice the amount wrongfully withheld.
Acceptable Deductions: The tenant security deposit can be used to cover unpaid rent, late fees, damages beyond normal wear and tear, and reasonable cleaning costs needed to restore the rental to its move-in condition. Routine wear and tear or depreciation cannot be deducted. The landlord must provide documentation, such as receipts or written estimates, to support all deductions.
Where to Deposit: Iowa law requires landlords to hold tenant deposits in a separate, interest-bearing escrow account at a federally insured financial institution located in Iowa. The funds cannot be commingled with the landlord’s personal or business accounts. Tenants are entitled to any interest earned on the deposit, calculated annually, at a rate determined by the financial institution. Using a security deposit escrow account in Iowa or a landlord tenant security deposit bank account in Iowa ensures compliance with state law and protects tenant funds through transparent, regulated management.
