Louisiana security deposit account for landlords

Limit: In Louisiana, there is no statutory limit on how much a landlord can charge for a tenant security deposit. Most landlords typically collect an amount equal to one month’s rent, but the tenant deposit amount may vary depending on the tenant’s creditworthiness, rental history, or whether pets are allowed. The total amount must be clearly stated in the lease agreement. It is considered best practice for landlords to store the funds in a dedicated security deposit bank account in Louisiana to maintain transparency and compliance with record-keeping standards.

Return Deadline: The landlord must return the tenant security deposit, along with an itemized list of any deductions, within one month (30 days) after the tenant vacates the rental property and provides a forwarding address. If the landlord fails to return the tenant deposit or provide a written accounting within this timeframe, the landlord may be liable for damages up to twice the amount wrongfully withheld, plus court costs and attorney’s fees.

Acceptable Deductions: The tenant security deposit may be used to cover unpaid rent, late fees, damage beyond normal wear and tear, cleaning costs required to restore the property to its original condition, and other expenses resulting from a tenant’s breach of the lease. The landlord must provide written documentation, such as receipts or repair estimates, for all deductions taken from the tenant deposit.

Where to Deposit: Louisiana law does not require landlords to place tenant security deposits in a separate or interest-bearing account. However, it is recommended to keep deposits in a security deposit escrow account in Louisiana or a landlord tenant security deposit bank account in Louisiana to prevent commingling with personal or business funds. Although there is no mandated security deposit interest rate, maintaining tenant funds in a separate, traceable account provides better financial integrity and ensures compliance with Louisiana’s rental regulations.

Open a security deposit account and use physical & virtual debit cards with custom spend controls and automated transaction tagging with Schedule E categories.

Unlike many other states, there is no maximum security deposit Louisiana landlords can charge. To remain competitive and attract the right tenants, look for the average security deposit across cities, which typically falls between one and two months' rent.