Security Deposit Account for Landlords in {{ state }}​

In Minnesota, no legal limit applies for a security deposit.

These are the other states where you can use Baselane: Arizona, California, Illinois, New Jersey, Texas, Virginia, and all major states in the USA.

Tenants can cause much damage to your rental property, so you should aim to collect the largest security deposit the market will bear. One month's rent is typical in most parts of the country, but you may be able to demand more if your rental property is in a particularly hot market.Your state may set a cap on how much you can collect. Many states, including New York, Massachusetts, and Ohio, set the maximum security deposit you can collect at one month's rent. Others, including California, Pennsylvania, and Maryland, limit security deposits to 2 months' rent. There's no limit on security deposits for rentals in Indiana and Florida.

When your new tenant signs the lease, you should collect the security deposit and the first month's rent. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping, and ensure you're handling your deposits appropriately.

If local law states a lower maximum security deposit for month-to-month leases, you may be required to refund the excess amount. Otherwise, the lease's initial terms usually apply when switching to month-to-month, and no change to the security deposit is required.

When your new tenant signs the lease, you should collect the security deposit and the first month's rent. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping, and ensure you're handling your deposits appropriately.