Utah security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
There is no legal mandate to hold a tenant’s security deposit in a dedicated security deposit bank account in Utah. But, it’s still a best practice to separate tenant security deposit Utah funds from your regular business funds.
{{ state }} security deposit
limits
There is no maximum security deposit Utah landlords can charge. You can set the amount based on the applicant's credit and the property type. The average security deposit typically ranges from one to two months' rent, or roughly $1,200 to $2,400.
{{ state }} security deposit interest
Under state law security deposit regulations, there is no set security deposit interest rate, which means you may keep any interest earned on the deposit. This simplifies the accounting process when it comes time to return the interest on the security deposit Utah funds at the end of the lease.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
No limit
No
No security deposit escrow account required; still best to keep security deposit in a separate account
Unpaid rent, house repair, lease violations, and cleaning costs
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Utah?
There is no Utah security deposit limit, meaning you can charge what the market will bear. Many landlords choose to collect an amount equal to the first and last month's rent plus a small refundable deposit to cover all their costs.
Is interest required on tenant security deposits in Utah?
No. Under Utah security deposit interest rules, you are not required to pay any earnings to the tenant. If you keep funds in an interest-bearing landlord-tenant security deposit bank account that Utah financial institutions offer, you are entitled to keep any interest the account generates unless your lease agreement specifically states otherwise.
How should I issue a security deposit receipt to tenants in Utah?
While Utah doesn't have a legal requirement for this, you should always provide a receipt for record-keeping. Add the deposit amount, the date received, and the rental property address.
How many days to return a security deposit in Utah?
You get 30 days to return the tenant security deposit Utah residents paid after they vacate the property. If you fail to return the deposit or an itemized list of deductions within this window, you may be liable for the full deposit amount plus a $100 penalty and court costs.
What can a landlord deduct from a security deposit Utah?
Utah landlord's rights security deposit regulation allows you to deduct for unpaid rent, cleaning costs, and repairs for damages to your rental property (house rental, condo, apartment) beyond normal wear and tear. Make sure you only charge for actual damages; if a court finds you withheld funds in bad faith, you could be liable to pay double damages to the tenant.
Can a security deposit be used for unpaid rent in Utah?
Yes. If a tenant moves out owing rent or other fees, you can use security deposit funds towards that debt. You still need to give tenants an itemized statement showing exactly the amount you used to cover the cost.
Can landlords keep a security deposit for breaking a lease in Utah?
Yes. If a tenant is breaking lease terms by moving out early, you can use the landlord security deposit Utah funds to cover lost rent and re-leasing expenses.
