Skip to content
PayByTown

Iowa security deposit law

Source: Iowa Code § 562A.12 · Checked against the statute

Maximum deposit
A landlord may not demand or receive a deposit of more than two months' rent.
Return deadline
30 days (see details)
If the landlord keeps it wrongly
Bad-faith retention: actual damages plus punitive damages of up to twice the monthly rent. The court may award attorney's fees to the prevailing party.

Calculate your Iowa deadline

Choose your state and move-out date to see when your landlord must return the deposit.

When the deposit must be returned

  • Return the deposit, or send a written statement of specific reasons for keeping any of it, within 30 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions.

The 30 days don't start until the landlord has the tenant's mailing address or delivery instructions. If none is given within one year after the tenancy ends, the deposit goes to the landlord.

Itemized list of deductions

Required: Yes. A written statement giving the specific reason for any amount kept; if kept for restoring the unit, it must state the nature of the damage.

What can and can't be deducted

Only amounts reasonably necessary may be kept: unpaid rent or other money due under the lease; restoring the unit to its move-in condition, ordinary wear and tear excepted; and costs of regaining possession from a tenant who didn't act in good faith. The landlord must prove the reason for keeping any amount.

Nonrefundable fees

The statute is silent on nonrefundable fees. A deposit used only as advance rent is not a rental deposit (§ 562A.6).

Interest, bank account and move-in inspection

  • Interest required: No. No interest owed to the tenant. Any interest earned during the first five years of a tenancy belongs to the landlord.
  • Separate account required: Yes. Deposits must be held in a federally insured bank, savings and loan, or credit union, not commingled with the landlord's personal funds. A common trust account is allowed.
  • Move-in inspection required: No. The statute does not require a move-in inspection or condition checklist.

Penalties and bad faith

Bad-faith retention: actual damages plus punitive damages of up to twice the monthly rent. The court may award attorney's fees to the prevailing party.

No presumption. A landlord who doesn't send the written statement within 30 days forfeits all rights to keep any of the deposit.

Getting your deposit back in court

Small claims covers money claims of $6,500 or less, excluding interest and costs. Court information

Before filing, many tenants send a written demand first. Write a Iowa demand letter →

Also good to know

  • When the landlord's interest ends, the deposit must be transferred to the successor (with notice to the tenant) or returned. The tenant has 20 days to object to the amount stated in the successor's notice.

Sources

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.