Renters' Rights · Security Deposit
Security Deposit Laws in Iowa
The most a landlord can charge, how long they have to return it, and what it costs them to keep your money without cause in Iowa.
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What your landlord can hold, and when it's due back
Enter your rent for the Iowa maximum, plus the return-deadline clock.
Estimate only, based on Iowa's statutory cap. Your lease may set a lower deposit, and local ordinances can be stricter. Not legal advice.
The full rules, with the statute
Every requirement and where it comes from in the code.
Exceptions: Iowa Code 562A.12(1) says a landlord cannot demand or receive a security deposit worth more than two months' rent. This applies to residential rentals under the Uniform Residential Landlord and Tenant Law. Manufactured and mobile home lots follow a separate chapter (562B).
Penalties & recent changes
What happens if the landlord keeps your deposit wrongfully.
What Iowa renters get wrong
Iowa caps a residential security deposit at two months' rent under Iowa Code 562A.12. The rule most tenants miss is about interest: your landlord must hold the deposit in a federally insured bank, savings and loan, or credit union and keep it separate from personal funds, and while that account may earn interest, any interest earned during the first five years of the tenancy belongs to the landlord. Interest earned after five years belongs to you. After you move out, the landlord has 30 days from the end of the tenancy and receipt of your mailing address to either return the deposit or send a written statement listing the specific reasons for any deductions. Miss that deadline, and the landlord forfeits the right to keep any part of the deposit. If a landlord holds your money back in bad faith, a court can add punitive damages of up to twice the monthly rent plus your actual damages, and may award attorney fees to whoever wins.
Common questions
How much can a landlord charge for a security deposit in Iowa?
No more than two months' rent. Iowa Code 562A.12(1) bars a landlord from demanding or receiving a residential security deposit worth more than two months of rent.
Who gets the interest on a security deposit in Iowa?
It depends on how long you have rented. The deposit can be held in an interest-bearing account, but any interest earned during the first five years of the tenancy belongs to the landlord. Interest earned after five years belongs to the tenant. Iowa does not require the account to pay interest in the first place.
How long does an Iowa landlord have to return my deposit?
30 days. The clock starts when the tenancy ends and the landlord has your mailing address or delivery instructions. Within that window the landlord must either return the deposit or send a written statement listing the specific reasons for any deductions. If the landlord misses the 30-day deadline, they lose the right to keep any part of the deposit. And if you never give a mailing address within one year of the tenancy ending, the deposit reverts to the landlord.
What can I do if my Iowa landlord keeps my deposit in bad faith?
You can sue. If the court finds bad-faith retention, it can award punitive damages of up to twice the monthly rent on top of your actual damages (Iowa Code 562A.12(7)). The landlord has the burden of proving why they kept the money, and the court may award reasonable attorney fees to the party who wins.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.