Security Deposit Laws: What Landlords Need to Know in Every State

Security deposit disputes are the #1 source of landlord-tenant litigation. Know the rules, protect yourself, and return deposits correctly every time.

By Marcus Williams | February 3, 2026

Security deposit disputes are the #1 source of landlord-tenant litigation. Know the rules, protect yourself, and return deposits correctly every time.

Security Deposits: A Minefield for Unprepared Landlords

Security deposit disputes are the single most common source of landlord-tenant litigation in the US. Most cases are won or lost not on the merits of the damage claim, but on procedure — did you follow the rules exactly?

The Core Rules (Apply in Most States)

Maximum Deposit Amounts

Most states cap security deposits at 1–3 months rent:

**California**: 2 months (unfurnished), 3 months (furnished)

**New York**: 1 month

**Texas**: No statutory limit, but must be "reasonable"

**Florida**: No statutory limit

**Illinois**: No statutory limit

Return Deadlines

This is where most landlords get in trouble. You typically have 14–30 days after move-out to return the deposit (or an itemized statement of deductions). Missing this deadline often means you forfeit the entire deposit AND may owe the tenant double damages.

| State | Return Deadline |

|-------|----------------|

| California | 21 days |

| New York | 14 days (for NYC) |

| Texas | 30 days |

| Florida | 15–30 days |

| Georgia | 30 days |

Required Documentation

When keeping any portion of a deposit:

Itemized list of deductions with costs

Receipts for repairs (in many states)

Remaining balance (if any) with the itemization

Normal Wear and Tear vs. Damage

This is the most contested area. Normal wear and tear cannot be charged to the tenant:

Faded paint from sunlight

Small nail holes from hanging pictures

Worn carpet from norma