If you’ve ever had a conversation with a friend and wondered why their renter’s experience seems to be totally different from yours, you’re not alone. Rental laws in the U.S. are not created equal. Some states give tenants strong protections, while others leave it up to the lease, which means that what's legal in one state could be illegal in others. 

Knowing the laws where you live can be the difference between getting your money back and walking away from it. Here are a few of the most interesting security deposit laws that vary by state.

Getting your security deposit back can take 2 weeks - 2 months.

How long landlords have to return your money depends on state law. Most states require landlords to provide an itemized statement (i.e., a list of deductions that the landlord subtracted from your deposit) at the same time they return your deposit.  In some states, tenants must provide a forwarding address in writing before the landlord is required to return their deposit. 

In some places, tenants get their deposit back quickly:

Arizona and Hawaii: 14 days (excluding weekends and holidays for Arizona)

But in others, tenants have to wait longer:

Alabama and Arkansas: 60 days

In Wisconsin, a landlord has 21 days to return a security deposit or provide an itemized list of deductions, or they can be liable for both civil penalties (double damages + attorney fees) and potential criminal charges leading to fines and imprisonment for repeat or intentional offenders.

Security deposit limits depend on where you live. Some states cap how much a landlord can collect, but others don’t.

California: Until July 1, 2024, landlords could charge up to 2 months’ rent for unfurnished units and 3 months' rent for furnished units. After that date, the max is one month’s rent for all rentals.

Connecticut: 1 month’s rent if the tenant is 62 or older, 2 months if younger.

New Mexico: 1 month’s rent for leases under a year. If the landlord holds the security deposit in an interest-bearing account (at least passbook rate) and pays interest annually, the deposit can exceed 1 month's rent.

Illinois, Indiana, Colorado, and Florida: No statewide limit.

Some states mandate that landlords pay interest on security deposits.

Your security deposit doesn't always just sit with your landlord for free. If you live in Connecticut or Ohio, your landlord is required to pay interest to you annually. Although their laws are similar, there are some key differences between them.

In Connecticut, security deposits are considered trust funds and must be placed in separate, interest-bearing escrow accounts. The interest accrued on these funds must be paid to the tenant every year. 

In Ohio, if the security deposit is more than $50 or one month's rent (whichever is higher), the landlord needs to pay 5% annual interest on that extra money. They have to pay this interest every year, as long as the tenant has lived there for at least 6 months.

Despite popular belief, rent increases shouldn’t always be a surprise.

The length of notice landlords must give before raising rent varies widely. Hawaii requires 30 days notice, while Vermont and Delaware require 60 days. In Oregon, landlords generally cannot increase the rent for a fixed-term lease until the term ends. For month-to-month tenancies, the rent cannot be raised during the first year.

Oregon was also the first state to jump in with statewide rent control. They passed a law back in 2019 that capped annual rent hikes at 7% plus inflation. In 2026, the cap is now 9.5%. If a landlord ignores this rule, they're responsible for 3 months of the tenant's rent, plus any actual damages the tenant suffered.

Large upfront deposits aren’t always the only option.

To decrease upfront housing costs, Cincinnati, Ohio, enacted the "Renter's Choice" law in April 2020. This legislation mandates that landlords who control or own more than 25 units must offer tenants alternatives to a conventional large upfront security deposit. 

Alternatives include: a payment not exceeding 50% of the first month's rent, the full deposit amount paid over a period of at least six months, and a non-refundable, monthly, or one-time fee paid to a third-party provider. It’s important to note that this does not apply to certain Section 8 housing units where federal rules take precedence.

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