Iowa security deposit rules
Iowa limits security deposits to 2 months' rent. The deposit must be returned 30 days after termination of the tenancy AND receipt of the tenant's mailing address or delivery instructions; return the deposit or furnish a written statement of the specific reasons for withholding, with an itemised list of any deductions. No interest is owed on the deposit under state law.
What the law requires
2 months' rent. Returned 30 days after termination of the tenancy AND receipt of the tenant's mailing address or delivery instructions; return the deposit or furnish a written statement of the specific reasons for withholding. Deposits must be held in a federally insured bank, savings and loan, or credit union and not commingled with the landlord's personal funds; any interest earned during the first five years of a tenancy belongs to the landlord (statute is silent after five years). A landlord who fails to furnish the written statement within 30 days forfeits the right to withhold anything; bad-faith retention carries punitive damages up to twice the monthly rent. If the tenant provides no address within one year, the deposit reverts to the landlord. Read from the official Iowa Code 2026 PDF.
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 30-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing Iowa Code § 562A.12. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Iowa rules
- Late fees: Tiered statutory cap: if monthly rent is $700 or less, no more than $12 per day and $60 total per month; if monthly rent is more than $700, no more than $20 per day and $100 total per month. No statutory grace period. Numeric fields reflect the over-$700 tier. Late fee calculator.
- Notice to end a tenancy: At least 30 days' written notice by either party before the periodic rental date specified in the notice; 10 days for week-to-week tenancies (Iowa Code § 562A.34) Notice calculator.
- All rules on one page: Iowa landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Iowa?
2 months' rent. Deposits must be held in a federally insured bank, savings and loan, or credit union and not commingled with the landlord's personal funds; any interest earned during the first five years of a tenancy belongs to the landlord (statute is silent after five years). A landlord who fails to furnish the written statement within 30 days forfeits the right to withhold anything; bad-faith retention carries punitive damages up to twice the monthly rent. If the tenant provides no address within one year, the deposit reverts to the landlord. Read from the official Iowa Code 2026 PDF.
How long does a landlord have to return a security deposit in Iowa?
30 days after termination of the tenancy AND receipt of the tenant's mailing address or delivery instructions; return the deposit or furnish a written statement of the specific reasons for withholding. The statute is Iowa Code § 562A.12.
Does a Iowa landlord have to pay interest on the security deposit?
No. Iowa law does not require interest on residential security deposits.