Iowa security deposit law
The state rules a landlord in Iowa has to follow for a residential security deposit, from Iowa Code § 562A.12.
- Maximum deposit
- Two months' rent.
- Deadline to return it
- 30 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions.
- Itemized deductions
- A written statement of the specific reasons for withholding, naming the nature of any damage.
- Interest on the deposit
- Not required; interest earned in the first five years of a tenancy belongs to the landlord.
- Penalty for wrongful withholding
- Bad-faith retention: punitive damages up to twice the monthly rent plus actual damages; missing the 30-day statement forfeits the right to withhold; attorney fees may be awarded.
Before you keep any part of a deposit
- Compare the unit with the move-in inspection and photos. Normal wear and tear is generally not chargeable.
- Keep receipts or written estimates for every deduction.
- Send the return or the itemized list within the deadline above, to the tenant's forwarding address, and keep proof of mailing.
Working out the last month's rent? The prorated rent calculator does the partial-month math.
Source
Verification status: verified summary. Research date: November 5, 2026. Statute: Iowa Code § 562A.12. Source: www.legis.iowa.gov.
General information, not legal advice. Cities and counties can add stricter rules, and laws change. Check the current statute or a local attorney before you act.
Other states: Indiana · Kansas · all states
Last updated November 5, 2026.