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The Most Commonly Asked questions About the Operation of Rental Housing
Security Deposit: Amount
Q: What is the maximum amount of security an owner can charge a resident?
A: Residential owners can charge residents a maximum security deposit equal to two month's rent for unfurnished units and three month's rent for furnished units. Even if an owner designates some of the security deposit as "last month's rent," "cleaning deposit," or "pet deposit," the two or three month limit still applies.
Security Deposit: Amount
Q: What?
A:
Security Deposit: Pet Deposit
Q: Can I charge a pet deposit?
A: Yes. However, the law considers all deposits, such as last month's rent, cleaning deposits, key deposits, and pet deposits as part of the overall security deposit. (The only exception is a waterbed deposit of one-half of one month's rent, which the owner can charge the resident in addition to the overall security deposit). In other words, if an owner designates and charges separate deposits, these deposits together cannot total more than two times the monthly rent if the unit is unfurnished (no more than three times the monthly rent if the unit is furnished). It is better to charge one deposit rather than two or three separate deposits. The owner will have more discretion at the end of tenancy if damages are caused by the resident (or the resident's pet).
Security Deposit: Interest
Q: As an owner, do I have to pay to residents interest on security deposits?
A: There is no state law that mandates an owner pay interest on a security deposit. Check with your local apartment association or community housing department for information about your local laws.
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