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Iowa security deposit law
Short answer: An Iowa landlord has 30 days after the tenancy ends and the tenant gives a mailing address to return the deposit or send a written statement of the specific reasons for keeping any of it. Deposits are capped at two months' rent.
| Deadline to return the deposit | 30 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions. |
|---|---|
| Limit on how much a landlord can charge | Two months' rent. |
| Itemized list of deductions | Yes. A written statement giving the specific reason for anything withheld, and the nature of the damage if money is kept for repairs. |
| Interest on the deposit | Interest earned during the first five years of a tenancy belongs to the landlord. The deposit must sit in a federally insured bank, savings and loan, or credit union, separate from the landlord's own money. |
| Penalty if the landlord breaks the rules | A landlord who misses the 30-day statement loses the right to keep any of the deposit. Bad-faith retention can add punitive damages of up to twice the monthly rent, on top of actual damages. The court may award attorney's fees to the winner. |
| What the tenant has to do | Give the landlord your mailing address. If you don't within one year after the tenancy ends, the deposit goes to the landlord. |
| The law | Iowa Code Section 562A.12 |
Official law: Iowa Code Section 562A.12. Checked against the statute on 2026-11-04.
Good to know
- Deductions are limited to unpaid rent or other money owed under the lease, restoring the unit to move-in condition minus ordinary wear and tear, and certain costs of removing a tenant who refuses to leave in bad faith.
- The landlord has the burden of proving the reason for anything kept.
Tips for landlords
- Do a written move-in inspection and have the tenant sign it. Take dated photos of every room, including inside appliances and closets.
- Collect the tenant's forwarding address in writing at move-out.
- Put the itemized list and the refund in the mail well before the deadline, and keep proof of mailing.
- Normal wear and tear (faded paint, light carpet wear, small nail holes) usually can't be charged. Damage beyond that can.
Tips for tenants
- Take your own dated photos and video on move-in day and move-out day.
- Give your landlord your forwarding address in writing, and keep a copy.
- If the deadline passes, send a written demand letter that cites the law above before going to small claims court.
Common questions
How long does a landlord have to return a security deposit in Iowa?
30 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions.
Is there a limit on security deposits in Iowa?
Two months' rent.
Does a landlord in Iowa have to itemize deductions?
Yes. A written statement giving the specific reason for anything withheld, and the nature of the damage if money is kept for repairs.