Overview
Iowa's security deposit laws are governed by the Uniform Residential Landlord and Tenant Law, which provides a clear framework for both landlords and tenants. Iowa caps security deposits at two months' rent and requires a 30-day return timeline with specific itemization requirements.
This guide covers everything landlords and tenants need to know about security deposits in Iowa.
Deposit Limits
Iowa law limits security deposits to a maximum of 2 months' rent. This cap applies to all residential rental properties regardless of whether the unit is furnished or unfurnished.
Any deposit that exceeds two months' rent is considered unlawful, and a tenant may challenge the excess amount. Pet deposits are included within the two-month limit and may not be charged separately above the cap.
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage to the property
- Cleaning: Costs to restore the unit to the same level of cleanliness as at move-in
- Other lease obligations: Any other amounts specifically authorized under the terms of the rental agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight exposure
Damage beyond normal wear and tear includes:
- Large holes in walls or doors
- Stained, burned, or torn carpet
- Broken windows, fixtures, or appliances
- Pet damage to flooring or walls
- Unauthorized alterations to the property
Return Timeline
Landlords must return the security deposit within 30 days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
If the landlord fails to return the deposit or provide the required itemized statement within 30 days, the landlord may be liable for up to twice the amount wrongfully withheld, plus reasonable attorneys' fees.
The landlord's obligation to return the deposit begins when the tenant has vacated and provided a forwarding address. If the tenant does not provide a forwarding address, the landlord should mail the deposit to the tenant's last known address.
Pre-Move-Out Inspection
Iowa does not have a statutory requirement for landlords to offer a pre-move-out inspection. However, tenants are encouraged to:
- Document the condition of the unit at both move-in and move-out with photos and video
- Request a walkthrough with the landlord before the final move-out date
- Make any necessary repairs or cleaning before vacating to maximize the deposit return
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $6,500 in Iowa)
- Seek double damages: Courts may award up to twice the amount wrongfully withheld if the landlord failed to comply with the law
- Recover attorneys' fees: Prevailing tenants may be awarded reasonable attorneys' fees in addition to damages
Landlords who act in bad faith by retaining deposits without proper justification face significant financial penalties under Iowa law.