Tenant Security Deposits: State Laws, Interest Owed, and Deduction Rules

Landlord Guide to Security Deposits Deposit disputes are the leading cause of landlord-tenant lawsuits. Protect yourself by understanding security deposit laws.

State Maximum Deposit Caps * **No Cap**: Texas, Florida, and Georgia have no statutory limits on security deposits (though market standards dictate 1-2 months rent). * **1 Month Rent**: New York and California (recently updated to cap deposits at 1 month's rent for most rentals). * **2 Months Rent**: New Jersey, Pennsylvania, and Virginia.

What is Wear and Tear vs. Damage? You cannot deduct normal wear and tear from a security deposit. * **Normal Wear and Tear (Not Deductible)**: Minor wall scuffs, faded carpet, worn door locks, dusty blinds. * **Damage (Deductible)**: Holes in drywall, broken windows, stained carpets, pet chewing, missing smoke detectors.

Always perform a move-in and move-out walkthrough with photos to document property condition.