Laws Governing Security Deposits

By E-Renter Tenant Screening
Posted on January 24, 2009 under Rents and Deposits | Be the First to Comment

The law in each state regulates rental security deposits, giving specific requirements for how money is held during the lease and how the return of that deposit is handled at the end of the lease.

Landlords may be required to hold the security deposit in a separate bank account, and if there is interest earned the laws may indicate who is to receive that interest.  Additionally, the state laws will specify the timing of the return of the deposit to the tenant, and usually require a written explanation of any amount retained by the landlord.