Full question:
My wife and I are trying to rent an apartment. The landlord is demanding three month’s rent as security deposit. What is the maximum security deposit a landlord can demand in Iowa?
- Category: Landlord Tenant
- Subcategory: Security Deposit
- Date:
- State: Iowa
Answer:
In Iowa, a landlord can demand a security deposit of up to two months' rent, as stated in IA Code § 562A.12 (2014). Here are the key points regarding security deposits:
1. A landlord cannot ask for more than two months' rent as a security deposit.
2. Security deposits must be held in a bank or credit union insured by a federal agency and cannot be mixed with the landlord's personal funds.
3. Within thirty days of the tenancy ending, the landlord must return the deposit or provide a written statement explaining any deductions.
4. If the landlord fails to provide this statement, they lose the right to withhold any part of the deposit.
5. The landlord must transfer any remaining deposit to their successor upon termination of their interest in the property.
6. If a landlord retains a deposit in bad faith, they may face punitive damages up to twice the monthly rent.
7. The court may award reasonable attorney fees to the winning party in a dispute over the rental agreement.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.