Iowa Security Deposit Statute
Iowa Code Section 562A.12 is the main residential rental deposit statute. It covers the two-month cap, the 30-day return-or-written-statement rule, address instructions, lawful withholding, and remedies.
What the statute does
The statute tells renters and landlords when the deposit must be returned, what must be in writing if money is kept, what deductions are allowed, and what happens if the landlord misses the required written statement.
Key parts in plain English
- Deposit cap: no more than two months' rent.
- Renter action: the tenant should provide mailing address or delivery instructions in writing and keep proof.
- Return deadline: 30 days after tenancy termination and receipt of the address or instructions.
- Written statement: if money is kept, the landlord must give specific reasons; for damage/restoration, the statement must specify the nature of the damages.
- Deductions: unpaid rent or sums due, restoration beyond ordinary wear and tear, and certain possession-recovery expenses.
- Missed statement: the landlord forfeits all rights to withhold any portion of the deposit.
- Bad faith: actual damages plus punitive damages up to twice the monthly rental payment may be available for bad-faith retention.
The one-year consequence
If the tenant does not provide a mailing address or delivery instructions within one year after termination, the deposit reverts to the landlord and the tenant forfeits the right to the deposit.
Official sources
Source reviewed: April 2026.
Use this with the practical guides
A four-step Iowa notice sequence built around the statute, the address-instruction step, the 30-day deadline, and proof.
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