How Much Security Deposit Is Legal? Proper?
While most know they can collect a deposit, fewer understand how much is legal, how it must be held, and what’s considered fair practice.
Security deposit laws vary by state, but many landlords overlook the details that protect their investment. While most know they can collect a deposit, fewer understand how much is legal, how it must be held, and what’s considered fair practice.
Generally, a one-month rent equivalent is standard, though in more competitive markets or for higher-risk applicants, up to two months may be permissible — depending on state law. The key is balancing risk mitigation with market competitiveness so you don’t lose qualified applicants.
👉 Learn more about setting the right amount and protecting your investment: Landlords, Are You Collecting Enough Security Deposits?