Iowa caps deposits at two months and requires protected holding. The 30-day refund clock depends on both termination and delivery instructions. Interest earned during the first five years belongs to the landlord.
Last verified: 2026-10-10
Max deposit
2
months' rent
Return deadline
30
days after tenancy ends
Interest required
Yes
paid to tenant
Separate account
Required
Maximum Security Deposit
2 months's rent
General residential rental-deposit cap.
Return Deadline
30 days
After both tenancy termination and receipt of mailing address/delivery instructions.
Interest on Deposit
Required
Conditional on interest earned: interest during first five years belongs to landlord; do not imply every deposit must earn interest.
Separate Account Required
Required
Federally insured financial institution; no personal-fund commingling; common trust account permitted.
⚖️ Permitted Deductions
Full §562A.12 deduction list requires review; normal wear excluded.
📋 Official Source
The information on this page is sourced from the primary Iowa statute. Always verify against the current official text before making decisions.
How much can a landlord charge for a security deposit in Iowa?
Iowa law limits security deposits to 2 months's rent. General residential rental-deposit cap.
How long does a landlord have to return the security deposit in Iowa?
Iowa landlords must return the security deposit — or provide a written itemized statement of deductions — within 30 days after the tenancy ends. After both tenancy termination and receipt of mailing address/delivery instructions.
Does Iowa require landlords to pay interest on security deposits?
Yes. Iowa requires landlords to pay interest on security deposits. Conditional on interest earned: interest during first five years belongs to landlord; do not imply every deposit must earn interest.
Must Iowa landlords keep security deposits in a separate bank account?
Yes. Iowa requires landlords to hold security deposits in a separate account. Federally insured financial institution; no personal-fund commingling; common trust account permitted.
Automate security deposit compliance
Property management software handles deposit tracking, deadline reminders, itemized deduction statements, and compliant separate account requirements automatically — so you never miss a Iowa deadline.
This page is for informational purposes only and is not legal advice. Security deposit laws change — always verify the current statute or consult a licensed attorney in Iowa before making decisions. Official source: https://www.legis.iowa.gov/docs/code/562A.12.pdf. Last reviewed: 2026-10-10.