Iowa Security Deposit Law
A 2026 guide for Iowa landlords: how much you can hold, the 30-day deadline to return it, whether interest is required, and the penalties for getting it wrong — plus a free calculator set to Iowa's rules.
Deposit cap
2 months' rent
Refund deadline
30 days
Interest required?
No
No statewide interest requirement.
Separate account?
Not required
Penalty for noncompliance
Bad-faith retention can result in statutory damages up to twice the deposit.
Statute: Iowa Code § 562A.12
Iowa security deposit refund calculator
Pre-set to Iowa's 30-day deadline. Enter the deposit and any deductions to see the refund and the exact due date.
Itemized deductions
Result
$1,500.00
Amount owed back to the tenant
- Deposit held
- $1,500.00
- Total deductions
- −$0.00
Legal deadline in Iowa
Return the deposit (or an itemized statement of deductions) within 30 days of move-out.
How to return a security deposit in Iowa
- 1
Inspect and document the unit
As soon as the tenant moves out, photograph every room and compare it against the move-in condition. In Iowa, deductions generally must reflect actual damage beyond normal wear and tear.
- 2
Itemize every deduction in writing
List each deduction with a dollar amount. Iowa — like nearly every state — can bar a landlord from keeping any of the deposit if deductions aren't itemized in a written statement.
- 3
Confirm no interest is required
No statewide interest requirement. That means you generally return the deposit minus documented deductions, with no added interest.
- 4
Return the balance within 30 days
Send the remaining balance and the itemized statement to the tenant's forwarding address within 30 days of move-out. Missing this deadline is the single most common way landlords lose a deposit dispute.
Iowa security deposit FAQ
How much can a landlord charge for a security deposit in Iowa?
2 months' rent.
How long does a landlord have to return a security deposit in Iowa?
A landlord generally has 30 days after the tenant moves out to return the deposit or send an itemized statement of deductions.
Is interest required on security deposits in Iowa?
No statewide interest requirement.
Does Iowa require the deposit to be held in a separate account?
Iowa does not impose a statewide separate-account requirement, though keeping deposits separate is still good practice.
What happens if a landlord wrongfully withholds a deposit in Iowa?
Bad-faith retention can result in statutory damages up to twice the deposit.
Related free tools
Deposit laws in other states
This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above (Iowa Code § 562A.12) or with a local attorney before relying on it.