A security deposit is your money, not the landlord's — held only as security against unpaid rent and genuine damage. Yet deposit disputes are among the most common landlord-tenant conflicts, largely because tenants rarely know three things the law actually gives them: a cap on how much can be collected, a firm deadline for the money's return, and a real financial penalty when a landlord withholds it in bad faith. Knowing your state's numbers turns a vague 'I think they owe me' into a specific, enforceable claim.
How much can a landlord legally hold — and when caps changed
Roughly thirty states cap the security deposit at one to two months' rent; about twenty, including Texas, Florida, and Illinois, set no statutory maximum. The map shifted recently: California moved to a one-month cap under AB 12 (July 2024), Maryland dropped to one month under the Renters' Rights and Stabilization Act (October 2024), Georgia added a two-month cap under the Safe at Home Act (July 2024), and Colorado's HB25-1249 cut its cap to one month effective January 1, 2026. If your deposit exceeds your state's cap, the over-collected portion is recoverable no matter how you left the unit — the cap is a hard limit, not a guideline. A few states allow a higher cap for furnished units or for tenants with pets, which is why the calculator asks about rental type.
Deductions: what a landlord can and cannot keep
A landlord may deduct only two things: unpaid rent you actually owe, and the cost of repairing damage beyond normal wear and tear. The wear-and-tear line is where most disputes live. Faded paint, worn carpet in traffic paths, minor scuffs, and small nail holes are normal wear and cannot be charged in any state. A cracked tile, a pet-stained carpet, a hole punched in drywall, or a unit left filthy are damage and can be. Most states require the landlord to back every deduction with a written, itemized statement — and often receipts — within the return deadline. A landlord who skips the itemized statement frequently forfeits the right to withhold anything, even for real damage. Photograph every room at move-out, keep your move-in condition report, and put your forwarding address in writing so the clock starts.
When the deadline passes: penalties and how to collect
Every state sets a deadline — 14 to 60 days after move-out — for returning the deposit or sending an itemized statement. Missing it, or withholding without justification, is bad-faith withholding, and most states punish it hard: a common remedy is two to three times the wrongfully withheld amount, and many states add attorney fees. Texas layers on a $100 civil penalty; several states set statutory minimums. The collection path is straightforward and rarely needs a lawyer: send a written demand letter by certified mail that states what you are owed, cites your state's deadline, and gives a short response window. If that fails, security-deposit disputes are a classic small claims case — bring your lease, move-in and move-out photos, the itemized statement (or proof none arrived), and your demand letter. Because the potential penalty and fees often dwarf the disputed amount, many landlords settle once they receive a demand that shows you know the law.