Rental Deposit:

Definition Chapter 562A.6(11), 1993 Code of Iowa

A deposit of money collected by the landlord to pay for unpaid rent, damage by the tenant, or other costs required to secure performance of the rental agreement. This is not the same as an advance payment of rent.

Amount Charged Chapter 562A.12(2)

Rental deposit cannot exceed 2 months rent.

Handling of Deposit Chapter 562A.12(2)

The deposit is to be kept in an account as described:

1. Federally insured.
2. Separate from the landlord's personal account.
3. May be interest bearing (any interest after 5 years belongs to the tenant).

1. Get a receipt for the deposit.

2. Fill out an inspection checklist at the start of the rental agreement and check it at the end.

3. Tell the landlord about damages that occur during occupancy.

4. Give proper notice before moving out.

5. Return the place to its original condition. Ordinary wear and tear is acceptable.

6. Get pictures and/or witnesses of the condition of the dwelling before moving out (and moving in).

7. Return all keys and give the landlord a mailing address or delivery instructions.

Time allowed for Landlord to Return Deposit: 562A.12 (3 and 4)

The landlord must return the deposit, or give the tenant a written statement of deductions, within 30 days of termination of tenancy and receipt of delivery instructions / mailing address. Otherwise, the landlord forfeits all rights to deposit.

Reasons for Landlord to Keep Deposit: 562A.12 (3)

1. No mailing address provided by tenant within one year of lease end.

2. Unpaid rent or other payments owed by tenant under rental agreement.

3. Repairs (ordinary wear and tear excluded).

4. To recover expenses of removing a tenant who remained in the dwelling after proper notices to leave (as a result of tenant not following rental agreement) were delivered.

NOTE: The landlord has the burden of proving the reason for deducting money from the deposit. However, tenant should be prepared to give evidence of the contrary.

Landlord Keeps Deposit Without Notification: 562A.12 (7 and 8)

First, send a letter to the landlord asking for the deposit to be returned. Keep a signed and dated copy. If there is no repsonse, talk to a lawyer. The bad faith reention of a deposit by a landlord, or any portion of the rental deposit, in violation of this section shall subject the landlord to punitive damages not exceeding two-hundred dollars in addition to actual damages.

NOTE: The prevailing party in any court action may be awarded attorney fees.