Security deposits can often be a very contentious issue between tenants and landlords. It is very important that you, as a tenant, know your rights and responsibilities concerning your deposit. Below is information about the security deposit in Iowa.

• Security deposits are regulated by Iowa Code Chapter 562A.12.
• Landlords are allowed to take a maximum of two (2) months rent as a security deposit.
• Landlords may have the deposit in an interest-bearing account and are entitled to keep any interest up to five years of the tenancy. (After five years the tenant can request the interest)
• Deposits can only be used for the following purposes:
• To remedy a tenant's default in the payment of rent or of other funds due to the landlord pursuant to the rental agreement.
• To restore the dwelling unit to its condition at the commencement of the tenancy, ordinary wear and tear excepted.
• To recover expenses incurred in acquiring possession of the premises from a tenant who does not act in good faith in failing to surrender and vacate the premises upon noncompliance with the rental agreement and notification of such noncompliance pursuant to this chapter.
  
• If your landlord does not return your security deposit and/or an explanation of charges within 30 days of the termination of your lease and the landlord's receipt of your forwarding address, he/she forfeits the right to withhold money from your deposit. However, your landlord may still sue you in small claims court for damages and unpaid rent. If you are in a situation with your deposit, fill out our assistance form. (Note: If you sublease, your landlord has the right to keep your deposit until after your original lease term is up.)
• If you end up in small claims court over your security deposit, the burden of proof for any charges he/she has taken out of your deposit falls on the landlord. If the judge finds that the landlord withheld money from the deposit in bad faith, punitive damages of up to $200 may be assessed to the landlord.