A Security Deposit Receipt is a document that records that a security deposit was paid and received by the landlord. It documents the amount paid, payment date and method, the person who made the payment, and the recipient of the payment. The receipt usually binds the tenant and the landlord to a lease agreement.
A security deposit refers to the money paid to a landlord or seller of an apartment or house as proof of a desire to move in and take care of the property.
It is usually paid together with the first month’s rent or before. A security deposit is meant to provide security for the landlord and compensate for damages or lost items. Depending on the conditions of the agreement and the State laws, security deposits might be refundable or non-refundable.
Importance of a Security Deposit Receipt
A security deposit receipt is essential to both the landlord and the tenant.
Listed below are some of the benefits associated with using a security deposit receipt:
Benefits to the landlords
- The receipts are necessary for record-keeping purposes.
- It helps to fulfill the law.
Some state laws require the landlord to issue a security deposit receipt to every tenant. Providing your tenants with security deposit receipts saves you from possible lawsuits.
Benefits to the tenants
- It proves that the tenant indeed paid a security deposit to the landlord.
- It is proof of law fulfillment in some states. The tenants should have the receipts as a piece of evidence that they have complied with the law requirements regarding security deposit payment.
Some states require the tenants to pay specific amounts of security deposits.
Benefits to the prospective buyers
The owner of a building might be willing to sell it without evacuating the current tenants. In such instances, the potential buyer will need proof that all the current tenants had paid the security deposit before moving in. Security deposit receipts can perfectly serve this purpose.
- The receipt assures the tenants that they will be able to claim a deposit refund at the end of the tenancy.
- Security deposits can be used to solve possible disputes that may arise between the landlord and the tenant.
State Rules Concerning the Security Deposit Receipt
Each state has its own set of rules that govern the use of security deposit receipts.
Below are the laws that relate to security deposit receipts:
Validity time frame
Security deposit receipts have varying validities in different jurisdictions. The validity of a security deposit refers to the duration during which the receipt/ document remains active for use. Landlords should familiarize themselves with such requirements in their jurisdictions and act accordingly by informing their tenants about this.
Interest obligations on the security deposit
In some situations, security deposits generate interests that are shared between the tenant and the landlord. It is the landlord’s responsibility to learn about current interest regulations, how they may influence the rental business, and all that relates to it. More information about the security deposit interest can be acquired by contacting the local offices in your jurisdiction.
Landlords are required to make security deposits public in certain states. This is done for tax exemption purposes or other financial responsibilities. As a result of this condition, the deposit and related acknowledgment will act as extra notice if and when the necessity for this notification emerges.
Reasonable withholding of security deposit
The landlord is legally obligated to return the security deposit money within a specific time frame after the expiry of a tenancy. This time frame varies in different jurisdictions. To be sure, consult your state’s particular legislation.
However, the landlord is allowed to withhold money for specific reasons. While you still can withhold the security deposit to cover overdue rent, you can also withhold the deposit to cater to the expense of repairing any damages that are not caused by regular wear and tear. You may justifiably deduct the cost of repairs from the security deposit.
The following would be deemed damages other than normal wear and tear:
- Damaged appliances
- Excess litter and garbage have been left behind when vacating
- Lost items
- Pet damage caused by unidentified pets
- Unapproved modifications and improvements
State Laws Concerned with Security Deposit Receipts
Some states are concerned with issuing security deposit receipts upon the payment of security deposit and the corresponding statutes.
|State||Corresponding Statute/ Law|
|Massachusetts||Chapter 186, Section 15B(2)(c)|
|New Hampshire||RSA 540-A:6(I)(b)|
|New York||§ 7-103|
|North Carolina||§ 42-50|
|Maine (Portland city)||§ 30.01.087(B)(1)|
|Washington D.C.||§ 14-306|
State Laws for the Maximum Amount of Payment for a Security Deposit
Landlords may demand security deposits of different amounts. In different states, there is a set limit of maximum amounts for a security deposit, the returning durations, and the corresponding security deposit laws for each listed state.
These are listed below:
|State||Maximum deposit, Equivalent to monthly rent ($)||Returning duration||Corresponding statutes (link)|
|Alabama||1 month’s rent||60 days since the tenancy expiration and delivery of possession||§ 35-9A-201(a), 35-9A-201(b)|
|Alaska||2 month’s rent||14 days if the occupant vacates on time, 30 days if the occupant delays leaving the premises||§ 34.03.070(a), § 34.03.070(g)|
|Arizona||1 and a half month’s rent||14 working days since the move-out inspection (excluding weekends and holidays)||§ 33-1321|
|Arkansas||Two month’s rent||60 days after tenancy expires||§ 18-16-304, § 18-16-305|
|California||Two months’ rent ( for an unfurnished house), three months’ rent (for a furnished house)||60 days since the vacating date||1950.5|
|Colorado||Unlimited||One month if mentioned in the lease, and two months if not mentioned||§ 38-12-103 & § 38-12-104|
|Connecticut||1 month’s rent for 62 years or older tenant, two months’ rent for a younger tenant||30 days since the tenant leaves the premises, or 15 days after receiving the new address of the tenant||§ 47a-21|
|Delaware||One month’s rent for a 1-year lease. No limit for all other durations||20 days since the tenancy expiry||Title 25 § 5514|
|Florida||Unlimited||30 days if there are any deductions, 15 days if there are no deductions||§ 83.49(3)(a)|
|Georgia||Unlimited||30 days since the tenancy expiry||§ 44-7-34|
|Hawaii||1 month’s rent (Not inclusive of pet domestication fee)||14 days since the tenancy expiry||§ 521-44|
|Idaho||Unlimited||One month if mentioned in the lease, and 21 days if not mentioned||§ 6-321|
|Illinois||Unlimited||30 days if there are any deductions, 45 days if there are no deductions||765 ILCS 710|
|Indiana||Unlimited||45 days since the tenancy expiry||§ 32-31-3-12|
|Iowa||2 months’ rent||30 days since the tenancy expiry||§ 562A.12|
|Kansas||One months’ rent ( for an unfurnished house), 1.5 months’ rent (for a furnished house)||30 days since the tenancy expiry||§ 58-2550|
|Kentucky||Unlimited||60 days since the tenancy expiry||§ 383.580(7)|
|Louisiana||Unlimited||One month since the tenancy expiry||Revised Statute 9:3251|
|Maine||2 month’s rent||30 days after the lapse of the fixed tenancy period or 21 days after the tenant relocates willingly||§ 6032, § 6033|
|Maryland||2 months’ rent||45 days since the tenancy expiry||§ 8–203|
|Massachusetts||1 month’s rent||30 days since the tenancy expiry||Chapter 186, Section 15B|
|Michigan||1 and a half month’s rent||30 days since the tenancy expiry||§ 554.602, § 554.609|
|Minnesota||Unlimited||21 days since the tenancy expiry||§ 504B.178|
|Mississippi||Unlimited||45 days since the tenancy expiry||§ 89-8-21|
|Missouri||2 months’ rent||30 days since the tenancy expiry||§ 535.300|
|Montana||Unlimited||30 days if there are any deductions, 10 days if there are no deductions||§ 70-25-202|
|Nebraska||1 month’s rent (Not inclusive of pet domestication fee)||14 days since the tenant moves out||§ 76-1416|
|Nevada||Three month’s rent||30 days since the tenancy expiry||NRS 118A.242|
|New Hampshire||Rent equivalent to 1 month, or $100 (the tenant pays the larger amount)||30 days if the property is shared between the landlord and the tenant, 20 days if no sharing||RSA 540-A:6, RSA 540-A:7|
|New Jersey||1 and a half months rent||30 days since the tenancy expiry||§ 46:8-21.2, § 46:8-21.1|
|New Mexico||One month’s rent for 1-year leases and below. No leases above 1-year||30 days since the tenancy expiry||§ 47-8-18|
|New York||1 month’s rent||14 days after vacating||Emergency Tenant Protection Act 576/74(f), § 7-108 (e)|
|North Carolina||Two months’ rent, or 1.5 months’ rent for tenancy-at-will only||30 days if there are no deductions, 60 days if there are deductions||§ 42-51, § 42-52|
|North Dakota||1 month’s rent (for no pets), two months’ rent (with pets)||30 days since the tenancy termination date||§ 47-16-07.1|
|Ohio||Unlimited||30 days since the tenancy termination date||§ 5321.16|
|Oklahoma||Unlimited||45 days since the tenancy termination date||§ 41-115(B)|
|Oregon||Unlimited||31 days since the tenancy termination date||§ 90.300|
|Pennsylvania||2 month’s rent||30 days since the tenancy termination date||§ 250.511a, § 250.512|
|Rhode Island||1 month’s rent||20 days since the tenancy termination date||§ 34-18-19|
|South Carolina||Unlimited||30 days since the tenancy termination date||§ 27-40-410|
|South Dakota||1 month’s rent||14 days if there are no deductions, 45 days if there are deductions||§ 43-32-6.1, § 43-32-24|
|Tennessee||unlimited||30 days since the tenancy termination date||§ 66-28-301|
|Texas||unlimited||30 days after vacating||§ 92.103|
|Utah||unlimited||30 days since the tenancy termination date||§ 57-17-3|
|Vermont||unlimited||60 days if a seasonal property, 14 days if not||§ 4461|
|Virginia||2 month’s rent||45 days since the tenancy expiry, or the day on which the renter vacates the residence (whichever happens last)||§ 55.1-1226(A)|
|Washington||Unlimited||21 days after the tenant’s move-out date||§ 59.18.280|
|West Virginia||Unlimited||60 days if the property gets a new occupant in 45 days, otherwise then immediately it is occupied||§ 37-6A-1|
|Wisconsin||unlimited||21 days after the tenant’s move-out date||§ 134.06|
|Wyoming||unlimited||30 days since the lease termination or 15 days after receiving the tenant’s new address (whichever is lesser)||§ 1-21-1208(A)|
How to Write a Security Deposit Receipt Template
A security deposit receipt template is a form used as a reference for customizing a security deposit receipt, which is usually used to acknowledge that a tenant has paid a deposit before moving into a new residence.
Using a security deposit template makes it easy to prepare an outstanding security deposit receipt that perfectly suits your needs.
Below is a step-by-step guide on how to fill a security deposit template:
Choose the template
The first step is ensuring that you obtain a template that best suits your needs. You may opt to use a ready-made template and customize it to include your details. This will help you come up with a well-organized and presentable security deposit receipt. You can download the template of your choice for convenience from our website.
Add a header
This should be written on the top part of the receipt. The header components include the name of your rental company or the actual property you are leasing to the tenants, an address, and other contact information.
Add a title
A receipt title makes it official, decent, and recognizable. It makes the receipt recognizable by highlighting the purpose of writing the receipt. For instance, the receipt title can be “A security deposit receipt”.
Write the date
Write the actual date when the security deposit was made for record-keeping purposes.
Name of the tenant
It is essential to specify the tenant’s name after he/she pays the security deposit. The tenant’s name helps to identify who has booked a specific unit along with the unit number.
Indicate the total amount of deposit paid by the tenant. The purpose of the payment, terms of payment, date when the payment was made are also essential to check on a security deposit receipt. This is a very crucial aspect that should not be left out on your security deposit receipt.
Location of the funds
The landlord should indicate the banking institution serving as the custodian of the security deposit. He should also provide the banking institution’s address, city, and the State/ country where the bank is located.
Bank account information
The landlord should indicate the banking institution and the bank account number to which the security deposit was deposited. It is also vital to note on the receipt the date on which the funds were deposited to the holding account.
Any other additional details
You may also include any other information that you find necessary. Such may include the house number for which the security deposit has been paid. You may also insert a few additional agreement provisions or things you feel are necessary as long as the document stays structured and neat.
This section covers the landlord’s official name, contact information, and address. Sometimes, a landlord’s authorized representative may receive the security deposit on the landlord’s behalf. In such cases, the landlord should inform his representative to include their actual details on the receipt (not the landlord’s details). By doing this, the tenant will have a specific person to question any concerns regarding the security deposit payment.
Add the signatures
It is imperative to have the receipt signed by both the landlord and the tenant. The two parties should sign on the receipt, include their names and the date of the signature. This confirms that the two parties have settled on the information contained in the receipt.
Review and polish the receipt template
It is important to go through the document once you finish up filling the template to ensure that all the essential details have been included or if any editing is required to improve the quality. Always do this before sending the receipt to your tenants.
Following are some free downloadable templates for you:
As previously mentioned, security deposit receipts serve various needs, and we cannot ignore this fact. For this reason, landlords should ensure that they use security deposit receipts that suit their needs and those of the customer excellently. Should you be interested in using our security deposit receipt templates, do not hesitate to obtain and use them.