How long does a landlord have to return a security deposit in Iowa?

30 days. The clock runs from the later of two events: the tenancy ending, and the landlord receiving the tenant's mailing address or delivery instructions. A tenant who never supplies one never starts the clock, and one who supplies nothing within a year forfeits the deposit (562A.12(3)(a), (4)).

What happens if a landlord does not return the deposit on time in Iowa?

A landlord who misses the 30-day deadline forfeits the right to withhold anything and owes the whole deposit back. Bad-faith retention adds punitive damages of up to twice the monthly rental payment on top of actual damages (562A.12(4), (7)).

Do landlords have to pay interest on security deposits in Iowa?

No — Iowa does not require interest on the security deposit to be paid to the tenant. Interest is optional, but the account is not: deposits must sit in a federally insured bank, savings and loan, or credit union and may not be commingled with the landlord's own funds. If interest is earned, whatever accrues during the first five years of the tenancy belongs to the landlord (562A.12(2)).

What are the security deposit rules in Iowa?

Verified July 10, 2026 All Iowa topics →

Iowa caps security deposits at two months' rent and gives landlords 30 days to return the deposit or deliver a written statement of specific reasons for keeping any of it — but the 30-day clock runs from the later of the tenancy ending and the landlord receiving the tenant's mailing address or delivery instructions, so a tenant who never provides an address never starts the clock, and one who waits more than a year forfeits the deposit entirely.

Cited to Iowa Code 562A.12 (1)-(8) · Verified July 10, 2026

Deductions are limited to unpaid rent and charges, damage beyond ordinary wear and tear, and the cost of recovering possession from a bad-faith holdover, with the burden of proof on the landlord. A landlord who misses the 30-day statement deadline forfeits the right to withhold anything, and bad-faith retention adds punitive damages of up to twice the monthly rent on top of actual damages — the '$200 penalty' still quoted by many guides was repealed from this chapter in 2013 and now survives only in Iowa's separate mobile-home law. Deposits must sit in a federally insured, non-commingled account; interest is optional, and whatever interest accrues during the first five years belongs to the landlord.

Iowa security deposits at a glance

Maximum deposit	2 months' rent
Return deadline	30 days
Deadline conditions	The clock runs from the later of two events: the tenancy ending, and the landlord receiving the tenant's mailing address or delivery instructions. A tenant who never supplies one never starts the clock, and one who supplies nothing within a year forfeits the deposit (562A.12(3)(a), (4)). Within 30 days from the LATER of two triggers: the date of termination of the tenancy AND the landlord's receipt of the tenant's mailing address or delivery instructions (562A.12(3)(a)). The clock does not start at move-out if the tenant has not supplied an address. Balancing rule: if the tenant provides no mailing address or instructions within one year from termination, the deposit reverts to the landlord and the tenant is deemed to have forfeited all rights to it (562A.12(4)).
Itemization required	Yes
Itemization rules	Within the 30-day window the landlord must either return the deposit or furnish a written statement showing the specific reason for withholding any portion; if withholding is for restoration of the unit, the statement must specify the nature of the damages (562A.12(3)(a)). Withholding is limited to three grounds: unpaid rent or other funds due under the rental agreement; restoring the unit to its start-of-tenancy condition, ordinary wear and tear excepted; and expenses of recovering possession from a tenant who fails in bad faith to surrender the premises. In any deposit action the landlord bears the burden of proving the reason for withholding by a preponderance of the evidence (562A.12(3)(b)).
Separate account required	Yes
Interest owed to tenant	No
Account & interest rules	Interest is optional, but the account is not: deposits must sit in a federally insured bank, savings and loan, or credit union and may not be commingled with the landlord's own funds. If interest is earned, whatever accrues during the first five years of the tenancy belongs to the landlord (562A.12(2)). Deposits must be held for the tenant in a federally insured bank, savings and loan, or credit union and must not be commingled with the landlord's personal funds; they may be held in a common trust account which may be interest-bearing (562A.12(2)). Because interest earned during the FIRST FIVE YEARS of a tenancy is the landlord's property, by negative implication interest earned after year five is the tenant's. Contrast the mobile-home chapter, 562B.13(2), where the landlord keeps all interest with no five-year limit — a frequent source of cross-chapter confusion.
Pet deposits	No separate pet-deposit statute. A pet deposit is part of the 'security deposit' subject to the aggregate two-months'-rent cap of 562A.12(1) and the same 30-day return, itemization, and penalty rules.
Non-refundable fees allowed	Not addressed by statute
Penalty for violation	A landlord who misses the 30-day deadline forfeits the right to withhold anything and owes the whole deposit back. Bad-faith retention adds punitive damages of up to twice the monthly rental payment on top of actual damages (562A.12(4), (7)). Two tiers: (1) a landlord who fails to provide the written statement within 30 days of termination and receipt of the tenant's address forfeits all rights to withhold any portion of the deposit (562A.12(4)); (2) BAD-FAITH retention of any portion subjects the landlord to punitive damages not to exceed twice the monthly rental payment, in addition to actual damages (562A.12(7)). The court may award reasonable attorney fees to the prevailing party in any action on a rental agreement (562A.12(8)).
Tenant forwarding-address duty	Practical duty with a hard sanction: the 30-day return clock does not begin until the landlord receives the tenant's mailing address or delivery instructions, and a tenant who provides neither within one year of termination forfeits the entire deposit to the landlord (562A.12(3)(a), (4)).

Cite this page: "Landlord Atlas, Iowa Security Deposit Laws (verified July 10, 2026), landlordatlas.com/laws/security-deposits/iowa/" — free to cite and quote with a link (how these records are verified). Every figure above is cited to the Iowa statute in the citations section below.

Generate a Iowa security-deposit return letter — free, no signup, built on the same verified Iowa rules as this page.

Notes and caveats

The 30-day clock has a dual trigger — and a one-year forfeiture — the return deadline is routinely misstated as '30 days after move-out.' The clock actually runs from the later of termination and the landlord's receipt of the tenant's mailing address or delivery instructions, and a tenant who provides neither within one year of termination forfeits the entire deposit to the landlord.
Stale-source trap: the '$200 penalty' is doubly stale — the penalty figure that actually governs is punitive damages of up to twice the monthly rental payment. The $200 figure still in circulation was 562A.12(7)'s measure before 2013 Acts ch 97 §4 — and it remains the CURRENT measure in the mobile-home chapter, 562B.13(8), so cross-chapter quoting keeps it alive.
The five-year interest rule is exact statutory text — 'Any interest earned on a rental deposit during the first five years of a tenancy shall be the property of the landlord.' The statute does not require an interest-bearing account.
A separate, federally insured account is mandatory — 562A.12(2) mandates a federally insured depository and bans commingling with the landlord's personal funds; a common trust account is allowed.
Why the nonrefundable-fees field is blank — chapter 562A neither authorizes nor prohibits nonrefundable fees — no statutory treatment exists, so the answer reads as not addressed by statute rather than yes or no.
No recent changes — the section was last substantively amended in 2013 (2013 Acts ch 97 §4); no 2025–2026 changes.

Common questions: Iowa security deposits

Each answer is the verified value from the table above, restated as a direct answer. Free to quote with a link to this page.

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?: 30 days. The clock runs from the later of two events: the tenancy ending, and the landlord receiving the tenant's mailing address or delivery instructions. A tenant who never supplies one never starts the clock, and one who supplies nothing within a year forfeits the deposit (562A.12(3)(a), (4)).
What happens if a landlord does not return the deposit on time in Iowa?: A landlord who misses the 30-day deadline forfeits the right to withhold anything and owes the whole deposit back. Bad-faith retention adds punitive damages of up to twice the monthly rental payment on top of actual damages (562A.12(4), (7)).
Do landlords have to pay interest on security deposits in Iowa?: No — Iowa does not require interest on the security deposit to be paid to the tenant. Interest is optional, but the account is not: deposits must sit in a federally insured bank, savings and loan, or credit union and may not be commingled with the landlord's own funds. If interest is earned, whatever accrues during the first five years of the tenancy belongs to the landlord (562A.12(2)).
Can a landlord charge a non-refundable fee in Iowa?: Not addressed by statute.

Statute citations

Iowa Code 562A.12 (1)-(8) (verified 2026) Official source

How this record was verified: Direct read of statute text on the official Iowa Legislature site (legis.iowa.gov), Iowa Code 2026 section PDFs: 562A.12, 562A.9, 562A.13, 562A.19, 562A.34, and 562A.35 each read twice — official PDF plus independent FindLaw mirror stated current as of 2026-01-01 — with every decisive figure matching verbatim (2-month deposit cap, 30-day return clock and its dual trigger of termination plus receipt of the tenant's mailing address or delivery instructions, first-5-years deposit interest to landlord, 1-year forwarding-address forfeiture, punitive damages capped at twice the monthly rental payment, $700 late-fee threshold with $12/day-$60/month and $20/day-$100/month tiers, 30-day written rent-increase notice, 24-hour entry notice, 30-day month-to-month termination notice, one-month's-rent damages floor for unlawful entry). Also read once (official): 562A.28 and 562A.29 (cross-referenced entry rights), 331.304 (county rent-control preemption), and chapter 562B sections 562B.10/562B.13/562B.14 for cross-chapter trap mapping. Rent-control preemption 364.3(9) verified against three official Code editions (2026, 2019, 2001) plus the 1999 edition negative check proving enactment by 2000 Acts ch 1083, not 2019. Pending-bill check 2026-07-10: 91st GA adjourned sine die 2026-05-03; SF 2225 (omnibus tenant bill: third late-fee tier at $1,400 rent, 180-day mobile-home rent notice) died in Senate Judiciary subcommittee; HF 481/482 (2025 mobile-home protections) also died; 2026 enacted housing bills (SF 2369 ADUs, SF 2448 HOA disclosure, SF 2472 FirstHome) touch none of the four topics.