Iowa Security Deposit Law (2026): Deadlines, Interest & Penalties
If you rented in Iowa, your landlord has 30 days after you move out to return your security deposit under Iowa Code § 562A.12. The landlord is not required to pay interest on the deposit. Miss the deadline or wrongfully withhold funds, and the penalty can be up to 2x monthly rent punitive for bad faith. Use the calculator above to see exactly what you are owed and when it was due.
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Iowa Deposit Rules at a Glance
| Return deadline | 30 days after move-out Standard deadline applies. |
|---|---|
| Interest on deposit | Not required |
| Separate account required | No |
| Deposit limit | 2 months' rent |
| Penalty for violations | Up to 2x monthly rent punitive for bad faith |
Iowa Security Deposit FAQ
How long does a landlord have to return a security deposit in Iowa?
In Iowa, a landlord must return the security deposit within 30 days after the tenancy ends, under Iowa Code § 562A.12. Note: Standard deadline applies..
Does my landlord owe me interest on my security deposit in Iowa?
No. Iowa law does not require landlords to pay interest on residential security deposits.
What is the penalty if a landlord misses the deposit deadline in Iowa?
Up to 2x monthly rent punitive for bad faith. The governing statute is Iowa Code § 562A.12.
Is there a limit on how much a landlord can charge as a security deposit in Iowa?
Yes. In Iowa, the security deposit is limited to 2 months' rent.
Does an Iowa landlord have to keep my deposit in a separate account?
No. Iowa law does not require landlords to hold security deposits in a separate or escrow account.
Are there exceptions to the 30-day deposit deadline in Iowa?
Yes — the deadline can vary: Standard deadline applies.. When in doubt, check the statute itself (Iowa Code § 562A.12) or ask a local tenant-rights organization.
What can I do if my landlord won't return my deposit in Iowa?
First, send a written demand letter citing Iowa Code § 562A.12 — our free generator creates one with your amounts filled in. If the landlord still doesn't pay, you can usually file in small claims court, where the penalty exposure is up to 2x monthly rent punitive for bad faith.