Security deposit return law in Iowa

In Iowa, a landlord must return the security deposit within 30 days (Iowa Code 562A.12 (Uniform Residential Landlord and Tenant Law)).

Return deadline: 30 days after the tenancy ends
Deposit cap: Two months' rent (conditions below)
Itemized list of deductions: Required
If you get it wrong: A landlord who does not provide the written statement within 30 days of termination and receipt of the tenant's address or instructions forfeits all rights to withhold any portion of the deposit (562A.12(4)).; Iowa Code 562A.12 (Uniform Residential Landlord and Tenant Law). Verified 2026-09-25.

When the clock starts, and what goes with the money

Within 30 days from the date the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions, the landlord must return the deposit or give the tenant a written statement showing the specific reason for withholding any part of it.
If money is withheld to restore the unit, the statement must specify the nature of the damages.
Deductions are limited to unpaid rent or other amounts due under the lease, restoring the unit to its move-in condition minus ordinary wear and tear, and costs of regaining possession from a tenant who did not act in good faith.
The landlord carries the burden of proving the reason for any withholding (562A.12(3)).
If the tenant gives no address or instructions within one year after the tenancy ends, the deposit reverts to the landlord (562A.12(4)).

How much you can collect

Iowa caps the security deposit at two months' rent (Iowa Code 562A.12 (Uniform Residential Landlord and Tenant Law)). The conditions attached to that cap matter as much as the number:

A landlord may not demand or receive a security deposit of more than two months' rent (Iowa Code 562A.12(1)). The cap applies to all residential tenancies covered by the Uniform Residential Landlord and Tenant Law, with no length-of-lease exceptions in the statute.

What it costs to get this wrong

A landlord who does not provide the written statement within 30 days of termination and receipt of the tenant's address or instructions forfeits all rights to withhold any portion of the deposit (562A.12(4)).
Bad-faith retention of all or part of the deposit exposes the landlord to punitive damages of up to twice the monthly rent, in addition to actual damages (562A.12(7)).
The court may award reasonable attorney fees to the prevailing party (562A.12(8)).

Holding the deposit

Deposits must be held for the tenant in a federally insured bank, savings and loan association, or credit union, and may not be commingled with the landlord's personal funds.
A common trust account is allowed and it may bear interest.
Interest earned during the first five years of a tenancy belongs to the landlord (562A.12(2)).
When the landlord's interest in the unit ends, the landlord must transfer the deposit to the successor and notify the tenant of the transferee's name and address, or return the deposit to the tenant (562A.12(5)).

Common questions

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

30 days, under Iowa Code 562A.12 (Uniform Residential Landlord and Tenant Law). Within 30 days from the date the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions, the landlord must return the deposit or give the tenant a written statement showing the specific reason for withholding any part of it. When the clock starts and what goes back with the money is covered above.

Does Iowa cap the security deposit?

Yes, two months' rent. A landlord may not demand or receive a security deposit of more than two months' rent (Iowa Code 562A.12(1)). The cap applies to all residential tenancies covered by the Uniform Residential Landlord and Tenant Law, with no length-of-lease exceptions in the statute.

What happens if an Iowa landlord misses the deadline or withholds wrongly?

A landlord who does not provide the written statement within 30 days of termination and receipt of the tenant's address or instructions forfeits all rights to withhold any portion of the deposit (562A.12(4)). The full rule is under "What it costs to get this wrong" above.

Does an Iowa security deposit have to be held a particular way?

Deposits must be held for the tenant in a federally insured bank, savings and loan association, or credit union, and may not be commingled with the landlord's personal funds. The rest is under "Holding the deposit" above.

The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.

Sources

Iowa Code 562A.12 (Uniform Residential Landlord and Tenant Law). Source: https://www.legis.iowa.gov/docs/code/562A.12.pdf. Verified 2026-09-25.

General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.