Deposit Limits

• About half of all states limit how much a landlord may charge for a security deposit. The range is from one month's to three months' rent. In the other states, there are no statutory limits, so the landlord can charge as much as he wants. However, a rental agreement or lease is a two-way street: You don't have to agree to any terms with which you disagree. You can negotiate with the landlord to reduce the security deposit before agreeing to the lease. If negotiations fail, you can look elsewhere for a rental.
  
  

Return Deadlines

• Every state except West Virginia and Tennessee limits how much time a landlord has to return a security deposit after the tenants move out. Even Tennessee sets a deadline for the landlord to itemize expenses charged to the deposit, however. Time frames range from 14 to 45 days; 30 days is most common.
  
  

Use of Deposits

• Landlords can't dip into your security deposit to pay their lunch tabs. States usually specify the terms under which a landlord may make deductions from deposits. The general rule prevents landlords from deducting for anything that would be classified as normal wear and tear. It's expected a carpet would show wear proportionate to your tenancy term; this type of wear is essentially accounted for in the rent. Rather, it's damage to the apartment and its appliances beyond what would normally be considered normal wear and tear that's subject to a deduction. If you dent the refrigerator door or burn a large hole in the carpet, expect a deduction. States usually specify how and when a landlord must account for deductions, often by providing an itemized list of damages and the cost of repair or replacement.
  
  

Look to the Lease

• In the absence of a state or local law regulating a certain aspect of security deposits, the lease is the ruling document that determines the hows, whens and whats of the issue. If the lease is silent on the issue, the landlord may be able to apply her own rules without advance warning. Consequently, understand what laws apply before you sign the lease and, in the absence of applicable laws, request that the landlord add specific guidelines or rules to the lease so you're both on the same page.