Iowa Security Deposit Law: Deadlines & Penalties

Iowa landlords must return the security deposit, or a written statement showing the specific reason for withholding any part of it, within 30 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions. Deductions are limited to unpaid rent, damage beyond ordinary wear and tear, and certain costs listed in the statute. Deposits are capped at two months' rent.

Because the 30 days don't start until the landlord has your mailing address, give it in writing as soon as possible. A tenant who doesn't provide an address or delivery instructions within one year after the tenancy ends forfeits the deposit. A landlord who misses the 30-day written statement requirement loses the right to withhold any part of the deposit.

If a landlord keeps a deposit in bad faith, a court can award actual damages plus punitive damages of up to twice the monthly rent. The court may also award reasonable legal fees to the winning side. Iowa small claims court hears disputes of $6,500 or less, which covers most deposit claims.