Security deposits & rental fees: what landlords can charge
Before you get the keys to a rental, you will usually pay more than the first month’s rent. There is often a security deposit, and there may also be an application fee, a screening fee, a pet deposit, or a fee offered in place of a deposit. Some of those charges are capped by state law. Others are left mostly to the lease.
This guide explains what a security deposit is, how much landlords can charge in several large states, which rental fees are limited, and how to document your move-in so you are in a stronger position when you move out. It is general information, not legal advice. Rules vary by state and sometimes by city.
KEY TAKEAWAYS
- Some states cap security deposits. California and New York generally limit them to one month’s rent. Others, including Texas, Florida, and Illinois, set no statewide maximum.
- Application, screening, and late fees are limited in some states, so check the rules before you pay.
- A deposit is generally meant to be returned, minus lawful deductions. California does not allow a lease to call a deposit “nonrefundable.”
- Photos and a written condition record at move-in are often the best protection for your deposit later.
What a security deposit is
A security deposit is money a landlord holds to cover specific losses, such as unpaid rent or damage beyond normal wear and tear. It is generally meant to come back to you at the end of the tenancy, minus any lawful deductions.
States define it in slightly different ways. Texas, for example, defines a security deposit as an advance of money, other than a rental application deposit or an advance payment of rent, that is meant mainly to secure the tenant’s obligations under the lease. California defines “security” broadly to include any payment, fee, deposit, or charge collected at the start of a tenancy for purposes like covering unpaid rent, repairs, or cleaning, and a California lease cannot describe that money as “nonrefundable.”
How much can a landlord charge for a security deposit?
There is no single national rule. Some states cap the deposit at a set amount of rent. Others leave the amount to the lease and focus their rules on how the deposit is held and returned.
| State | Maximum deposit | Other rules worth knowing |
|---|---|---|
| California | One month’s rent for deposits collected on or after July 1, 2024. Some small landlords may charge up to two months’ rent, but not to service members. | The law counts most move-in charges as “security,” and a lease cannot call a deposit nonrefundable. |
| New York | One month’s rent for most rentals | Tenants can ask for an inspection before moving in, and both sides sign a written record of the unit’s condition. |
| Texas | No statewide maximum | The landlord’s 30-day refund deadline starts once you give a written forwarding address. |
| Florida | No statewide maximum | Within 30 days of receiving it, landlords with five or more units must tell you in writing where the deposit is held and whether you earn interest on it. |
| Illinois | No statewide maximum | Landlords with 25 or more units must pay interest on deposits held more than six months. Some cities, including Chicago, have their own rules. |
Summary of state statutes as of October 2026. Local ordinances, lease terms, and exceptions can change the outcome. Check the linked statute or a local legal aid office before acting.
A few details are worth noting:
- California’s small-landlord exception applies to a landlord who is a natural person (or an LLC whose members are all natural persons) and owns no more than two residential rental properties with no more than four units offered for rent. Those landlords may collect up to two months’ rent, but not from a tenant who is a service member.
- California counts most move-in charges together. Because the state’s definition of “security” is broad, extra deposits, such as a pet deposit, generally count toward the overall limit.
- New York’s one-month limit covers most residential rentals, with limited exceptions such as certain seasonal rentals and owner-occupied cooperative apartments.
- No cap does not mean no rules. In Texas, Florida, and Illinois, the amount is left mostly to the lease, but those states still regulate how the deposit is handled and returned.
Rental fees beyond the deposit
Application and screening fees
Many landlords charge a fee to process an application or run a credit and background check. Some states limit these fees:
- California limits application screening fees to the landlord’s actual out-of-pocket costs plus the reasonable value of their time, up to a base cap of $30 that landlords may adjust each year for inflation. The landlord must give you an itemized receipt, cannot charge the fee when they know or should know no unit is available, and must return any part of the fee that was not used. If a credit report was obtained, you are entitled to a copy.
- New York generally prohibits application fees. A landlord may pass along the actual cost of a background and credit check, but no more than $20, and must waive that fee if you provide a check completed within the past 30 days.
If your state does not set a limit, it is still reasonable to ask what the fee covers and whether any part is refundable if you are not offered the unit.
Late fees
Late fees usually come from the lease, but some states limit when they can be charged and how large they can be:
- New York: a late fee can be charged only if rent is not paid within five days of the due date, and it cannot exceed $50 or 5% of the monthly rent, whichever is less.
- Texas: a late fee is allowed only if notice of it is in a written lease and rent remains unpaid two full days after the due date. The fee must be reasonable. A fee of no more than 12% of monthly rent (for buildings with four or fewer units) or 10% (for buildings with more units) is treated as reasonable.
Pet deposits and other move-in charges
Pet deposits, pet fees, cleaning fees, and key or administrative fees depend heavily on state law and the lease. A refundable pet deposit is generally handled like any other deposit. A nonrefundable “fee” may be treated differently, or may not be allowed at all. In California, most charges collected at the start of a tenancy count as security, and New York generally bars charges at or before the start of a tenancy other than rent, the deposit, and the limited background-check fee. Read the lease closely and ask the landlord to put the purpose and refund terms of any charge in writing.
Fees offered in place of a deposit
Some landlords offer a monthly fee instead of a traditional security deposit. Florida regulates this option. Under Florida law, the tenant must agree in writing, the agreement must state that the fee is not a security deposit, the fee may be nonrefundable, and the tenant can switch to paying a regular deposit at any time. Paying the fee does not remove the tenant’s responsibility for damage beyond normal wear and tear.
Before choosing a fee over a deposit, compare the total you would pay over the length of the lease with the deposit amount, and confirm what you would still owe if there is damage.
Questions to ask before you sign
- How much is the deposit, and is any part of it labeled nonrefundable?
- What other fees are due before move-in, and what does each one cover?
- Where will the deposit be held, and will it earn interest?
- What does the lease say about late fees, pet charges, and cleaning at move-out?
- Can we do a walk-through together and sign a written record of the unit’s condition?
How to protect your deposit at move-in
- Inspect the unit before you move your things in. Look closely at walls, floors, appliances, windows, and fixtures.
- Take dated photos and video of every room. Capture existing scratches, stains, and anything broken. In California, landlords must take photos at the start of tenancies that begin on or after July 1, 2025, and before deducting for repairs or cleaning after move-out. Your own photos are still useful.
- Use a written condition checklist. In New York, you can ask for an inspection before moving in, and if you do, both sides sign a written agreement describing the unit’s condition. A landlord cannot later deduct for conditions listed in that agreement.
- Report problems in writing early. Email or text the landlord about any issues you find in the first days of the tenancy, and save the replies.
- Keep every receipt and the signed lease. Save proof of the deposit and any fees you paid, along with the lease and any written notices about where the deposit is held.
When you move out
The records you keep at move-in become your evidence at move-out. Return the keys, give your forwarding address in writing, and take a final set of photos. In Texas, the landlord’s refund deadline does not start until you provide a written forwarding address. If deductions arrive that you do not agree with, our explainer on reviewing a move-out bill covers state deadlines, wear and tear, and how to dispute charges.
If you think a charge is not allowed
Start by asking the landlord in writing what the charge is for and which lease term or law supports it. Then compare the answer with your lease and your state’s statute. If the charge still looks improper, your state attorney general or consumer protection office, a local tenant organization, or a legal aid program can explain the rules where you live. Many deposit and fee disputes are resolved in small claims court without a lawyer.
Our state legal resources page links to the official consumer protection office, legal aid, and small claims information for every state.
Frequently asked questions
Can a landlord charge more than one month’s rent as a security deposit?
It depends on the state. California and New York generally limit deposits to one month’s rent, with narrow exceptions. Texas, Florida, and Illinois do not set a statewide maximum, so the amount is usually set by the lease.
Is a pet deposit refundable?
A pet deposit is generally treated like a security deposit and returned minus lawful deductions. A nonrefundable pet fee is different, and whether it is allowed depends on state law. In California, most charges collected at the start of a tenancy count toward the deposit limit and cannot be labeled nonrefundable.
Can a landlord keep my application fee if I am not approved?
Often, yes, if the fee was used for screening. Some states add protections. In California, a landlord must return any unused part of the fee and cannot charge one when no unit is available. In New York, the fee for background and credit checks is limited to the actual cost or $20, whichever is less.
Do I earn interest on my security deposit?
Only in some situations. In Illinois, landlords with 25 or more units must pay interest on deposits held more than six months. In Florida, a landlord who keeps the deposit in an interest-bearing account must pay the tenant interest at the rate the statute sets. Elsewhere, check your state’s rules and your lease.
What is a fee in lieu of a security deposit?
It is a fee, often monthly, that a tenant pays instead of a traditional deposit. In Florida, the fee is optional, may be nonrefundable, and does not cover damage beyond normal wear and tear, which the tenant still owes. The tenant can switch to a regular deposit at any time.
Sources
- California Civil Code § 1950.5 (security deposits)
- California Civil Code § 1950.6 (application screening fees)
- New York General Obligations Law § 7-108
- New York Real Property Law § 238-a (fees and late charges)
- Texas Property Code § 92.019 (late fees)
- Texas Property Code, Chapter 92, Subchapter C (security deposits)
- Florida Statutes § 83.49 (deposits and advance rent)
- Florida Statutes § 83.491 (fee in lieu of security deposit)
- Illinois Security Deposit Interest Act, 765 ILCS 715
More renters’ guides are in our Housing section. This article is general information, not legal advice. See our Legal Disclaimer. Spot an error? Read our Corrections Policy.
