Free Iowa Security Deposit Return Letter Template

Last reviewed September 2026

Written by LawLease Editorial

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Iowa Security Deposit Return Letter

When a tenancy ends, an Iowa landlord has a set time to return the deposit or send an itemized list of deductions. Here’s what Iowa’s statute says.

Iowa rules at a glance

Iowa rules for a Security Deposit Return Letter
Return deadline	30 days. Within 30 days of the tenancy ending and the landlord receiving the tenant’s mailing address or delivery instructions, the landlord must return the deposit or send a written statement of the specific reason for any amount withheld.Iowa Code §562A.12(3)
Penalty	Missing the 30-day statement forfeits all right to withhold anything, and bad-faith retention adds punitive damages of up to twice the monthly rent on top of actual damages.Iowa Code §562A.12(4), (7)

Security deposits in Iowa

An Iowa landlord may not demand or receive a security deposit of more than two months’ rent (§562A.12(1)). The statute calls it a “rental deposit,” and it stays the tenant’s money while the landlord holds it.

How it’s held — Deposits must be kept in a federally insured bank, savings and loan, or credit union and can’t be commingled with the landlord’s personal funds. A common trust account is allowed, and interest earned during the first five years of a tenancy belongs to the landlord (§562A.12(2)).
Return deadline — Within 30 days of the tenancy ending and the landlord receiving the tenant’s mailing address or delivery instructions, the landlord must return the deposit or send a written statement giving the specific reason for any amount withheld (§562A.12(3)).
Allowed deductions — Only unpaid rent or other sums due under the lease, damage beyond ordinary wear and tear, and the cost of recovering possession from a tenant who fails to leave in bad faith. The landlord carries the burden of proving each deduction (§562A.12(3)).
No forwarding address — If the tenant never supplies a mailing address within one year of the tenancy ending, the deposit reverts to the landlord (§562A.12(4)).
Penalties — Missing the 30-day statement forfeits all right to withhold anything; bad-faith retention adds punitive damages of up to twice the monthly rent on top of actual damages (§562A.12(4), (7)).

Iowa Security Deposit Return Letter FAQs

How much can a landlord charge for a security deposit in Iowa?

No more than two months’ rent (Iowa Code §562A.12(1)). The deposit must be held in a federally insured bank, savings and loan, or credit union and can’t be mixed with the landlord’s personal funds (§562A.12(2)).

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

Within 30 days once the tenancy has ended and the landlord has received the tenant’s mailing address or delivery instructions. The landlord must return the deposit or send a written statement of the specific reasons for any deduction; missing the deadline forfeits the right to withhold anything (§562A.12(3)–(4)).

Security Deposit Return Letter in other states

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