Iowa Code

Iowa Code § 562A.12 (2026)

Rental deposits

✓ current as of July 2026
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1. A landlord shall not demand or receive as a security deposit an amount or value in excess of two months’ rent. 2. All rental deposits shall be held by the landlord for the tenant, who is a party to the agreement, in a bank or savings and loan association or credit union which is insured by an agency of the federal government. Rental deposits shall not be commingled with the personal funds of the landlord. Notwithstanding the provisions of chapter 543B, all rental deposits may be held in a trust account, which may be a common trust account and which may be an interest-bearing account. Any interest earned on a rental deposit during the first five years of a tenancy shall be the property of the landlord. 3. a. A landlord shall, within thirty days from the date of termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions, return the rental deposit to the tenant or furnish to the tenant a written statement showing the specific reason for withholding of the rental deposit or any portion thereof. If the rental deposit or any portion of the rental deposit is withheld for the restoration of the dwelling unit, the statement shall specify the nature of the damages. The landlord may withhold from the rental deposit only such amounts as are reasonably necessary for the following reasons: (1) To remedy a tenant’s default in the payment of rent or of other funds due to the landlord pursuant to the rental agreement. (2) To restore the dwelling unit to its condition at the commencement of the tenancy, ordinary wear and tear excepted.

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Tue Dec 09 22:01:02 2025 Iowa Code 2026, Chapter 562A (25, 0) 7 UNIFORM RESIDENTIAL LANDLORD AND TENANT LAW, §562A.13\n\n (3) To recover expenses incurred in acquiring possession of the premises from a tenant who does not act in good faith in failing to surrender and vacate the premises upon noncompliance with the rental agreement and notification of such noncompliance pursuant to this chapter. b. In an action concerning the rental deposit, the burden of proving, by a preponderance of the evidence, the reason for withholding all or any portion of the rental deposit shall be on the landlord. 4. A landlord who fails to provide a written statement within thirty days of termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions shall forfeit all rights to withhold any portion of the rental deposit. If no mailing address or instructions are provided to the landlord within one year from the termination of the tenancy the rental deposit shall revert to the landlord and the tenant will be deemed to have forfeited all rights to the rental deposit. 5. a. Upon termination of a landlord’s interest in the dwelling unit, the landlord or an agent of the landlord shall, within a reasonable time, transfer the rental deposit, or any remainder after any lawful deductions to the landlord’s successor in interest and notify the tenant of the transfer and of the transferee’s name and address or return the deposit, or any remainder after any lawful deductions to the tenant. b. Upon the termination of the landlord’s interest in the dwelling unit and compliance with the provisions of this subsection, the landlord shall be relieved of any further liability with respect to the rental deposit. 6. Upon termination of the landlord’s interest in the dwelling unit, the landlord’s successor in interest shall have all the rights and obligations of the landlord with respect to the rental deposits, except that if the tenant does not object to the stated amount within twenty days after written notice to the tenant of the amount of rental deposit being transferred or assumed, the obligations of the landlord’s successor to return the deposit shall be limited to the amount contained in the notice. The notice shall contain a stamped envelope addressed to the landlord’s successor. 7. The bad-faith retention of a deposit by a landlord, or any portion of the rental deposit, in violation of this section shall subject the landlord to punitive damages not to exceed twice the monthly rental payment in addition to actual damages. 8. The court may, in any action on a rental agreement, award reasonable attorney fees to the prevailing party. [C75, 77, §562.9 – 562.14; C79, 81, §562A.12] 93 Acts, ch 154, §13; 2010 Acts, ch 1017, §2, 11; 2013 Acts, ch 30, §261; 2013 Acts, ch 97, §4; 2014 Acts, ch 1026, §123 Referred to in §562A.21, 562A.25

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Notes of Decisions
Cited in 28 cases (4 in the last 5 years), 1982–2026 · leading case: Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016).
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). · cites it 119× “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
Lenora Caruso v. Apts. Downtown, Inc., 880 N.W.2d 465 (Iowa 2016). · cites it 58× “After receipt of the evidence, the magistrate found that the automatic carpet-cleaning provision was “in violation of § 562A.12 and is unconscionable.” The magistrate further found that the automatic cleaning provision required the tenant to forgo her rights under Iowa Code…”
Umeka Lewis v. John J. Jaeger, Robert E. Boge, & the City of Dubuque, 818 N.W.2d 165 (Iowa 2012). · cites it 14× “12, when a tenant does not provide a forwarding address, but the landlord has actual knowledge of the tenant’s subsequent residence, the landlord is required to refund the security deposit. According to the Prescott court, the state statutory requirement that the tenant provide…”
Cheryl Albaugh v. The Reserve, 930 N.W.2d 676 (Iowa 2019). · cites it 8× “§ 562A.12(1), (3)(a). Affording each statute its proper context, the words used by the legislature reflect the intent to regulate two entirely distinct living arrangements.”
Whitehorn v. Lovik, 398 N.W.2d 851 (Iowa 1987). · cites it 22× “Whitehorn contends that the language of section 562A.12 as interpreted by this court in Seifert v.”
Daniel Kline, Frank Sories, & Amaris McCann v. Southgate Prop. Mgmt., LLC, 895 N.W.2d 429 (Iowa 2017). · cites it 12× “In De Stefano , we acknowledged that Iowa Code section 562A.12 “clearly authorizes the deduction of carpet-cleaning costs from rental deposits if necessary to restore the dwelling unit to the condition at the commencement of the tenancy, beyond the ordinary wear and tear.”
H-L Apts. v. Al-Qawiyy, 440 N.W.2d 371 (Iowa 1989). · cites it 18× “The magistrate awarded the landlord damages, but reduced the amount of the recovery by a sum equal to twice the $225 rental deposit as a penalty for the landlord’s failure to give timely notice of the retention of the deposit as required by Iowa Code section 562A.12. The…”
United States v. Miell, 744 F. Supp. 2d 904 (N.D. Iowa 2010). · cites it 12× “See Iowa Code § 562A.12(2). While Iowa law prohibits landlords from commingling deposits with other funds, Miell did so.”
Mastland, Inc. v. Evans Furniture, Inc., 498 N.W.2d 682 (Iowa 1993). · cites it 6× “Mastland asserts that pursuant to Iowa Code section 562A.12(3)(b) (1987), a tenant must return leased premises to the landlord in the same condition' as at the commencement of the lease, ordinary wear and tear excepted.”
Joan Walton v. Martin Gaffey, 895 N.W.2d 422 (Iowa 2017). · cites it 10× “We acknowledged in De Stefano , however, that Iowa Code section 562A.12 “clearly authorizes the deduction of carpet-cleaning costs from rental deposits if necessary to restore the dwelling to the condition at the commencement of the tenancy, beyond the ordinary wear and tear.”
Seifert v. Dosland, 328 N.W.2d 531 (Iowa 1983). · cites it 4× “We set out the two pertinent subsections to section 562A.12: 3. A landlord shall, within thirty days from the date of termination of the tenancy and receipt of the tenant’s *532 mailing address or delivery instructions, return the rental deposit to the tenant or furnish to the…”
United States v. Miell, 661 F.3d 995 (8th Cir. 2011). “Iowa Code § 562A.12. He retained substantial discretionary judgment while occupying the highest management position in his companies, a position that afforded him the opportunity to access tenants’ apartments and money, exercise control over damage deposits and documentation…”
— Iowa Code § 562A.12(1) — 2 cases
Cheryl Albaugh v. The Reserve, 930 N.W.2d 676 (Iowa 2019). “§ 562A.12(1), (3)(a). Affording each statute its proper context, the words used by the legislature reflect the intent to regulate two entirely distinct living arrangements.”
— Iowa Code § 562A.12(2) — 5 cases
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
United States v. Miell, 744 F. Supp. 2d 904 (N.D. Iowa 2010). “See Iowa Code § 562A.12(2). While Iowa law prohibits landlords from commingling deposits with other funds, Miell did so.”
Baculis v. McDougall, 460 N.W.2d 186 (Iowa Ct. App. 1990).
— Iowa Code § 562A.12(3) — 14 cases
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
Lenora Caruso v. Apts. Downtown, Inc., 880 N.W.2d 465 (Iowa 2016). “After receipt of the evidence, the magistrate found that the automatic carpet-cleaning provision was “in violation of § 562A.12 and is unconscionable.” The magistrate further found that the automatic cleaning provision required the tenant to forgo her rights under Iowa Code…”
Umeka Lewis v. John J. Jaeger, Robert E. Boge, & the City of Dubuque, 818 N.W.2d 165 (Iowa 2012). “12, when a tenant does not provide a forwarding address, but the landlord has actual knowledge of the tenant’s subsequent residence, the landlord is required to refund the security deposit. According to the Prescott court, the state statutory requirement that the tenant provide…”
Whitehorn v. Lovik, 398 N.W.2d 851 (Iowa 1987). “Whitehorn contends that the language of section 562A.12 as interpreted by this court in Seifert v.”
Daniel Kline, Frank Sories, & Amaris McCann v. Southgate Prop. Mgmt., LLC, 895 N.W.2d 429 (Iowa 2017). “In De Stefano , we acknowledged that Iowa Code section 562A.12 “clearly authorizes the deduction of carpet-cleaning costs from rental deposits if necessary to restore the dwelling unit to the condition at the commencement of the tenancy, beyond the ordinary wear and tear.”
— Iowa Code § 562A.12(3)(a) — 3 cases
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
— Iowa Code § 562A.12(3)(a)(2) — 5 cases
Daniel Kline, Frank Sories, & Amaris McCann v. Southgate Prop. Mgmt., LLC, 895 N.W.2d 429 (Iowa 2017). “In De Stefano , we acknowledged that Iowa Code section 562A.12 “clearly authorizes the deduction of carpet-cleaning costs from rental deposits if necessary to restore the dwelling unit to the condition at the commencement of the tenancy, beyond the ordinary wear and tear.”
Joan Walton v. Martin Gaffey, 895 N.W.2d 422 (Iowa 2017). “We acknowledged in De Stefano , however, that Iowa Code section 562A.12 “clearly authorizes the deduction of carpet-cleaning costs from rental deposits if necessary to restore the dwelling to the condition at the commencement of the tenancy, beyond the ordinary wear and tear.”
— Iowa Code § 562A.12(3)(b) — 4 cases
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
Mastland, Inc. v. Evans Furniture, Inc., 498 N.W.2d 682 (Iowa 1993). “Mastland asserts that pursuant to Iowa Code section 562A.12(3)(b) (1987), a tenant must return leased premises to the landlord in the same condition' as at the commencement of the lease, ordinary wear and tear excepted.”
— Iowa Code § 562A.12(4) — 2 cases
Whitehorn v. Lovik, 398 N.W.2d 851 (Iowa 1987). “Whitehorn contends that the language of section 562A.12 as interpreted by this court in Seifert v.”
H-L Apts. v. Al-Qawiyy, 440 N.W.2d 371 (Iowa 1989). “The magistrate awarded the landlord damages, but reduced the amount of the recovery by a sum equal to twice the $225 rental deposit as a penalty for the landlord’s failure to give timely notice of the retention of the deposit as required by Iowa Code section 562A.12. The…”
— Iowa Code § 562A.12(7) — 10 cases
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
Lenora Caruso v. Apts. Downtown, Inc., 880 N.W.2d 465 (Iowa 2016). “After receipt of the evidence, the magistrate found that the automatic carpet-cleaning provision was “in violation of § 562A.12 and is unconscionable.” The magistrate further found that the automatic cleaning provision required the tenant to forgo her rights under Iowa Code…”
Umeka Lewis v. John J. Jaeger, Robert E. Boge, & the City of Dubuque, 818 N.W.2d 165 (Iowa 2012). “12, when a tenant does not provide a forwarding address, but the landlord has actual knowledge of the tenant’s subsequent residence, the landlord is required to refund the security deposit. According to the Prescott court, the state statutory requirement that the tenant provide…”
H-L Apts. v. Al-Qawiyy, 440 N.W.2d 371 (Iowa 1989). “The magistrate awarded the landlord damages, but reduced the amount of the recovery by a sum equal to twice the $225 rental deposit as a penalty for the landlord’s failure to give timely notice of the retention of the deposit as required by Iowa Code section 562A.12. The…”
Roeder v. Nolan, 321 N.W.2d 1 (Iowa 1982).
— Iowa Code § 562A.12(8) — 8 cases
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “The company argues the district court erred in holding the automatic carpet- cleaning provision violated section 562A.12 of the IURLTA. This lease provision reads as follows: The carpets throughout the building are professionally cleaned each time apartments turn over occupancy.”
H-L Apts. v. Al-Qawiyy, 440 N.W.2d 371 (Iowa 1989). “The magistrate awarded the landlord damages, but reduced the amount of the recovery by a sum equal to twice the $225 rental deposit as a penalty for the landlord’s failure to give timely notice of the retention of the deposit as required by Iowa Code section 562A.12. The…”
Severson v. Peterson, 364 N.W.2d 212 (Iowa 1985).
— Iowa Code § 562A.12(S) — 1 case
Lenora Caruso v. Apts. Downtown, Inc., 880 N.W.2d 465 (Iowa 2016). “After receipt of the evidence, the magistrate found that the automatic carpet-cleaning provision was “in violation of § 562A.12 and is unconscionable.” The magistrate further found that the automatic cleaning provision required the tenant to forgo her rights under Iowa Code…”
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