There is a newer version of the Iowa Code
2009 Iowa Code
Title 14 - Property
Subtitle 2 - Real Property - Gifts
CHAPTER 562A - UNIFORM RESIDENTIAL LANDLORD AND TENANT LAW
562A.12 - RENTAL DEPOSITS.
562A.12 RENTAL DEPOSITS.
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 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:
a. To remedy a tenant's default in the payment of rent or of
other funds due to the landlord pursuant to the rental agreement.
b. To restore the dwelling unit to its condition at the
commencement of the tenancy, ordinary wear and tear excepted.
c. 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.
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. 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.
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 landlord's successor and may be given by mail
or by personal service.
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 two hundred
dollars in addition to actual damages.
8. The court may, in any action on a rental agreement, award
reasonable attorney fees to the prevailing party. Section History: Early Form
[C75, 77, § 562.9--562.14; C79, 81, § 562A.12] Section History: Recent Form
93 Acts, ch 154, §13
Referred to in § 562A.21, 562A.25
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