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