Does the landlord owe interest on the deposit?

Several states require it: Massachusetts, New Jersey, Connecticut, Illinois (some cities), New York (rentals over a certain size), Maryland, and others. The required rate is set by statute or tied to a benchmark and changes periodically. Landlords in those states must track interest annually and either credit it to the tenant or hold it in the same account.

How fast does the deposit have to be returned at move-out?

Varies by state. Common ranges: 14–21 days (Massachusetts, Vermont), 21 days (California), 30–31 days (Oregon, New York, Texas), up to 60 days (a few states). Several states impose statutory damages — often 2× or 3× the deposit — on landlords who miss the deadline.

Can the landlord deduct for repainting after a tenant moved out?

Generally no — repainting due to ordinary wear over a multi-year tenancy is part of the cost of doing business. Repainting may be deductible if the tenant painted unauthorised colours, damaged walls beyond patching, or smoked in a non-smoking unit creating staining beyond ordinary cleaning. Even then, deductions are usually pro-rated based on paint life expectancy.

What if the landlord disputes the deductions?

The tenant's recourse is small-claims court (usually no attorney needed). The signed move-in inspection checklist, the written deposit receipt, the move-out itemisation, and photographs are the evidence that wins these cases. Many states award the prevailing tenant attorneys' fees and statutory penalties on top of the deposit.

Security Deposit Receipt

Receipt acknowledging the landlord has received the tenant's security deposit, with terms for its return.

Customise

Date of receipt

Tenant name(s)

Landlord name

Property address

Lease term referenced (e.g. 2026-05-04 to 2027-04-30)

Security deposit amount (USD)

Payment method

Reference / check / confirmation number

Bank or institution where deposit is held

Interest policy (state law dependent)

Refund timeline (state law dependent)

Allowed deductions (per state law)

Governing state

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SECURITY DEPOSIT RECEIPT

Date of receipt:   May 4, 2026

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LANDLORD:          Riverside Holdings LLC
TENANT:            Jordan Taylor
PROPERTY:          482 Elm Street, Apt 3B, Portland, OR 97214
LEASE TERM:        2026-05-04 to 2027-04-30

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DEPOSIT RECEIVED

Amount received:       $2,150.00
Payment method:        ACH transfer
Reference / check #:   CONF-883100

═══════════════════════════════════════════════════════════════════════

WHERE THE DEPOSIT IS HELD

Pacific Coast Bank — Trust Account #####7421 (last four)

The deposit is held in trust for the Tenant and is not the Landlord's general operating funds. The Landlord will not commingle the deposit with personal or business operating accounts where prohibited by state law.

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INTEREST

Interest accrues at the rate required by Oregon ORS 90.300 and will be credited to Tenant annually or at refund, whichever is earlier. Where state law does not require interest, none accrues.

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REFUND TIMELINE

Within 31 days after the Tenant surrenders the Premises, per Oregon ORS 90.300.

The refund will be sent to the forwarding address provided by the Tenant. If no forwarding address has been provided, the refund will be mailed to the Premises and any consequences of non-delivery will be the Tenant's responsibility, to the extent allowed by law.

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ALLOWED DEDUCTIONS

The Landlord may deduct from the deposit only as permitted by the laws of the State of Oregon, and will provide the Tenant with an itemised statement of any deductions when the balance is refunded. Deductions may include:

- Unpaid rent and lawful late fees.
- Repair of damage caused by Tenant or guests beyond ordinary wear and tear.
- Cleaning to restore the Premises to the condition documented at move-in.
- Other amounts allowed by state landlord-tenant law.

The Landlord may NOT deduct for ordinary wear and tear, for pre-existing conditions documented at move-in, or for any item not lawfully chargeable under state law.

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This receipt is acknowledgement of payment of the security deposit only. It does not modify the rights or obligations of either party under the lease or under applicable state landlord-tenant law.


_______________________________            Date: _______________
Riverside Holdings LLC (Landlord)


_______________________________            Date: _______________
Jordan Taylor (Tenant)

About this template

Security deposits are the most heavily regulated piece of a residential tenancy because they involve a landlord holding a tenant's money for an extended period. State law dictates the maximum amount a landlord can collect (often 1 to 2 months' rent), where it must be held (some states require a separate trust account, some require disclosure of the institution), whether interest accrues to the tenant, what deductions are allowed, and how quickly the deposit must be returned at move-out (commonly 14 to 60 days, with steep penalties for late return). Issuing a written receipt at the start sets the baseline: amount, holding institution, refund timeline, and the categories of permitted deductions. This protects the landlord from later claims that more was collected than acknowledged, and protects the tenant by creating a paper trail of where the money is. Every state has its own statute; the receipt should reference the actual state law that applies, not generic language.

When to use it

At the start of every tenancy when a deposit is collected.
When a deposit is increased mid-tenancy (some states allow this).
When a tenant transfers a deposit between units owned by the same landlord.
When required by state law to disclose where the deposit is held.

What to include

Exact amount received and payment method.
Bank or institution where the deposit is held (where required by law).
Interest policy (where required by law).
Refund timeline matching state law.
Categories of allowed deductions.
Reference to the governing state landlord-tenant statute.

Frequently asked

Capped by state law in many states. California: 2 months' rent (3 if furnished). Massachusetts: 1 month. New York: 1 month for most rentals. Texas: no statutory cap. Always check the current cap in your state — collecting over the cap can subject the landlord to statutory penalties, even if the tenant agreed.

⚠ Legal disclaimer. This template is provided for informational purposes only and is not a substitute for legal advice from a qualified attorney. Always consult a licensed professional before using this document for any binding agreement.