First and Last Month's Rent Plus a Deposit: Is It Legal? (State-by-State)
Many landlords ask for the first month's rent, the last month's rent and a security deposit before you move in. Whether that is allowed depends on your state: some states cap the security deposit, and in some of them prepaid rent or other refundable amounts count toward that cap. Check your state's limit in the table below before you hand over several months of rent.
What it looks like in a lease
- “Tenant shall pay first month's rent, last month's rent and a security deposit equal to two months' rent prior to occupancy.”
- “Last month's rent is collected at signing and is non-refundable.”
- “An additional deposit equal to one month's rent is required for applicants with limited credit history.”
Why it's a red flag
- Paying three or more months up front can exceed what your state allows if prepaid rent counts toward the deposit cap.
- Calling last month's rent “non-refundable” can blur the line between rent and deposit, and with it your right to get money back.
- Extra deposits for credit, pets or co-signers may push the total above the limit.
What to ask your landlord
- How much of the up-front payment is rent and how much is a refundable deposit? Please write it in the lease.
- Is the total within our state's deposit limit, counting last month's rent if the law counts it?
- Will last month's rent be applied to the final month, and the deposit returned with an itemized list?
State-by-state rules
Whether prepaid rent counts toward the limit differs by state; the limit text shows it where the statute says so. Each row links to the statute. Data as of 2026-10-22.
- Alabama
- Maximum deposit
- One month's periodic rent, except for pets, changes to the premises, or increased liability risks to the landlord or premises, for which more may be taken (35-9A-201(a)). No interest or separate-account requirement found in 35-9A-201.
- Return deadline
- 60 days
Source: Ala. Code 35-9A-201(a)-(f)
- Alaska
- Maximum deposit
- Two months' periodic rent for prepaid rent and security deposit combined; the cap does not apply to units where the rent exceeds $2,000 a month. A landlord may take an additional pet deposit of up to one month's rent for a tenant with a pet that is not a service animal; it must be accounted for separately and used only for pet-related damage (§ 34.03.070(a), (h)).
- Return deadline
- 30 days
Source: AS 34.03.070
- Arizona
- Maximum deposit
- 1.5 months' rent (all security, however named, including prepaid rent; a tenant may voluntarily prepay more rent). The purpose of any nonrefundable fee must be stated in writing; any fee not designated nonrefundable is refundable.
- Return deadline
- 14 days
Source: A.R.S. § 33-1321
- Arkansas
- Maximum deposit
- Two months' periodic rent, however denominated (18-16-304). The deposit rules do not apply to dwelling units owned by an individual who (with spouse, minor children and related rental entities) owns five or fewer dwelling units, unless a third party manages them for a fee, including rent collection (18-16-303).
- Return deadline
- 60 days
Source: Ark. Code 18-16-303, 18-16-304, 18-16-305, 18-16-306
- California
- Maximum deposit
- 1 month's rent for most landlords (since July 1, 2024, AB 12); 2 months for small landlords (a natural person, or an LLC whose members are all natural persons, owning at most 2 residential rental properties with at most 4 units total). The small-landlord exception does not apply to service-member tenants. Deposits can never be 'non-refundable'.
- Return deadline
- 21 days
Source: Cal. Civ. Code § 1950.5
- Colorado
- Maximum deposit
- 2 months' rent (since Aug 7, 2023).
- Return deadline
- 30 days
Source: C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
- Connecticut
- Maximum deposit
- Two months' rent for a tenant under 62; one month's rent for a tenant 62 or older (a landlord who took more than one month's rent from a tenant who later turns 62 must return the excess on request). Advance payment of the first month's rent and a key or special-equipment deposit are not 'security deposit'. The landlord must immediately put the deposit in an escrow account at a Connecticut financial institution and, within 30 days of receiving it, tell the tenant in writing the amount and the name and address of the institution. A landlord may not charge a move-in or move-out fee (47a-4d(b)).
- Return deadline
- 21 days
Source: Conn. Gen. Stat. 47a-21(a), (b), (d), (h), (i); 47a-4(a)(4); 47a-4d(b)
- Delaware
- Maximum deposit
- 1 month's rent when the lease is for 1 year or more, and for month-to-month tenancies once they have lasted 1 year (any excess must then be credited back). These limits do not apply to furnished units. A separate pet deposit is capped at 1 month's rent, and none may be charged for a certified, trained support animal of a disabled resident. The deposit must sit in a designated escrow account at a federally insured bank with an office in Delaware, and the landlord must tell the tenant where it is.
- Return deadline
- 20 days
- District of Columbia
- Maximum deposit
- One full month's rent (the first full month's rent charged), and it may be charged only once. Must be held in an interest-bearing escrow account at a D.C. financial institution, and the lease or receipt must state the terms of the deposit.
- Return deadline
- 45 days
Source: 14 DCMR §§ 308.2-308.3, 309.1-309.2, 311.1-311.2; D.C. Code § 42-3502.17(c)
- Florida
- Maximum deposit
- No statutory cap.
- Return deadline
- 15 days
Source: Fla. Stat. § 83.49
- Georgia
- Maximum deposit
- 2 months' rent (leases entered/renewed on or after July 1, 2024).
- Return deadline
- 30 days
Source: O.C.G.A. §§ 44-7-30.1, 44-7-34
- Hawaii
- Maximum deposit
- One month's rent, plus (if the landlord and tenant agree) an additional pet-damage deposit of up to one more month's rent; the pet amount may not be required from a tenant without a pet or for an assistance animal that is a reasonable accommodation (HRS 521-44(b)). The deposit may be held only for: tenant defaults (damage from failure to comply with 521-51, unpaid rent, unreturned keys/fobs/openers/mailbox keys), cleaning to the condition at move-in, damages if the tenant wrongfully quits, pet damage, and unpaid landlord-supplied utilities (521-44(a)). At the start of the tenancy the landlord may not require or receive any money other than the first month's rent and the security deposit (521-44(b)). The deposit is not last month's rent unless agreed in writing and the tenant gives 45 days' notice (521-44(b)). The tenant's claim to the deposit is prior to any creditor of the landlord, even if commingled (521-44(b)).
- Return deadline
- 14 days
- Idaho
- Maximum deposit
- No statutory cap on the amount of a security deposit found in Idaho Code 6-321. Any amount a tenant deposits for a purpose other than rent counts as a security deposit (6-321(1)). The landlord may not keep any part of it for normal wear and tear (6-321(1)). Other titles of the Idaho Code were not searched.
- Return deadline
- 30 days
Source: Idaho Code 6-321(1)-(4); 6-320(a)(4), (d); 6-317; 6-324
- Illinois
- Maximum deposit
- No statewide cap.
- Return deadline
- 45 days
Source: 765 ILCS 710/1; 765 ILCS 715
- Indiana
- Maximum deposit
- No statutory cap on the amount of a security deposit found in IC 32-31-3. The term includes required prepayment of rent beyond the first full rental period and other refundable amounts (IC 32-31-3-9). A deposit may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for premature termination), last month's rent if agreed in writing, and unpaid utility or sewer charges the tenant owed under the lease (IC 32-31-3-13).
- Return deadline
- 45 days
- Iowa
- Maximum deposit
- 2 months' rent. The deposit must be held in a federally insured bank, savings and loan or credit union account, not mixed with the landlord's own money.
- Return deadline
- 30 days
Source: Iowa Code § 562A.12(1)-(4)
- Kansas
- Maximum deposit
- 1 month's rent for an unfurnished unit; 1.5 months' rent if the tenant uses the landlord's furniture; plus up to half a month's rent extra if pets are allowed.
- Return deadline
- 30 days
Source: K.S.A. 58-2550(a)-(c)
- Kentucky
- Maximum deposit
- No statewide cap. Under the URLTA (where adopted): deposit must be kept in a separate account used only for deposits, and the landlord must give signed move-in and move-out damage lists, or they cannot keep any of the deposit.
- Return deadline
- Not verified yet
Source: KRS 383.580
- Louisiana
- Maximum deposit
- No statutory cap. The landlord may keep only what is reasonably necessary to remedy the tenant's default or unreasonable wear to the premises (R.S. 9:3251(A)).
- Return deadline
- 30 days
Source: La. R.S. 9:3251, 9:3252, 9:3254
- Maine
- Maximum deposit
- 2 months' rent. At move-in the landlord may not require more than the first full month's rent, the security deposit and any properly disclosed mandatory recurring fee (§ 6022-A). The deposit may not be commingled with the landlord's assets: it must be held in a bank or other financial institution account beyond the reach of the landlord's creditors, and on request the landlord must tell the tenant the institution and account number (§ 6038).
- Return deadline
- 30 days
- Maryland
- Maximum deposit
- 1 month's rent per unit (since Oct 1, 2024); up to 2 months only if the tenant qualified for utility assistance through the Department of Human Services, the lease requires paying utilities directly to the landlord, and both agree in writing. Overcharge: tenant may recover up to 3x the excess plus attorney fees.
- Return deadline
- 45 days
- Massachusetts
- Maximum deposit
- One month's rent. At or before the start of the tenancy the landlord (or its agent) may require only: rent for the first full month, rent for the last full month at the same rate, a security deposit equal to the first month's rent, and the purchase and installation cost of a key and lock. After the tenancy begins the landlord may not demand rent in advance beyond the current month or a larger deposit. The deposit stays the tenant's property: it must be held in a separate interest-bearing account in a bank located in Massachusetts, out of reach of the landlord's creditors, and the tenant must get a receipt within 30 days naming the bank, its location and the account number (failure entitles the tenant to immediate return). The landlord must give a signed receipt when taking the deposit and, within 10 days after the tenancy starts (or on receipt of the deposit, if later), a separate signed written statement of the unit's condition with a prescribed notice; the tenant has 15 days to return it with a list of any other damage. The landlord must also keep records of deposits for two years.
- Return deadline
- 30 days
Source: M.G.L. c. 186, § 15B(1)(b), (1)(d), (2), (3), (4), (5)
- Michigan
- Maximum deposit
- 1.5 months' rent (554.602). The deposit must be kept in a regulated financial institution, or the landlord must instead post a cash or surety bond with the Secretary of State covering all deposits (554.604). Before it may require a deposit, the landlord must give the tenant a written notice, within 14 days after the tenant takes possession, of the landlord's name and address, the name and address of the financial institution or surety, and the tenant's duty to give a forwarding address within 4 days after moving out, with that warning in bold 12-point type (554.603). The landlord must give the tenant two blank copies of a move-in inventory checklist and a termination checklist is required at move-out; the tenant has 7 days after getting possession to return the move-in checklist (554.608). The deposit may be used only for actual damage beyond normal use, unpaid rent, rent due for early termination, and unpaid tenant utility bills (554.607).
- Return deadline
- 30 days
Source: MCL 554.602, 554.603, 554.604, 554.607, 554.608, 554.609, 554.610, 554.611, 554.612, 554.613
- Minnesota
- Maximum deposit
- No statutory cap on the amount.
- Return deadline
- 21 days
- Mississippi
- Maximum deposit
- No statutory cap on the amount of a security deposit found in the Act (89-8-1 to 89-8-45 read in full). The deposit rule covers any payment or deposit of money whose primary function is to secure performance of the rental agreement, other than a payment or deposit (including advance rent) made to secure execution of the rental agreement (89-8-21(1)). The landlord may keep only amounts reasonably necessary to remedy the tenant's defaults in rent, repair damage caused by the tenant (excluding ordinary wear and tear), clean the premises at the end of the tenancy, or cover other reasonable and necessary expenses caused by the tenant's default (89-8-21(3)).
- Return deadline
- 45 days
Source: 89-8-21(1)-(4)
- Missouri
- Maximum deposit
- Two months' rent. Must be held in a federally insured bank, credit union or depository institution; interest earned belongs to the landlord. Pet deposits are not counted as 'security deposit'.
- Return deadline
- 30 days
Source: RSMo § 535.300
- Montana
- Maximum deposit
- No statutory cap found in chapter 70-25. Any deposit the lease requires counts as a security deposit, and a fee or charge for cleaning and damages, however labelled, is presumed to be one (§ 70-25-101(4)). Any lease term contrary to chapter 70-25, and any tenant waiver of it, is invalid (§ 70-25-103).
- Return deadline
- 30 days
Source: MCA §§ 70-25-101, 70-25-103, 70-25-201, 70-25-202, 70-25-203, 70-25-204
- Nebraska
- Maximum deposit
- One month's periodic rent; a pet deposit of up to one-fourth of one month's rent may also be demanded (Neb. Rev. Stat. 76-1416(1)); the cap does not apply to housing agencies under the Nebraska Housing Agency Act.
- Return deadline
- 14 days
Source: Neb. Rev. Stat. 76-1416
- Nevada
- Maximum deposit
- 3 months' periodic rent total (deposit, surety bond and last month's rent combined).
- Return deadline
- 30 days
Source: NRS 118A.242
- New Hampshire
- Maximum deposit
- A landlord may not demand or receive a security deposit above one month's rent or $100, whichever is greater (RSA 540-A:6, I(a)); if the lease calls for quarterly or less frequent rent, a deposit taken in addition to the first rent payment may not exceed one month's rent. 'Security deposit' means all funds in excess of the monthly rent transferred from tenant to landlord for any purpose (540-A:5, II). The landlord must promptly give a signed receipt stating the amount and where the deposit is held (not required if paid by personal, bank or government/nonprofit check) and a written list of unit conditions needing repair, which the tenant may note within 5 days of occupancy (540-A:6, I(b)-(c)). Deposits are held in trust, not mingled with the landlord's own money (a single trust account of all deposits at a NH bank is allowed; a NH surety bond posted with the city/town clerk is an alternative) (540-A:6, II). Landlord definition (540-A:5, I): a person who rents a single-family residence and owns no other rental property, or who rents units in an owner-occupied building of 5 units or less, is NOT a 'landlord' for this deposit subdivision, except for a unit occupied by someone aged 60+.
- Return deadline
- 30 days
Source: RSA 540-A:5, I-II; 540-A:6, I-IV; 540-A:7, I-II; 540-A:8, I-III
- New Jersey
- Maximum deposit
- 1.5 times one month's rent. If the landlord collects more security later, the extra collected in any year may not exceed 10% of the current deposit (46:8-21.2). The deposit stays the tenant's money, held in trust and not mixed with the landlord's own funds; it must sit in an interest-bearing account at a New Jersey bank or savings institution (landlords with 10+ units: an insured money-market fund or variable-rate account) (46:8-19(a), (b)).
- Return deadline
- 30 days
Source: N.J.S.A. 46:8-19, 46:8-21.1, 46:8-21.2, 46:8-24, 46:8-26
- New Mexico
- Maximum deposit
- If the rental agreement is for less than one year, the deposit may not exceed one month's rent. For an annual (one-year) agreement the statute sets no cap, but if the deposit is more than one month's rent the owner must pay the resident annual interest (passbook savings rate) on it. Prepaid last month's rent is not a deposit.
- Return deadline
- 30 days
Source: NMSA 47-8-18(A)-(E)
- New York
- Maximum deposit
- 1 month's rent.
- Return deadline
- 14 days
- North Carolina
- Maximum deposit
- 2 weeks' rent (week-to-week), 1.5 months (month-to-month), 2 months (longer terms).
- Return deadline
- 30 days
Source: N.C.G.S. §§ 42-51, 42-52
- North Dakota
- Maximum deposit
- One month's rent. Exceptions: up to two months' rent from an individual convicted of a felony offense as an incentive to rent to them, or from an individual who has had a judgment entered against them for violating a previous rental agreement (§ 47-16-07.1(1)). A separate pet security deposit (not for service or companion animals required as a disability accommodation) may be charged, up to the greater of $2,500 or two months' rent (§ 47-16-07.1(2)).
- Return deadline
- 30 days
Source: N.D.C.C. § 47-16-07.1
- Ohio
- Maximum deposit
- No statutory cap.
- Return deadline
- 30 days
Source: Ohio Rev. Code § 5321.16
- Oklahoma
- Maximum deposit
- No statutory cap on the amount of a security deposit found in 41 O.S. §§ 101-136. 'Deposit' means money or other property required by a landlord from a tenant as security, to be returned on termination less deductions properly made under the Act (§ 102(2)). The deposit must be kept in an escrow account in an Oklahoma federally insured financial institution; misappropriation is unlawful and punishable by county jail up to six months and a fine up to twice the amount misappropriated (§ 115(A)). On termination the deposit may be applied to accrued rent and damages from the tenant's noncompliance with the Act and rental agreement, itemized in a written statement (§ 115(B)). A tenant may not deduct the deposit from last month's rent unless the rental agreement provides otherwise (§ 115(F)).
- Return deadline
- 45 days
- Oregon
- Maximum deposit
- No statutory cap in ORS 90.300; a landlord cannot require a new or increased deposit in the first year of tenancy (except for an agreed change such as adding a pet), and must allow at least 3 months to pay one after that.
- Return deadline
- 31 days
Source: ORS 90.300(12)-(13)
- Pennsylvania
- Maximum deposit
- 2 months' rent in the first year; 1 month's rent from the second year on.
- Return deadline
- 30 days
- Rhode Island
- Maximum deposit
- A landlord may not demand or receive a security deposit, however denominated, worth more than one month's periodic rent (34-18-19(a)). A landlord renting a furnished apartment whose furniture was worth $5,000 or more when the lease was signed may charge a separate furniture security deposit (34-18-19(e)); the statute states no cap on that furniture deposit. No rental agreement may waive the section (34-18-19(h)).
- Return deadline
- 20 days
Source: R.I. Gen. Laws 34-18-19(a)-(h)
- South Carolina
- Maximum deposit
- No cap on the amount in the Residential Landlord and Tenant Act.
- Return deadline
- 30 days
Source: S.C. Code Ann. § 27-40-410
- South Dakota
- Maximum deposit
- 1 month's rent. A larger deposit is allowed only by agreement of landlord and tenant where special conditions pose a danger to maintenance of the premises. Any money deposited to secure the rental agreement counts as a security deposit, however it is labelled (§ 43-32-6.1).
- Return deadline
- 21 days
Source: SDCL §§ 43-32-6.1, 43-32-24
- Tennessee
- Maximum deposit
- No statutory cap (Tenn. Code Ann. § 66-28-301 sets none).
- Return deadline
- Not verified yet
Source: Tenn. Code Ann. § 66-28-301
- Texas
- Maximum deposit
- No statutory cap.
- Return deadline
- 30 days
- Utah
- Maximum deposit
- No statutory cap. Any non-refundable portion of a deposit must be stated in writing to the renter when the deposit is taken (57-17-2).
- Return deadline
- 30 days
- Vermont
- Maximum deposit
- No statutory cap on the amount of a security deposit found in 9 V.S.A. chapter 137. A 'security deposit' is any advance, deposit or prepaid rent, however named, that is refundable to the tenant at the end of the tenancy; its function is to secure the tenant's obligations to pay rent and maintain the unit (§ 4461(a)). The landlord may retain it only for nonpayment of rent, damage beyond normal wear and tear (or beyond the tenant's control), unpaid utility or other charges the tenant had to pay directly, and expenses to remove articles the tenant abandoned (§ 4461(b)). 'Normal wear and tear' is defined in § 4451(5). A separate bill that would have capped deposits at two months' rent (H.772, 2026) failed in the Senate and did not become law.
- Return deadline
- 14 days
- Virginia
- Maximum deposit
- 2 months' periodic rent (security deposit however named). Security deposit plus damage-insurance and renter's-insurance premiums paid before the tenancy starts may not exceed 2 months' rent in total.
- Return deadline
- 45 days
- Washington
- Maximum deposit
- No statewide cap found. A deposit may be collected only with a written lease and a signed, dated move-in checklist describing the unit's condition; without the checklist the landlord is liable for the whole deposit. Deposits go in a Washington trust account and the tenant gets a receipt. On written request, the tenant may pay deposits, nonrefundable fees and last month's rent in installments (2 or 3 months) unless they total no more than 25% of the first month's rent. A fee is refundable unless the written lease clearly calls it nonrefundable.
- Return deadline
- 30 days
Source: RCW 59.18.260, 59.18.270, 59.18.280, 59.18.285, 59.18.610
- West Virginia
- Maximum deposit
- Not verified yet
- Return deadline
- 60 days
- Wisconsin
- Maximum deposit
- No statutory cap on the deposit amount in Wis. Stat. 704.28 or ATCP 134.06. Any rent prepayment above one month's prepaid rent counts as a 'security deposit' and must be returned under the same rules (ATCP 134.06(2) note). Before accepting a deposit the landlord must tell the tenant in writing they may inspect the unit and report pre-existing damage, or request a list of damage charged to the previous tenant, by a deadline at least 7 days after the tenancy starts (ATCP 134.06(1)). Wisconsin law has no deposit-interest or separate-account rule in these sections.
- Return deadline
- 21 days
- Wyoming
- Maximum deposit
- No statutory cap. A rental agreement must state whether any portion of the deposit is nonrefundable, and written notice of that fact must also be given to the renter when the deposit is taken (§ 1-21-1207).
- Return deadline
- 60 days
Source: W.S. 1-21-1207, 1-21-1208
Cities and counties can add stricter rules (e.g. Chicago, New York City). Full rules for each state: state tenant laws.
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Scan my lease freeOther clauses to check
- Non-refundable security deposits
- Late fees
- Landlord entry without notice
- “Tenant pays all repairs” clauses
- Automatic renewal clauses
- Rent increase clauses
- Waivers of tenant rights
- Move-out cleaning & carpet fees
- Notice to move out
- “Landlord not liable” & other void clauses
- Security deposit earns no interest
- Pet deposits, pet fees & pet rent
- “As is” condition clauses
- No grace period & daily late fees
- Tenant pays landlord's attorney fees
- Lockouts & utility shut-offs
General information only, not legal advice. Laws change — verify with the linked source or a licensed attorney.