Two months' rent. The return rule is 30 days. The controlling text is Iowa Code § 562A.12.
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Iowa's deposit ceiling
Two months' rent.
Iowa's return deadline
30 days.
You have 30 days after the tenancy ends and the tenant gives a mailing address to return the deposit or deliver an itemized statement of deductions. The forwarding address starts the clock.
The itemized statement rule
A written statement itemizing any retained amount is required within 30 days. Withholding for ordinary wear is not allowed, so each line has to be actual damage.
Account and interest rules
Deposits must be held in a bank or insured institution and may not be commingled with the landlord's personal funds, though interest earned in the first five years belongs to the landlord.
Exposure for wrongful withholding
Punitive damages for bad faith.
A landlord who withholds in bad faith can be liable for punitive damages up to twice the monthly rent, in addition to the wrongfully withheld amount and attorney fees. Bad faith is the trigger, so a documented, good-faith statement is the defense.
Compare Iowa with neighboring states
- Minnesota: no statutory limit; return rule: 21 days.
- Wisconsin: no statutory limit; return rule: 21 days.
- Illinois: no statutory limit; return rule: 30 or 45 days.
- Missouri: two months' rent; return rule: 30 days.
- Nebraska: one month's rent; return rule: 14 days.
- South Dakota: one month's rent; return rule: 14 days.
Verified against Iowa Code § 562A.12 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.