Iowa Deposit Interest Rules
interest required (after 5 years of tenancy)Iowa is one of 14 US jurisdictions that require landlords to pay interest on security deposits in covered rentals — the FAQ below covers which tenancies qualify. If your lease is silent about interest, the statutory obligation still applies where it covers you.
Educational information: generated from our Iowa law database (last updated 2024-01-01). Not legal advice.
How Iowa compares
14 of 51 US jurisdictions require landlords to pay interest on security deposits. Here is how Iowa compares with other states in our database.
Frequently asked questions
- Do landlords have to pay interest on security deposits in Iowa?
- Yes — Iowa law requires interest on held security deposits for after 5 years of tenancy. Maximum 2 months rent. Must be held in separate trust account at Iowa financial institution. Interest paid to tenant after 5 years of tenancy. Return within 30 days after receiving forwarding address. Bad faith retention: up to 2x damages.
- How large can the deposit itself be in Iowa?
- Iowa generally allows at most 2 months' rent as a security deposit.
- When do I get my security deposit back in Iowa?
- Generally within 30 days after receiving your forwarding address, together with any interest owed.
Check Your Lease Against Iowa Law
Not sure whether your lease complies with Iowa law? Upload it and our analyzer flags problem clauses — deposit terms, entry rights, fees and prohibited provisions — using the same statute-backed database this page is generated from.
Analyze My Lease FreeEducational tool — not legal advice. First analysis is free, no signup required.
More Iowa lease law guides
Educational information generated from state statute data — not legal advice. Consult a licensed attorney in Iowa for your specific situation.