© 2020 Thomson Reuters. All rights reserved.
Search the Resource ID numbers in blue on Westlaw for more.
Resource ID: W-024-5140
JAMES ROGERS AND CLARISSA MEDRANO, AKERMAN LLP, WITH PRACTICAL LAW REAL ESTATE
Security Deposit Laws (Commercial
Lease): State Comparison Chart
This Chart provides a state-by-state overview of
statutes governing commercial security deposits.
The Chart covers limits on the amount of a
commercial security deposit and requirements
governing the return of, holding of, and interest
payments on commercial security deposits. This
Chart is a useful tool for commercial landlords,
tenants, and their legal counsel.
SECURITY DEPOSITS
Landlords routinely require security deposits from their tenants
before entering into a lease for commercial property. Security
deposits are intended to provide the landlord with protection against
damage to the leased premises and security for the tenant’s payment
obligations under the lease.
The lease typically describes the terms of the security deposit,
subject to state and local laws and regulations. Most states consider
commercial parties to be sophisticated entities that can contract on
their own terms. Notwithstanding, some states place restrictions on
the handling of security deposits by commercial landlords.
For in-depth analysis of commercial security deposits on the state
level, see the following Practice Notes:
Security Deposits (Commercial Leases) (NY) (W-001-3629)
Understanding Security Deposits (PA) (W-000-1345)
Security Deposits (Residential and Commercial Leases) (TX)
(W-000-0357)
HOW TO USE THIS CHART
This Chart is only intended to be a starting point for legal counsel
to all parties contemplating a commercial lease. Parties and legal
counsel using this Chart should carefully review the statutes and case
law of the specific state and any related links.
This Chart provides state-by-state coverage on:
Limits on the amount of a commercial security deposit.
Requirements governing the return of commercial security
deposits.
Requirements on the holding of commercial security deposits.
Requirements regarding interest payments made to commercial
tenants.
ALABAMA
Limit on the Amount of a Commercial Security Deposit Alabama does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Alabama has no regulations or requirements governing the return ofcommercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Alabama does not prohibit commingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Alabama, Question 9 (6-527-0866)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Alabama does not require residential landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits unless the
lease expressly specifies otherwise (see State Q&A, Real Estate Leasing: Alabama,
Question9 (6-527-0866)).
© 2020 Thomson Reuters. All rights reserved.
2
Security Deposit Laws (Commercial Lease): State Comparison Chart
ALASKA
Limit on the Amount of a Commercial Security Deposit Alaska does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Alaska has no regulations or requirements governing the return of commercial
securitydeposits.
Requirements on the Holding of Commercial Security Deposits Alaska does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Alaska does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
ARIZONA
Limit on the Amount of a Commercial Security Deposit Arizona does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Arizona has no regulations or requirements governing the return of commercial
securitydeposits.
Requirements on the Holding of Commercial Security Deposits
Arizona does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Arizona, Question 9 (1-500-5704)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Arizona does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Arizona, Question 9 (1-500-5704)).
ARKANSAS
Limit on the Amount of a Commercial Security Deposit Arkansas does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Arkansas has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Arkansas does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Arkansas, Question 9 (W-000-1700)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Arkansas does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Arkansas, Question 9 (W-000-1700)).
CALIFORNIA
Limit on the Amount of a Commercial Security Deposit California does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
The landlord must return the deposit no later than 30 days after the landlord receives
possession of the premises (Cal. Civ. Code § 1950.7(c)).
Requirements on the Holding of Commercial Security Deposits California does not prohibit comingling commercial security deposits with other funds,
but a tenant has priority for the return of the tenant’s security deposit over theclaims
of the landlord’s other creditors, except a trustee in bankruptcy (Cal. Civ. Code
§1950.7(b)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
California does not require commercial landlords to hold tenant security deposits
in interest-bearing accounts or pay tenants any interest on tenant security deposits.
However, some local rent control ordinances may require the landlord to pay interest
on security deposits (see State Q&A, Real Estate Leasing: California, Question 9
(6-523-5024)).
COLORADO
Limit on the Amount of a Commercial Security Deposit Colorado does not restrict the amount a commercial landlord can require as a security
deposit
Requirements Governing the Return of Commercial Security
Deposits
Colorado has no regulations or requirements governing the return of commercial
security deposits.
3
© 2020 Thomson Reuters. All rights reserved.
Security Deposit Laws (Commercial Lease): State Comparison Chart
Requirements on the Holding of Commercial Security Deposits Colorado does not prohibit landlords from comingling commercial security deposits with
other funds (see State Q&A, Real Estate Leasing: Colorado, Question 9 (0-387-3495)).
However, real estate management companies that are licensed real estate brokers must
hold security deposits in a separate trust account (4 Colo. Code Regs. § 725-1:5).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Colorado does not require commercial landlords to hold tenant security deposits
in interest-bearing accounts or pay tenants any interest on tenant security deposits
(seeState Q&A, Real Estate Leasing: Colorado, Question 9 (0-387-3495))
CONNECTICUT
Limit on the Amount of a Commercial Security Deposit Connecticut does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Connecticut has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits Connecticut does not prohibit comingling commercial security deposits with other
funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Connecticut does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits.
DELAWARE
Limit on the Amount of a Commercial Security Deposit Delaware does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Delaware has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Delaware does not prohibit landlords from comingling commercial security deposits
with other funds (see State Q&A, Real Estate Leasing: Delaware, Question 9
(8-500-5692)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Delaware does not require commercial landlords to hold tenant security deposits
in interest-bearing accounts or pay tenants any interest on tenant security deposits
(seeState Q&A, Real Estate Leasing: Delaware, Question 9 (8-500-5692)).
DISTRICT OF COLUMBIA
Limit on the Amount of a Commercial Security Deposit The District of Columbia does not restrict the amount a commercial landlord can
require as a security deposit.
Requirements Governing the Return of Commercial Security
Deposits
The District of Columbia has no regulations or requirements governing the return of
commercial security deposits.
Requirements on the Holding of Commercial Security Deposits The District of Columbia does not prohibit comingling commercial security deposits
with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
The District of Columbia does not require commercial landlords to hold security
deposits in interest-bearing accounts or pay tenants any interest on tenant security
deposits.
FLORIDA
Limit on the Amount of a Commercial Security Deposit Florida does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Florida has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Florida does not prohibit comingling commercial security deposits with other funds
(seeState Q&A, Real Estate Leasing: Florida, Question 9 (8-518-9479)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Florida does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Florida, Question 9 (8-518-9479)).
© 2020 Thomson Reuters. All rights reserved.
4
Security Deposit Laws (Commercial Lease): State Comparison Chart
GEORGIA
Limit on the Amount of a Commercial Security Deposit Georgia does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Georgia has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits Georgia does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Georgia does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
HAWAII
Limit on the Amount of a Commercial Security Deposit Hawaii does not restrict the amount a commercial landlord may require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Hawaii has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Hawaii does not prohibit comingling commercial security deposits with other funds, but
if a landlord plans to commingle a tenant’s security deposit with other accounts, the
lease should specify that the landlord reserves the right to do so and that the tenant
consents (see State Q&A, Real Estate Leasing: Hawaii, Question 9 (W-001-8863)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Hawaii does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Hawaii, Question 9 (W-001-8863)).
IDAHO
Limit on the Amount of a Commercial Security Deposit Idaho does not restrict the amount a commercial landlord may require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
The landlord must return the deposit within 21 days after the tenant surrenders the
premises or up to 30 days by prior agreement (Idaho Code § 6-321).
Requirements on the Holding of Commercial Security Deposits
Idaho does not prohibit comingling commercial security deposits with other funds (see
State Q&A, Real Estate Leasing: Idaho, Question 9 (W-020-4478)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Idaho does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Idaho, Question 9 (W-020-4478)).
ILLINOIS
Limit on the Amount of a Commercial Security Deposit Illinois does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Illinois has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Illinois does not prohibit comingling commercial security deposits with other funds
(seeState Q&A, Real Estate Leasing: Illinois, Question 9 (W-000-4108)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Illinois does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Illinois, Question 9 (W-000-4108)).
INDIANA
Limit on the Amount of a Commercial Security Deposit Indiana does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Indiana has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits Indiana does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Indiana does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
5
© 2020 Thomson Reuters. All rights reserved.
Security Deposit Laws (Commercial Lease): State Comparison Chart
IOWA
Limit on the Amount of a Commercial Security Deposit Iowa does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Iowa has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Iowa does not prohibit comingling commercial security deposits with other funds
(seeState Q&A, Real Estate Leasing: Iowa, Question 9 (W-000-4187)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Iowa does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits(see State
Q&A,Real Estate Leasing: Iowa, Question 9 (W-000-4187)).
KANSAS
Limit on the Amount of a Commercial Security Deposit Kansas does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Kansas has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Kansas does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Kansas, Question 9 (W-000-3667)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Kansas does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Kansas, Question 9 (W-000-3667)).
KENTUCKY
Limit on the Amount of a Commercial Security Deposit Kentucky does not restrict on the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Kentucky has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits Kentucky does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Kentucky does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
LOUISIANA
Limit on the Amount of a Commercial Security Deposit Louisiana does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
The landlord must return the deposit within one month after the lease terminates
(La.R.S. 9:3251(A)). This requirement does not apply if the tenant abandons the premises
either without required notice or before the lease terminates (La. R.S. 9:3251(C)).
Requirements on the Holding of Commercial Security Deposits
In Louisiana, a landlord is not required to maintain security deposits in separate bank
accounts for each tenant (see State Q&A, Real Estate Leasing: Louisiana, Question 9
(4-567-5047)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Louisiana does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Louisiana, Question 9 (4-567-5047)).
MAINE
Limit on the Amount of a Commercial Security Deposit Maine does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Maine has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits Maine does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Maine does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
© 2020 Thomson Reuters. All rights reserved.
6
Security Deposit Laws (Commercial Lease): State Comparison Chart
MARYLAND
Limit on the Amount of a Commercial Security Deposit Maryland does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Maryland has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Maryland does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Maryland, Question 9 (W-013-0785)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Maryland does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits(see State
Q&A, Real Estate Leasing: Maryland, Question 9 (W-013-0785)).
MASSACHUSETTS
Limit on the Amount of a Commercial Security Deposit Massachusetts does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Massachusetts has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Massachusetts does not prohibit comingling commercial security deposits with other
funds (Shwachman v. Khoroshansky, 448 N.E.2d 409 (Mass. Ct. App. 1983); see State
Q&A, Real Estate Leasing: Massachusetts, Question 9 (6-500-3986)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Massachusetts does not require commercial landlords to hold tenant security
deposits in interest-bearing accounts or pay tenants any interest on tenant security
deposits (Shwachman, 448 N.E.2d at 410-11; see State Q&A, Real Estate Leasing:
Massachusetts, Question 9 (6-500-3986)).
MICHIGAN
Limit on the Amount of a Commercial Security Deposit Michigan does not restrict the amount a commercial landlord can require for a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Michigan has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Michigan does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Michigan, Question 9 (9-556-9247)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Michigan does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Michigan, Question 9 (9-556-9247)).
MINNESOTA
Limit on the Amount of a Commercial Security Deposit Minnesota does not restrict the amount a commercial landlord may require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Minnesota has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Minnesota does not prohibit comingling commercial security deposits with
otherfunds (see State Q&A, Real Estate Leasing: Minnesota, Question 9
(W-000-1908))
Requirements Regarding Interest Payments Made to
Commercial Tenants
Minnesota does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits(see State Q&A,
Real Estate Leasing: Minnesota, Question 9 (W-000-1908)).
MISSISSIPPI
Limit on the Amount of a Commercial Security Deposit Mississippi does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Mississippi has no regulations or requirements governing the return of commercial
security deposits.
7
© 2020 Thomson Reuters. All rights reserved.
Security Deposit Laws (Commercial Lease): State Comparison Chart
Requirements on the Holding of Commercial Security Deposits Mississippi does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Mississippi, Question 9 (W-000-4101)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Mississippi does not require commercial landlords to hold tenant security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits (see
State Q&A, Real Estate Leasing: Mississippi, Question 9 (W-000-4101)).
MISSOURI
Limit on the Amount of a Commercial Security Deposit Missouri does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Missouri has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Missouri does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Missouri, Question 9 (8-500-5319)). However, if
alicensed broker is managing the property, the broker must keep separate accounts
foreach tenant’s security deposit unless the fee owner agrees otherwise in writing
(20Mo. CSR 2250-8.220).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Missouri does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Missouri, Question 9 (8-500-5319)).
MONTANA
Limit on the Amount of a Commercial Security Deposit Montana does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Montana has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Montana does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Montana, Question 9 (W-007-8917)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Montana does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Montana, Question 9 (W-007-8917)).
NEBRASKA
Limit on the Amount of a Commercial Security Deposit Nebraska does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Nebraska has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Nebraska does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Nebraska, Question 9 (W-000-8601)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Nebraska does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits unless
the parties have agreed otherwise in writing (see State Q&A, Real Estate Leasing:
Nebraska, Question 9 (W-000-8601)).
NEVADA
Limit on the Amount of a Commercial Security Deposit Nevada does not restrict the amount a commercial landlord may require for as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Nevada has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Nevada does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Nevada, Question 9 (W-003-7072)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Nevada does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Nevada, Question 9 (W-003-7072)).
© 2020 Thomson Reuters. All rights reserved.
8
Security Deposit Laws (Commercial Lease): State Comparison Chart
NEW HAMPSHIRE
Limit on the Amount of a Commercial Security Deposit New Hampshire does not restrict the amount a commercial landlord may require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
New Hampshire has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits New Hampshire does not prohibit comingling commercial security deposits with other
funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
New Hampshire does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits.
NEW JERSEY
Limit on the Amount of a Commercial Security Deposit New Jersey does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
New Jersey has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits New Jersey does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
New Jersey does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
NEW MEXICO
Limit on the Amount of a Commercial Security Deposit New Mexico does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
New Mexico has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
New Mexico does not prohibit comingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: New Mexico, Question 9 (W-000-5630)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
New Mexico does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: New Mexico, Question 9 (W-000-5630)).
NEW YORK
Limit on the Amount of a Commercial Security Deposit New York does not restrict the amount a commercial landlord can require s a
security deposit (see Practice Note, Security Deposits (Commercial Leases) (NY)
(W-001-3629)).
Requirements Governing the Return of Commercial Security
Deposits
New York has no regulations or requirements governing the return of commercial
security deposits (see Practice Note, Security Deposits (Commercial Leases) (NY)
(W-001-3629)).
Requirements on the Holding of Commercial Security Deposits A commercial landlord must hold a tenant’s security deposit in trust on behalf of
thetenant and may not comingle the security deposit with the landlord’s personal
funds or make the deposit an asset of the landlord (N.Y. Gen. Oblig. Law § 7-103(1)).
If the landlord chooses to place the deposit in a bank, it must be a bank with a place of
business in New York (N.Y. Gen. Oblig. Law § 7-103(2)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
New York does not require commercial landlords to hold security deposits interest-
bearing accounts, but if the landlord chooses to put the deposit in an interest-bearing
account the landlord can keep 1% of the deposit per year as an administrative fee and
holds the balance of the interest in trust until the landlord:
Pays the interest to the tenant at termination of the tenancy.
Applies the interest to any unpaid rent.
Pays the interest to the tenant annually.
(N.Y. Gen. Oblig. Law § 7-103(2).)
9
© 2020 Thomson Reuters. All rights reserved.
Security Deposit Laws (Commercial Lease): State Comparison Chart
NORTH CAROLINA
Limit on the Amount of a Commercial Security Deposit North Carolina does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
North Carolina has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
North Carolina does not prohibit comingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: North Carolina, Question 9 (0-568-0791)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
North Carolina does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits
(seeState Q&A, Real Estate Leasing: North Carolina, Question 9 (0-568-0791)).
NORTH DAKOTA
Limit on the Amount of a Commercial Security Deposit North Dakota does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
North Dakota has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits North Dakota does not prohibit comingling commercial security deposits with other
funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
North Dakota does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits.
OHIO
Limit on the Amount of a Commercial Security Deposit Ohio does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Ohio has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Ohio does not prohibit comingling commercial security deposits with other funds
(seeState Q&A, Real Estate Leasing: Ohio, Question 9 (4-534-6283)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Ohio does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Ohio, Question 9 (4-534-6283)).
OKLAHOMA
Limit on the Amount of a Commercial Security Deposit Oklahoma does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Oklahoma has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits Oklahoma does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Oklahoma does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
OREGON
Limit on the Amount of a Commercial Security Deposit Oregon does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Oregon has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits Oregon does not prohibit comingling commercial security deposits with other funds.
Requirements Regarding Interest Payments Made to
Commercial Tenants
Oregon does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits.
© 2020 Thomson Reuters. All rights reserved.
10
Security Deposit Laws (Commercial Lease): State Comparison Chart
PENNSYLVANIA
Limit on the Amount of a Commercial Security Deposit Pennsylvania does not restrict the amount a commercial landlord may require
as a security deposit (see Practice Note: Understanding Security Deposits (PA)
(W-000-1345)).
Requirements Governing the Return of Commercial Security
Deposits
Pennsylvania has no regulations or requirements governing the return of commercial
security deposits (see Practice Note: Understanding Security Deposits (PA)
(W-000-1345)).
Requirements on the Holding of Commercial Security Deposits
Pennsylvania does not prohibit comingling commercial security deposits with other
funds (see Practice Note: Understanding Security Deposits (PA) (W-000-1345) and
State Q&A, Real Estate Leasing: Pennsylvania, Question 9 (8-504-0860)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Pennsylvania does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits
(seePractice Note: Understanding Security Deposits (PA) (W-000-1345) and State
Q&A, Real Estate Leasing: Pennsylvania, Question 9 (8-504-0860)).
RHODE ISLAND
Limit on the Amount of a Commercial Security Deposit Rhode Island does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Rhode Island has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Rhode Island: does not prohibit comingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: Rhode Island, Question 9 (W-000-1954)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Rhode Island does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits
(seeState Q&A, Real Estate Leasing: Rhode Island, Question 9 (W-000-1954)).
SOUTH CAROLINA
Limit on the Amount of a Commercial Security Deposit South Carolina does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
South Carolina has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
South Carolina does not prohibit comingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: South Carolina, Question 9 (W-000-3057)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
South Carolina does not require commercial landlords to hold security deposits in
interest-bearing accounts or pay tenants any interest on tenant security deposits
(seeState Q&A, Real Estate Leasing: South Carolina, Question 9 (W-000-3057)).
SOUTH DAKOTA
Limit on the Amount of a Commercial Security Deposit South Dakota does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
The landlord must return the deposit within 60 days after the tenancy terminates
and the landlord receives the tenant’s mailing address or delivery instructions (SDCL
43-32-24.1).
Requirements on the Holding of Commercial Security Deposits
South Dakota does not prohibit comingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: South Dakota, Question 9 (W-000-2943)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
South Dakota does not require commercial landlords to hold tenant security deposits
in interest-bearing accounts or pay tenants any interest on tenant security deposits
(seeState Q&A, Real Estate Leasing: South Dakota, Question 9 (W-000-2943)).
TENNESSEE
Limit on the Amount of a Commercial Security Deposit Tennessee does not restrict the amount a commercial landlord may require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Tennessee has no regulations or requirements governing the return of commercial
security deposits.
11
© 2020 Thomson Reuters. All rights reserved.
Security Deposit Laws (Commercial Lease): State Comparison Chart
Requirements on the Holding of Commercial Security Deposits Tennessee does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Tennessee, Question 9 (W-018-3660)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Tennessee does not require commercial landlords security deposits in interest-bearing
accounts or pay tenants any interest on tenant security deposits, unless the parties
agree otherwise in writing (see State Q&A, Real Estate Leasing: Tennessee, Question 9
(W-018-3660)).
TEXAS
Limit on the Amount of a Commercial Security Deposit Texas does not restrict the amount a commercial landlord can require as a security
deposit (see Practice Note, Security Deposits (Residential and Commercial Leases)
(TX)(W-000-0357)).
Requirements Governing the Return of Commercial Security
Deposits
The landlord must return the deposit within 60 days after the date the tenant
surrenders the premises and provides notice to the landlord or the landlord’s agent of
the tenant’s forwarding address (Tex. Prop. Code Ann. § 93.005(a) and 93.009(a)).
Requirements on the Holding of Commercial Security Deposits
Texas does not require prohibit comingling commercial security deposits with other
funds (see Practice Note, Security Deposits (Residential and Commercial Leases) (TX)
(W-000-0357) and State Q&A, Real Estate Leasing: Texas, Question 9 (7-508-6434)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Texas does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see Practice
Note, Security Deposits (Residential and Commercial Leases) (TX) (W-000-0357) and
State Q&A, Real Estate Leasing: Texas, Question 9 (7-508-6434)).
UTAH
Limit on the Amount of a Commercial Security Deposit Utah does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Utah has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Utah does not prohibit comingling commercial security deposits with other funds
(seeState Q&A, Real Estate Leasing: Utah, Question 9 (7-560-6806)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Utah does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Utah, Question 9 (7-560-6806)).
VERMONT
Limit on the Amount of a Commercial Security Deposit Vermont does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Vermont has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Vermont does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Vermont, Question 9 (5-575-9329)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Vermont does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Vermont, Question 9 (5-575-9329)).
VIRGINIA
Limit on the Amount of a Commercial Security Deposit Virginia does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Virginia has no regulations or requirements governing the return of commercial security
deposits.
Requirements on the Holding of Commercial Security Deposits
Virginia does not prohibit comingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Virginia, Question 9 (9-553-7845)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Virginia does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Virginia, Question 9 (9-553-7845)).
© 2020 Thomson Reuters. All rights reserved.
12
Security Deposit Laws (Commercial Lease): State Comparison Chart
WASHINGTON
Limit on the Amount of a Commercial Security Deposit Washington does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
Washington has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Washington does not prohibit comingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: Washington, Question 9 (7-500-3995)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Washington does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits unless the
parties agree otherwise in writing (see State Q&A, Real Estate Leasing: Washington,
Question 9 (7-500-3995)).
WEST VIRGINIA
Limit on the Amount of a Commercial Security Deposit West Virginia does not restrict the amount a commercial landlord can require as a
security deposit.
Requirements Governing the Return of Commercial Security
Deposits
West Virginia has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
West Virginia does not prohibit commingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: West Virginia, Question 9 (W-000-4477)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
West Virginia does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest earned on tenant security deposits (see
State Q&A, Real Estate Leasing: West Virginia, Question 9 (W-000-4477)).
WISCONSIN
Limit on the Amount of a Commercial Security Deposit Wisconsin does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Wisconsin has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Wisconsin does not prohibit commingling commercial security deposits with other
funds (see State Q&A, Real Estate Leasing: Wisconsin, Question 9 (8-518-7767)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Wisconsin does not require commercial landlords to hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits. These
requirements vary by municipality, however. Madison, for example, requires landlords
provide tenants a yearly rent credit:
Calculated from the date of the security deposit was paid.
Equivalent to the interest rate identified by Wisconsin Department of Financial
Institutions for money held in escrow for real estate.
(Madison Wis. Ord. 32.07(3); see State Q&A, Real Estate Leasing: Wisconsin, Question9
(8-518-7767).)
13
Security Deposit Laws (Commercial Lease): State Comparison Chart
Security Deposit Laws (Commercial Lease): State Comparison Chart
ABOUT PRACTICAL LAW
Practical Law provides legal know-how that gives lawyers a better starting
point. Our expert team of attorney editors creates and maintains thousands of
up-to-date, practical resources across all major practice areas. We go beyond
primary law and traditional legal research to give you the resources needed to
practice more efficiently, improve client service and add more value.
If you are not currently a subscriber, we invite you to take a trial of our online
services at legalsolutions.com/practical-law. For more information or to
schedule training, call 1-800-733-2889 or e-mail referenceattorneys@tr.com.
04-20
© 2020 Thomson Reuters. All rights reserved. Use of Practical Law websites and services is subject to the
Terms of Use (http://static.legalsolutions.thomsonreuters.com/static/agreement/westlaw-additional-terms.pdf)
and Privacy Policy (https://a.next.westlaw.com/Privacy).
WYOMING
Limit on the Amount of a Commercial Security Deposit Wyoming does not restrict the amount a commercial landlord can require as a security
deposit.
Requirements Governing the Return of Commercial Security
Deposits
Wyoming has no regulations or requirements governing the return of commercial
security deposits.
Requirements on the Holding of Commercial Security Deposits
Wyoming does not prohibit commingling commercial security deposits with other funds
(see State Q&A, Real Estate Leasing: Wyoming, Question 9 (W-000-1887)).
Requirements Regarding Interest Payments Made to
Commercial Tenants
Wyoming does not require commercial landlords hold security deposits in interest-
bearing accounts or pay tenants any interest on tenant security deposits (see State
Q&A, Real Estate Leasing: Wyoming, Question 9 (W-000-1887)).