Overview
Connecticut security deposit laws establish clear expectations for how landlords must collect, manage, and return deposits. These regulations are designed to protect both parties and reduce disputes when tenants move out.
Under Connecticut General Statutes § 47a-21, landlords are required to follow specific rules regarding security deposits. Failure to comply may result in financial penalties.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Conn. Gen. Stat. § 47a-21
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Landlords may collect up to two months’ rent as a security deposit. For tenants aged 62 or older, the maximum is one month’s rent.
Storage requirements: Deposits must be held in a separate escrow account in a financial institution located in Connecticut.
Tenant notification: Within 30 days of receiving the deposit, the landlord must provide the tenant with the name and address of the financial institution holding the deposit.
Law Reference: Conn. Gen. Stat. § 47a-21(h)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 30 days of lease termination or within 15 days of receiving the tenant’s forwarding address, whichever is later.
Permissible deductions: Landlords may withhold funds for unpaid rent or damages beyond normal wear and tear.
What landlords cannot deduct: Landlords may not deduct for ordinary wear and tear, such as faded paint or worn carpets.
Itemized statement required: If any part of the deposit is withheld, the landlord must provide a written, itemized list of damages and costs.
Law Reference: Conn. Gen. Stat. § 47a-21(d)
3. Interest Payments & Documentation Requirements
Interest payments: Landlords are required to pay interest on security deposits annually. The rate is set by the Connecticut Banking Commissioner.
Move-in condition report: Although not mandatory, documenting the unit’s condition at move-in is recommended to prevent disputes.
Tenant review period: Tenants should inspect and document the unit upon move-in and move-out for reference in case of deposit disagreements.
Failure to provide documentation: If a landlord fails to comply with deposit return or interest payment requirements, they may lose the right to retain any portion of the deposit.
Law Reference: Conn. Gen. Stat. § 47a-21(i), (j)
4. Penalties for Mishandling Security Deposits
Connecticut law provides penalties for landlords who mishandle security deposits.
Failure to return the deposit on time may result in the landlord owing double the amount wrongfully withheld.
Failure to pay interest may require the landlord to compensate the tenant with the full amount of unpaid interest.
Law Reference: Conn. Gen. Stat. § 47a-21(d)(2), (i)
Key Takeaways
Landlords may charge up to two months’ rent as a deposit, or one month for tenants aged 62 and older.
Deposits must be kept in a separate escrow account in a Connecticut bank.
Deposits must be returned within 21 days or 15 days after receiving a forwarding address, whichever is later.
Landlords must pay interest annually based on state rates.
Non-compliance may result in double damages or forfeiture of the deposit.
By understanding and following Connecticut security deposit laws, landlords can stay compliant, and tenants can protect their rights.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
