Overview
Utah law outlines specific rules for how security deposits must be handled by landlords to protect both parties in a rental agreement. These laws establish clear expectations for the collection, storage, and return of deposits.
Under Utah Code § 57-17-1 to § 57-17-5, landlords must comply with security deposit regulations or risk financial penalties and forfeiture of the right to retain any withheld amounts.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Utah Code § 57-17-1 to § 57-17-5
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Utah does not place a legal limit on the amount a landlord may charge for a security deposit.
Storage requirements: While landlords must safeguard tenant funds, there is no requirement to keep deposits in a separate or interest-bearing account.
Tenant notification: There is no statutory requirement to notify tenants of the location or status of the deposit account.
Law Reference: Utah Code § 57-17-2
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit or provide a written itemized list of deductions within 30 days after lease termination and delivery of possession, or within 15 days of receiving the tenant’s forwarding address, whichever is later.
Permissible deductions: Landlords may deduct for unpaid rent, damages beyond normal wear and tear, cleaning costs, and other charges authorized in the lease.
What landlords cannot deduct: Landlords cannot deduct for normal wear and tear such as minor carpet wear or faded paint.
Itemized statement required: If any portion is withheld, landlords must provide a written itemized list of deductions and return the remaining balance.
Law Reference: Utah Code § 57-17-3
3. Interest Payments & Documentation Requirements
Interest payments: Utah law does not require landlords to pay interest on security deposits.
Move-in condition report: Not mandated by statute, but both parties are encouraged to document the condition of the property at the beginning and end of the lease.
Tenant review period: Tenants should inspect the rental unit and note any existing issues upon move-in to avoid disputes at move-out.
Failure to provide documentation: If a landlord fails to comply with the deadline or itemization requirements, they forfeit the right to retain any part of the deposit.
Law Reference: Utah Code § 57-17-3
4. Penalties for Mishandling Security Deposits
Utah law provides consequences for landlords who mishandle tenant deposits.
Failure to return the deposit or provide an itemized list within the legal timeframe may result in the landlord being liable for the full deposit and a penalty of up to $100, plus court costs and attorney fees.
Law Reference: Utah Code § 57-17-4
Key Takeaways
There is no limit on the amount of a security deposit in Utah.
Deposits must be returned within 30 days or within 15 days of receiving the tenant’s forwarding address, whichever is later.
Only specific deductions are allowed, and landlords must provide an itemized statement.
Interest is not required to be paid on deposits.
Non-compliance may result in forfeiture of the deposit and additional penalties.
By understanding and following Utah security deposit laws, landlords can maintain compliance, and tenants can safeguard their financial 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.
