Security Deposit Law
What Idaho landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 11, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
No statutory limit on the deposit amount.
Interest
No interest is required on tenant deposits.
Return deadline
21 days by default; never more than 30 days after the tenant surrenders the premises.
Idaho Code § 6-321 governs how deposits are defined and refunded but sets no maximum amount. Landlords and tenants set the deposit by agreement; anything paid for a purpose other than rent is treated as a security deposit.
Idaho Code § 6-321 says nothing about interest, and no other Idaho statute requires landlords to pay interest on residential security deposits.
Per § 6-321(2): "Refunds shall be made within twenty-one (21) days if no time is fixed by agreement and, in any event, within thirty (30) days after surrender of the premises." If you refund only part of the deposit, you must include a signed itemized statement listing the amounts retained, the purpose of each retention, and a detailed account of expenditures.
Required only when a third-party property manager holds the deposit: under § 6-321(4), deposits for residential rentals "managed by a third-party manager of a landlord shall be maintained in a separate account at a federally insured financial institution," separate from the manager's operating account. Property owners managing their own rentals, managers sharing common ownership with the owner entity, real estate licensees, and chapter 30, title 30 nonprofits are exempt.
Under § 6-320, a tenant "may file an action against a landlord for damages and specific performance for... [f]ailure to return a security deposit as and when required by law," after first giving the landlord three (3) days' written notice and a demand to cure. Under § 6-324, the prevailing party in any action under the chapter is entitled to an award of attorney fees.
None known. Idaho has no city or county security-deposit ordinances layered on top of state law; Idaho Code § 6-321 applies statewide.
Refund the deposit within 21 days of surrender if the lease doesn't fix a time. Even if the lease sets a longer period, the refund must go out "in any event, within thirty (30) days after surrender of the premises."
If you keep any portion of the deposit, the refund must include a signed statement itemizing the amounts retained, the purpose for each, and a detailed account of expenditures.
Deposits cannot be retained for "normal wear and tear," which the statute defines as deterioration resulting from intended use without negligence, carelessness, accident, or misuse by the tenant.
If the rental changes ownership during a tenancy, "the new owner shall be liable for refund of the deposits." Buyers should collect deposit balances at closing.
Since the 2021 amendment, deposits held by a third-party property manager must sit in a separate account at a federally insured financial institution, apart from the manager's operating account. Self-managing owners are exempt.
A tenant must give 3 days' written notice listing each failure and demanding cure before filing suit, which gives a landlord a short cure window. But if the case proceeds and the tenant wins, attorney fees are awarded to the prevailing party.
30 days is the outer limit only when the lease fixes a refund time; with no lease provision the deadline is 21 days. A late refund exposes you to a tenant suit for damages plus prevailing-party attorney fees.
The statute expressly bars retaining the deposit for normal wear and tear; an improper deduction is a failure to return the deposit "as and when required by law," giving the tenant a § 6-320 claim with fee exposure.
An un-itemized partial refund doesn't comply with § 6-321(2), so the withholding itself becomes actionable even if the underlying deductions were legitimate.
Since 2021, deposits managed by a third-party manager must be held in a separate account at a federally insured institution; commingling violates § 6-321(4).
The new owner is liable for refunding deposits when the property changes hands mid-tenancy — even if the seller never transferred the funds.
There is no statutory cap. Idaho Code § 6-321 regulates how deposits must be refunded but does not limit the amount, so the deposit is whatever the lease sets. Market practice is typically one to two months' rent.
21 days after the tenant surrenders the premises if the lease doesn't fix a time. The lease can set a different period, but the refund must be made in any event within 30 days after surrender (Idaho Code § 6-321(2)).
No. § 6-321 bars retaining any part of the deposit for normal wear and tear — deterioration from intended use without negligence, carelessness, accident, or misuse. You can deduct for actual damage beyond that, with a signed itemized statement.
No. Idaho law has no requirement to pay interest on residential security deposits or to hold them in an interest-bearing account.
Only if a third-party property manager holds them. Under § 6-321(4) (added 2021), manager-held deposits must sit in a separate account at a federally insured institution, apart from the manager's operating account. Owners managing their own rentals are exempt.
After giving you 3 days' written notice and a demand to cure, the tenant can sue under Idaho Code § 6-320 for damages and specific performance, and if the tenant prevails the court must award attorney fees under § 6-324. Treat the tenant's 3-day notice as your last chance to cure cheaply.
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 11, 2026.
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