Security Deposit Law
What Nebraska 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
One month's rent, plus an optional pet deposit of up to one-fourth of a month's rent.
Interest
No. Nebraska does not require landlords to pay interest on security deposits.
Return deadline
14 days after the tenancy ends, with a written itemization.
Statute text: 'A landlord may not demand or receive security, however denominated, in an amount or value in excess of one month's periodic rent, except that a pet deposit not in excess of one-fourth of one month's periodic rent may be demanded or received when appropriate.' The cap does not apply to housing agencies organized under the Nebraska Housing Agency Act.
Section 76-1416 — Nebraska's only security deposit statute in the Uniform Residential Landlord and Tenant Act — contains no interest requirement.
Statute text: 'The balance, if any, and a written itemization shall be delivered or mailed to the tenant within fourteen days after the date of termination of the tenancy.' If the tenant provides no mailing address or instructions, the landlord must mail the balance and itemization by first-class mail to the tenant's last-known address; if that mailing is returned undeliverable, or the balance remains outstanding for one year, it becomes abandoned property reportable to the State Treasurer under the Uniform Disposition of Unclaimed Property Act.
Nebraska law does not require deposits to be held in a separate, escrow, or trust account; § 76-1416 imposes no requirements on how the deposit is held during the tenancy (housing agencies excepted from the cap operate under their own act).
Statute text: 'If the landlord fails to comply with subsection (2) of this section, the tenant may recover the property and money due him or her, court costs, and reasonable attorney's fees. In addition, if the landlord's failure to comply with subsection (2) of this section is willful and not in good faith, the tenant may recover an amount equal to one month's periodic rent or two times the amount of the security deposit, whichever is less, as liquidated damages.'
None identified. Neither Omaha nor Lincoln imposes a local security deposit ordinance; deposits are governed statewide by Neb. Rev. Stat. § 76-1416 (Uniform Residential Landlord and Tenant Act).
You may not demand or receive security exceeding one month's periodic rent; a pet deposit of up to one-fourth of one month's rent may be added 'when appropriate.' Housing agencies under the Nebraska Housing Agency Act are exempt from the cap.
After termination, the deposit may be applied to unpaid rent and damages from the tenant's noncompliance with the rental agreement or § 76-1421; the balance and a written itemization must be delivered or mailed within fourteen days after the date of termination.
If the tenant gives no mailing address or instructions, mail the balance and itemization first-class to the tenant's last-known address. If it comes back undeliverable, or the balance stays outstanding for one year, it must be reported and paid to the State Treasurer as abandoned property under the Uniform Disposition of Unclaimed Property Act.
Statute text: 'The holder of the landlord's interest in the premises at the time of the termination of the tenancy is bound by this section.' If you buy a rental, you are on the hook for deposits when tenancies end.
A tenant 'shall not be liable for damages directly related to the tenant's removal from the premises by order of any governmental entity as a result of the premises not being fit for habitation due to the negligence or neglect of the landlord.'
Demanding or receiving security above one month's periodic rent — or a pet deposit above one-fourth of a month's rent — violates § 76-1416(1) and gives the tenant grounds to recover under the URLTA.
The tenant may recover the money due plus court costs and reasonable attorney's fees; if the failure is willful and not in good faith, add liquidated damages of one month's rent or twice the deposit, whichever is less.
If the mailed refund is returned undeliverable or remains outstanding for one year, it is abandoned property that must be reported and paid to the State Treasurer — keeping it exposes you under both § 76-1416 and the Uniform Disposition of Unclaimed Property Act.
The holder of the landlord's interest at termination of the tenancy is bound by § 76-1416 — the new owner owes the refund and itemization even if the prior owner never transferred the deposit funds.
The tenant is not liable for damages directly related to removal ordered because the premises were unfit for habitation due to the landlord's negligence or neglect — such deductions are improper and invite a § 76-1416(3) claim.
At most one month's periodic rent. You may also collect a pet deposit of up to one-fourth of one month's rent when appropriate (Neb. Rev. Stat. 76-1416(1)). Housing agencies under the Nebraska Housing Agency Act are exempt from the cap.
Fourteen days after the date the tenancy terminates. The refund balance must be delivered or mailed with a written itemization of anything withheld (Neb. Rev. Stat. 76-1416(2)).
The tenant can recover the money due plus court costs and reasonable attorney's fees. If your failure was willful and not in good faith, the tenant can also recover liquidated damages equal to one month's rent or twice the deposit, whichever is less (Neb. Rev. Stat. 76-1416(3)).
No. Section 76-1416 imposes neither an interest requirement nor a separate-account requirement; it governs the amount, application, return, and penalties only.
Unpaid rent and the amount of damages you suffered from the tenant's noncompliance with the rental agreement or with the tenant's maintenance duties under Neb. Rev. Stat. 76-1421, with a written itemization sent within 14 days. You cannot charge the tenant for damages tied to a government-ordered removal caused by your own neglect of the property.
Mail the balance and itemization by first-class mail to the tenant's last-known address. If it is returned undeliverable, or the refund remains outstanding for one year, report and pay it to the State Treasurer as abandoned property under the Uniform Disposition of Unclaimed Property Act (Neb. Rev. Stat. 76-1416(2)).
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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