Security Deposit Law
What Utah 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 statewide limit on security deposit amounts.
Interest
Utah does not require landlords to pay interest on security deposits.
Return deadline
Return the deposit balance, prepaid rent balance, and an itemized deduction notice within 30 days.
Utah Code Chapter 57-17 (Residential Renters' Deposits) regulates how deposits are returned and itemized but sets no maximum dollar amount or rent multiplier. You may also designate part of a deposit as non-refundable, but only if you state that in writing to the renter at the time you take the deposit.
Nothing in Utah Code Chapter 57-17 requires deposits to earn interest or requires any interest to be paid to the renter. The statute only governs return, itemization, and remedies.
The 30-day clock runs from the day the renter 'vacates and returns possession' of the rental property. You must mail or deliver to the renter's last known address — or send electronically by a means the renter provided — the balance of the deposit, the balance of any prepaid rent, and, if you made deductions, a written notice itemizing and explaining each one. If you miss the deadline, the renter can serve a statutory notice that gives you five business days to comply before penalties attach.
Utah law does not require security deposits to be held in a separate, escrow, or trust account, and does not restrict commingling. No section of Chapter 57-17 addresses how deposits are held.
If you fail to comply within five business days after the renter serves the statutory notice under § 57-17-3(3), the renter may recover the full deposit, the full amount of any prepaid rent, and a civil penalty of $100, and may sue to enforce the statute. In that action the court must award costs and attorney fees to the prevailing party if the opposing party acted in bad faith. The renter gets no statutory relief unless they served the notice.
No Utah city or county security-deposit ordinances were identified; Utah Code Chapter 57-17 applies statewide.
Within 30 days after the renter vacates and returns possession, send the deposit balance, any prepaid rent balance, and — if you deducted anything — a written notice itemizing and explaining each deduction. Delivery can be by mail, hand delivery, or electronically by a means the renter provided.
If any part of the deposit is non-refundable, that must be stated in writing to the renter at the time the deposit is taken (and there must be a written agreement). A surprise 'non-refundable cleaning fee' announced at move-out does not qualify.
At termination you may apply the deposit toward unpaid rent, damages beyond reasonable wear and tear, other costs and fees provided for in the contract, or cleaning of the unit.
Penalties under § 57-17-5 attach only after the renter serves the statutory 'Tenant's Notice to Provide Deposit Disposition' (form set out in the statute) and you fail to comply within five business days. Treat any such notice as urgent — the cure window is short.
Whoever holds the owner's (or agent's) interest in the premises at the time the tenancy ends is bound by the chapter. If you buy occupied rental property, you take on the deposit-return duties.
The non-refundable designation is invalid under § 57-17-2; the amount is treated as refundable deposit money you must return or itemize within 30 days, and withholding it can lead to the § 57-17-5 remedies.
Five business days after the notice is served, the renter can recover the full deposit, the full prepaid rent, and a $100 civil penalty — and if a court finds bad faith, your renter's court costs and attorney fees too.
That violates § 57-17-3(2)(c), exposing you to the same notice-and-penalty process as not returning the deposit at all.
The statute requires return of 'the balance of any prepaid rent' on the same 30-day timeline, and the penalty section separately awards 'the full amount of the prepaid rent' if you fail to comply after notice.
There is no statewide cap. Utah Code Chapter 57-17 does not limit deposit amounts, so the market and your lease set the figure. If you want any portion to be non-refundable, you must say so in writing when you take the deposit.
30 days after the renter vacates and returns possession of the property. Within that window you must send the deposit balance, any prepaid rent balance, and a written itemization of any deductions — by mail, hand delivery, or electronically if the renter gave you an electronic means.
Unpaid rent, damage to the premises beyond reasonable wear and tear, other costs and fees provided for in the contract, and cleaning of the unit (Utah Code § 57-17-3(1)). Every deduction must be itemized and explained in a written notice.
The tenant can serve a statutory notice demanding the deposit disposition. If you don't comply within five business days of that notice, the tenant can recover the full deposit, the full amount of any prepaid rent, and a $100 civil penalty — plus court costs and attorney fees if a court finds you acted in bad faith.
No. Utah law imposes no interest requirement and no separate-account or escrow requirement for residential security deposits.
Yes — Utah Code § 57-17-2 allows part of a deposit to be non-refundable, but only if there is a written agreement and the non-refundable portion is stated in writing to the renter at the time the deposit is taken.
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.
Tenvale tracks deposits, interest, and deadlines for you — free for 30 days, no credit card required.
See full pricing and other states.