Security deposits in Idaho are regulated by Idaho Code § 6-321. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Idaho state law does not currently have a limit on the amount of security deposit that landlords/property managers can require from tenants.

Holding & Interest Requirements

Holding Requirements: Idaho state law does not generally specify where landlords must hold security deposits. However, if the rental property is managed by an independent third-party manager, the security deposit must be held in a separate account at a federally insured financial institution. 

An “independent third-party manager” does not include the property owner, a manager having a common member or principal with the property owner, a real estate agent, or a nonprofit business organization. 

Interest on Deposits: Idaho state law does not currently require landlords/property managers to pay tenants interest on security deposits.

Information Provided to Tenant: There is currently no specific requirement for landlords/property managers to provide tenants with information about where their security deposit is held. However, the Idaho Office of the Attorney General has recommended that the lease include the financial institution where the security deposit will be held.

Deposit Refunds

‍Timeline: The landlord/property manager must either (1) return the full security deposit or (2) provide the tenant with a signed statement itemizing the amounts deducted from the security deposit, along with the portion of the security deposit being returned, within 21 days of the tenant vacating the property. The landlord/property manager and the tenant may agree on a shorter or longer return window in the lease, but no matter what is agreed, the return window cannot exceed 30 days.

Permissible Deductions: Landlords/property managers may deduct the following from a security deposit:

• Unpaid rent
• Damages beyond normal wear and tear, including cleaning fees to restore the unit to its condition at the start of the tenancy
• Other charges agreed upon in the lease, including unpaid utilities or late fees

‍Documentation of Deductions: If any portion of the security deposit is withheld, the landlord/property manager must provide the tenant with a signed statement itemizing the deductions, the purpose for the deductions, and a detailed list of costs associated with each deduction.

‍Penalties for Violations: Failure to return the security deposit or provide a signed statement of deductions may result in the landlord/property manager being liable for up to three times the portion of the security deposit that is wrongfully withheld, plus attorney’s fees and court costs if the tenant wins in a lawsuit.

Sale of the Rental Property

If the rental property is sold, the landlord/property manager must transfer all security deposit funds to the new owner.