Security deposits in Utah are regulated by Utah Code § 57-17-1 to § 57-17-5. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Utah state law does not currently limit the amount that landlords/property managers can require as a security deposit.

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Holding & Interest Requirements

Holding Requirements: Utah state law does not currently require security deposits to be held in a bank account within the state, in a separate account, or in an interest-bearing account.

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

Information Provided to Tenant: Utah state law does not currently require landlords/property managers to disclose where the security deposit is held.

Deposit Refunds

‍Timeline: Within 30 days of vacancy, the landlord/property manager must either (1) return the full security deposit to the tenant or (2) provide the tenant with a written, itemized list of any deductions to the security deposit, together with the portion of the security deposit being returned. If the landlord/property manager fails to return the security deposit or a portion thereof with an itemized list of deductions, the tenant may serve them with a form notice stating, among other things, that the landlord/property manager has failed to comply with Utah state law and the tenant’s address. The landlord/property manager must then comply with the security deposit return requirements within 5 business days of receipt of the tenant’s notice. 

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

• Unpaid rent
• Damages beyond normal wear and tear
• Cleaning costs to restore the rental unit to its condition at the start of the tenancy
• Other charges due under the lease

Documentation of Deductions: The written notice of deductions must itemize and explain the reason for each deduction from the security deposit.

Penalties for Violations: Failure to return the security deposit or provide the written notice of deductions as required by Utah state law may result in the landlord/property manager being liable for the full amount of the security deposit, a civil penalty of $100, and attorney’s fees and court costs if the tenant wins in a lawsuit.

Sale of the Rental Property

The owner of the rental unit at the time of the tenancy’s termination is obligated to return the security deposit.