Can Your Landlord Increase Your Security Deposit?

When Increases Are Allowed

In most states, landlords can increase the security deposit amount when your lease renews or when you agree to a lease modification. They generally cannot increase the deposit in the middle of an active lease term without your consent. The increase must also keep the total deposit within any state-mandated cap.

Deposit increases most commonly happen at lease renewal time, when the landlord is also adjusting the rent. If your rent goes up, the landlord may raise the deposit proportionally to maintain the same ratio. For example, if your rent increases from $1,500 to $1,650 and your state allows a two-month deposit, the landlord can raise the deposit from $3,000 to $3,300.

Some states have specific rules about how much and how often a landlord can increase the deposit. Others are silent on the issue, leaving it to the terms of the lease and the overall deposit cap. Check your state statute and your lease for any provisions regarding deposit adjustments.

Can You Refuse the Increase

Your ability to refuse a deposit increase depends on your lease situation. If you are signing a new lease or renewal, the deposit increase is part of the overall package you are agreeing to. You can negotiate the increase just as you would negotiate rent, but the landlord can make it a condition of the renewal.

If your current lease converts to month-to-month after the initial term, the landlord can generally adjust the deposit with proper notice, just as they can adjust the rent. The notice period for deposit increases is typically the same as for rent increases, usually 30 days but potentially longer in some jurisdictions.

If you are in the middle of a fixed-term lease, the landlord generally cannot force a deposit increase. Your current lease terms, including the deposit amount, remain in effect until the lease expires or is modified by mutual agreement. An exception might apply if you are adding a pet or occupant that triggers an allowable additional deposit.

State-Specific Limits

Even when increases are allowed, state deposit caps still apply. If the increased deposit would exceed the state limit, the landlord cannot collect the full increase. For instance, if the state cap is two months rent and the landlord tries to raise the deposit to 2.5 months rent, the excess is illegal regardless of the lease terms.

Some rent-controlled or rent-stabilized jurisdictions have additional limits on deposit increases tied to the allowable rent increase. In these areas, the deposit increase may be capped at the same percentage as the rent increase, preventing landlords from using deposit increases to circumvent rent control.

In states without a deposit cap, there is theoretically no limit on how high a landlord can raise the deposit. However, an unreasonably high deposit could be challenged as an unfair or unconscionable lease term. Courts may intervene if a deposit amount is clearly disproportionate to the value of the property or the potential for damage.

Practical Tips for Handling Deposit Increases

If your landlord wants to increase the deposit, negotiate. Ask why the increase is being requested and whether it is tied to a specific concern such as a new pet or a change in occupancy. If the increase is purely proportional to a rent increase, consider whether you can negotiate the rent increase down instead.

Request the increase in writing and verify it falls within your state's legal limits before paying. If you have been a long-term tenant with a good track record, use your history as leverage. Point out that you have maintained the unit well, paid rent on time, and have never caused any issues that would justify a larger deposit.

If you agree to an increase, pay by check or electronic transfer to create a record. Get a receipt that specifies the additional deposit amount, bringing the total to the new deposit level. Update your records to reflect the current deposit amount for future reference when you eventually move out and need to reconcile the return.