The Basics of Nevada's Security Deposit Law
What Every Landlord and Tenant Should Know About the Statute
If you are a landlord in Nevada, you likely collect a security deposit from your tenants. Did you know that there are certain statewide rules Nevada has in place for security deposits that you must follow? Learn nine basics about the law.
- Maximum Deposit- Three Months Private Housing, One Month Public Housing
- Nonrefundable Deposit- Allowed for Cleaning Fees
- Surety Bond- Can Be Used as Security Deposit
- Storing Deposit- No Requirement
- Written Notice After Receipt- If Tenant Requests
- Deductions- Damage, Unpaid Rent, Cleaning Costs
- Walk-Through Inspection- Not Required
- Returning Deposit- 30 Days From Move-Out
- Selling Property- Transfer to New Owner or Return to Tenant
1. Security Deposit Limit in Nevada:
In the state of Nevada, the most a landlord can charge as a security deposit will depend on the type of rental property they own:
- Private Housing: Landlords can charge a maximum of three months’ rent.
- Public Housing: Landlords can charge a maximum of one month’s rent.
- Section 8 Project Based Housing: Landlords can charge a maximum of one month’s rent or $50, whichever is more.
2. Nonrefundable Deposit?
No. In Nevada, landlords cannot charge a nonrefundable security deposit. They can, however, charge a nonrefundable cleaning fee. This cleaning fee and the amount charged must be clearly written in the terms of the lease.
3. Surety Bond as Security Deposit:
In the state of Nevada, tenants have the option of purchasing a surety bond to act as their security deposit. A landlord is not required to accept a surety bond, nor can the landlord force a tenant to purchase a surety bond.
4. Storing The Security Deposit in Nevada:
There are no specific requirements for storing the security deposit in the state of Nevada. Landlords are not required to store the deposit in a separate interest bearing account, nor are they required to pay the tenant interest on their security deposit.
5. Is Written Notice Required After Receipt of the Security Deposit in Nevada?
In Nevada, a landlord is only required to provide written notice if a tenant requests it. The tenant is allowed to request a signed written receipt for a security deposit, surety bond or rental payment and is allowed to withhold rental payments until the landlord provides this signed receipt.
6. Reasons You Can Keep a Tenant’s Security Deposit in Nevada:
Landlords in the state of Nevada may be able to keep all or a portion of a tenant’s security deposit for the following reasons:
- To cover unpaid rent.
- Damage in excess of normal wear and tear.
- Costs associated with cleaning the unit.
Landlords in Nevada must also list all deposits required as a clause in the lease agreement, as well as the conditions for their return.
7. Is a Walk-Through Inspection Required in Nevada?
No. Landlords in the state of Nevada are not required by law to perform a walk-through inspection prior to tenant move-out.
8. Returning a Tenant’s Security Deposit in Nevada:
In the state of Nevada, landlords must return a tenant’s security deposit or surety, minus any legal deductions, to the tenant within 30 days of lease termination. If any deductions have been made, the landlord is required to include an itemized list of such deductions.
The landlord has two options for returning the deposit. He or she can:
- Hand it to the tenant personally at the location where rent is paid.
- Mail the deposit to the tenant at the new forwarding address the tenant has given, or if a new address has not been provided, mail the deposit to the tenant’s last known mailing address. If a tenant disagrees with any of the deductions made, the tenant must send a written statement disputing the charges to the surety or to the landlord. If the dispute cannot be handled outside of court, the tenant can sue the landlord in small claims court to recover their security deposit.
If a landlord fails to return a tenant’s security deposit or surety bond within 30 days or fails to provide a written itemized statement of deductions, the tenant may also sue the landlord in small claims court. The landlord may be liable for the entire amount of the security deposit, plus any additional amount awarded by the court, which cannot be more than the amount of the deposit.
9. What Happens to the Security Deposit If You Sell Your Property?
When ownership is transferred in the property, a landlord is required to do one of two things:
- Notify the tenant in writing that their security deposit or surety bond, less any legal deductions, has been transferred to a new owner and provide the tenant with the name, address and phone number of the new owner. The new owner is not allowed to require any additional deposit from the tenant during the remainder of the lease.
- Return the security deposit or surety bond, less any legal deductions, to the tenant and notify the new owner in writing that the security deposit has been returned to the tenant.
What Is Nevada’s Security Deposit Law?
For the original text of the statute governing security deposits in the state of Nevada, please consult Nevada Revised Statutes Annotated §§118A.240 through 118A.250.