Glossary

What is a security deposit? Held for the lease, returned after it.

The money held against unpaid rent and damage on every lease — including the furnished one- to twelve-month leases of mid-term rentals (MTR). What it covers, three states’ limits, and how it works on monthly stays. General information, not legal advice.

What a security deposit is

It isn’t rent and it isn’t a fee: it stays the tenant’s money, held by the landlord, until the lease ends and the home has been checked. Deductions are for what the lease and state law allow — usually unpaid rent and damage, never normal wear and tear.

State limits: three examples

Security deposit rules in three states, read on the legislatures’ own sites on October 6, 2026 — examples, not a complete list
TopicHow muchWhen it comes back
Arizona (A.R.S. 33-1321)Up to one and a half months’ rent, prepaid rent includedWithin 14 days, excluding weekends and legal holidays, after the tenancy ends, the home is returned and the tenant asks — with an itemized list of deductions
California (Civ. Code 1950.5)One month’s rent; two for a landlord who is a natural person (or an LLC of natural persons) with no more than two properties and four unitsWithin 21 days after the tenant moves out, with an itemized statement
New York (Gen. Oblig. Law 7-108)One month’s rentWithin 14 days after the tenant moves out, with an itemized statement — or the landlord forfeits the right to keep any of it

Deposits on mid-term stays

A midterm or medium-term stay of 30 nights or more is often a tenancy under state law (see the 30-day rule), so these rules apply to it. On Airbnb, most hosts can’t charge a deposit at all, which is one reason operators lease long stays directly. Tyler Sorenson, Nexxus’s founder, takes a refundable deposit of at least $1,000 on every direct stay. In Nexxus, the deposit posts to the tenant’s ledger and is paid online in your resident portal, and the deductions and the refund are recorded on the tenant’s deposit tab — see mid-term rental software, or open the live demo set up for mid-term, no sign-up.

Security deposit FAQ

How much can a landlord charge for a security deposit?

It depends on the state. Arizona caps security, including prepaid rent, at one and a half months’ rent; California allows one month’s rent for most landlords (two for some small landlords); New York allows one month. Some states set no cap at all. Check your state’s current law.

How long does a landlord have to return a security deposit?

Each state sets its own deadline. Arizona gives 14 days, not counting weekends and legal holidays, after the tenancy ends, the home is returned and the tenant asks; California gives 21 days after the tenant moves out; New York gives 14 days. Most require an itemized list of any deductions.

Can a landlord keep a security deposit for cleaning?

Only within state law and the lease. California, for example, allows a deduction only for the cleaning needed to return the home to the cleanliness it had when the tenancy began — not for normal wear and tear. Many furnished rentals charge a separate cleaning fee instead; in Arizona, any fee not stated in writing as nonrefundable is refundable.

Can you charge a security deposit on an Airbnb monthly stay?

Most hosts can’t. Airbnb’s off-platform and fee policy says most hosts aren’t allowed to charge a security deposit, and damage claims go through Airbnb’s Resolution Center and AirCover for Hosts instead. Deposits belong to the stays you lease directly.

Sources

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