Overview
Alaska security deposit laws are governed by Alaska Statutes § 34.03.070. Alaska has specific requirements for trust account storage and provides different return deadlines based on whether deductions are made. A security deposit management software can help track these variable deadlines automatically.
Maximum Security Deposit
Under Alaska Stat. § 34.03.070, security deposit limits vary by unit type and rent amount:
- Unfurnished units: Maximum of 2 months' rent
- Furnished units: Maximum of 3 months' rent
- Exception: No limit if monthly rent exceeds $2,000
Pet Deposits
Landlords may charge an additional pet deposit of up to one month's rent. Service animals are exempt from pet deposits under federal and state law.
Return Timeline
Alaska has variable return deadlines depending on the circumstances: (Washington state also requires—see Washington security deposit laws.)
- 14 days if no deductions are made
- 30 days if deductions apply
- 30 days if the tenant vacates without giving proper notice
Itemization Requirements
When deductions are made, landlords must provide an itemized statement of the damages or unpaid rent, including the cost of repairs or amounts owed. This must be sent to the tenant's last known address.
Interest Requirements
Alaska does not require landlords to pay interest on security deposits. However, if the deposit is held in an interest-bearing account and earns interest, the tenant is entitled to that interest under general trust law principles, unless both parties agree otherwise in writing.
Storage Requirements
Alaska has strict storage requirements:
- Deposits must be held in a trust account
- The account must be at a bank, savings and loan association, or licensed escrow agent
- Deposits must be separate from personal funds
- Landlords must disclose the location of the trust account if requested by the tenant
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent owed by the tenant at the end of tenancy
- Damages beyond normal wear and tear
- Cleaning costs if the tenant does not leave the unit in a clean and rentable condition
Normal wear and tear cannot be charged to the tenant.
Penalties for Non-Compliance
If a landlord fails to comply with Alaska's security deposit laws:
- Failure to return the deposit or provide itemization within the required timeframe may result in forfeiture of the right to retain any portion
- Tenants may recover the full deposit amount plus damages in court
- Courts may award attorney's fees to the prevailing party
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Request a demo to see how Passive streamlines this process.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.