Overview
Idaho security deposit laws are governed by Idaho Code § 6-321. Idaho has no statutory limit on security deposit amounts, giving landlords considerable flexibility, but provides strong protections for tenants including treble damages for wrongful withholding. Passive's deposit management platform helps landlords avoid these steep penalties.
Maximum Security Deposit
Idaho has no statutory limit on security deposit amounts. Landlords may charge any amount they deem reasonable.
In practice, most Idaho landlords charge 1-2 months' rent. The amount should be clearly stated in the lease agreement.
Return Timeline
Idaho has a variable return deadline: (Montana has similar provisions—see Montana security deposit laws.)
- 21 days if no return period is specified in the lease agreement
- Up to 30 days if a longer period (not exceeding 30 days) is specified in the rental agreement
Itemization Requirements
When making deductions, landlords must provide a signed statement that includes:
- The amounts lawfully retained
- The purpose for each amount retained
- A detailed list of expenditures made from the deposit
Interest Requirements
Idaho does not require landlords to pay interest on security deposits or hold them in interest-bearing accounts.
Storage Requirements for Third-Party Managers
If a property is managed by a third-party manager (property management company), the security deposit must be:
- Maintained in a separate account at a federally insured financial institution
- Kept separate from the third-party agent's operating account
This requirement does not apply to individual landlords managing their own properties.
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Cleaning costs to restore the unit to its original condition
- Other charges specified in the lease agreement
Normal Wear and Tear
Idaho Code specifically defines "normal wear and tear" as deterioration that occurs based on the intended use of the rental unit, without negligence, carelessness, accident, misuse, or abuse. Landlords cannot deduct for normal wear and tear.
Penalties for Non-Compliance
Idaho has significant penalties for landlords who wrongfully withhold deposits:
- Tenants may recover up to three times the amount wrongfully withheld
- Courts may also award reasonable attorney's fees to the prevailing party
- Failure to return the deposit within the required timeframe may result in forfeiture of the right to retain any portion
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. Schedule a demo to see how Passive handles documentation automatically.
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.