Overview
Louisiana security deposit laws are governed by the Lessee's Deposit Act, La. R.S. § 9:3251. Louisiana is one of only two states (along with Delaware) that uses a civil law system rather than common law, though the security deposit rules are straightforward. The state has no cap on deposits but provides penalties of up to twice the wrongfully withheld amount plus $300. Using security deposit management software helps landlords avoid these penalties.
Maximum Security Deposit
Louisiana has no statutory limit on the amount landlords can charge for security deposits.
- In practice, most landlords charge one month's rent
- If you're on Section 8 and pay a reduced portion of rent, the landlord can still charge a deposit equal to the full contract rent
Return Timeline
Under La. R.S. § 9:3251, landlords must return the security deposit within one month (30 days) after:
- Termination of the lease agreement, AND
- The tenant vacates the premises
The 30-day period begins on the date of termination printed in the lease agreement. (Texas also allows—see Texas security deposit laws.)
Itemization Required
If any deductions are made, the landlord must provide an itemized list of damages within the same 30-day period.
Interest Requirements
Louisiana does not require landlords to pay interest on security deposits unless both parties agreed to this in the lease agreement.
Storage Requirements
Louisiana law does not require landlords to:
- Keep deposits in a separate bank account
- Use an interest-bearing account
- Provide receipts for the deposit
However, it is recommended that landlords keep deposits separate from operating funds.
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Breach of lease terms
Important: Landlords cannot keep the security deposit for "normal wear and tear."
Penalties for Non-Compliance
Louisiana has specific penalties for willful violations:
Written Demand Requirement
Failure to return the deposit within 30 days after written demand for a refund constitutes willful failure.
Damages
If a landlord willfully fails to comply with the Lessee's Deposit Act, the tenant may recover:
- The amount of the security deposit wrongfully retained
- Plus $300 or twice the amount wrongfully retained, whichever is greater
Attorney's Fees
Courts, in their discretion, may also award costs and attorney's fees to the prevailing party in security deposit litigation.
New Orleans Local Requirements (2024)
As of January 1, 2024, New Orleans has additional requirements:
- Landlords must register their properties with the city
- Properties must meet the Healthy Homes Ordinance Minimum Rental Standards (passed in 2022)
- Failure to comply may affect landlord's rights in deposit disputes
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.