Overview
Mississippi security deposit laws are governed by Mississippi Code § 89-8-21. Mississippi is one of the most landlord-friendly states for security deposits, with no statutory limit on deposit amounts and minimal storage requirements. Even so, using security deposit management software helps ensure proper documentation and timely returns.
Maximum Security Deposit
Mississippi has no statutory limit on security deposit amounts. Landlords may charge any amount deemed reasonable.
In practice, most Mississippi landlords charge the equivalent of 1 month's rent. The amount should be clearly stated in the lease agreement.
Return Timeline
Mississippi landlords must return the security deposit within 45 days after:
- The tenancy ends, AND
- The tenant demands return of the deposit
Itemization Requirements
The landlord must submit an itemized list of all damages and any subsequent charges along with the remainder of the security deposit when it is returned.
Interest Requirements
Mississippi does not require landlords to pay interest on security deposits.
Storage Requirements
Mississippi has no statutory requirements regarding how or where security deposits must be held:
- Deposits do not need to be held in a separate account
- No disclosure requirements for account information
- Landlords may commingle deposits with other funds
Allowable Deductions
Landlords may deduct from the security deposit for: (Alabama takes a similar approach—see Alabama security deposit laws.)
- Unpaid rent
- Damages beyond normal wear and tear
- Other charges specified in the lease agreement
Normal wear and tear cannot be charged to the tenant.
Penalties for Non-Compliance
Mississippi has relatively modest penalties for violations:
- If a landlord fails to return the deposit within 45 days, they may be liable for up to $200 in damages
- Tenants may also recover actual damages
Dispute Resolution
Tenants may file disputes in Small Claims Court if the amount is less than $3,500. For larger amounts, the case must be filed in Circuit or County Court.
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. See how Passive works to simplify 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.