Overview
Nebraska security deposit laws are governed by Nebraska Revised Statutes § 76-1416. Nebraska has one of the shortest return deadlines in the country (14 days) and strict deposit limits with a separate pet deposit allowance. A security deposit compliance platform helps landlords meet these tight deadlines.
Maximum Security Deposit
Nebraska sets clear limits on security deposits:
- Standard deposit: Maximum of 1 month's rent
- Pet deposit: Additional deposit of up to 0.25 month's rent (one-fourth of one month's rent)
For example, if monthly rent is $1,200, the maximum security deposit is $1,200, plus an additional $300 pet deposit if applicable, for a total of $1,500.
Housing Agency Exception
The deposit limits do not apply to housing agencies organized or existing under the Nebraska Housing Agency Act.
Return Timeline
Nebraska has one of the shortest return deadlines in the nation: (Iowa has comparable requirements—see Iowa security deposit laws.)
- Landlords must return the deposit within 14 days after the termination of tenancy
- Must provide a written itemization of any deductions
- The deposit and statement must be delivered or mailed to the tenant
Interest Requirements
Nebraska does not require landlords to pay interest on security deposits or hold them in interest-bearing accounts.
Allowable Deductions
Landlords may apply the security deposit to:
- Unpaid rent
- Damages beyond normal wear and tear
- Other breaches of the rental agreement
Normal wear and tear cannot be charged to the tenant.
Penalties for Non-Compliance
Nebraska has significant penalties for landlords who fail to comply:
- Tenants may recover the property and money due
- Court costs and reasonable attorney's fees
- If the landlord's failure is willful and not in good faith, the tenant may also recover liquidated damages equal to 1 month's rent or 2x the security deposit (whichever is less)
Unclaimed Deposits
If a returned deposit is undeliverable and remains outstanding for one year, it becomes abandoned property and must be reported and paid to the State Treasurer under the Uniform Disposition of Unclaimed Property Act.
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 automates documentation.
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.