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08 Dec Nevada Security Deposit Laws
Key Takeaways
- Nevada caps security deposits at a maximum of three month’s rent.
- Deposits must be handled transparently, with clear receipts, disclosures, and documentation.
- Landlords have 30 days after move-out to return the deposit with an itemized statement.
A Guide to Nevada’s Security Deposit Laws
The collection, use, accounting, transfer, and return of security deposits and similar tenant payments in Nevada are among statutory provisions codified in Chapter 118A of the Nevada Revised Statutes.
USA Property Management has supplied a guide to Nevada’s security deposit law to help landlords and tenants stay compliant with security deposit and landlord-tenant law.
Nevada Security Deposit Limit
In Nevada, there is a statutory cap on the total amount that a landlord can demand as a security deposit. Under this law, the combined total of the security deposit, surety bond (if used in place of deposit), and last-month rent should not exceed three months’ periodic rent. This limit is applicable whether the deposit is refundable or otherwise.
The intention is to prevent excessive up-front payments on renters, at the same time permitting landlords to obtain adequate protection for damages caused by tenants and unpaid rents. Property managers and landlords need to ensure that the wording of their lease language or application reflects this statutory ceiling. Failure to comply with this can render it invalid or unenforceable.
Nonrefundable Fees
According to Nevada law, there is a distinction between a refundable security deposit and specific fees that may lawfully be termed nonrefundable. The administrative/judicial guidance, as well as statute, clarify that security deposits may not be legally converted into a blanket “nonrefundable” charge.
However, the Nevada law permits limited, expressly disclosed nonrefundable fees, as long as they are clearly labeled, stated, and comply with disclosure requirements and statutory limits.
Storing a Tenant’s Deposit in Nevada
The focus of the Nevada statutory regime is on limits, disclosures, accounting, timely return, and transfer upon sale. Having a separate account for storing security is a prudent business practice and can help reduce disputes by ensuring accurate record-keeping.
Written Notice after Security Deposit Receipt
According to Nevada law, upon the tenant’s request, the landlord must offer the tenant a signed written receipt for any security deposit, rent, bond, or other payments received.
The tenant is empowered to withhold rent if the landlord fails to provide receipts when requested. This law promotes transparency in deposit accounting and strengthens tenants’ right to proof of payments.
Reasons to Withhold a Tenant’s Security Deposit in Nevada
Landlords are permitted by the Nevada law to only withhold a security deposit under specific, statutorily enumerated reasons, such as:
- Costs of repairing damages inflicted on the property by the tenant (excluding normal wear and tear).
- Unpaid rent (including rent arrears and some agreed fees).
- Costs of cleaning the unit to a similar extent of cleanliness when the renter commenced tenancy (the level should be documented and reasonable).
All deductions must be reasonable and backed by receipts, invoices, and other necessary documents to support the charge.
A Walk-Through Inspection
At move-in, tenants should receive a signed record of the property’s condition and inventory as part of the lease agreement.
This move-in inspection checklist is designed to protect both landlords and tenants because it establishes a baseline for measuring move-out damage claims.
Security Deposit Refund in Nevada
The Nevada law has a clearly stated procedure and timeline for returning the security deposit. At the end of tenancy, landlords have within 30 days to return security deposits or surety bonds with an itemized accounting of withheld amounts. Failure to comply with this timeline exposes the landlord to civil liability.
When returning deposits, landlords should obtain the tenant’s forwarding address, provide a detailed breakdown of deductions (if applicable), and keep all repair invoices and receipts.
Change in Property Ownership
Following a transfer or sale of a rental property, the previous owner must transfer the security deposit to the new landlord and notify the tenant in writing (including the successor’s contact details). Additionally, the new landlord who receives the security deposit now assumes the rights and liabilities that come with the fees.
Conclusion
Nevada’s laws on security deposits aim to balance tenants’ right to timely, clear accounting and return of entrusted funds with landlords’ need for protection against damages inflicted by renters and unpaid rent.
This law includes a three-month rent cap, 30-day return or accounting policy, mandatory move-in checklist and receipt obligations, and required duties during ownership transfers.
If you have specific questions, hire the services of a qualified Nevada attorney. Alternatively, you can seek help from a knowledgeable property management company such as USA Property Management.
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.
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