Security deposit return timelines let landlords earn interest on tenant money

When tenants move out, landlords in most states have 14-60 days to return security deposits, and routinely push to the maximum or beyond. For a $3,000 deposit, a 60-day hold means the landlord earns interest on the tenant's money while the tenant -- who just paid first month, last month, and deposit on a new place -- is cash-strapped during the most expensive month of their life. When landlords do withhold, they send vague itemized lists claiming hundreds in 'cleaning' or 'painting' for normal wear and tear. Tenants who dispute must file in small claims court, spending a day off work and a $30-$75 filing fee to recover their own money. Most never bother, which is exactly why landlords keep doing it. This persists structurally because the cost of enforcement falls entirely on the tenant, and landlords face near-zero consequences for bad-faith deductions -- even in states with penalty provisions, tenants rarely know their rights or have time to litigate.