What Is the Security Deposit Law in Nevada?
As a landlord in Nevada, you have a right to ask for a security deposit from your tenants. This security deposit can help you protect yourself against potential financial issues that may arise from renting out your property. Such financial issues could include:
The nonpayment of rent or lost income: Tenants have a responsibility to pay rent for the entire duration of their lease. So, if they move out with any rent due, you can use the security deposit to cover any missed payments.
Unpaid utility bills: Some of the utilities could be in the tenant's name and it is their responsibility to pay. But if they don’t, you can use their security deposit to cover any bills after they move out.
Damage exceeding 'normal wear and tear.'
Excessive cleaning costs: A tenant is required to leave their premises in the same way they found it, if they don't you can charge any cleaning or repair fees to the security deposit.
At Freedom House Property Management, we believe it's critical all landlords fully understand the Nevada security deposit law. So, we have put together the following article:
Nevada Security Deposit Limits
The maximum you can charge as a security deposit in Nevada is three times the monthly rent. For example, if you charge a monthly rent of $1,300, then the maximum security deposit you can charge is $3,900.
But a security deposit doesn't need to be held in cash. You could also post a surety bond if both you and the tenant reach that agreement. Or you can use a combination of both a security deposit and a surety bond.
Pet Deposits
Nevada landlord-tenant law allows landlords to ask for an additional pet deposit. This is usually the equivalent of one or two months' rent.
That said, you must exempt people with disabilities who use service animals. A service animal is not a pet and is meant to assist someone with a specific living situation. But if the service animal causes damage to the unit, you can hold the tenant liable for the damages.
Storing a Security Deposit in Nevada
In some states, landlords are required to store their tenant's deposits in a particular way. Such as within an interest-bearing account or by posting it as a surety bond. But the Nevada security deposit law does not dictate how a landlord should store their tenant's security deposit.
Security Deposit Receipt Notice
Landlords in Nevada are only required to provide their tenants with a written notice of security deposit receipt if the tenant requests it. They can request a signed written receipt from you, a surety bond, or proof of a rental payment they have made.
The tenant also has a right to withhold any rental payment until you provide a signed receipt.
Reasons to Withhold a Tenant's Security Deposit in Nevada
As a landlord in Nevada, you may be able to make deductions from your tenant's deposit for the following reasons.
Cover unpaid rent payments
Damage exceeding normal wear and tear
Costs of cleaning the unit
A tenant may ask how to dispute a deposit deduction. So, in this case, you must provide a landlord damage charge list. This way, any changes you make to a security deposit as a clause in the lease agreement. Also, you must clearly state the conditions for their return in the agreement.
Walk-Through Inspections
Nevada landlords aren't required by Nevada security deposit law to perform a walk-through inspection before a tenant moves out.
Security Deposit Refund in Nevada
Nevada landlords have a maximum of 30 days to return any unused portion of their security deposit. If you made deductions to the security deposit, you must also send the tenant the itemized list of damages deducted within this period.
The 30-day return period begins from the moment the tenant terminates their lease. With that said, you have two options for returning the tenant's deposit.
The first option is to deliver it in person to the tenant. The other option is to mail the deposit to the tenant at the new forwarding address the tenant has given. If the tenant hasn't given any new address, you must mail the deposit to the tenant's last known mailing address.
If you fail to do so, the tenant can sue you in small claims court for the return of the unused security deposit amount. If they are successful, you may be liable for the entire security deposit amount, plus any additional amount the court may award them.
Sale of Rental Property
If you choose to sell your property, you have two options when dealing with the security deposit.
First, you could transfer the security deposit to the incoming owner. In this case, you must then notify the tenant about the amount of security deposit you have transferred, minus any allowable deductions. You must also provide the tenant with the new owner's name, address, and contact details.
The other option is to return the deposit or surety bond back to the tenant, without any allowable deductions. You must then notify the new owner that you have done so and have them form a new agreement.
Bottom Line
As a Nevada landlord, it's important that you familiarize yourself with the Nevada security deposit law. But considering the complexity of the security deposit laws, you may have questions or need other assistance in managing your Pahrump rental property. In this case, look no further than Freedom House Property Management.
We are an exceptional property management company offering comprehensive support for all your property management needs. We can help you manage your rental property reliably and professionally. Get in touch today to learn more!
At Freedom House Property Management, we don’t always think security deposits are necessary. Find out more about our alternative to security deposits and system for managing property damage in this video:
Disclaimer: This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regard to this content or any other aspect of your property management needs.
