Iowa Code ch. 562B § 562B.13
Rental deposits
Operative Text
1. A landlord shall not demand or receive as a security deposit an amount or value in excess of two months’ rent. 2. All rental deposits shall be held by the landlord for the tenant, who is a party to the agreement, in a bank, credit union, or savings and loan association which is insured by an agency of the federal government. Rental deposits shall not be commingled with the personal funds of the landlord. All rental deposits may be held in a trust account, which may be a common trust account and which may be an interest-bearing account. Any interest earned on a rental deposit shall be the property of the landlord. 3. A landlord shall, within thirty days from the date of termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions, return the rental deposit to the tenant or furnish to the tenant a written statement showing the specific reason for withholding of the rental deposit or any portion thereof. If the rental deposit or any portion of the rental deposit is withheld for the restoration of the manufactured or mobile home space, the statement shall specify the nature of the damages. The landlord may withhold from the rental deposit only such amounts as are reasonably necessary for the following reasons: a. To remedy a tenant’s default in the payment of rent or of other funds due to the landlord pursuant to the rental agreement. b. To restore the manufactured or mobile home space to its condition at the commencement of the tenancy, ordinary wear and tear excepted. c. To remove, store, and dispose of a manufactured or mobile home if it is abandoned as defined in section 562B.27. 4. In an action concerning the rental deposit, the burden of proving, by a preponderance of the evidence, the reason for withholding all or any portion of the rental deposit shall be on the landlord. 5. A landlord who fails to provide a written statement within thirty days of termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions shall forfeit all rights to withhold any portion of the rental deposit. If no mailing address or instructions are provided to the landlord within one year from the termination of the tenancy the rental deposit shall revert to the landlord and the tenant will be deemed to have forfeited all rights to the rental deposit. 6. a. Upon termination of a landlord’s interest in the manufactured home community or mobile home park, the landlord or the landlord’s agent shall, within a reasonable time, transfer the rental deposit, or any remainder after any lawful deductions to the landlord’s successor in interest and notify the tenant of the transfer and of the transferee’s name and address or return the deposit, or any remainder after any lawful deductions to the tenant. b. Upon the termination of the landlord’s interest in the manufactured home community or mobile home park and compliance with the provisions of this subsection, the landlord shall be relieved of any further liability with respect to the rental deposit. 7. Upon termination of the landlord’s interest in the manufactured home community or mobile home park, the landlord’s successor in interest shall have all the rights and obligations of the landlord with respect to the rental deposits, except that if the tenant does not object to the stated amount within twenty days after written notice to the tenant of the amount of rental deposit being transferred or assumed, the obligations of the landlord’s successor to return the deposit shall be limited to the amount contained in the notice. The notice shall contain a stamped envelope addressed to the landlord’s successor. 8. The bad faith retention of a deposit by a landlord, or any portion of the rental deposit, in violation of this section shall subject the landlord to punitive damages not to exceed two hundred dollars in addition to actual damages.
Iowa Code § 562B.13 governs security deposits for manufactured and mobile home park tenancies. A landlord may not collect more than two months' rent as a security deposit, must hold those funds in a federally insured financial institution separate from personal funds, and must return the deposit—or provide a detailed written explanation of any withholding—within thirty days of the tenancy ending and receiving the tenant's mailing address. If a landlord retains a deposit in bad faith, the law exposes them to actual damages plus punitive damages of up to $200.
Plain English — not legal advice.
Operators of manufactured or mobile home communities subject to Iowa Code § 562B.13 generally collect no more than two months' rent as a security deposit and hold those funds in a federally insured bank, credit union, or savings and loan account that is kept entirely separate from personal or operating funds. Within thirty days of a tenancy ending and receiving the tenant's forwarding address or delivery instructions, a compliant landlord either returns the full deposit or sends a written statement itemizing each specific reason for any withholding, limiting deductions to unpaid rent, restoring the space beyond ordinary wear and tear, or removing an abandoned home. When ownership of the community changes hands, landlords typically transfer deposits to the successor and notify tenants of the transfer within a reasonable time to be relieved of further liability under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Iowa Code § 562B.13, tenants in manufactured or mobile home parks have the right to have their security deposit held in a federally insured account, capped at two months' rent, and returned—or accounted for in writing—within thirty days after the tenancy ends and the landlord receives a mailing address. If a landlord fails to provide that written statement within the thirty-day window, the law states they forfeit all rights to withhold any portion of the deposit; if a landlord retains the deposit in bad faith, they may be liable for actual damages plus up to $200 in punitive damages. Tenants who believe their deposit was improperly withheld may consider consulting a tenant-rights organization, raising the violation in a civil court action, or reviewing the burden-of-proof provision in § 562B.13(4), which places the responsibility on the landlord to justify any withholding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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Rules and statutes that cite this regulation