Overview
Nevada security deposit laws are governed by Nevada Revised Statutes (NRS) 118A.242. Nevada has one of the highest deposit limits in the country (up to 3 months' rent), but also has strict requirements for move-out inspections and itemized statements. The state does not require interest on deposits. Passive's deposit management platform simplifies compliance with these inspection requirements.
Maximum Security Deposit
Under NRS 118A.242, the maximum security deposit depends on whether the unit is furnished:
Unfurnished Units
Maximum deposit: Three months' rent
Furnished Units
Maximum deposit: One and one-half months' rent (1.5 months)
What Counts Toward the Limit
- The limit includes all forms of security deposits (cleaning deposits, pet deposits, etc.)
- The limit applies to the total of security deposit plus any prepaid rent
- You cannot require 3 months' rent as deposit AND last month's rent upfront
Surety Bond Alternative
Tenants may offer a surety bond in lieu of a cash security deposit.
Return Timeline
Under NRS 118A.242(4), landlords must return the security deposit or provide an itemized list of deductions within 30 days after move-out.
- The 30-day period starts when the tenant vacates and returns the keys
- Must include an itemized accounting of any deductions
Deadline Consequences
Landlords who fail to meet the 30-day deadline may forfeit their right to retain any portion of the deposit.
Interest Requirements
Nevada does not require landlords to pay interest on security deposits.
Storage Requirements
Nevada law does not require landlords to: (Arizona takes a similar approach—see Arizona security deposit laws.)
- Place deposits in a separate account
- Use an interest-bearing account
- Provide receipts for the deposit
Move-Out Inspection Notice
Under NRS 118A.242, landlords must provide written notice to tenants about their right to be present during the final inspection:
- Notice must be delivered at least 3 days before the scheduled inspection
- Tenants have the right to be present during the inspection
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Cleaning costs to return the unit to move-in condition
- Other lease violations
Normal wear and tear cannot be charged to the tenant.
Property Sale Transfers
Under NRS 118A.244, when a rental property is sold:
- The outgoing landlord must notify the tenant in writing of the sale
- The deposit must be transferred to the new landlord OR returned to the tenant
- The new owner becomes responsible for the deposit once transferred
Penalties for Non-Compliance
If a landlord fails to return the deposit within 30 days or wrongfully withholds it:
- Tenant may recover the amount wrongfully withheld
- If the landlord acted in bad faith, the court may award up to twice the amount wrongfully withheld
- Plus actual damages, court costs, and attorney's fees
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. Schedule a demo to see how Passive streamlines this process.
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.