Nevada Security Deposit Laws in 2025

I'll be honest, security deposit disputes are one of the most common headaches we see landlords and tenants deal with at Hemlane. Whether it is confusion over what can be deducted, missed deadlines for returning deposits or disagreements about "normal wear and tear," these issues can quickly sour what was otherwise a good landlord-tenant relationship.

After helping thousands of property owners manage rentals across Nevada, I have learned that most security deposit conflicts stem from a misunderstanding of the law rather than bad intentions. So let us break down exactly what Nevada's security deposit laws require, using real world examples and practical guidance.

How Much Can Landlords Charge for Security Deposits?

Nevada's deposit limits are actually more generous to landlords than many other states but there are still clear boundaries you need to respect.

According to Nevada Revised Statutes 118A.242 the maximum security deposit depends on whether the unit is furnished.

For unfurnished rentals: The deposit cannot exceed three months' rent. So if you are charging $1,500 a month for an apartment then your maximum allowable deposit is $4,500.

For furnished rentals: The limit is 1.5 times the monthly rent. Using the same $1,500 a month example you could charge up to $2,250.

Here is an important distinction that trips up many first-time landlords. These limits apply to the total of any security deposit plus prepaid rent combined. You cannot require a tenant to pay three months' rent as a deposit AND the last month's rent upfront, as that would exceed the statutory cap.

How This Works in Practice

Let us say you own a furnished condo in Henderson that rents for $2,000 per month. Your maximum combined security deposit and prepaid rent is $3,000, which is 1.5 × $2,000. You could structure this as:

• $2,000 security deposit + $1,000 last month's rent
• $3,000 security deposit with no prepaid rent
• Any other combination totaling $3,000 or less

These limits apply per dwelling unit, not per bedroom. If you are renting a four-bedroom house, the cap applies to the entire house regardless of how many people are living there.

The 30-Day Return Deadline (And Why It Matters)

This is where many well-intentioned landlords get into trouble. Under NRS 118A.242 you have exactly 30 calendar days from when the tenant vacates and returns their keys to either:

1. Return the full security deposit OR
2. Return the remaining deposit along with an itemized statement explaining any deductions

The clock starts ticking the moment the tenant has completely moved out and given you back all keys. Not when they told you they were leaving. Not when the lease officially ends. When they actually vacate and return possession.

What Happens If You Miss the Deadline?

Nevada takes this deadline seriously. If you fail to return the deposit or provide that itemized statement within 30 days the tenant can sue you for up to twice the amount wrongfully withheld. On top of that, if a court determines you acted in bad faith meaning you had no reasonable justification for keeping the deposit, you could face additional penalties of up to $1,000.

Let me give you a real-world scenario we encountered with a Hemlane client: A landlord in Reno held onto a $1,800 deposit because he was "too busy" to do the final walkthrough within 30 days. The tenant sued in small claims court and won $3,600 (double the deposit) plus court costs. An expensive lesson about calendar management.

Pro tip from our property management experience: Set a reminder for Day 25 after move-out. This gives you a cushion to get the check and statement in the mail with time to spare.

What Can You Actually Deduct From the Deposit?

Nevada law is fairly permissive about what landlords can deduct, but you need proper documentation for everything. According to state statute, allowable deductions include:

Unpaid Rent and Utilities

If the tenant skips out owing rent or leaves utility bills in your name unpaid, you can deduct these amounts. However, there's a catch: Nevada law technically requires the lease agreement to specifically authorize using the deposit for unpaid rent. Many landlords don't realize this.

Without explicit language in your lease stating that the deposit can be applied to rent arrears you may need to pursue unpaid rent as a separate debt collection matter. Check your lease agreement carefully.

Damage Beyond Normal Wear and Tear

This is the big one and the source of most disputes. You can deduct the reasonable cost to repair damages caused by the tenant's negligence, misuse or carelessness. The keyword here is "reasonable."

You cannot charge the tenant for:

• The full cost of brand new replacements when the damaged item was already old
• Your own labor at professional contractor rates (unless you're a licensed contractor)
• Upgrades or improvements that go beyond restoring the original condition

Cleaning Costs

If the tenant leaves the unit significantly dirtier than the move-in condition, beyond just a normal sweep and mop, you can deduct professional cleaning costs. The standard here is whether the unit is "rent-ready" for the next tenant.

I've seen landlords charge $500 for professional cleaning when the tenant left the place reasonably clean. That won't hold up. You need evidence—photos, receipts from the cleaning company, and ideally, move-in photos showing the original condition.

Other Allowable Deductions

• Lock rekeying: If the tenant does not return all keys or loses them
• Removing abandoned property: Storage and disposal costs for belongings left behind
• Late fees and NSF fees: Outstanding charges per your lease terms
• Early termination fees: If the lease specifies these and the tenant breaks the lease
• Court costs: From eviction proceedings or collection actions

Normal Wear and Tear vs. Actual Damage

This distinction causes more security deposit disputes than anything else. Let me give you the practical definition based on Nevada case law and how courts typically rule:

Normal wear and tear is the deterioration that occurs naturally over time with reasonable use even when the tenant takes good care of the property.

Damage is deterioration from abuse, misuse, negligence or accidents that exceeds what you would expect from normal living.

Examples of Normal Wear and Tear

After working with hundreds of Nevada landlords through Hemlane, this is what courts consistently consider normal wear:

• Minor scuff marks on walls or baseboards
• Small nail holes from hanging pictures, think finishing nail size
• Faded or slightly worn carpet in high-traffic areas
• Minor scratches on hardwood floors from furniture
• Worn cabinet hardware or sticky drawers
• Faded paint (paint typically needs refreshing every 5-7 years anyway)
• Light buildup around doorknobs and light switches
• Minor grout discoloration in bathrooms

Examples of Tenant Damage

• Holes in walls larger than a nail. We're talking fist-sized or from mounted TVs.
• Pet stains or odors that require carpet replacement
• Burns, large stains or tears in the flooring
• Broken appliances, fixtures or windows
• Damage from unauthorized modifications like painting without permission and removing fixtures
• Excessive filth requiring professional remediation
• Missing smoke detectors or other safety equipment

The Age Factor

Here's something many landlords miss: you generally cannot charge a tenant the full replacement cost of items that were already old when they moved in. If your carpet was 8 years old at move-in and the tenant damages it after 2 years, you can't deduct the full cost of brand new carpet.

Most courts use a depreciation schedule. Carpet is typically considered to have a useful life of 5 to 7 years in a rental. If the carpet was already 6 years old, it had little remaining value and you might only be able to charge a fraction of replacement cost.

The Move-Out Inspection Process

Nevada law requires landlords to conduct a move-out inspection and gives tenants specific rights during this process.

According to NRS 118A.242 you must provide written notice to the tenant about their right to be present during the final inspection. This notice must be delivered at least 3 days before the scheduled inspection date.

Why This Matters

Tenants who attend the move-out inspection can:

• Understand exactly what you consider to be damage
• Point out pre-existing conditions you might have forgotten
• Potentially fix minor issues on the spot
• Document the condition themselves

If the tenant is not able to make your scheduled date they have the right to request an alternate date within 3 days of your original inspection. You must make reasonable efforts to accommodate them.

From our experience at Hemlane, move-out inspections where both parties are present result in far fewer disputes. Everyone is on the same page about the property's condition and there's less room for he said, she said arguments later.

Documentation Is Everything

During the inspection, take comprehensive photos and videos. Document everything, the good, the bad and the ugly. If there is damage, photograph it from multiple angles and include something for scale.

Tenants should do the same. In fact, we always recommend tenants conduct their own walkthrough within 24 hours after the landlord's inspection and document everything themselves.

How to Dispute Security Deposit Deductions

If you are a tenant who believes your landlord has wrongfully withheld your deposit, you have several options:

Step 1: Send a Formal Dispute Letter

Write a detailed letter explaining which deductions you are contesting and why. Reference your move-in photos, the condition of the unit when you left, and Nevada's normal wear and tear standards. Send this via certified mail with return receipt requested—documentation is crucial if this goes to court.

Request copies of all invoices, receipts, and documentation supporting the deductions. Nevada law requires landlords to provide this documentation when requested.

Step 2: Attempt to Negotiate

Sometimes landlords make honest mistakes or overestimate repair costs. Many disputes can be resolved through direct communication. Propose a compromise if some deductions seem reasonable but others don't.

Step 3: File in Small Claims Court

If negotiation fails, Nevada's small claims court handles disputes up to $10,000 which is more than enough for most security deposit cases. Filing fees are relatively low (typically $50-100) and you do not need an attorney though you can hire one if you choose.

The burden of proof falls on the landlord to justify any deductions. Bring your evidence photos, your lease, correspondence and any move-in inspection reports.

Step 4: Seek Legal Assistance

Organizations like Nevada Legal Services offer free or low-cost legal advice for qualifying individuals. They can review your case and help you understand your options.

For larger disputes or complex situations, consulting with a landlord-tenant attorney may be worthwhile. Many offer free consultations.

When Rental Properties Change Owners

This situation confuses a lot of people but Nevada law clearly states that when a rental property is sold the security deposit transfers to the new owner.

According to NRS 118A.242 this is what must happen:

1. Within 10 days of the sale closing the previous owner must transfer the full security deposit to the new owner
2. The previous owner must notify the tenant in writing that the deposit has been transferred including the new owner's name and contact information
3. The new owner inherits all responsibilities for that deposit

If the previous owner fails to properly transfer the deposit they can be held liable for damages up to twice the deposit amount plus court costs and attorney fees.

For tenants, your rights do not change just because the property is sold. The new landlord must follow all the same rules about returning your deposit when you move out.

A Word to the Wise for Buyers

If you're purchasing a rental property with tenants in place, make sure the security deposit transfer is clearly addressed in your purchase agreement. We've seen situations at Hemlane where previous owners claimed they'd already "spent" the deposits on repairs, leaving new owners legally obligated to return money they never received.

The deposit should either be held in escrow during the sale or properly accounted for in the purchase price adjustment. Don't skip this step.

Common Security Deposit Mistakes to Avoid

After years of helping landlords through Hemlane's platform, here are the most common errors I see:

For Landlords:

• Missing the 30-day deadline (set calendar reminders!)
• Failing to provide itemized statements with receipts
• Charging for normal wear and tear
• Not conducting or documenting the move-in inspection
• Deducting for improvements rather than repairs
• Using the deposit for unpaid rent without lease authorization
• Charging inflated or unreasonable repair costs

For Tenants:

• Not documenting the unit's condition at move-in with photos/video
• Failing to request the move-out inspection
• Not providing a forwarding address in writing
• Leaving without proper notice per the lease
• Not disputing unfair deductions within a reasonable timeframe
• Assuming the landlord will "just know" about pre-existing damage

The Bottom Line

Nevada's security deposit laws provide clear protections for both landlords and tenants, but only if you understand and follow them. The 30-day return deadline isn't a suggestion—it's the law. The requirement for itemized statements isn't optional—it's mandatory. And the distinction between normal wear and tear versus damage isn't subjective—there's substantial case law defining it.

At Hemlane, we have built features into our property management platform specifically to help landlords stay compliant with the requirements like automated move-in and move-out inspection checklists with photo documentation, deadline tracking and itemized statement generators. Because we have learned that the best way to avoid security deposit disputes is to get the details right from day one.

Whether you are a landlord protecting your investment or a tenant protecting your rights thorough documentation and clear communication go a long way. Take photos, keep records, follow the timelines and when in doubt err on the side of transparency.

Frequently Asked Questions

What's the maximum security deposit in Nevada?

For unfurnished units, up to 3 months' rent. For furnished units, up to 1.5 times the monthly rent. This includes any prepaid rent required upfront.

How long does my landlord have to return my deposit in Las Vegas?

Exactly 30 calendar days from when you fully vacate and return your keys. This applies statewide not just in Las Vegas.

Can my landlord use my security deposit to cover unpaid rent?

Only if your lease agreement specifically authorizes it. Without such language in the lease the deposit and unpaid rent are separate matters under Nevada law.

What happens if my landlord does not return my deposit on time?

You can sue for up to twice the amount wrongfully withheld plus potential penalties of up to $1,000 if the court finds bad faith.

Can I be charged for carpet replacement?

Only if the carpet damage exceeds normal wear and tear. Courts typically consider carpet to have a 5-7 year useful life so age and depreciation factor into any legitimate charges.

Do I have the right to be present for the move-out inspection?

Yes. Nevada law requires landlords to notify you of your right to attend and schedule it at least 3 days in advance.

Where can I file a complaint about my landlord keeping my deposit unfairly?

Start with the small claims court in the county where the rental is located. For disputes under $10,000, this is your most efficient option.

Disclaimer: This article provides general information about Nevada landlord-tenant law and should not be considered legal advice. Laws can change, and every situation has unique facts. For specific legal guidance, consult with a qualified Nevada attorney.

About Hemlane: We're a property management platform serving landlords across the United States, including Nevada. Our tools help property owners stay compliant with state laws, manage security deposits properly, and maintain positive tenant relationships. Learn more at Hemlane.com.