Louisiana Security Deposit Laws: No Cap, the One-Month Return, and the Bad-Faith Penalty
No Statutory Cap · Allowable Deductions · One-Month Return · Forwarding Address · Itemized Statement · Penalties
Louisiana security deposit law is set by a short, civil-law statute known as the Lessee’s Deposit Act — Louisiana Revised Statutes section 9:3251 through section 9:3254. Unlike many states, Louisiana puts no statutory cap on how much a landlord may collect. What the law tightly controls is the return: within one month after the lease ends, and provided the tenant furnished a forwarding address, the landlord must send back any remaining deposit with an itemized statement of what was kept. Miss that duty willfully and the penalty has real bite. This guide walks the whole Louisiana framework end to end: what you may collect, what you can and cannot deduct, the one-month deadline, the forwarding-address condition, the absence of any interest requirement, the willful-failure penalty, the move-out walkthrough, and the small-claims path when a dispute cannot be resolved.
Because Louisiana is a civil-law state, its landlord-tenant rules live in the Revised Statutes rather than in common-law codes, and the deposit rules in particular are compact — four sections do most of the work. That makes Louisiana straightforward to get right and expensive to get wrong: the statute is short enough that a court has little sympathy for a landlord who ignored the one-month return. Everything here is general information, not legal advice; confirm the current figures and consult a licensed Louisiana attorney before acting on a specific dispute.
Below, a short overview video summarizes the Louisiana deposit rules; the sections that follow break down each piece in detail — the absence of a cap, deductions versus normal wear and tear, the return timeline and forwarding-address condition, interest, the willful-failure penalty, the move-out walkthrough, and the small-claims path if a dispute cannot be resolved.
Louisiana Security Deposit Rules at a Glance
Primary Statute
Louisiana Revised Statutes section 9:3251
Deposit Cap
No statutory cap
Return Deadline
One month after lease terminates
Bad-Faith Penalty
Three hundred dollars or twice the amount wrongfully retained, whichever is greater
No Statutory Deposit Cap — What Louisiana Does and Does Not Limit
The first thing that surprises landlords moving to Louisiana from a capped state is that Louisiana law sets no maximum on a residential security deposit. The Lessee’s Deposit Act — Louisiana Revised Statutes section 9:3251 through section 9:3254 — governs how the deposit is held and returned, but it never says how large it may be. In practice most Louisiana landlords collect the equivalent of one to two months’ rent, and the market sets the ceiling rather than a statute. Verify the current law before you assume a number, but as of now there is no cap to worry about.
That absence of a cap shifts the whole compliance question. In a capped state, a landlord’s biggest legal risk is collecting too much at signing. In Louisiana, the risk sits almost entirely at the other end of the tenancy: returning the deposit correctly and on time. Because the statute is short and the deadline is firm, the landlords who get into trouble in Louisiana are rarely the ones who charged too much — they are the ones who ignored the one-month return or never sent an itemized statement.
No Cap Is Not a License to Overreach
The lack of a statutory ceiling does not make a deposit bulletproof. A grossly excessive deposit can still cause practical problems — it deters good applicants, and money collected as security for the lease is a refundable deposit under section 9:3251 no matter what the lease calls it. You cannot dodge the one-month return simply by labeling a large deposit a non-refundable fee. Set a reasonable amount, and treat every dollar of it as a deposit you will have to account for at move-out.
Takeaway
Louisiana sets no statutory cap on a security deposit — the market, not a statute, limits the amount. That means the legal risk sits at the return, not the collection: get the one-month deadline, the forwarding address, and the itemized statement right, and the amount rarely matters.
What a Landlord May Deduct — and What Counts as Wear and Tear
Louisiana Revised Statutes section 9:3251 lets a landlord retain the deposit, or part of it, to remedy a default of the tenant’s obligations under the lease. That is the civil-law framing: the deposit secures the tenant’s performance, and the landlord may draw on it only where the tenant failed to perform. The landlord bears the burden of showing the default, so anything that is not clearly the tenant’s breach is presumed to be the landlord’s cost to absorb.
Permitted Deductions
- Remaining rent. Rent that is still owed for the final period or any earlier unpaid month is a default the landlord may apply the deposit against.
- Other lease charges the tenant owes. Late fees, utility charges, or similar amounts the lease makes the tenant’s obligation, to the extent they are lawful and unpaid.
- Repair of damage beyond ordinary wear and tear. Broken fixtures, large holes, pet-stained flooring, and similar damage the tenant or their guests caused — the cost to put the unit back is a lease default the deposit can cover.
- Cleaning to remedy a tenant default. Where the lease obliges the tenant to return the unit clean and they did not, the reasonable cost to bring it back to that condition — not a blanket “make it spotless” charge.
Not Deductible — Ordinary Wear and Tear
Ordinary wear and tear is the natural deterioration that happens from living in a unit normally. It is not a default by the tenant, so the landlord must absorb it. Louisiana courts treat these as non-deductible:
- Faded or lightly scuffed paint, and small nail holes from hanging pictures.
- Carpet worn thin along walkways from ordinary foot traffic, with no stains or pet damage.
- Minor marks, loose grout, or caulk that has aged around tubs and sinks.
- Worn but still-functioning appliances and fixtures that simply reached the end of their useful life.
The Prorating Principle for Paint and Carpet
Even when repainting or carpet replacement is justified by real damage, a landlord generally should not charge the tenant the full cost of a brand-new surface. Paint and carpet have an expected useful life, so the fair charge is prorated for age — a tenant who damaged a carpet already several years into its life should pay only for the remaining life, not a whole new carpet. Charging the full amount for an old surface is a common way Louisiana landlords lose deposit disputes, because the excess looks like a retention beyond the actual default.
Takeaway
You may retain the deposit only to remedy the tenant’s default under the lease — remaining rent, other lawful lease charges, and damage beyond ordinary wear and tear. Faded paint, worn carpet, and small nail holes are wear and tear you absorb. Prorate paint and carpet for age; never bill a tenant for a brand-new surface.
The One-Month Return Deadline and the Itemized Statement
The rule Louisiana landlords miss most often is the one-month return. Under Louisiana Revised Statutes section 9:3251, within one month after the lease terminates, the landlord must return any remaining portion of the deposit together with a written itemized statement that accounts for the proceeds retained and gives the reasons for keeping them. One month, not thirty days, is the statutory measure — a small distinction that can matter at the margins of a calendar.
The Forwarding-Address Condition
Louisiana’s return duty comes with a condition many landlords and tenants overlook: the statute says the tenant shall furnish the lessor a forwarding address at the termination of the lease, to which the itemized statement may be sent. Louisiana courts commonly treat the written forwarding address as a condition precedent to the landlord’s one-month obligation. For a tenant, the practical lesson is simple — give the landlord a written forwarding address at move-out and keep proof, because without it the one-month clock and the penalty may never start to run.
What the Itemized Statement Must Include
The statement must account for the proceeds retained and give the reasons. In practice that means a line for each amount kept — remaining rent, a specific repair, a lawful charge — with enough detail that the tenant can see what the money went to. A vague statement that lists a lump sum with no explanation invites a challenge and, if a court finds it lacks specificity, can itself support a finding of willful failure under the penalty statute.
Written Demand Starts the Penalty Clock
The penalty in Louisiana is tied to a demand. Under section 9:3252, a landlord’s failure to remit within thirty days after the tenant’s written demand for a refund is itself a willful failure. So even a landlord who blew the one-month deadline can often still avoid the penalty by paying promptly once a written demand arrives — and a tenant who wants to trigger the penalty should send a dated written demand and keep proof of it. Calendar both dates: one month from lease termination, and thirty days from any written demand.
Takeaway
Return the deposit and a written itemized statement within one month after the lease terminates, sent to the tenant’s forwarding address. Once a tenant sends a written demand, failing to remit within thirty days is a willful failure. Account for every dollar kept, with reasons.
Interest, Separate Accounts, and Non-Refundable Fees
Louisiana keeps the deposit rules lean. There is no statewide requirement to pay interest on a security deposit, and no statewide rule that the deposit be held in a separate or escrow account. The Lessee’s Deposit Act is silent on both, so a Louisiana landlord may hold deposits in a general account and pay no interest, which is entirely lawful. Always confirm the current law and check for any local ordinance, but there is no statewide interest or escrow mandate to comply with.
Non-Refundable Fees and the Deposit Definition
The one point that trips landlords up is the label game. Money advanced to secure performance of the lease is a security deposit under section 9:3251, and it is refundable except for lawful deductions — regardless of what the lease calls it. A landlord may charge a genuine one-time fee for an actual service, such as a real application fee, but cannot relabel a refundable deposit as a “non-refundable cleaning fee” or “non-refundable pet fee” to escape the one-month return and itemization duty. If the money functions as security for the lease, treat it as a returnable deposit.
Takeaway
Louisiana has no statewide interest requirement and no separate-account mandate — a general account with no interest is lawful. But you cannot relabel a refundable deposit as a non-refundable fee; if money secures the lease, section 9:3251 treats it as a returnable deposit.
Penalties for Willful Failure to Return the Deposit
Louisiana backs the return rules with a specific, and often misunderstood, penalty. Under Louisiana Revised Statutes section 9:3252, a landlord who willfully fails to return the deposit and itemized statement as section 9:3251 requires is liable for the amount of the deposit wrongfully retained plus damages equal to three hundred dollars or twice the amount of the portion wrongfully retained, whichever is greater. The penalty is a choice of the larger of two figures — not a flat add-on. On a small wrongful retention the three-hundred-dollar floor controls; on a larger one, the double-the-amount figure takes over.
Correcting a Common Myth: It Is Not “Actual Damages Plus Three Hundred”
Some guides describe the Louisiana penalty as “actual damages plus a flat three hundred dollars.” That is not what the statute says. Section 9:3252 makes the landlord liable for the amount wrongfully retained plus damages of three hundred dollars or twice the amount wrongfully retained, whichever is greater. The three hundred dollars is a floor that applies only when it exceeds double the retained amount — on any sizable wrongful retention, the tenant recovers twice that amount instead. Read the current statute rather than a summary before you calculate exposure.
Attorney Fees and the Written-Demand Trigger
Two more features sharpen the penalty. First, under Louisiana Revised Statutes section 9:3253, the court may, in its discretion, award costs and attorney fees to the prevailing party in the action — which can dwarf the deposit itself in a contested case. Second, the willful-failure penalty attaches when the landlord fails to remit within thirty days after the tenant’s written demand. That written demand is the practical starting gun: a tenant who wants the penalty should send a dated demand and keep proof, and a landlord who receives one should pay any undisputed balance immediately.
Waiver Is Void
A landlord cannot contract out of these rules. Louisiana Revised Statutes section 9:3254 makes any waiver of the tenant’s rights under the Lessee’s Deposit Act null and void. A lease clause that tries to shorten the one-month deadline, drop the itemized statement, or make the deposit non-refundable is unenforceable to that extent, and the statutory framework applies regardless of the lease language.
Takeaway
Willfully keep a deposit and you owe the amount wrongfully retained plus three hundred dollars or twice that amount, whichever is greater — not a flat three hundred. The court may add costs and attorney fees, the thirty-day written-demand window is the trigger, and any lease waiver of these rights is void.
The Move-Out Procedure, Step by Step
Put the rules together and the Louisiana move-out becomes a repeatable checklist rather than a judgment call. Follow this sequence and penalty exposure all but disappears.
Collect the forwarding address
At the end of the lease, get the tenant’s written forwarding address. It is where the itemized statement and refund go, and Louisiana courts treat it as a condition of the return duty.
Inspect and photograph at surrender
When the tenant returns the keys, inspect promptly and photograph every room. Compare against the signed move-in checklist to separate tenant damage from ordinary wear and tear.
Calculate lawful deductions
Retain only for the tenant’s default under the lease — remaining rent, lawful charges, and damage beyond wear and tear. Prorate paint and carpet for age. Gather an invoice or receipt for each charge.
Write the itemized statement
List every amount retained with a description and the reason, as section 9:3251 requires. Keep it specific; a vague lump sum can support a willful-failure finding.
Return within one month
Mail or deliver the remaining deposit and the itemized statement to the forwarding address within one month after the lease terminates, using a method that gives you proof of mailing.
A thorough move-out record starts at move-in. Use a documented Louisiana move-in and move-out checklist and photographs at both ends so you can prove exactly what the tenant caused. When you do withhold, a clean Louisiana security deposit itemization form keeps the statement organized and defensible, and a Louisiana security deposit return letter documents the refund.
When a Dispute Reaches Court
Most deposit disputes never reach a courtroom, but when they do in Louisiana, they usually land in a city court, parish court, or justice of the peace court — the small-claims forums designed to be used without a lawyer. As of 2026, these courts generally handle claims up to about five thousand dollars, which comfortably covers a deposit dispute and the section 9:3252 penalty in most cases. Verify the current jurisdictional limit, which the Legislature adjusts over time and which varies by court.
Before filing, remember the sequence the statute rewards: the tenant should have furnished a written forwarding address and, to unlock the penalty, sent a written demand and waited out the thirty-day period. A tenant who skips the demand can still recover a wrongfully retained deposit, but may lose the leverage of the three-hundred-dollar-or-double penalty and the attorney-fee award.
✓ The Landlord Who Wins
- Signed move-in checklist plus dated move-in photos.
- The tenant’s written forwarding address on file.
- Itemized statement mailed within one month of lease termination.
- A specific reason and a receipt behind every amount retained.
- Proof of mailing (certified mail or a tracked method).
✕ The Landlord Who Loses
- No move-in documentation to compare against.
- A vague statement listing “cleaning” or “repairs” with no detail.
- Deductions for ordinary wear and tear.
- Full-price charges for old paint or carpet, not prorated.
- No refund or statement within one month, and none within thirty days of a written demand.
The pattern is consistent: Louisiana deposit cases are won on paper. The landlord who documents condition at both ends, keeps the forwarding address, itemizes clearly with reasons, and mails on time rarely loses — and the tenant who keeps photos, a copy of the written statement, and proof of the demand is equally well positioned to recover a wrongful withholding.
Special Situations: Sale of the Property, Roommates, and Rent Increases
Beyond a routine move-out, a handful of situations trip up Louisiana landlords because the deposit rules interact with other events. Three come up often.
When the Property Is Sold
If a landlord transfers the leased premises during the term of the lease, Louisiana Revised Statutes section 9:3251 requires the transferor to transfer the security deposit to the successor in interest — the new owner — and the transferor is then relieved of further liability with respect to the deposit. For the tenant, this means the buyer becomes responsible for returning the deposit at the end of the lease. A landlord buying an occupied Louisiana property should confirm in the sale that the deposits are actually transferred and documented, because the buyer inherits the one-month return duty for every occupied unit.
Roommates and a Single Deposit
Where several tenants share a lease and a single deposit, Louisiana treats the deposit as one sum tied to the tenancy, not as separate shares. When one roommate leaves and another stays, the landlord’s one-month obligation is generally triggered only when the tenancy as a whole ends and the unit is surrendered — not each time one roommate moves out mid-lease. Sorting out each roommate’s share of a refund is usually a private matter among the tenants. Landlords should return the single deposit to the tenants collectively, to the forwarding address they provide, unless the lease or a written agreement directs otherwise.
The Deposit and a Rent Increase
Because Louisiana sets no deposit cap, a rent increase does not create the “top-up” problem that arises in capped states. Still, a landlord raising rent on a sitting tenant should not treat the increase as an occasion to demand a larger deposit mid-lease unless the lease allows it, and should review the separate rules that govern a rent change — see our guide to Louisiana rent increase laws. Set the deposit at signing, document it, and leave it in place.
Documentation: the Evidence That Wins Deposit Cases
Every rule above ultimately turns on proof. Louisiana places the burden on the landlord to justify each retained amount as a genuine lease default, which means the landlord who cannot document a charge loses it — regardless of whether the damage was real. Build the evidence file across the whole tenancy, not at the end.
At Move-In
- A written condition checklist, room by room, signed and dated by the tenant.
- Timestamped photos or video of every wall, floor, fixture, and appliance, stored where the date cannot be doubted.
- A written note of any pre-existing wear, so it is never later charged to the tenant.
During the Tenancy
- A dated log of every maintenance request and the landlord’s response, which also rebuts a habitability defense.
- Records of any lawful entry to inspect or repair, made with proper notice under Louisiana entry rules — see Louisiana landlord entry laws.
At Move-Out
- The tenant’s written forwarding address, which conditions and starts the one-month duty.
- A second set of timestamped photos taken at surrender, to compare against move-in.
- Invoices, receipts, or a documented in-house cost behind every amount retained.
- Proof that the itemized statement and refund were mailed within one month of lease termination.
The Single Most Common Failure
The retention Louisiana landlords lose most often is the vague one: a statement that reads “cleaning” or “repairs” with a number and nothing behind it. A tenant can challenge that and usually win, because the landlord cannot show the work, the cost, or that it went beyond ordinary wear and tear — and a court may treat the lack of specificity as itself a willful failure. Specificity is the whole game — “professional carpet cleaning to remove pet odor, invoice attached” survives; “cleaning” does not.
Landlord Best Practices to Avoid Deposit Disputes Entirely
The cheapest deposit dispute is the one that never happens. A few disciplined habits protect a Louisiana landlord across an entire portfolio.
- Document move-in exhaustively. A signed checklist and dated photos of every room create the baseline that decides every future deduction.
- Set a reasonable deposit. There is no cap, but an excessive deposit deters good applicants and is still fully refundable except for lawful deductions.
- Capture the forwarding address at move-out. Get it in writing; it conditions and starts your one-month return clock.
- Call it a deposit, and treat it as refundable. Never relabel a refundable deposit as a non-refundable fee to dodge the return duty.
- Calendar the one-month deadline at surrender and the thirty-day window from any written demand, and mail the statement with proof well before either expires.
- Screen carefully before you ever hand over keys. The tenants most likely to leave a unit in disputed condition are often the ones a thorough screening would have flagged.
That last point is where most disputes are actually won — before the lease is ever signed. A prior eviction, a pattern of damage, or unstable finances rarely appears out of nowhere; it usually leaves a trail an applicant’s history reveals. Screening for it is the single highest-leverage habit a Louisiana landlord can build.
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Frequently Asked Questions
How much can a landlord charge for a security deposit in Louisiana?
Louisiana law sets no statutory maximum on a residential security deposit. The Lessee’s Deposit Act, at Louisiana Revised Statutes section 9:3251 through section 9:3254, governs how the deposit is held and returned but does not cap the amount. In practice most Louisiana landlords collect one to two months’ rent, and the market, not a statute, sets the ceiling. Because there is no cap, the important rules are about returning the deposit correctly, not about how much you may take. Verify the current law, as figures change.
How long does a Louisiana landlord have to return a security deposit?
Within one month after the lease terminates, the landlord must return any remaining deposit along with an itemized statement of any amounts retained, under Louisiana Revised Statutes section 9:3251. That obligation is conditioned on the tenant furnishing a forwarding address at the end of the lease. Sending the balance and the itemized statement inside the one-month window, to the forwarding address, is what keeps a Louisiana landlord out of penalty territory.
Does a Louisiana tenant have to give a forwarding address to get the deposit back?
Yes. Louisiana Revised Statutes section 9:3251 requires the tenant to furnish the lessor a forwarding address at the termination of the lease, to which the itemized statement and any refund may be sent. Louisiana courts commonly treat the written forwarding address as a condition to the landlord’s one-month return duty. A tenant who never provides one may struggle to trigger the penalty, so tenants should always give the address in writing and keep proof.
What can a Louisiana landlord deduct from a security deposit?
Under Louisiana Revised Statutes section 9:3251, a landlord may retain the deposit only to remedy a default of the tenant’s obligations under the lease. In practice that means unpaid rent, other charges the lease makes the tenant’s obligation, and the cost to repair damage the tenant caused beyond normal wear and tear. A landlord may not deduct for ordinary wear and tear, such as faded paint, worn carpet, or minor nail holes, because that is not a default by the tenant.
Does a Louisiana landlord have to pay interest on a security deposit?
No. Louisiana has no statewide requirement to pay interest on a residential security deposit, and no statewide rule that the deposit be held in a separate or escrow account. The Lessee’s Deposit Act is silent on both points, so a Louisiana landlord may hold the deposit in a general account and pay no interest. Always confirm the current law and check any local ordinance before relying on this.
What is the penalty if a Louisiana landlord wrongfully keeps a deposit?
Under Louisiana Revised Statutes section 9:3252, a willful failure to comply with the return rules makes the landlord liable for the amount wrongfully retained plus damages equal to three hundred dollars or twice the amount of the portion wrongfully retained, whichever is greater. Failure to remit within thirty days after the tenant’s written demand is itself a willful failure. Under section 9:3253 the court may, in its discretion, award costs and attorney fees to the prevailing party.
Can a Louisiana landlord charge a non-refundable deposit or fee?
The Lessee’s Deposit Act governs money advanced to secure the lease, which is refundable except for lawful deductions. A landlord may separately charge a true fee for a service, such as a genuine one-time application fee, but cannot relabel a refundable security deposit as a non-refundable fee to escape the one-month return and itemization duty. If money functions as security for performance of the lease, section 9:3251 treats it as a returnable deposit no matter what the lease calls it.
Can a Louisiana tenant waive the security deposit protections in the lease?
No. Louisiana Revised Statutes section 9:3254 makes any waiver of the tenant’s rights under the Lessee’s Deposit Act null and void. A lease clause that tries to shorten the one-month deadline, eliminate the itemized statement, or make the deposit non-refundable is unenforceable to that extent. The statutory return and penalty framework applies regardless of contrary lease language.
Where does a Louisiana deposit dispute get filed?
Most Louisiana deposit disputes are small enough for a city court, parish court, or justice of the peace court, which handle small claims up to about five thousand dollars. That limit comfortably covers a deposit plus the section 9:3252 penalty in most cases. The tenant generally must first make a written demand for the refund and wait out the thirty-day period before the willful-failure penalty attaches. Verify the current jurisdictional limit, which the Legislature adjusts over time. For the demand process on unpaid rent, see our guide on dealing with a non-paying tenant.
What happens to the deposit if the Louisiana rental is sold?
Under Louisiana Revised Statutes section 9:3251, if the landlord transfers the leased premises during the lease term, the transferor must transfer the security deposit to the successor in interest, and the transferor is then relieved of further liability for the deposit. For the tenant, that means the new owner becomes responsible for returning the deposit at the end of the lease. A buyer of an occupied Louisiana rental should confirm in the sale that deposits are transferred and documented.
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