Non-Refundable Security Deposits: Legal or Not in Your State?

Can security deposits be non-refundable?

A deposit and a fee are different things. A deposit is money held as security: the landlord keeps it only to cover specific losses, such as rent you did not pay or damage you caused, and returns the rest after you move out. A fee is a payment for something, such as processing an application, and the landlord keeps it whatever happens. A "non-refundable deposit" is a contradiction in terms, which is why many state laws treat any money held as security as refundable no matter what the lease calls it.

California is the clearest example. Civil Code section 1950.5(m) says no lease or rental agreement may characterize any security as nonrefundable. The Santa Monica Rent Control Board's guidance on the statute puts it plainly: whether the lease calls it a security deposit, a cleaning deposit or last month's rent, the law treats it as a security deposit, limits how much can be charged and limits what it can be used for.

Deposit or fee: why the label in your lease matters

In states without a California-style ban, the wording of your lease decides more. A clearly described, reasonable fee for a specific service may be allowed. A vague "non-refundable portion" of the deposit is much harder for a landlord to defend, because it is still money held against the tenancy.

Many statutes also count every advance payment toward the deposit cap. Arizona's statute, A.R.S. 33-1321(A), says a landlord may not demand or receive security "however denominated, including prepaid rent" of more than one and one-half month's rent. A landlord there cannot get around the cap by renaming part of the deposit a fee. Watch for these labels in particular:

• "Non-refundable deposit" or "non-refundable portion of the deposit."
• "Move-in fee," "administrative fee" or "lease preparation fee."
• "Cleaning fee" or "carpet cleaning fee" charged in advance regardless of condition.
• "Redecorating" or "turnover" fee for painting and repairs between tenants.
• "Non-refundable pet deposit" or "pet fee."

Which states ban or restrict non-refundable deposits?

Rules vary widely, and many states say nothing specific about non-refundable fees, leaving it to the general deposit statute and the lease. The table below covers four states with clear rules, as of 2026. Check your own state's deposit statute before relying on it, because these laws change often.

Is a non-refundable cleaning fee legal?

It depends on your state, and on whether the fee is really for cleaning. In California, a landlord can deduct cleaning costs from the deposit only to return the unit to the level of cleanliness it had when you moved in, and cannot charge a separate non-refundable cleaning deposit. A flat cleaning charge collected at signing, whatever the condition at move-out, is exactly the kind of charge section 1950.5 prevents.

In Washington and Arizona, a cleaning fee can be non-refundable if the lease meets the written-disclosure rules in the table above. In Massachusetts, a landlord cannot require a cleaning fee at the start of the tenancy at all, because the statute limits what can be collected to the four listed items. In states with no specific rule, a court will look at what the lease says and whether the fee is reasonable, and a fee that functions as extra security may still count toward any deposit cap.

Even where a cleaning fee is allowed, you should not pay twice. If you paid a non-refundable cleaning fee at move-in, the landlord should not also deduct routine cleaning from your security deposit. Point that out in writing if it happens.

What about non-refundable pet fees and application fees?

Pet charges follow the same logic. In California, a "pet deposit" is part of the security deposit, counts toward the cap and must be refundable. In states that allow non-refundable fees, a clearly labeled pet fee can be lawful, and some landlords charge monthly pet rent instead, which is simply part of the rent.

Application or screening fees are usually a separate category from deposits because they pay for a background and credit check before any tenancy exists. They are non-refundable in the ordinary sense, but several states cap them. California, for example, caps applicant screening fees under Civil Code 1950.6 and adjusts the maximum each year. If an "application fee" is much higher than the cost of a screening report, ask what it covers.

What happens if your lease has an illegal non-refundable deposit clause?

A clause that conflicts with your state's deposit statute is generally unenforceable to that extent. The rest of your lease usually still stands, but the landlord must treat the money as a refundable deposit: return it within the state deadline, minus only lawful deductions, with an itemized statement where the statute requires one.

Some states add penalties. In California, a landlord who keeps a deposit in bad faith can be ordered to pay statutory damages of up to twice the amount of the deposit on top of the money owed. In Washington, a landlord who collects a non-refundable fee without a written rental agreement is liable to the tenant for the fees collected. These penalties are worth naming in a demand letter, calmly and with the statute number, because they change the landlord's math.

How to get a "non-refundable" deposit back

Keep copies of everything you send and receive. If the landlord returns the money after your demand, confirm the payment in writing so the dispute is closed on the record.

• Find the exact wording in your lease and any receipts. Note what each payment was called and whether the lease stated its purpose in writing.
• Look up your state's security deposit statute and check it against the charge, including any cap on the total.
• Document the unit's condition at move-in and move-out with dated photos, so the landlord cannot replace a disallowed fee with an inflated damage claim.
• After you move out and the deadline passes, send a written demand that cites the statute, states the amount owed and gives a short deadline. Keep a copy.
• If the landlord refuses, consider small claims court. In California, individuals can bring claims of up to $12,500 there, and other states set their own limits.

A worked example: the $500 "non-refundable deposit"

Maya rents a one-bedroom apartment for $2,000 a month. At signing, the landlord collects first month's rent, a $2,000 security deposit and a separate $500 "non-refundable deposit" for cleaning and turnover. Maya leaves the unit spotless a year later. The landlord returns the $2,000 and keeps the $500.

If Maya lives in California, the $500 is security under Civil Code 1950.5, because it is money held in advance for cleaning and turnover. It cannot be made non-refundable, and it also pushes her total deposit to $2,500, above the one-month cap that applies to most landlords for tenancies starting on or after July 1, 2024. She can demand the $500 back, and if the landlord has no lawful deduction to set against it, refusing could expose the landlord to a bad-faith penalty.

If Maya lives in Washington, the answer turns on the paperwork. If her written lease clearly states that the $500 is a non-refundable fee, the landlord can usually keep it. If the lease calls it a "deposit" or does not say it is non-refundable, RCW 59.18.285 treats it as a refundable deposit. If there was no written lease at all, the landlord is liable to her for the fee.

If Maya lives in Massachusetts, the landlord could not lawfully require the $500 at move-in in the first place, because section 15B limits up-front charges to first month, last month, a deposit of up to one month and the cost of a new lock and key. In a state with no specific rule, she would argue the charge is really security held against cleaning and should be returned when no cleaning was needed. Same lease, four different outcomes, which is why the state matters more than the label.

What to ask for before you sign your lease

The cheapest fix is before signing. If your lease lists a non-refundable deposit or fee, ask the landlord to make it refundable, reduce it, or describe in writing exactly what it covers. In states with written-disclosure rules, a landlord who has not done that has a weak claim to keep the money, and a polite question often settles it.

Get a receipt for every payment that names it as a deposit, prepaid rent or a fee. Keep the receipt with your lease. If a dispute comes up at move-out, the receipt and the lease wording are the two documents that decide who keeps the money.