Nebraska Security Deposit Laws: Limits, Returns, and Penalties

Governed by the Nebraska Uniform Residential Landlord and Tenant Act (URLTA), which has been the primary authority on rental housing since its effective date on July 12, 1974, the state's security deposit rules are straightforward but carry significant penalties for non-compliance. Understanding the limits, return deadlines, and itemization requirements is essential for every landlord operating in the state.

Official Law Citation: The regulations on this page are strictly enforced by the Nebraska URLTA § 76-1416Preview unavailable.

Deposit Limits

• The security deposit cannot exceed one month's rent.
• If the tenant has a pet, the landlord may collect an additional pet deposit of up to one-quarter of one month's rent.

Holding the Deposit

Nebraska law does not require landlords to:

• Hold the deposit in a separate bank account.
• Pay interest on the security deposit.
• Place the deposit in an escrow or trust account.

Returning the Deposit

The 14-Day Rule

The landlord must return the security deposit and a written itemization within 14 days after the date of termination of the tenancy.

The 14-day period for returning the deposit begins upon the termination of the tenancy. If no mailing address or instructions are provided by the tenant to the landlord, the landlord shall mail, by first-class mail, the balance of the security deposit to be returned, if any, and a written itemization of the amount of the security deposit not returned to the tenant's last-known mailing address.

Itemized Statement

If the landlord makes any deductions, they must provide a written, itemized list of all damages and charges along with the remaining deposit balance within the 14-day window.

Allowable Deductions

Landlords may deduct for:

• Unpaid rent.
• Damage beyond normal wear and tear (e.g., holes in walls, broken fixtures, stained carpets beyond normal use).
• Cleaning costs necessary to restore the property to its condition at move-in.
• Other damages suffered by reason of the tenant's noncompliance with the rental agreement or section 76-1421.

Normal wear and tear (e.g., minor scuff marks, faded paint, worn carpet from regular use) is not deductible.

Penalties for Non-Compliance

If a landlord fails to comply with the requirements for returning the security deposit and itemization within 14 days, the tenant may recover:

• The property and money due.
• Court costs and reasonable attorney's fees.

In addition, if the landlord's failure to comply is willful and not in good faith, the tenant may recover an amount equal to one month's periodic rent or two times the amount of the security deposit, whichever is less, as liquidated damages.

Nebraska Security Deposit Laws at a Glance

Managing security deposits is the #1 cause of landlord-tenant lawsuits in Nebraska. To stay compliant with Neb. Rev. Stat. § 76-1416, you must follow a strict set of rules regarding how much you collect and how quickly you return it.

The One-Month Cap

For residential properties, the maximum security deposit is one month's rent. If the rent is $1,200, the deposit can be no more than $1,200.

• Exceptions: You may charge an additional "pet deposit" of up to one-fourth (25%) of one month's rent. So, for a $1,200 rental, you could collect $1,200 (base) + $300 (pet) = $1,500 total.

Deductions and Wear-and-Tear

You can only deduct for:

1. Accrued rent that has not been paid.
2. Damages that exceed "normal wear and tear."
3. Cleaning if it is necessary to return the unit to the state it was in at the start of the lease.

The 14-Day Return Rule

The most unique feature of Nebraska law is the 14-day return window. The 14-day period for returning the deposit begins upon the termination of the tenancy. Within 14 calendar days of termination, you must:

• Deliver or mail the remaining portion of the deposit.
• Provide a written, itemized statement of any deductions made.

If you fail to do this, the tenant can sue you for the full amount plus reasonable attorney fees. If the failure is willful and not in good faith, additional liquidated damages may apply. Using Landager allows you to automate this timeline by logging the "Tenancy Termination" date and setting an instant 14-day alert.

Frequently Asked Questions

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How Landager Helps

Landager tracks lease terms, security deposit return deadlines, and notice periods - making it easy to stay compliant with Nebraska regulations.

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