Nebraska Security Deposit Laws: Limits, Returns, and Penalties

Nebraska's security deposit rules under the URLTA 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.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a qualified Nebraska attorney for advice specific to your situation. Information last verified: March 2026.

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.
• Service animals are exempt — landlords cannot charge a pet deposit for tenants with service animals or emotional support animals.

Holding the Deposit

Nebraska law does not require landlords to:

• Hold the deposit in a separate bank account.
• Pay interest on the security deposit (though some sources indicate an annual passbook interest obligation — verify with local counsel).
• Place the deposit in an escrow or trust account.

Returning the Deposit

The 14-Day Rule

The landlord must return the security deposit within 14 days after the tenant vacates the property, provided that:

1. The tenant has demanded the return of the deposit.
2. The tenant has provided a forwarding address in writing.

If the tenant does not provide a forwarding address and demand, the 14-day clock does not start.

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.

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 lease breaches as specified in the rental agreement.

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 wrongfully withholds the deposit or fails to provide the itemized statement within 14 days, the tenant may recover:

• The full deposit amount.
• An additional penalty of up to twice the amount wrongfully withheld or one month's rent, whichever is less.
• Court costs and reasonable attorney's fees.

How Landager Helps

Landager's deposit tracking module records the exact move-out date, triggers the 14-day countdown, and generates the itemized deduction statement with photo evidence — ensuring you never miss the return deadline or face a costly penalty claim.

Back to Nebraska Landlord-Tenant Laws Overview.