Security Deposits
Louisiana’s Lessee’s Deposit Act establishes strict rules for security deposits. Landlords must return deposits within one month of lease termination, provide itemized deduction lists, and face penalties for wrongful retention.
The Lessee’s Deposit Act
Section titled “The Lessee’s Deposit Act”Louisiana Revised Statutes 9:3251 through 9:3254 govern security deposits. The Act applies to all residential leases in Louisiana, regardless of whether the lease is written or oral.
What Counts as a Deposit
Section titled “What Counts as a Deposit”The Act covers any payment made by a tenant to secure performance under a lease, including:
- Security deposits
- Damage deposits
- Pet deposits
- Cleaning deposits
- Any advance payment held as security
The Act does not apply to:
- Advance rent payments that are applied to rent
- Non-refundable pet fees (as opposed to pet deposits)
- Application fees
Landlord’s Obligations
Section titled “Landlord’s Obligations”When a lease terminates — whether by expiration, mutual agreement, or eviction — the landlord has specific duties regarding the security deposit.
One-Month Return Period
Section titled “One-Month Return Period”The landlord must return the deposit within one month after the lease terminates and the tenant vacates, provided the tenant left a forwarding address. The one-month period begins when:
- The lease terminates, AND
- The tenant vacates the premises, AND
- The tenant provides a forwarding address
If the tenant does not provide a forwarding address, the landlord’s duty to return the deposit is suspended until an address is given.
Itemized Deduction Statement
Section titled “Itemized Deduction Statement”If the landlord retains any portion of the deposit, the landlord must provide the tenant with an itemized statement of the deductions within the same one-month period. The statement must be mailed to the forwarding address provided by the tenant.
The statement typically lists:
- Each item of damage or default
- The cost of repair or remedy for each item
- The total amount deducted
- The amount being returned (if any)
Permitted Deductions
Section titled “Permitted Deductions”A landlord may deduct from the security deposit only for:
Default in Rent
Section titled “Default in Rent”Unpaid rent that was due under the lease.
Damage Beyond Normal Wear
Section titled “Damage Beyond Normal Wear”Damage to the premises that exceeds normal wear and tear. Normal wear includes minor scuffs, small nail holes, worn carpet in traffic areas, and similar deterioration from ordinary use. Damage includes:
- Large holes in walls
- Broken windows or doors
- Stained or damaged flooring beyond normal wear
- Damage to appliances
- Excessive cleaning required
Other Lease Defaults
Section titled “Other Lease Defaults”Costs incurred due to other defaults under the lease, such as:
- Cleaning beyond normal condition
- Removing abandoned property
- Utilities left in landlord’s name that tenant agreed to pay
Limitations
Section titled “Limitations”The landlord cannot deduct for:
- Normal wear and tear
- Pre-existing damage (document condition at move-in)
- Repairs that are the landlord’s responsibility
- Improvements or upgrades
- Cleaning if the tenant left the unit in the same condition as received
Tenant’s Written Demand
Section titled “Tenant’s Written Demand”If the landlord fails to return the deposit or provide an itemized statement within one month, the tenant may send a written demand for return of the deposit.
Why Written Demand Matters
Section titled “Why Written Demand Matters”The written demand triggers additional penalties if the landlord continues to withhold the deposit wrongfully. Without a written demand, the tenant cannot recover the statutory penalties.
Demand Procedure
Section titled “Demand Procedure”- Put the demand in writing
- Send by certified mail (retain proof of mailing)
- Include:
- Tenant’s name and forwarding address
- Property address
- Amount of deposit paid
- Date lease terminated
- Demand for return of deposit
Penalties for Wrongful Retention
Section titled “Penalties for Wrongful Retention”If a landlord fails to return the deposit or provide an itemized statement within thirty days after receiving a written demand, the failure is considered “willful” under the law.
Statutory Damages
Section titled “Statutory Damages”The tenant may recover:
- The portion of the deposit wrongfully retained, AND
- Statutory damages of $300 or twice the amount of the wrongfully retained portion, whichever is greater
Attorney Fees and Costs
Section titled “Attorney Fees and Costs”In addition to damages, the court may award costs and attorney fees to the prevailing party at its discretion.
Filing a Deposit Claim
Section titled “Filing a Deposit Claim”Justice of the Peace Court
Section titled “Justice of the Peace Court”Security deposit claims may be filed in Justice of the Peace Court if the amount in dispute (deposit plus potential penalties) does not exceed $5,000. Most deposit disputes fall within this limit.
What to File
Section titled “What to File”The petition typically states:
- The lease dates and property address
- The amount of deposit paid and when
- The date the lease terminated
- The date the tenant vacated and provided forwarding address
- Whether the landlord returned anything or provided an itemized statement
- The written demand (if made) and when sent
- The amount claimed (deposit plus penalties if applicable)
Evidence to Gather
Section titled “Evidence to Gather”- Copy of the lease
- Receipt or proof of deposit payment
- Move-in and move-out condition documentation (photos, checklist)
- Copy of written demand and proof of mailing
- Any response from landlord
- Any itemized deduction statement received
Property Transfer Rules
Section titled “Property Transfer Rules”If the property is sold or transferred during the tenancy, the new owner inherits the obligation to account for security deposits. The Act places responsibility on both the transferor and transferee to ensure deposits are properly handled.
Abandonment Exception
Section titled “Abandonment Exception”The Lessee’s Deposit Act does not apply when the tenant abandons the premises. Abandonment means leaving without notice, not paying rent, and showing no intent to return.
However, caution is advised when claiming abandonment. If the tenant was not actually abandoning — if they intended to return — the landlord may face liability for wrongful eviction or conversion of property.
Waiver Prohibited
Section titled “Waiver Prohibited”Any lease provision that purports to waive the tenant’s rights under the Lessee’s Deposit Act is null and void. A landlord cannot contract around these protections.
Pet Deposits vs. Pet Fees
Section titled “Pet Deposits vs. Pet Fees”Louisiana law distinguishes between pet deposits and pet fees:
Pet Deposit: Refundable payment held as security for pet-related damage. Subject to the Lessee’s Deposit Act — must be returned within one month unless legitimately retained for damage.
Pet Fee: Non-refundable payment for the privilege of having a pet. Not subject to the Lessee’s Deposit Act because it is not held as security.
The lease should clearly state whether a pet payment is a refundable deposit or a non-refundable fee.
Military Lease Termination
Section titled “Military Lease Termination”Louisiana provides special protections for service members who need to terminate leases due to military orders.
Who Qualifies
Section titled “Who Qualifies”Louisiana Revised Statutes 9:3261 applies to members of:
- United States Armed Forces
- Louisiana National Guard
- Reserve components called to active duty
Qualifying Orders
Section titled “Qualifying Orders”A service member may terminate a lease early upon receiving orders for:
- Permanent change of station to a location 35 or more miles away
- Deployment for 90 days or more
- Discharge or release from active duty
- Orders to move into government quarters
Termination Process
Section titled “Termination Process”To terminate under military orders, the service member must:
- Provide written notice of termination to the landlord
- Attach a copy of the military orders
- Wait 30 days from the date notice is served
Rent Proration
Section titled “Rent Proration”When a lease terminates under military orders, rent is prorated to the termination date. The tenant is not liable for rent beyond that date.
Deposit Return
Section titled “Deposit Return”The security deposit is handled under the normal Lessee’s Deposit Act rules — return within one month, itemized deductions only for legitimate damage or default.
No Penalty for Early Termination
Section titled “No Penalty for Early Termination”The landlord cannot charge an early termination fee or penalty when the termination is due to qualifying military orders.
Timeline Summary
Section titled “Timeline Summary”| Event | Timeframe |
|---|---|
| Lease terminates + tenant vacates + forwarding address given | Start of one-month period |
| Landlord must return deposit or itemized statement | Within one month |
| Tenant may send written demand | Immediately upon vacating |
| Landlord penalty period begins | 30 days after written demand |
| Military termination effective | 30 days after notice |
Landlord Considerations
Section titled “Landlord Considerations”- Documenting property condition at move-in (photos, checklist, tenant signature) is essential
- Returning deposits within one month of termination is required
- Providing itemized deductions if retaining any amount is mandatory
- Keeping records of repairs and costs is recommended
- Deducting for normal wear and tear is prohibited
- Honoring military lease termination rights is required
Tenant Considerations
Section titled “Tenant Considerations”- Documenting property condition at move-in and move-out is recommended
- Providing a forwarding address and written demand for return of deposit is necessary
- Keeping copies of all correspondence is advisable
- Knowing the difference between deposits and non-refundable fees is important
- Service members have special termination rights
Related Topics
Section titled “Related Topics”- Eviction Proceedings — The eviction process
- Lease Violations — Termination grounds
- Civil Suits — Filing civil claims
- Eviction Defenses — Defenses to eviction