Connecticut

Security Deposit Amount

For tenants under 62 years old, landlords may charge up to two months’ rent as a security deposit. For tenants aged 62 or older, the maximum security deposit is one month’s rent.

Options for Holding

Landlords in Connecticut are required to deposit security deposits in an escrow account in a financial institution located in Connecticut. The account must be separate from the landlord’s personal funds and exclusively used for holding security deposits.

Notification Requirements

Upon receipt of the security deposit, the landlord must notify the tenant in writing of the name and address of the financial institution where the deposit is being held, along with the amount of the deposit.

Payment of Interest Earned

Connecticut law requires landlords to pay interest on security deposits. The interest rate is determined by the Connecticut Banking Commissioner and is typically tied to the average savings deposit rate in Connecticut. The interest must be paid annually or applied as a credit towards the rent if both parties agree.

For 2024, the interest rate is 0.55%. You can subscribe to updates from the Connecticut Banking Commission here.

Timeline for Returning

Landlords must return the security deposit, along with any interest earned, within 45 days after the tenant vacates the rental unit. If there are any deductions, the landlord must provide an itemized statement of deductions along with the remaining balance of the deposit within the same 45-day period.

Claims Process

If the landlord makes any deductions from the security deposit, they must provide the tenant with a written, itemized statement detailing the amount and reason for each deduction. This must be done within the 45-day timeframe for returning the deposit.

If the dispute cannot be resolved through negotiation, the tenant may file a claim in small claims court. Connecticut allows tenants to sue for the return of their security deposit if they believe the landlord has wrongfully withheld it.

In court, the landlord bears the burden of proof to justify any deductions from the security deposit. This may involve presenting evidence such as photos of damages, repair receipts, cleaning invoices, and the move-in/move-out inspection reports.

Landlords in Connecticut may only deduct from the security deposit for:

• ‍Unpaid Rent: Any outstanding rent owed by the tenant.‍
• Property Damage: Costs for repairing damages to the property beyond normal wear and tear.‍
• Cleaning Costs: Costs for cleaning the unit if it was not left in a clean condition, though this must also go beyond normal wear and tear.

If a landlord fails to return the security deposit or provide the itemized statement of deductions within 45 days, the tenant may be entitled to recover up to twice the amount of the deposit wrongfully withheld, plus interest. The landlord may also be liable for the tenant’s attorney’s fees if the tenant successfully sues.

Change in Property Ownership: If the rental property is sold or otherwise transferred, the landlord must either return the deposit to the tenant or transfer it to the new owner. The new owner then assumes responsibility for the deposit under Connecticut law. The tenant must be notified of the transfer in writing.