Protect Your Money: Nevada Rental Laws Security Deposit

Is your landlord holding your security deposit hostage? Are you unsure what you can do as a tenant? For your tenant rights, click here. If you are currently renting in the state of Nevada, you more than likely had to give a security deposit to your landlord upon moving into your new home. Did you know just like every other state that Nevada has their own security deposit rules that you and your landlord must follow?

Today we are going to talk about the nine basic rules that both you and your landlord should abide by.

Nevada Rental Laws Security Deposit

A security deposit is an amount of money that a tenant pays to the landlord at the start of the tenancy. The purpose of this deposit is to ensure the tenant adheres to the terms of the rental agreement, and provides financial protection for the landlord in case of any unpaid rent, unpaid bills, or property damage.

You should know that the state of Nevada has a limit on the amount of money that a landlord can charge you when it comes to your security deposit. This amount will vary because it is solely dependent on the type of rental property you will be renting from them. But the factors are the following:

  • Public Housing: The maximum-security deposit can be one month’s rent.
  • Private Housing: The maximum-security deposit can be three month’s rent.
  • Section 8 Housing: The maximum-security deposit can either be $50- or one-month’s rent, whichever is higher.

Non-Refundable Fees in Nevada

The Nevada law does not allow landlords to charge any non-refundable fees as part of the security deposit. Any fees that are non-refundable must be stated clearly in the lease agreement and must be separate from the security deposit.

Pets and Security Deposits in Nevada

Nevada law does not have any specific provisions regarding pet deposits. However, the total amount of any additional deposit for a pet, when added to any other security deposit, cannot exceed three months’ rent.

Tenants’ Security Deposit Rights: Nonrefundable Illegal?

In the state of Nevada, all your security deposits will be deemed refundable on the basis that you were compliant with all the terms that were stated in your lease agreements.

However, in the state of Nevada, the landlord can collect a nonrefundable cleaning fee, if they so choose. But this cleaning fee and the amount they spend will have to be written into the lease along with its terms.

But overall, a landlord cannot legally charge you a nonrefundable security deposit.

Can You Use a Surety Bond as Your Security Deposit?

In short, yes, yes, you can use a surety bond as your security deposit.

In the state of Nevada, the tenant and landlord laws give you permission to purchase a surety bond in replacement of your security deposit.

If you are unsure of a surety bond is also commonly called a performance bond. But the bond is where you will need to either have an investment or a collateral property to fulfill its wishes for the surety agency.

So, you can purchase a surety bond in the replacement of a security deposit, but your landlord cannot force you in any way to purchase one.

Your landlord also does not have to accept the surety bond in replacement of your security deposit either. It is not written in the Nevada law that the landlord will be obligated to accept your surety bond. For a landlord to accept your surety bond, it will be completely up to them.

What are the Rules for Storing Your Security Deposit in Nevada?

Many states throughout the United States have very specific rules on how the landlord will have to store your security deposit. But in the great state of Nevada, there are not any specific rules for how the landlord is supposed to store your security deposit.

The only thing the landlord is technically not required to do is to store your security deposit in a banking account that will collect interest. Your landlord is also not required to give you the interest they earn on your security deposit either.

Most other states in the United States prohibits landlords from putting your security deposit into an account that bears interest. They require all security deposits go into an account where they will not collect interest, but since the state of Nevada does not have any specific rules landlords are free to do what they see fit with your security deposit.

Am I Supposed to Get a Receipt After My Landlord Deposits My Security Deposit?

The landlord will only supply you a receipt if you request it. If you do not request it by law your landlord does not have to give you any sort of written notice or any receipt that they deposited your security deposit.

However, if you request a written notice of receipt and the landlord does not supply it to you, you are in your legal right to withhold future rental payments until the landlord supplies your written notice or your receipt.

What can a tenant deposit be used for in Nevada?

A landlord can use a tenant’s security deposit for the following purposes:

  1. Unpaid Rent: If a tenant leaves without paying the last month’s rent or has any other unpaid rent, the landlord can use the security deposit to cover this expense.
  2. Cleaning Costs: The landlord can use the security deposit to pay for cleaning the rental unit after the tenant moves out. However, the cleaning must only bring the unit back to the same level of cleanliness it was in at the start of the tenancy, excluding normal wear and tear.
  3. Repairing Damages: The landlord can use the security deposit to repair any damages to the rental unit that are beyond normal wear and tear.

It’s important for landlords to note that they must provide an itemized list of the damages and the cost of repairs when returning the remaining deposit to the tenant. According to Nevada Revised Statute NRS 118A.242(4), this must be done within 30 days of the tenant moving out.

Reasons Why Your Landlord Can Keep Your Security Deposit (Partial or Full)

Just like nearly every other state in the United States, Nevada landlords will be able to make deductions from your security deposit for the below reasons:

  • Costs to clean out the unit
  • Costs to fix up the place beyond the normal wear and tear
  • To cover your unpaid rent (if applicable)

In the state of Nevada, the landlord is required to list in their lease agreement a clause that states upon move out the unit must be in the same condition as it was given to you.

What happens when the property changes hands? (Security Deposit Transmittal)

When rental property changes hands in Nevada, such as through sale or transfer of ownership, the security deposit must also be transferred to the new owner. Here is what happens:

Landlord’s Responsibility

When a property is sold or transferred, the original landlord is required to either:

  1. Return the security deposit to the tenant, or
  2. Transfer the security deposit to the new landlord.

The original landlord must also provide an itemized statement to the tenant if any part of the security deposit has been used.

If the deposit is transferred, the original landlord must provide a written notice to the tenant with the new owner’s name and address.

New Owner’s Responsibility

The new owner who receives the security deposit is responsible for its return upon the end of the tenant’s lease, adhering to the same conditions as the original landlord. This means they are responsible for any claims against the security deposit, even if the original landlord failed to transfer it properly.

What is “normal wear”?

“Normal wear and tear” is a term used in rental agreements to describe the expected deterioration of a property over time due to regular, daily, non-abusive living. It’s the natural and unavoidable decline in the condition of the property from regular use, and not due to negligence or abuse by the tenant.

Here are a few examples of normal wear and tear:

  1. Fading Paint or Wallpaper: Over time, the paint or wallpaper in a home can fade due to exposure to sunlight or just from the passage of time.
  2. Carpet Wear: Carpets naturally wear down over time, particularly in high-traffic areas. However, large stains or burns in the carpet would not be considered normal wear and tear.
  3. Minor Marks or Nicks on Walls: It’s normal for walls to have minor marks, scuffs, or nicks, especially near light switches or door frames. But large holes in the wall would not be considered normal wear and tear.
  4. Worn Out Electrical Switches: Electrical switches can wear out or become less efficient over time due to regular use.
  5. Plumbing Wear: Pipes and plumbing fixtures can deteriorate over time, leading to leaks or reduced water pressure.
  6. Appliance Aging: Appliances provided by the landlord, like a refrigerator or a stove, naturally age and lose efficiency over time.

Can the Landlord Charge for Replacing the Carpet in Nevada?

A landlord can charge for carpet replacement if the carpet has been damaged beyond normal wear and tear. This could be due to large stains, rips, or burns that occurred during the tenant’s occupancy. However, if the carpet is simply worn out due to age or regular use, that falls under normal wear and tear and the cost of replacement cannot be deducted from the security deposit.

Can the Landlord Charge for Nail Holes in Nevada?

In general, a few small nail holes in the wall are often considered normal wear and tear, for which a landlord cannot charge. However, if there are an excessive number of nail holes or if they’re particularly large or damaging, the landlord may be able to deduct the cost of repairs from the security deposit.

Can the Landlord Charge for Painting in Nevada?

A landlord can charge for painting if it’s needed to repair damage that the tenant caused. For example, if the tenant painted the walls without the landlord’s permission or if there are large stains or marks that can’t be cleaned, the landlord can deduct the cost of repainting from the security deposit. On the other hand, if the paint is simply faded or scuffed from normal use, that is considered wear and tear, and the landlord cannot charge the tenant for repainting.

In all cases, landlords must provide an itemized list of any deductions from the security deposit within 30 days of the end of the tenancy, as per Nevada Revised Statutes NRS 118A.242. If a tenant disagrees with the charges, they may choose to dispute them, potentially in small claims court.

Can a Security Deposit Be Used for Last Month’s Rent in Nevada?

Under Nevada law, a landlord has the right to use the security deposit to cover any unpaid rent from a tenant, which could include the last month’s rent. However, using the security deposit as the last month’s rent is not typically the intended purpose of the deposit.

The security deposit is primarily intended to cover potential property damage beyond normal wear and tear, unpaid bills, or other potential expenses incurred by the tenant’s actions. If a tenant plans to use their security deposit as their last month’s rent, they should communicate with their landlord to obtain consent.

Without the landlord’s agreement, using the security deposit in this way could potentially leave the tenant liable for any damages or unpaid fees, as there would be no remaining security deposit to cover these costs.

For this reason, it’s generally recommended that tenants pay their last month’s rent as usual and allow the landlord to return the security deposit as dictated by Nevada law. The landlord is required to return the security deposit, minus any legitimate deductions, within 30 days of the termination of the tenancy.

Remember that specific terms of your lease agreement may also apply, so it’s crucial to review your contract and possibly seek legal advice if you’re unsure.

In Case of a Dispute

If there is a dispute over the security deposit after the property has changed hands, the tenant can take legal action against the new owner to recover the deposit, since the new owner is now responsible for returning it.

Is My Landlord Supposed to Do a Walk-Through Inspection?

Prior to you moving out of the rental unit, the landlord is not required under law to do a walk-through inspection.

How Long After I Move Out Will I Receive My Security Deposit?

In Nevada, landlords will be required to give back your security deposit or your surety bond, minus any deductions within 30 days of your lease ending.

If there are any deductions, the landlord will be required to send you an itemized list of what was deducted and how much of it was deducted.

But when it comes down to it, your landlord will have two options when it comes to giving you back your security deposit. These options are:

  • Your landlord can hand deliver your security deposit to you. If they do this, they will ask you to come to the leasing office or wherever you pay your rent.
  • Your landlord can mail you your deposit to your new address, if given. If you did not give your new address, the landlord will mail the security deposit to your last known address.

It’s Been 30 Days and I Still Haven’t Received My Security Deposit Back. What Do I Do?

If your landlord does not hand deliver or send in the mail your security deposit or surety bond in the 30-day time frame and does not give you a written itemized list of your deductions, you will have the opportunity to sue your landlord.

The landlord is going to be liable to your security deposit along with any other amount awarded to you by the Nevada court. However, you will need to keep in mind this amount will never exceed your security deposit amount.

How Can Tenants File a Dispute for a Security Deposit in Nevada?

If a tenant in Nevada believes their security deposit has been wrongfully withheld or deductions have been made unfairly, they can take steps to dispute the issue. Here is the general process for doing so:

1. Write a Letter to the Landlord

The tenant should begin by writing a letter to the landlord. The letter should clearly state the tenant’s dispute and provide reasons why they believe the security deposit, or a portion of it, should be returned. If possible, it’s helpful to include any relevant supporting documentation such as photos, receipts, or a copy of the move-in and move-out inspection reports.

2. Send the Letter via Certified Mail

To ensure that the letter is received and to have a record of its delivery, it’s recommended to send the letter via certified mail with a return receipt requested.

3. Wait for the Landlord’s Response

The landlord may agree to return the disputed amount, or they may provide their reasons and evidence for withholding it.

4. File a Small Claims Lawsuit

If the tenant and landlord cannot reach an agreement, the tenant can file a lawsuit in small claims court. Small claims court in Nevada can handle cases involving amounts up to $10,000. Before filing, the tenant should gather all relevant evidence, such as the rental agreement, correspondence with the landlord, receipts, and photos.

To file a claim, the tenant must go to the local small claims court and complete an application. There is a filing fee, which varies by county. Once the application is filed, the tenant will receive a court date.

5. Attend the Court Hearing

At the court hearing, both the tenant and the landlord will have the opportunity to present their case and any evidence. The judge will then make a decision.

If the tenant wins the case, the judge may order the landlord to return all or part of the deposit. In some cases, the landlord may also be required to pay for the tenant’s court costs or even additional penalties.

My Landlord Sold His Rental Property. What Happens to My Security Deposit?

If you found out that your landlord sold the property, the landlord is going to have two options on how to handle your security deposit:

  • Your landlord can transfer your security deposit to the new owner taking over. If this happens your landlord will have to notify you in writing that they are transferring your deposit over to the new landlord. The landlord will be required to give you the name of the new landlord, phone number, and address.
  • Your landlord can return your security deposit to you. If the landlord does this, the landlord will have to notify the new landlord that he or she is giving you back your security deposit.