Alaska security deposit law: a two month cap with a $2,000 rent line and a 14 or 30 day refund
Alaska Statute 34.03.070 limits prepaid rent and security deposit together to two months' rent, but the limit does not apply when rent exceeds $2,000 a month. The refund deadline is 14 or 30 days depending on whether a proper notice of termination was given and whether damages are deducted.
How much can you hold in Alaska?
Subsection (a) bars a landlord from demanding or receiving prepaid rent or a security deposit, however denominated, above two months' periodic rent. Notice that prepaid rent and deposit are counted together. The section does not apply to rental units where the rent exceeds $2,000 a month, so a high-rent unit has no cap under this section.
Pets get a separate allowance in subsection (h). A landlord may collect an additional deposit from a tenant with a pet that is not a service animal, up to one month's periodic rent. It must be accounted for separately from the main deposit and may be applied only to damages directly related to the pet.
Example a made-up unit rents for $1,500. The tenant pays $1,000 of prepaid rent and a $2,000 deposit, which is $3,000 together and exactly the two month ceiling. A $1,500 pet deposit would be allowed on top because it is a separate account. If the rent were $2,400, the cap would not apply at all.
What rules apply to handling the money?
Under subsection (c), money paid as prepaid rent or a deposit must be promptly deposited, wherever practicable, in a trust account at a bank, savings and loan association or licensed escrow agent. The landlord must also give the tenant the terms and conditions under which the money may be withheld. The statute lets you combine prepaid rents and deposits in a single financial account, but you must separately account for each tenant, and you may not mix them with other funds.
- One tenant's trust money cannot refund another tenant's deposit.
- It cannot pay another tenant's accrued rent.
- It cannot cover damage caused by another tenant.
What are the refund deadlines?
Subsection (g) has three paths. If the landlord or tenant gave a proper notice under AS 34.03.290 (a week-to-week tenancy ends on 14 days' written notice, month-to-month on 30), the written notice and refund must be mailed within 14 days after the tenancy ends and the tenant delivers possession. The exception is that the landlord has 30 days after the tenancy ends to mail the refund if costs are deducted for damage from the tenant's noncompliance.
If the tenant did not give a compliant notice, the deadline is 30 days after the tenancy ends, possession is delivered or the landlord becomes aware that the unit is abandoned. If you do not know the tenant's address but have reason to know how to contact them, you must make a reasonable effort to deliver the notice and refund.
What counts as damage, and what is the penalty?
Subsection (b) allows the money to be applied to accrued rent and to the landlord's damages from the tenant's noncompliance with AS 34.03.120. Damages means deterioration of the premises and, where applicable, their contents. It does not include normal wear and tear, or deterioration caused by the landlord's failure to prepare for expected conditions or to meet a landlord duty. Accrued rent and damages must be itemized in a written notice mailed to the last known address in time.
If the landlord willfully fails to comply with subsection (b), the tenant may recover an amount not to exceed twice the actual amount withheld. Either side may still claim other damages under the chapter, and whoever holds the landlord's interest when the tenancy ends is bound by the section.
Using DoorKeeping in Alaska
Alaska's rules turn on small facts: the rent amount, whether a notice was given, and whether damages were deducted. DoorKeeping records the rent, the notice date and each deduction on the tenant file, and shows which refund date applies. Pet deposits sit on their own line. You approve every letter, and your money stays in your own account. This is general information, not legal advice. Check the current statute or ask a local attorney before you rely on it.
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Questions
- What is the maximum security deposit in Alaska?
- Prepaid rent and security deposit together cannot exceed two months' rent, except that this limit does not apply when rent exceeds $2,000 a month. A separate pet deposit of up to one month's rent is allowed.
- How many days does an Alaska landlord have to return a deposit?
- Fourteen days when a proper termination notice was given, thirty days if damages are deducted or if no compliant notice was given.
- Must an Alaska landlord keep deposits in a trust account?
- Wherever practicable, yes: promptly in a trust account at a bank, savings and loan association or licensed escrow agent, accounted for separately per tenant.