NRS 118A.242 is Nevada’s residential security-deposit statute. A landlord may not demand or receive a security deposit or a surety bond, or a combination of them, including the last month’s rent, whose total amount or value exceeds three months’ periodic rent. When the tenancy ends, the landlord may claim only what is reasonably necessary for unpaid rent, damage beyond normal wear, and reasonable cleaning; must give an itemized written accounting; and must return any remaining deposit no later than 30 days after termination. A clause that labels the deposit nonrefundable (other than a reasonable nonrefundable cleaning charge) is void.

What counts as a security deposit?

NRS 118A.240 defines a “security deposit” as any payment, deposit, fee, or charge that is to be used to (a) remedy a default in rent, (b) repair damages to the premises other than normal wear caused by the tenant, or (c) clean the dwelling unit. The term does not include a payment to secure an option to purchase, or a premium paid to a qualified surety for a bond that secures the tenant’s NRS 118A.242 obligations.

NRS 118A.200(3)(f) requires a written rental agreement to contain provisions relating to deposits that are required and the conditions for their refund. NRS 118A.250 requires the landlord, on the tenant’s request, to deliver a signed written receipt for the deposit or surety bond and for other payments including rent; the tenant may refuse to make rent payments until that requested receipt is tendered.

How large may the deposit be?

NRS 118A.242(1) is a hard cap: the deposit, a surety bond, or a combination, including last month’s rent, may not exceed three months’ periodic rent. NRS 118A.242(2)–(3) allow a tenant, if the landlord consents, to buy a surety bond in lieu of all or part of the deposit. The landlord is not required to accept a bond and may not require the tenant to buy one.

What may be deducted, and when must the rest come back?

NRS 118A.242(4) limits claims at the end of the tenancy — “by either party for any reason” — to amounts reasonably necessary:

  • to remedy a default in the payment of rent;
  • to repair damages caused by the tenant other than normal wear; and
  • to pay the reasonable costs of cleaning the premises.

The landlord must provide an itemized written accounting of the disposition of the deposit or bond and return any remaining portion of the security deposit no later than 30 days after termination, by handing it to the tenant personally at the place where rent is paid, or by mailing it to the tenant’s present address or, if that is unknown, the last known address.

If the tenant disputes an item in that accounting and, within 30 days of receiving it, sends a written dispute to the surety (when a surety bond is involved), NRS 118A.242(5) says the surety shall not report the landlord’s claim to a credit reporting agency unless the surety obtains a judgment against the tenant.

What does the statute say if the remainder is not returned in 30 days?

NRS 118A.242(6) provides that if the landlord fails or refuses to return the remainder within 30 days after the end of the tenancy, the landlord is liable to the tenant for (a) an amount equal to the entire security deposit and (b) a sum to be fixed by the court of not more than the entire security deposit. In setting that additional sum, NRS 118A.242(7) directs the court to consider whether the landlord acted in good faith, the course of conduct between the parties, and the degree of harm to the tenant.

NRS 118A.242(8) voids any rental-agreement provision that characterizes the security deposit as nonrefundable or that waives or modifies the tenant’s rights under the section, except an agreement that provides for a nonrefundable cleaning charge in a reasonable amount. NRS 118A.242(9) gives the tenant’s claim to a deposit to which the tenant is entitled precedence over the claim of any creditor of the landlord.

What happens if the building is sold?

NRS 118A.244 requires the outgoing landlord, within a reasonable time after the landlord’s interest ends, either to notify the tenant in writing of the successor’s name, address, and telephone number and that the remaining deposit or bond has been transferred, or to return the remaining deposit to the tenant. Before recording a deed, the landlord must transfer the remaining deposit in writing or notify the successor that it was returned. The successor must accept the existing deposit or bond and shall not require any additional deposit or bond during the term of the rental agreement.

What this page does not cover

NRS 118A.242 describes the deposit rules and a damages formula. It does not create a small-claims filing guide, and this page does not. The Civil Law Self-Help Center and the Nevada courts’ landlord-tenant handbook discuss deposits in the same statutory terms. Related lease-content rules are in What a Nevada lease must contain.