Oklahoma Security Deposit Laws

As a rental property owner, among the rights you have under the Oklahoma landlord-tenant laws is the right to ask tenants for a security deposit. Requiring it can help protect you against certain financial liabilities that can arise during a tenancy.

The deposit can help you cover unpaid rent or utilities, or the costs of damage exceeding normal wear and tear, among other things. Without the financial cushion offered by the tenant’s deposit, it could mean dipping into your pockets, resulting in higher operational costs for you.

That said, tenants’ security deposits aren’t without certain responsibilities for landlords. Oklahoma law requires landlords to abide by certain rules in certain aspects of handling a tenant’s deposit.

In today’s blog, we at Archstone Properties will walk you through everything you need to know in this regard. From how much you can charge tenants, what deductions you can make, and when to return it, among other things.

Basics of the Oklahoma Security Deposit Law

The following are important basics of the Oklahoma security deposit law to keep in mind:

Security Deposit Limit

Fortunately for Oklahoma landlords, there is no limit on how much security deposit you can charge tenants.That said, it’s wise to keep the amount as reasonable as possible. This is because charging above market rates could result in longer vacancy periods and higher tenant turnover rates.

Ideally, the security deposit amount shouldn’t be no more than 2X the monthly rent amount. If charging a monthly rent of $1,500, for instance, then consider capping the security deposit to a maximum of $3,000.

Generally, this should be sufficient to cover any financial liabilities the tenant may owe you such as, unpaid rent, utilities, late fees, or costs for damages beyond normal wear and tear.

Security Deposit Deductions

As a landlord in Oklahoma, you have a right to make certain deductions on a tenant’s security deposit. Specifically, you may be able to make deductions for things like:

• Unpaid rent and utilities
• Costs of damage beyond normal wear and tear
• Other charges that may be outlined in the lease or rental agreement

When it comes to security deposit deductions, please keep in mind that you must wait until the lease is over to make any deductions to the tenant’s security deposit. There is also no limit on how much security deductions you can make. The only requirement is that the charges must be reasonable and appropriate.

As a landlord, you are also entitled to seek extra charges from the tenant should the deposit fail to cover all the expenses. Please note that when making deductions you must adhere to the Fair Housing Laws.

Normal Wear and Tear vs. Damage

Normal wear and tear refers to the damage that naturally occurs due to reasonable use of a property by a tenant. This type of damage includes things like lightly dirtied grout, gently worn carpets, stained bath fixtures, loose door handles, and faded paint.

Contrastingly, damage refers to the kind of issues that occurs from a tenant’s reckless, careless, or intentional behavior. This can include things like holes in the wall, heavily stained carpets, missing fixtures, or broken windows.

The responsibility for repair can be the landlord’s or the tenant’s, depending on the nature of the damage. If it occurs due to normal use, then the responsibility would fall squarely on the landlord’s shoulders. But for damages arising from a tenant’s negligence, carelessness, recklessness, abuse, or misuse, that would squarely lie with them.

Interest on Security Deposit

As a landlord in Oklahoma, you are free to store the tenant’s security deposit anyway you like. You can commingle it with your funds, keep it in whatever financial institution, and even earn interest from it. That said, however you store it, make sure it’s available when the tenant eventually leaves, less any allowable deductions.

Security Deposit as Last Month’s Rent

A tenant can use the security deposit to cover the last month of rent. Which, can deny you the financial cushion against certain financial liabilities. To prevent a tenant from using the security deposit as last month’s rent, make sure to include a provision in the lease agreement.

Specify that it’s against the terms of the lease or rental agreement for a tenant to use the security deposit as the final month’s rent until they have vacated the Oklahoma unit.

Returning a Tenant’s Security Deposit

After the tenant leaves, an Oklahoma landlord has up to 45 days to return part or all of their security deposit. The 45-day period begins once the following conditions have been fulfilled:

• The tenancy has been terminated.
• The tenant has delivered the property’s possession back.
• The tenant has notified the landlord of their intentions to have their security deposit, or whatever portion is left.

After the tenant has moved out, they have up to 6 months after lease termination to make a written request for the return of their security deposit. Once the 6 months have passed following the tenant moving out of your residential rental property, they lose any right to claim for the return of the deposit.

Bottom Line

As a landlord you have certain rights and responsibilities when requiring security deposits from tenants. In addition to these policies, make sure to remain informed of the legal eviction process and all other landlord-tenant laws to protect your investment property.

If you have any questions or need the help of a qualified property management company, turn to Archstone Properties. We’re a knowledgeable and professional property management firm in Oklahoma. We can work tirelessly to ensure you reap maximum ROI from your property. Get in touch today to learn more!

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.