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Landlord's Desk

State law guide · Checked November 14, 2026

Iowa landlord rules: late fees, deposits and rent increases

Iowa caps late fees in two tiers, split at $700 of monthly rent. It also limits deposits to two months' rent. Here is what chapter 562A of the Iowa Code says, with the section for each rule.

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The short version

  • Late fee limit: $12 a day or $60 a month total on rent up to $700 a month; $20 a day or $100 a month total on rent over $700.
  • The statute sets no grace period for rent.
  • Deposit limit: two months' rent.
  • Return the deposit, with a written statement of the specific reason for any deduction, within 30 days after the tenancy ends and you have the tenant's mailing address or delivery instructions.
  • Raising rent on a month-to-month tenancy takes written notice at least 30 days before it takes effect, and cities and counties can't limit the amount of rent.

Late fees in Iowa

Limit
Rent up to $700 a month: $12 a day or $60 a month total. Rent over $700 a month: $20 a day or $100 a month total. Iowa Code § 562A.9(4)
Grace period
None in the statute. Rent is payable without demand or notice at the time and place agreed upon. Iowa Code § 562A.9
Other conditions
The rental agreement must provide for the fee, within the limits above. The statute has no reasonableness standard and no separate writing requirement for late fees. Iowa Code § 562A.9(4)

Security deposits in Iowa

Maximum deposit
Two months' rent. Iowa Code § 562A.12(1)
Return deadline
30 days after the tenancy ends and the landlord has the tenant's mailing address or delivery instructions. Iowa Code § 562A.12(3)(a)
Itemized deductions
Required: a written statement showing the specific reason for withholding, within the same 30 days. For restoration, the statement must give the nature of the damages. A landlord who misses the deadline forfeits the right to withhold any part of the deposit. If the tenant gives no address within one year, the deposit goes to the landlord. Iowa Code § 562A.12(3)(a), (4)
Interest
None owed to the tenant in the opening five years of a tenancy. Interest earned on the deposit during those five years belongs to the landlord. The statute sets no rate. Iowa Code § 562A.12(2)
How it's held
In a federally insured bank, savings and loan or credit union, apart from the landlord's personal funds. It can be in a common trust account, and the account can earn interest. No bond is required in the statute. Iowa Code § 562A.12(2)
Penalty
For bad-faith retention, punitive damages up to twice the monthly rent, plus actual damages. The court may award reasonable attorney fees to the prevailing party. The landlord bears the burden of proof on the reasons for withholding. Iowa Code § 562A.12(7), (8)

Rent increases in Iowa

Notice to raise rent
Written notice at least 30 days before the increase takes effect. The effective date can't be before the end of the original rental agreement or any renewal or extension. Iowa Code § 562A.13(5)
Statewide cap
None in the statute. Iowa Code ch. 562A
City rent control
Not allowed. A city can't adopt or enforce an ordinance limiting the amount of rent that can be charged. Counties have the same rule in § 331.304(10). Both may manage residential property they have an interest in. Iowa Code § 364.3(9)

This page covers Iowa state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones.

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Questions landlords ask

Is there a late fee limit for rent in Iowa?

Yes. On rent up to $700 a month, a rental agreement can't provide for a late fee over $12 a day or $60 a month total. On rent over $700 a month, the limits are $20 a day and $100 a month total (Iowa Code § 562A.9(4)).

How long does an Iowa landlord have to return a security deposit?

30 days after the tenancy ends and the landlord has the tenant's mailing address or delivery instructions, with a written statement of the specific reason for any deduction (Iowa Code § 562A.12(3)(a)).

How much notice does an Iowa landlord need to raise rent?

Written notice at least 30 days before the increase takes effect, and not before the end of the original rental agreement or any renewal or extension (Iowa Code § 562A.13(5)).

Free templates you can use in Iowa

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

Keep Iowa rent and deposits on one ledger

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This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (Iowa Code, chapter 562A) or talk to a local attorney before you act.