How to Split Security Deposits and Move-Out Costs Fairly

We’re Maya & Tom. We publish practical rules couples and housemates can copy, agree in one sitting, and use without policing. This guide helps you split security deposits and move‑out costs fairly—so your household stays on the same team from move‑in to move‑out.

We focus on outcomes: a clear plan that honors current tenant protections, credits people fairly, and avoids endless back‑and‑forth. No currency examples—use ratios, roles, and rules you can paste into a roommate agreement.

Important: Laws differ by city/state. We cite the sources we rely on. Use them to confirm what applies to you.

Why deposits get messy—and how to fix it

Security deposits touch three friction points:

Documentation: Landlords increasingly must prove deductions with photos and receipts; tenants should do the same.
Timing: Return deadlines vary (e.g., 14/21/30/45 days), and you need an internal timeline to settle between yourselves.
Responsibility: Fair splits exclude ordinary wear and tear and allocate actual damage by who caused it (or by a preset rule if unknown).

Recent updates matter here. For example, California tightened deductions and documentation and bans automatic “pro cleaning” charges without proof. Washington requires a signed move‑in condition checklist and invoices/estimates. Chicago’s ordinance requires deposit segregation and interest with strict itemization/return windows. New York’s state guidance enforces a 14‑day return with itemization and interest in larger buildings. In Massachusetts, deposit handling (including interest) is strict. We reference each of these below.

What the law sets—your rules build on it

Use these legal guardrails to shape fair household rules:

Document condition at move‑in and move‑out
- California’s AB 2801 ties deductions to restoring the unit to move‑in condition (excluding ordinary wear) and adds photo documentation requirements in 2025. It also bans automatic professional cleaning fees without evidence. Berkeley emphasizes pre‑move‑out walkthroughs and photo proof with any deduction (from April 1, 2025). Washington requires a move‑in condition checklist, signed, and documentation for charges. Colorado introduces a documented walkthrough option and clarifies “normal wear and tear.”
  Sources: AB 2801; Berkeley Rent Board; Washington SHB 1074; Colorado HB25‑1249.
Itemized deductions, receipts, and deadlines
- California: itemized statement and any balance due within 21 days; receipts required if deductions exceed a threshold (with an allowance for good‑faith estimates followed by final receipts).
- New York: itemized statement and balance due within 14 days; interest may be owed in buildings with 6+ units.
- Washington: return window is 30 days; charges must come with invoices/estimates.
- Chicago: itemization within 30 days; return within 45 days; interest owed and deposit must be segregated, with penalties for violations.
- Colorado: 30‑day default return window (leases can extend up to 60); penalties for wrongful withholding.
- Massachusetts: strict statutory handling and interest rules; verify compliance.
  Sources: CA Courts Self‑Help; NY AG; Washington SHB 1074; Chicago RLTO; Colorado HB25‑1249; Mass.gov.
Caps and special rules
- California and New York cap security deposits at one month’s rent in most cases. If asked for more (and no exemption applies), the guidance says to push back.
  Sources: CA AG; NY AG.
Joint and several liability; deposit timing with multiple cotenants
- Many leases make every roommate liable for the full amount (“joint and several”). Boulder’s guidance recommends a written roommate agreement to pre‑allocate deposit shares and damage responsibility and to outline replacement procedures.
- In some places (e.g., per UC Berkeley Student Legal Services for multiple cotenants), the landlord does not need to return the deposit until all original tenants vacate—so roommates should use a buyout or replacement agreement to settle internally when someone leaves.
  Sources: City of Boulder; UC Berkeley SLS.
Ordinary wear and tear vs. damage
- Don’t charge roommates—or accept landlord charges—for normal wear (e.g., minor paint fading, ordinary carpet wear). Damage (e.g., large holes, deep stains) is chargeable.
  Source: Nolo.

Your rules should reflect these constraints: require documentation, align internal timelines to the strictest legal deadline, exclude ordinary wear, and plan for replacements.

Copy‑paste rules you can agree today

Choose the versions that fit your situation. Edit bracketed fields in one sitting and revisit only when something changes (e.g., a new roommate joins).

1) Deposit split at move‑in

Rule: Deposit Split & Record
- We split the security deposit [equally / by income ratio of X:Y].
- We record each person’s deposit share in writing: [Name A: %], [Name B: %], [Name C: %].
- If one person advances the full deposit, it counts as a temporary fronted amount owed by others in the same proportions.
- We keep copies of the lease, any required move‑in checklist, and dated photos/videos of every room/fixture.
- If our city/state requires deposit interest or segregation (e.g., separate account), that interest belongs to the household and is split according to our deposit shares at move‑out.

Why this works with the law: Washington requires a signed move‑in condition checklist; Chicago requires segregated deposits and interest; New York may require interest in buildings with 6+ units. Keeping photos and paperwork supports or contests deductions, aligning with California’s and Berkeley’s documentation requirements.

2) Replacement roommate and buyout (mid‑lease)

Rule: Replacement & Buyout
- If someone leaves before the landlord returns the deposit, the exiting roommate is bought out by the entering roommate (or remaining roommates) for their recorded deposit share (minus any agreed holdback).
- We may hold back a portion of the exiting share until the landlord’s final itemized statement arrives, solely to cover proven damages beyond ordinary wear and tear. The holdback must be tied to evidence (photos, invoices/estimates, or itemized statements).
- If our landlord won’t return any deposit until all original tenants vacate, we still complete the buyout internally now per this rule.
- Any deductions later proven valid and attributable to the exiting roommate reduce their final settlement; otherwise, the holdback is released in full.

Why this works with the law: UC Berkeley SLS clarifies that landlords need not return deposits until all original cotenants vacate; the buyout avoids trapping the exiting roommate. Washington and California emphasize invoices/estimates and photos for charges.

3) Internal settlement timeline (align to the strictest rule)

Rule: Internal Timeline
- We settle deposit reimbursements between ourselves no later than the strictest applicable legal return deadline where we live (examples: 14 days NY; 21 days CA; 30 days WA; itemize by 30/return by 45 days Chicago; 30 days default CO).
- We do not finalize any chargeback without the landlord’s itemized statement and documentation (receipts or estimates where allowed).
- If the landlord misses the legal deadline, we share that fact and proceed with our internal settlement favoring the tenant who would be owed money but for the delay.

Why this works with the law: State/city deadlines vary; using the strictest protects the most time‑sensitive roommate. California and New York specify 21/14‑day clocks; Chicago sets 30/45 with interest; Washington and Colorado set 30‑day defaults.

4) Move‑out charges allocation

Rule: Allocation of Charges
- We allocate move‑out costs by responsibility:
  (a) Ordinary wear and tear: never charged to any roommate.
  (b) Damage caused by a specific person/guest/pet: that person covers 100% of related charges.
  (c) Shared/common‑area damage without clear causation: split by our deposit share ratio [X:Y(:Z)].
- Any charge must be supported by the landlord’s itemized statement and documentation:
  - Photos (where required), invoices/receipts, or permissible good‑faith estimates followed by receipts.
  - No automatic cleaning fees without evidence.
- If a charge is disputed (e.g., considered ordinary wear), we treat it as “unassigned” until proper documentation arrives. If still unproven, we do not allocate it internally.

Why this works with the law: AB 2801 bans automatic cleaning charges and ties deductions to restoring move‑in condition (not including ordinary wear). California courts require itemization and receipts, with a threshold for receipts. Washington mandates invoices/estimates. Nolo’s examples clarify the wear‑vs‑damage boundary.

5) Pre‑move‑out walkthrough and documentation

Rule: Walkthrough & Evidence
- We request and attend the landlord’s pre‑move‑out walkthrough/inspection when available.
- We take date‑stamped photos/videos of each room/fixture: (1) move‑in, (2) pre‑move‑out (after cleaning/repairs), (3) move‑out day.
- We keep all cleaning/repair receipts and any correspondence with the landlord about condition or deductions.
- Roles:
  - Documentation Lead: [Name]
  - Landlord Liaison: [Name]
  - Keys/Utilities Checklist: [Name]

Why this works with the law: Berkeley’s 2025 update emphasizes walkthroughs and photo proof; AB 2801 adds photo documentation requirements; Washington and Colorado highlight checklists and walkthroughs.

6) Interest handling (where required)

Rule: Interest & Final Reconciliation
- If the law requires deposit interest (e.g., Chicago; New York buildings with 6+ units; Massachusetts), any interest owed at return belongs to the household and is split according to our recorded deposit shares.
- We include interest in the final settlement just like deposit principal.

Why this works with the law: Chicago RLTO requires deposit segregation and interest; NY AG notes interest in larger buildings; Massachusetts emphasizes strict handling and interest.

7) Prorated final month (optional fairness rule)

Rule: Prorated Final Month (Optional)
- If people leave on different dates in the last month, we prorate rent and shared utilities by days in the home for that month. We keep personal add‑ons (e.g., premium channels) separate.

This isn’t a legal rule from the sources; it’s a fairness option that keeps outcomes aligned with actual occupancy.

Conversation prompts to decide in one sitting

Use these to reach decisions quickly:

Split method: “Do we prefer equal splits or income‑based ratios for deposit shares and shared, unassigned charges?”
Holdback: “If someone exits early, do we keep a small holdback tied strictly to documented charges?”
Strictest timeline: “Which jurisdiction’s deadline applies to us? Are we comfortable using the strictest to keep things moving?”
Evidence standard: “Do we require the landlord’s itemized statement plus photos and receipts/estimates before any internal chargeback?”
Wear vs damage: “Let’s list clear examples from our home of ordinary wear we won’t charge for, and damages we would.”
Interest: “If our city/state requires deposit interest, do we split it by the recorded deposit shares?”
Roles: “Who documents photos, schedules walkthroughs, and tracks receipts?”

Fairness options to tailor

Ratio choice: equal vs. income‑based (e.g., 60/40) for deposit shares and any unassigned common‑area damage.
Holdback design: use a holdback only when someone exits mid‑lease; limit it to proven, documented claims.
Caps: if you want predictability, cap shared cleaning/repair exposure as a percent of combined take‑home—then require landlord proof to exceed the cap.
Guest responsibility: charges caused by a guest are covered by the host roommate.
Room‑specific wear: if a private room needs repainting from ordinary wear, label as ordinary wear and exclude from chargeback unless specific damage is shown with photos and receipts.

Step‑by‑step playbook (from move‑in to move‑out)

Move‑in
- Photograph everything. Complete any required move‑in checklist (Washington requires it) and get it signed.
- Record deposit shares in a written roommate addendum. Note who fronted funds.
During tenancy
- Keep receipts for repairs/cleaning you arrange. Tag notes with dates and locations (e.g., “bedroom wall patch”).
- If your area requires deposit interest or segregation (Chicago; NY large buildings; MA), keep an eye on compliance so you can include interest later.
Someone leaves mid‑lease
- Apply the Replacement & Buyout rule. Decide if a narrow holdback is necessary—only for documented charges beyond ordinary wear.
- If the landlord won’t return deposits until all original tenants leave (UC Berkeley SLS), complete the internal buyout anyway.
Pre‑move‑out
- Request the inspection/walkthrough. Clean and repair minor items beforehand.
- Take pre‑move‑out photos after cleaning, documenting condition room by room.
After move‑out
- Wait for the itemized statement within your jurisdiction’s deadline (e.g., NY 14 days, CA 21, WA 30, Chicago 45, CO 30 default).
- Require receipts/invoices/estimates where applicable (e.g., California threshold for receipts; Washington requires invoices/estimates). Push back on automatic cleaning fees and deductions that look like ordinary wear.
- Reconcile internally using your Allocation, Interest, and Timeline rules.
If deadlines are missed or documentation is lacking
- California guidance says to send a written demand if the 21‑day clock is missed; similar principles apply elsewhere per local rules. Keep your internal settlement consistent with the documented facts.

Ordinary wear and tear vs. damage (how we split)

Use shared examples to avoid debate:

Ordinary wear (not chargeable): minor carpet wear, faded paint, loose door handles from normal use.
Damage (chargeable): large wall holes, broken fixtures, deep stains or burns, pet urine damage beyond ordinary wear.

When in doubt, ask: “Does this restore the unit to move‑in condition, excluding normal wear?” That mirrors the AB 2801 standard. Require the landlord’s itemized statement and photos before you allocate charges internally.
Source: Nolo; AB 2801.

A note on Monee (optional)

If you track shared spending, set simple categories like “Security Deposit” and “Move‑Out Costs,” and keep personal treats separate from joint essentials. Recurring items (rent, utilities) are easy to see at a glance; shared households can log expenses without friction. Data export helps if you need to check who fronted what. Privacy matters to us—no ads or trackers.

Roommate deposit & move‑out addendum (copy‑paste template)

Paste, edit, agree, and sign.

Roommates: [Names]
Address: [Address]
Lease start: [Date]    Anticipated move‑out: [Date]

1) Deposit Shares
- Shares: [Name A: %], [Name B: %], [Name C: %].
- If one person fronts, others owe their shares to that person.
- If law requires deposit interest/segregation, interest is split by the same shares.

2) Documentation
- We complete any required move‑in checklist and take dated photos/videos at move‑in, pre‑move‑out, and move‑out.
- Roles: Documentation Lead [Name]; Landlord Liaison [Name]; Keys/Utilities [Name].

3) Replacement & Buyout
- Exiting roommate is bought out for their share by entering roommate(s) or remaining roommate(s).
- Optional holdback: [Yes/No]. If Yes, holdback only covers documented charges beyond ordinary wear (photos + itemized statement + invoices/estimates).
- If the landlord only returns deposits when all original tenants vacate, we still complete the internal buyout now.

4) Allocation of Charges
- Ordinary wear: never charged to any roommate.
- Clear causation: responsible person covers 100%.
- Unassigned common‑area damage: split by deposit shares [X:Y(:Z)].
- We do not allocate any charge without the landlord’s itemized statement and required documentation. Automatic cleaning fees are not accepted without evidence.

5) Timeline
- We settle internally no later than the strictest applicable return deadline where we live (examples: NY 14 days; CA 21; WA 30; Chicago itemize 30/return 45; CO default 30).
- If the landlord misses the deadline, we proceed favoring the roommate who would otherwise be owed, and we pursue proper documentation from the landlord.

6) Prorated Final Month (Optional)
- If roommates leave on different dates in the last month, we prorate rent/shared utilities by days present.

Signatures & Date:
[Name A, signature/date]
[Name B, signature/date]
[Name C, signature/date]

Quick troubleshooting

“The landlord wants to deduct for general cleaning.”
AB 2801 bans automatic cleaning charges in California; deductions must restore to move‑in condition and be backed by evidence. Ask for the itemized statement and photos/receipts (California requires receipts for deductions above a threshold; Washington requires invoices/estimates). If you can’t get proper documentation, don’t allocate the charge internally.
“They missed the deadline.”
Examples: NY 14 days; CA 21; WA 30; Chicago itemize 30/return 45; CO 30 default. If deadlines are missed, follow your Timeline rule. California advises sending a written demand if the 21‑day clock is missed.
“We swapped roommates mid‑lease; the landlord won’t return anything yet.”
Use your Replacement & Buyout rule. UC Berkeley SLS notes landlords may not return deposits until all original cotenants vacate—so settle internally now, with a narrow, evidence‑based holdback if needed.
“Is interest a thing for us?”
Yes in some places: Chicago requires deposit interest; New York requires it in buildings with 6+ units; Massachusetts has strict handling and interest rules. Include interest in your reconciliation if applicable.

The spirit of the rules

Decide once, then live your life. Revisit only when something changes (e.g., a new roommate).
Separate personal treats; share joint essentials.
Focus on outcomes, not policing—tie every charge to documented facts and fair responsibility.

You’ll leave your home with receipts, photos, and a plan everyone agreed to. That’s what fairness looks like in practice.