Security Deposit Laws in Alaska

Alaska statues are relatively robust when it comes to security deposits. Landlords are restricted in how much money they can ask for, where they store the deposit, and when they must return the money to tenants.

Security deposits are capped at two months’ rent

Landlords may not charge a non-refundable security deposit in Alaska. In addition, the deposit can’t exceed two months’ rent—unless the rent is more than $2,000 a month, in which case the law doesn’t apply.¹

Deposits must be stored in a bank account or with an agent

Landlords must store security deposits in a bank account or with a licensed escrow agent. Landlords may store prepaid rents and security deposits all together in one bank account, but it’s illegal for them to mix that money with other types of funds.

Landlords cannot use a tenant’s security deposit to:²

• Refund another tenant’s security deposit
• Help pay another tenant’s accrued rent
• Help pay for damages suffered by the landlord because another tenant didn’t comply with their tenant responsibilities as defined by law

Landlords must provide an itemized list of deductions

Alaska landlords are required by law to provide an itemized list of any deductions they take from the security deposit and send it by mail to their tenant's last known address within 14 days of the end of the lease.³

If the landlord “willfully fails” to provide the itemized list in this manner, the tenant has the right to recover up to twice the amount of the money the landlord withheld from the security deposit.⁴

Fourteen-day window to return the deposit

Landlords must return their tenant's security deposit within 14 days of the end of the sublease. They can use the security deposit to cover any unpaid rent at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear.

Landlords are allowed more time—up to 30 days—to return the deposit if:⁵

• The costs being deducted are a direct result of the tenant not complying with their tenant responsibilities as defined by law, or
• The tenant didn’t provide adequate notice of the termination of their tenancy (14 days for a week-to-week tenancy and 30 days for a month-to-month tenancy)

Next steps

Now that the security deposit is settled, it's probably time to sign a lease. Make sure you understand your responsibilities as a landlord or tenant so things go smoothly from day one.

[1] AK Stat § 34.03.070(a)

[2] AK Stat § 34.03.070(c)

[3] AK Stat § 34.03.070(b)

[4] AK Stat § 34.03.070(d)

[5] AK Stat § 34.03.070(g)