How to Hold and Return a Security Deposit in Connecticut

You may not charge a security deposit in Connecticut that exceeds more than two month's rent. If your subtenant is age 62 or older, the security deposit may not exceed one month's rent.

Storing the Deposit

Connecticut law states that security deposits must be held in interest-bearing escrow accounts and that any interest accrued on the security deposit must be paid to the tenant. If you fail to do so, you may be subject to a fine of up to $500 or imprisonment for up to 30 days.

Returning the Deposit

You must return your subtenant's security deposit within 30 days of the end of the sublease. You 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. You must provide an itemized list of any deductions you take from the security deposit and send it by mail to your subtenant's last known address within 30 days of the end of the sublease. If you fail to return any or all of the security deposit in this manner, the subtenant has the right to claim up to twice the amount of the security deposit, so follow these instructions exactly. A subtenant also has the right to sue you in Small Claims Court or file a complaint with the Banking Department if you fail to follow the laws governing the return of security deposits.