Published 2026-09-27 · 11 min read

Oklahoma Security Deposit Law 2026: Limits, Deadlines & Deductions

Oklahoma puts its deposit regime in one section: Okla. Stat. tit. 41, § 115, of the Oklahoma Residential Landlord Tenant Act, subsections (A)–(G). Subsection (A) is the custody rule: any damage or security deposit must be kept in an escrow account for the tenant, maintained in Oklahoma with a federally insured financial institution, and misappropriation is unlawful. Subsection (B) controls the ending: on termination the deposit may be applied to accrued rent and to damages suffered by reason of the tenant's noncompliance with the Act and the rental agreement, itemized in a written statement delivered by return-receipt mail or in person, and if the landlord proposes to retain any portion, the balance must be returned without interest within 45 days after termination of tenancy, delivery of possession, and written demand by the tenant have all occurred — and if the tenant makes no written demand within 6 months after termination, the deposit reverts to the landlord. Subsection (C) covers cessation of the landlord's interest, (D) gives a transferee the rights and obligations of a landlord holding deposits, (E) gives the tenant a recovery for noncompliance, (F) bars applying the deposit to the last month's rent, and (G) preserves other damages under the Act. The section was added by Laws 1978, c. 257, § 15, amended in 1980 and 1981, and amended by Laws 2015, c. 94, § 1, effective November 1, 2015 — the 30-to-45-day amendment.

The short version: Section 115 sets no maximum deposit amount — the section contains no cap at all. Every deposit dollar must sit in an escrow account for the tenant, maintained in Oklahoma with a federally insured financial institution (§ 115(A)), and taking that money for yourself is a crime: up to 6 months in county jail and a fine up to twice the amount misappropriated. Diary 45 days after termination of tenancy, delivery of possession, and the tenant's written demand — all three — for returning the balance without interest, with a written itemized statement delivered by mail, return receipt requested, or in person to the tenant if he can reasonably be found (§ 115(B)). No written demand within 6 months after termination and the deposit reverts to the landlord and the tenant's interest terminates (§ 115(B)). The tenant shall not apply or deduct any portion of the deposit from the last month's rent (§ 115(F)).

What the earlier version of this page got wrong: (1) It omitted subsections (D), (E), (F), and (G) entirely — a transferee's rights and obligations, the tenant's subsection (E) recovery of the deposit and prepaid rent, the subsection (F) ban on applying the deposit to the last month's rent, and subsection (G)'s preservation of other damages are all in the section and covered below. (2) Its penalty section invented a civil claim, saying tenants can sue over fraudulent deposit transactions and that blowing the deadline exposes the landlord to return of the full amount; § 115 contains no such sentences — the civil recovery the section actually gives is subsection (E), together with subsection (G). (3) It said that on a change of ownership the holder must "transfer or account for" the deposits; no "account for" option exists in subsection (C) — the text gives exactly two options, transfer to the successor with written notice to the tenants, or return the deposits to the tenants, at the holder's option or pursuant to court order, on the cessation events the subsection lists. (4) Its itemization summary dropped two delivery details from subsection (B): return-receipt mail must be signed for by a person of statutory service age at that address, and in-person delivery is to the tenant only if he can reasonably be found. (5) It credited the 45-day period to "HB 1577 (2015)"; that citation is wrong — the correct history is Laws 2015, c. 94, § 1, effective November 1, 2015, on Laws 1978, c. 257, § 15, as amended in 1980 and 1981.

Oklahoma's 45-day clock only starts on a written demand — miss the mechanics and the deposit is at risk. Track every deadline with the Security Deposit Disposition & Deadline Tracker ($14.95).

The statute table

Limits: how much can you charge?

Section 115 sets no cap. There is no maximum deposit amount anywhere in the section — not one month, not two months, no figure at all. What you charge is a market and lease question, not a statutory one. Two consequences follow from the text that does exist:

• The escrow rule is the control instead of a cap. Subsection (A) requires any damage or security deposit to be kept in an escrow account for the tenant, maintained in Oklahoma with a federally insured financial institution. The statute controls the money by controlling its custody, not its size. Check your figures with the Security Deposit Max Checker.
• No cap in § 115 is not a promise about every other rule. A lease term or another Act provision may still bear on a tenancy. Do not cite § 115 for a maximum, because it contains none.

The 45-day deadline, precisely

Subsection (B) controls the ending. Upon termination of the tenancy, deposit money may be applied to the two permitted categories only (accrued rent, and noncompliance damages). Every application must be itemized in a written statement delivered as the subsection allows, and if the landlord proposes to retain any portion, the landlord shall return the balance without interest within 45 days after the three subsection (B) events have all occurred. Diary the date with the Security Deposit Deadline Finder.

When the clocks actually start

• Return of the balance (§ 115(B)): 45 days after termination of tenancy, delivery of possession, and written demand by the tenant. All three must have occurred — the clock runs from the last of the three, not the first.
• The tenant's demand window (§ 115(B)): 6 months after termination to make the written demand. No written demand within that period and the deposit reverts to the landlord in consideration of the costs and burden of maintaining the escrow account, and the tenant's interest terminates.
• Itemization delivery (§ 115(B)): the written statement is delivered by mail, return receipt requested, to be signed for by any person of statutory service age at that address, or in person to the tenant if he can reasonably be found. Regular first-class mail is not one of the stated methods.
• Cessation of the landlord's interest (§ 115(C)): no fixed day count — the holder must act within a reasonable time after the interest ceases, including on sale, assignment, death, bankruptcy, or appointment of a receiver.

A worked example

Rent is $1,200 a month; you hold a $1,800 deposit — lawful, because § 115 sets no cap — in an in-state, federally insured escrow account for the tenant. The tenancy terminates, the tenant delivers possession, and the tenant makes written demand, all on Monday, March 2, 2026.

• Return deadline (§ 115(B)): the balance is due within 45 days after March 2, 2026 — Thursday, April 16, 2026 — because all three triggers occurred on March 2.
• Lawful deductions total $650 (accrued rent and documented noncompliance damages), each line itemized in the written statement. Balance: $1,800 − $650 = $1,150, without interest, due April 16, 2026.
• Deliver the itemized statement by mail, return receipt requested, signed for by a person of statutory service age at the address, or in person to the tenant if he can reasonably be found — and return the $1,150 by April 16 — and subsection (B) is satisfied.
• The demand counterfactual: if the tenant makes no written demand by Wednesday, September 2, 2026 — 6 months after termination — the deposit reverts to the landlord and the tenant's interest terminates (§ 115(B)).
• The custody counterfactual: if instead the $1,800 is taken out of escrow for the landlord's own purposes, subsection (A) prices the misappropriation at a fine of up to twice the amount taken — $3,600 — plus up to 6 months in county jail.

Deductions and the itemized list

Subsection (B) permits applying deposit money on termination toward two categories only:

1. Accrued rent (§ 115(B)). Rent that has accrued — stated flatly, with no further qualifier in the text.

2. Noncompliance damages (§ 115(B)). Damages the landlord has suffered by reason of the tenant's noncompliance with the Act and the rental agreement — note that the official text joins the two sources with "and": the Act and the rental agreement. Damage with no duty in the Act and no term in the rental agreement behind it is outside this paragraph — the category is causation-based, not a general damage bucket. The "other legally allowable charges" phrase does not widen these two categories — tie every retained dollar to a basis you can name.

Everything you apply must be itemized in a written statement delivered by one of the two stated methods: by mail, return receipt requested, to be signed for by any person of statutory service age at that address, or in person to the tenant if he can reasonably be found. The qualifiers matter The statute states no depreciation schedule and no receipt-or-estimate rule, so keep invoices, dated photos, and move-in and move-out records behind every line. Build the letter with the Security Deposit Deduction Letter Generator.

Move-out compliance checklist

1. At collection, open the escrow correctly — an escrow account for the tenant, maintained in Oklahoma with a federally insured financial institution (§ 115(A)). Record institution, account, and amount.

2. Never touch the escrow for your own purposes — misappropriation is unlawful under § 115(A), priced at up to 6 months in county jail and a fine up to twice the amount taken. No borrowing against it.

3. Tell the tenant, in writing, how to demand the deposit — the 45-day clock needs the tenant's written demand, and the demand window closes 6 months after termination (§ 115(B)). Put it in the lease and in every move-out communication.

4. Log all three end events the day each happens — termination of tenancy, delivery of possession, and the tenant's written demand. Diary day 45 from the last of the three.

5. Inspect at once and sort every charge into accrued rent or damages from noncompliance with the Act and the rental agreement — striking any charge with neither basis in the text, and itemizing every surviving line.

6. Deliver the statement the statute's way, and return the balance without interest by day 45: the itemized written statement by mail, return receipt requested, signed for by a person of statutory service age at the address, or in person to the tenant if he can reasonably be found — together with the balance. Keep the receipt.

7. On any sale or other cessation, deal with the deposits within a reasonable time — either transfer them to the successor in interest and notify the tenants in writing of the transfer and the transferee's name and address, or return them to the tenants (§ 115(C)). There is no third option in the text, and a transferee steps into the full rights and obligations of a landlord holding the deposits (§ 115(D)).

Interest and where the money sits

Where the money sits, § 115(A) is specific. Any damage or security deposit shall be kept in an escrow account for the tenant, maintained in the State of Oklahoma with a federally insured financial institution. An out-of-state account, a personal operating account, or cash in a drawer each fail the sentence on its face. The reversion rule is framed around the same account: an undemanded deposit reverts in consideration of the costs and burden of maintaining the escrow account.

Interest is equally direct: no interest is owed. Subsection (B) states that when the landlord proposes to retain any portion of the deposit, the landlord shall return the balance without interest within the 45 days. There is no rate, threshold, or anniversary payment in the section.

On a change of holder, the money follows subsection (C), not custom. Upon cessation of the landlord's interest — including sale, assignment, death, bankruptcy, appointment of a receiver, or otherwise — the person in possession of the deposits shall, within a reasonable time, at his option or pursuant to court order, do one of two things: (1) transfer the deposits to the successor in interest and notify the tenants in writing of the transfer and of the transferee's name and address; or (2) return the deposits to the tenants. A transferee who receives deposits under the first option then has all the rights and obligations of a landlord holding deposits under the Act (§ 115(D)) — the escrow, 45-day, and subsection (E) duties travel with the money.

The penalty, spelled out

Oklahoma's penalty scheme has a criminal head and a civil tail, both stated in the section itself.

• Misappropriation is a crime (§ 115(A)). It is unlawful to misappropriate a deposit held in the escrow account, punishable by confinement in the county jail not to exceed 6 months and a fine not to exceed twice the amount misappropriated. On the worked example, taking the full $1,800 prices at a fine of up to $3,600 plus up to 6 months in county jail. The trigger is misappropriation of escrow money — not a late refund or a disputed deduction.
• Failure to comply gives the tenant a recovery (§ 115(E)). If a landlord or manager fails to comply with § 115, or fails to return any prepaid rent required to be paid under the Act, the tenant may recover the damage and security deposit and prepaid rent, if any. The earlier version of this page replaced it with an invented claim about suits over fraudulent deposit transactions and automatic return of the full amount for blowing the deadline; neither sentence is in § 115, and both are removed.
• Other damages survive (§ 115(G)). Section 115 does not preclude the landlord or the tenant from recovering other damages to which he may be entitled under the Act. Subsection (G) is a preservation clause, not a multiplier, and states no amount of its own.
• The tenant's side of the ledger (§ 115(F) and (B)). A tenant who makes no written demand within 6 months after termination loses the deposit to reversion (§ 115(B)), and a tenant shall not apply or deduct any portion of the deposit from the last month's rent, or use it in lieu of rent, except as otherwise provided by the rental agreement (§ 115(F)). Both rules are stated as direct consequences in the text.

FAQ

Is there really no maximum deposit in Oklahoma?

Correct — § 115 sets no cap. The control is custody: an escrow account for the tenant, in Oklahoma, with a federally insured financial institution (§ 115(A)).

Do I owe the tenant interest on the deposit?

No. Subsection (B) states the balance is returned without interest. No rate, threshold, or annual-payment rule appears in § 115.

Where exactly must the deposit be held — and can I use it while I hold it?

In an escrow account for the tenant, maintained in Oklahoma with a federally insured financial institution (§ 115(A)). Using it for your own purposes is misappropriation, punishable by up to 6 months in county jail and a fine up to twice the amount misappropriated (§ 115(A)).

When does the 45-day return clock actually start?

Only when all three subsection (B) events have occurred: termination, delivery of possession, and written demand. The balance is due within 45 days after the last of the three.

What can the deposit be applied to, and how must the itemization be delivered?

Two categories (§ 115(B)): accrued rent, and damages suffered by reason of the tenant's noncompliance with the Act and the rental agreement. Every deduction must be itemized in a written statement delivered by mail, return receipt requested, to be signed for by any person of statutory service age at that address, or in person to the tenant if he can reasonably be found.

What if the tenant never asks for the deposit back?

If the tenant makes no written demand within 6 months after termination, the deposit reverts to the landlord in consideration of the costs and burden of maintaining the escrow account, and the tenant's interest in the deposit terminates (§ 115(B)).

Can the tenant apply the deposit to the last month's rent?

No — this is one rule § 115 states expressly. Except as otherwise provided by the rental agreement, a tenant shall not apply or deduct any portion of the deposit from the last month's rent, or use or apply the deposit at any time in lieu of payment of rent (§ 115(F)).

What happens if the landlord fails to comply — or the property is sold mid-tenancy?

On noncompliance, subsection (E): the tenant may recover the damage and security deposit and prepaid rent, if any — and subsection (G) preserves other damages under the Act for either side. On a sale or other cessation, subsection (C): the holder must, within a reasonable time, either transfer the deposits to the successor and notify the tenants in writing of the transfer and the transferee's name and address, or return the deposits to the tenants — and the transferee then holds them with all the rights and obligations of a landlord under the Act (§ 115(D)).

Read the statute yourself

Primary sources:

• Oklahoma Statutes, Title 41 — Landlord and Tenant (Oklahoma Legislature, oklegislature.gov, official PDF) — official Title 41 text; § 41-115 at page 20, subsections (A)–(G), with its history line. Verified live October 15, 2026.
• Okla. Stat. tit. 41, § 115 (Justia) — the section in Justia's 2025 Oklahoma Statutes, for cross-checking the subsection (A)–(G) text against the official version. Verified live October 15, 2026. Cornell LII's Oklahoma URL resolved to the Oklahoma Administrative Code index rather than the statute text, so it is not linked.

The deposit is only one piece of Oklahoma compliance. Our full Oklahoma landlord-tenant law guide covers the rest of the relationship — rent and fees, termination notices, habitability and the parties' duties, tenant remedies when the landlord breaches, entry and abandoned property, and forcible entry and detainer.

More security deposit guides

• Security deposit laws by state
• Ohio security deposit law
• Oregon security deposit law
• North Dakota security deposit law
• Pennsylvania security deposit law

Last verified: October 15, 2026. This is general information, not legal advice. Verify with a licensed Oklahoma attorney before acting.