The last two years of Iowa landlord law were shaped less by the statehouse than by the courts. In January 2025 the Iowa Supreme Court settled a question that had been jamming nonpayment evictions since the pandemic, and in April 2024 Governor Reynolds signed a trio of real estate bills that changed who can manage rentals and how assistance animal requests work.

The core rulebook, Iowa Code chapter 562A, didn't move at all. That stability is worth something: the numbers below are the same ones you'll be using next year. The condensed version lives on our Iowa quick-reference page; here's the full picture with the statutes behind it.

The January 2025 ruling that put the 3-day notice back in play

On January 24, 2025, the Iowa Supreme Court held in a pair of Linn County cases (MIMGCLXXII Retreat on 6th, LLC v. Miller and its companion) that the federal CARES Act's 30-day notice to vacate applied only during the 120-day federal moratorium in 2020. Before the ruling, Iowa courts had been dismissing nonpayment cases at 'covered' properties, meaning anything with a federally backed mortgage or federal program ties, when the landlord served Iowa's standard notice instead of a 30-day one.

That fight is over in Iowa state court. The 3-day nonpayment notice under Iowa Code § 562A.27(2) controls again, whatever your financing looks like. Iowa was the first state supreme court in the country to rule this way, and courts elsewhere still read the CARES Act differently. If you also hold units in Minnesota or Missouri, don't assume the same answer across the river.

What the April 2024 bills changed for Iowa landlords

Three real estate bills were signed on April 19, 2024. Two matter day to day:

  • SF 2268 rewrote Iowa's assistance animal rules (Iowa Code §§ 216.8B and 216.8C). It spells out what documentation you may request when a tenant asks to keep an assistance or service animal, and when you can lawfully say no: direct threat to health or safety, undue burden, or a fundamental alteration of your operations. It largely tracks federal fair housing guidance, but now it's state law with state enforcement.
  • HF 2326 loosened real estate licensing so owners with a stake in an entity can manage that entity's properties without a broker's license, and unlicensed employees of a licensed broker can advertise, show units, and collect rent on residential rentals.

Beyond that, the legislature left chapter 562A alone in 2024 and 2025. No deposit, notice, or late-fee number moved, which is itself useful to know.

Two months, 30 days, and a bad-faith penalty: Iowa deposits

Iowa caps security deposits at two months' rent (Iowa Code § 562A.12(1)). On a $1,300 unit that's $2,600 total, and 'total' includes anything you label a pet deposit or key deposit. The cap is on the pile, not the label.

Once the tenancy ends and the tenant hands you a forwarding address, you have 30 days to return the money or send a written statement itemizing exactly why you kept any of it (§ 562A.12(3)). Miss that window and you forfeit the right to withhold anything at all (§ 562A.12(4)). Keep money in bad faith and a court can stack punitive damages of up to two months' rent on top of actual damages, plus attorney fees (§ 562A.12(7)).

Two quirks worth knowing. Deposits must sit in a federally insured account, never commingled with your own funds, but interest earned during the first five years of a tenancy belongs to you (§ 562A.12(2)). And if a tenant never provides a forwarding address, the deposit reverts to you after one year.

If you run more than a couple of doors, calendar the 30-day clock the day the keys come back; it's the deadline Iowa small claims judges see blown most often. Rentari tracks state deposit deadlines automatically, but a wall calendar works too.

Iowa's late-fee caps are hard dollar amounts

Iowa is one of the few states that puts specific dollar limits on late fees, and the cap has two tiers (§ 562A.9(4)):

  • Rent of $700 a month or less: no more than $12 per day, and no more than $60 total per month.
  • Rent over $700 a month: no more than $20 per day, and no more than $100 total per month.

A flat '10% late charge' clause, common in leases dragged in from other states, is unenforceable here the moment it exceeds those numbers. Compare Kansas, which has no statutory late-fee cap at all.

There's no statutory grace period in Iowa. Rent is late the day after it's due unless your lease says otherwise, and many Iowa leases build in a short courtesy window anyway.

Entry, rent raises, and ending a month-to-month in Iowa

Give at least 24 hours' notice before entering and come at a reasonable time (§ 562A.19). Emergencies are the exception. Abuse the access right, or use it to harass, and the statute hands the tenant damages and attorney fees.

Rent increases require 30 days' written notice before the effective date, and never mid-lease (§ 562A.13(5)). Ending a month-to-month takes the same 30 days' written notice, timed to land before the periodic rental date (§ 562A.34(2)). There is no rent control anywhere in Iowa, and cities are barred from adopting it (Iowa Code § 364.3(12)).

Disclosures are light. Tell tenants in writing, at or before move-in, who owns or manages the property and who can accept legal papers (§ 562A.13(1)), and explain utility rates and charges before the lease is signed for any utility the tenant doesn't pay directly to the provider. Pre-1978 buildings also carry the federal lead-based paint disclosure. State-specific lease and notice templates are in our forms library.

The Iowa eviction ladder: 3, 7, and 30 days

Every Iowa eviction runs through a forcible entry and detainer action under Iowa Code chapter 648. The notice that starts the clock depends on the problem:

  • Nonpayment: 3-day notice to pay or quit (§ 562A.27(2)).
  • Lease violation: 7-day notice specifying the breach, with the right to cure inside those 7 days. If substantially the same violation repeats within six months, you may serve a 7-day termination notice with no second chance (§ 562A.27(1)).
  • Clear and present danger (illegal weapon use, assault or threats, drug activity): 3-day termination with no cure (§ 562A.27A).
  • Month-to-month, no cause: 30 days before the next rental date (§ 562A.34(2)).

Self-help is off the table. Change the locks or cut the power and the tenant can recover possession, actual damages, punitive damages up to two months' rent, and attorney fees (§ 562A.26).

Habitability duties and the essential-services rule

You're required to keep the unit fit and habitable, comply with housing codes, and keep the electrical, plumbing, heating, and any appliances you supplied in good working order (§ 562A.15). If you materially fail, the tenant can serve their own 7-day notice and terminate the lease if it isn't fixed in time (§ 562A.21).

Cut off heat, water, hot water, or another essential service, deliberately or through neglect, and § 562A.23 lets the tenant buy the service back themselves and deduct the reasonable cost from rent, or take substitute housing while it's out. Outside essential services, Iowa has no general repair-and-deduct statute, which puts it in the landlord-friendlier half of the map. The full chapter text is on the Iowa Legislature site.

Iowa landlord FAQ

Can I charge a pet deposit on top of two months' rent?

No. The two-month cap in § 562A.12(1) covers everything refundable you collect as security, whatever you call it. Monthly pet rent is different: it's a recurring charge, not a deposit, so it sits outside the cap.

Do I owe my tenant interest on the deposit?

Not at first. Interest earned during the first five years of the tenancy is the landlord's property (§ 562A.12(2)). For tenancies that run longer than five years, interest earned after that point is no longer yours to keep, so long-term landlords should track it.

Does the CARES Act still require a 30-day notice at my federally financed Iowa property?

In Iowa state court, no. The January 2025 Iowa Supreme Court decision held the 30-day notice expired with the 2020 moratorium, so the 3-day notice under § 562A.27(2) applies. Multistate owners should check each state, because courts elsewhere have gone the other way.

Is there a grace period before I can charge a late fee in Iowa?

No statutory one. Rent is late the day after the due date unless your lease grants a grace window. Whatever your lease says, the daily and monthly caps in § 562A.9(4) apply from the first dollar.

This guide is general information for Iowa landlords, not legal advice. Statutes get amended and courts keep interpreting them, so before you act on a deadline or notice period, check the current text of Iowa Code chapter 562A or ask an Iowa landlord-tenant attorney.