Connecticut bill limits landlord security deposits to one month's rent

Connecticut's House Bill 6891, introduced on March 26, 2025, aims to reform security deposit regulations for rental agreements, significantly impacting tenants across the state. The bill proposes that landlords cannot demand a security deposit exceeding one month's rent, a notable reduction from the previous allowance of up to two months' rent. This change is designed to alleviate financial burdens on renters, particularly younger tenants who often face challenges in securing housing.

Key provisions of the bill include a stipulation that landlords must return any excess security deposit to tenants who turn 62 years old after paying a higher deposit. This aspect of the legislation seeks to protect older tenants from being penalized financially as they age, ensuring they are not unfairly charged beyond the new limit.

The bill has sparked discussions among lawmakers and housing advocates, with supporters arguing that it promotes fair housing practices and enhances affordability in a tight rental market. Critics, however, express concerns that limiting security deposits could lead to increased rent prices or deter landlords from renting to certain demographics, potentially exacerbating housing shortages.

The implications of House Bill 6891 extend beyond immediate financial relief for tenants. By establishing clearer guidelines for security deposits, the bill aims to foster a more equitable rental environment in Connecticut. As the legislation moves forward, its potential to reshape landlord-tenant relationships and influence rental market dynamics will be closely monitored.

Set to take effect on July 1, 2025, the bill will apply to all rental agreements entered into after this date, marking a significant shift in Connecticut's housing policy. As the state grapples with housing affordability issues, House Bill 6891 represents a proactive step toward creating a more accessible rental landscape for all residents.