Prepaid rent (last month’s rent)
Rent paid in advance. Whether it counts toward the deposit limit depends on the state.
In Arizona, the 1.5-month cap covers security and prepaid rent together, though a tenant may voluntarily pay more rent in advance (A.R.S. §33-1321(A)). Texas excludes an advance payment of rent from the definition of a security deposit (§92.102). Michigan’s definition of security deposit includes a required prepayment of rent other than the first full rental period (MCL 554.601(d)).
In Texas, you may not withhold the last month’s rent on the theory that the deposit will cover it (§92.108).
Definitions and rules come from each state’s official statute text. This is general information, not legal advice. All terms