Security deposit
A security deposit is money a tenant pays at the start of a lease that the landlord or manager holds to cover unpaid rent, damage beyond normal wear, or other lease obligations. It is the tenant’s money, held in trust, and is returned at move-out less any allowed deductions.
At move-out
- The unit is inspected and any deductions are itemized.
- Allowed deductions can include unpaid rent, cleaning, and damage beyond normal wear.
- The remaining deposit is returned to the tenant, often within a state-defined window.
Deposit limits, interest, and return deadlines are set by state and local law. This is general information, not legal advice.
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