Contract Glossary

Security Deposit

Definition

Money paid upfront by a tenant to a landlord as protection against property damage, unpaid rent, or lease violations. The landlord holds the deposit during the lease and must return it, minus legitimate deductions, after the tenant moves out. Every state has specific rules about maximum amounts, holding requirements, and return deadlines.

In Practice

You rent an apartment and pay a $2,400 security deposit (one month's rent). After living there for two years, you move out and leave the unit in good condition with normal wear. The landlord deducts $800 for 'carpet cleaning and repainting.' In most states, normal wear and tear is not a valid deduction, carpets wearing down and paint fading from sunlight are expected after two years of occupancy. If the landlord doesn't return your deposit within the state deadline (often 14-30 days), you may be entitled to double or triple the deposit as a penalty.