Security Deposit
Money paid by a tenant to a landlord at lease start, held as security against damages or unpaid rent, with return governed by state law.
A security deposit is an upfront payment a tenant makes to a landlord—typically one to two months' rent—to cover potential damages beyond normal wear and tear, unpaid rent, or cleaning costs at move-out. State laws heavily regulate security deposits: many cap the amount, require landlords to hold deposits in separate interest-bearing accounts, and mandate itemized return within a specific period (usually 14–30 days of vacancy).
Landlords may deduct for actual damage caused by the tenant beyond normal wear and tear. Normal wear and tear—minor scuffs on walls, carpet aging, small nail holes—is not deductible. Tenants protect themselves by documenting unit condition at move-in with dated photos and requesting a move-out walkthrough.
If a landlord wrongfully withholds a security deposit, most states provide strong remedies: the tenant may recover double or triple the wrongfully withheld amount plus attorney fees in small claims court.
Real-World Example
The landlord deducted $800 from the $2,000 deposit for cleaning and carpet staining; since the tenant had documented the pre-existing stain at move-in, she disputed and recovered $600 in small claims court.