What Is a Security Deposit?

Definition

A security deposit is money a landlord holds to cover unpaid rent and damage beyond normal wear and tear. It remains your money; the landlord holds it in trust and must return the unused portion under state-specific rules.

Normal wear and tear vs. damage

Faded paint, minor carpet wear, and small nail holes are usually normal wear. Broken fixtures, pet damage, large holes, and heavy staining generally are not. The distinction is where most deposit disputes live.

Protecting your refund

Photograph every room at move-in and again at move-out, with timestamps. Submit a written condition report at the start of the tenancy. Request a pre-move-out inspection where state law provides one, and give your forwarding address in writing so the deadline for returning the deposit starts running.

Legal limits

Many states cap deposits at one or two months' rent, require deposits to be held in a separate account, mandate interest, and set a deadline — often 14 to 30 days — for returning funds with an itemized statement. Check the rule in your state before assuming what is allowed.

Keep reading

• How Much Does It Cost to Move Into an Apartment?

  A line-by-line breakdown of everything due before and on move-in day.

• What Is Renters Insurance?

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