A security deposit is money a tenant gives a landlord to cover certain losses such as unpaid rent or damage beyond normal wear and tear.
Why It Matters
Security deposits matter because they often become a major source of dispute at move-out. The law may regulate how deposits are held, applied, documented, and returned.
Where It Appears
This term appears in lease drafting, move-in and move-out procedures, landlord-tenant litigation, and property-management practices.
Practical Example
A tenant pays a deposit at the start of the lease, and the landlord later withholds part of it for documented repair costs beyond ordinary use. That dispute centers on the security deposit.
How It Differs From Nearby Terms
Rent is the recurring payment for occupancy. A security deposit is separate money held against certain future losses. An eviction notice is different because it concerns termination or enforcement, not deposit handling.
Related Terms
Knowledge Check
- What is a security deposit for? It is usually held to cover unpaid rent or certain property damage beyond normal wear and tear.
- How is a security deposit different from rent? Rent pays for occupancy, while a security deposit is held against certain possible losses.