Legal Glossary
Security Deposit
Money paid to a landlord before moving in, held as protection against unpaid rent or damage beyond normal wear and tear.
Legal Definition
A security deposit is a sum of money paid by a tenant to a landlord at the start of a tenancy, held by the landlord as financial protection against unpaid rent, damage to the property beyond normal wear and tear, or other lease violations. At the end of the tenancy, the landlord must return the security deposit within a legally defined period (usually 14–30 days, varying by state), minus any documented, legitimate deductions. Many states require the deposit to be held in a separate escrow account and prohibit landlords from using it during the tenancy.
In Plain English
A security deposit is money you give your landlord when you move in, held 'just in case' something goes wrong — you damage the apartment, miss rent, or violate the lease. The deposit is yours: the landlord holds it temporarily, not as income. When you move out, they must return it minus any legitimate deductions. What's legitimate: actual damage you caused (beyond normal wear and tear). What's not legitimate: routine cleaning, carpet replacement from normal use, paint touch-ups from ordinary scuffs. Many landlords abuse security deposits — knowing your state's rules (how long they have to return it, what they can deduct, what's required in the itemized statement) is essential to getting your money back.
Real-World Example
Lisa pays a $2,400 security deposit when she rents an apartment. When she moves out after 18 months, the landlord deducts $400 for a broken window she caused and $150 for a large stain on the carpet. The deductions are legitimate. The landlord must return the remaining $1,850 within the state-mandated period (in California, 21 days). If the landlord misses the deadline or makes deductions for normal wear and tear (like minor scuffs on walls), Lisa may be entitled to the full deposit plus additional damages under state law.