LawyerLandLegal Glossary

Security Deposit

Money a tenant leaves with a landlord against damage or unpaid rent - held under state rules that usually require an itemised accounting within a fixed period after move-out.

Informational only - this is not legal advice. These definitions explain general legal vocabulary in plain English. They are not advice about your situation, reading them creates no attorney-client relationship, and the law differs from state to state and changes over time. For advice you can rely on, speak to a lawyer licensed in your state.

What it means

A security deposit remains the tenant's money held by the landlord for a limited purpose. Nearly every state regulates it, and the rules commonly cover how much may be collected, whether it must be held in a separate or interest-bearing account, and what it may be applied to - typically unpaid rent and damage beyond ordinary wear and tear, but not the ordinary consequences of someone having lived there.

The provision that decides most disputes is the accounting deadline. States generally require the landlord, within a set period after the tenancy ends, to return the deposit or provide an itemised written statement of what was withheld and why. Missing that deadline can forfeit the right to withhold anything at all, and a number of states add a penalty - sometimes a multiple of the deposit - where the failure is wrongful.

The recurring fight is the line between damage and wear and tear. Documented condition at move-in and move-out is what resolves it, and its absence is why so many of these disputes come down to two competing recollections.

Where this comes from

Security deposits are governed by state - and sometimes municipal - landlord-tenant law, and there is no federal statute on the subject. Deposit caps, holding and interest requirements, the length of the accounting deadline and the penalty for wrongful withholding all differ by jurisdiction, and local ordinances in some cities are more protective than the state rule.

When people hire a lawyer for this

These claims are usually small enough for small-claims court, so the useful advice is often about the deadline and the paperwork rather than about litigation. It is worth asking when a deposit is withheld without an itemised statement, when the amounts charged look like ordinary wear, or when the sum is large - and worth knowing that a landlord who misses the statutory deadline may have lost the ability to withhold regardless of the condition of the property.

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Part of the LawyerLand plain-English legal glossary. Definitions are written from primary sources - statutes and court rules - and each entry states the authority it rests on, or says plainly when the doctrine is state law with no national rule.