Security Deposit


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Security Deposit

Money aside from the payment of rent that a landlord requires a tenant to pay to be kept separately in a fund for use should the tenant cause damage to the premises or otherwise violate terms of the lease.

A security deposit is usually in the amount of one or two months' rent. It usually must be paid at the time that the Landlord and Tenant sign the lease. The landlord must place the funds in an escrow account and give the tenant any interest generated by such funds. Upon the termination of the lease, the landlord must return the security deposit to the tenant if no violations of the lease occurred. He or she may keep the security deposit or portion thereof for the amount of any damages, which can be proven, pursuant to the terms of the lease.

Cross-references

Landlord and Tenant.

security deposit

n. a payment required by a landlord from a tenant to cover the expenses of any repairs of damages to the premises greater than normal "wear and tear." The security deposit must be returned within a short time (varying by states) after the tenant vacates, less the cost of repairing any unusual damage. Unfortunately for tenants these damages are usually subject to the judgment of the landlord, who may desire to paint and refinish on the tenant's money, and is thus, resulting in many small claims suits. In a few states the security deposit must be kept in a separate bank account, and some states require payment of interest on the amount held as a deposit. A security deposit is sometimes confused with a deposit of the "last month's rent," which may be credited to the tenant for the final month's rent. A security deposit cannot be used legally as a rent credit. (See: landlord and tenant, rent, lease)

References in periodicals archive ?
If I do not hear from you on or before December 28, 2012, I will file an application for return of my security deposit with the Residential Tenancy Dispute Resolution Service.
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Madison Apartment Group also requires that renters with a conditional credit profile pay a combination of the surety bond and cash deposits, if they chose the security deposit alternative over the traditional security deposit.
Non concession concessions such as security deposit alternatives are a good example of how they can do just that.
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With headquarters in New Jersey, and offices in Pennsylvania, Massachusetts, Georgia, Florida, Texas, Illinois and California, SureDeposit is a leader in the five-year old industry of security deposit alternatives.
SureDeposit, the nation's leading alternative to security deposits, has relocated its corporate headquarters to 14 Main St.
Trinity Management claimed that the initiation fee was not a security deposit because its purpose was to cover expenses incurred before the start of the lease.
IHG will provide a $20 million security deposit to secure the Owner's Priority payment and payment of HPT's Owner's Priority is supported by a limited guaranty from IHG.
Converge Services Group recently acquired the leading security deposit alternative, SureDeposit, and is relaunching the company nationally by expanding its marketing program, management team, and sales force.
Never give anyone a security deposit before claiming a lottery

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