Security Deposit

(redirected from Security Deposits)
Also found in: Dictionary, Thesaurus, Financial.

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 ?
We also would like to clarify and reiterate that the refundable security deposits for apartments and villas have not changed.
You may also be wondering whether your landlord can make deductions from your security deposit and charge you for cleaning .
Programs like Rent From Payroll, which autodrafts payments from a resident's paycheck provides a better point-of-lease option to ensure future rent payments, unlike increased security deposits.
As for the security deposits, landlord-tenant experts say state law sides with the tenants.
The Dewa would like to emphasise that all security deposits are fully-refundable on settling the final bill, so that residents will continue to receive world-class electricity and water services," it added.
5 %) of the total votes cast in a constituency from where he contests the polls, his security deposit would be forfeited.
We suggest that you understand your state real estate license laws when it comes to the proper method of handling tenant security deposits.
Earlier, fishermen in Puducherry had availed loans for purchase of fishing boats and country crafts and, as per the design of this scheme, security deposit was obtained from these fishermen in the form of cash.
The guaranty most favorable to the landlord requires delivery of vacant possession of the premises with all monetary and performance obligations fulfilled through the date of delivery of possession, including the restoration of the security deposit.
The use of a security deposit for commercial landlords is governed by California Civil Code Section 1950.
After getting the uncle's security deposit back, Galatzan walked over to Los Angeles County Supervisor Zev Yaroslavsky's Van Nuys office and talked to his field deputy, Benita Trujillo.

Full browser ?