Article / Updated 03-26-2016
Some unsavory landlords treat security deposits as another source of income that’s theirs for the taking. In the eyes of the law, however, a security deposit is actually the resident’s money that the landlord holds in trust for the duration of the lease. Most states restrict landlord use of security deposits to only three or four purposes, including the following:
Compensation for unpaid rent
To repair damage to the rental unit, excluding ordinary wear and tear, caused by the resident or members of his household or guests
To restore or replace property in the unit, such as furniture and furnishings or other items of personal property (including keys) according to terms of the lease, excluding ordinary wear and tear
To clean the rental unit, so it’s as clean as it was when the residents moved in
To recover any portion of the security deposit used by the resident as payment for the last month’s rent
Landlords can withhold from the security deposit only amounts that are reasonably necessary to remedy these damages.