what is security deposit for rent

A security deposit is a set amount of money that a tenant pays to a landlord before moving into a rental property. Essentially, its like insurance for the managers/owners to protect their property from damage. The amount of money varies by state or property, but in general, the amount of the security deposit will be the equivalent of one month’s rent, or maybe two. The security deposit is not a part of the monthly rent. It is a one-time deposit of money given to the landlord at the time of lease signing to ensure that rent will be paid and other responsibilities on the lease are performed. The landlord holds the deposit throughout the rental agreement or lease, and it pays for any damage the renter caused in the unit until the end of the lease period. If there is damage, the renter will lose some or all of the money. Normal wear and tear should not lose the money, however. The handling of tenants security deposits may be part of your states laws. Many states require landlords to keep deposits separate from other income (sometimes in an interest-bearing account). The landlord has a certain number of days, usually 21, to return the deposit after the lease ends.