A security deposit is a sum of money that a tenant pays to a landlord at the start of a rental agreement, usually equal to one month’s rent. It is held by the landlord and is intended to serve as a guarantee of the tenant’s performance of their obligations under the rental agreement. The security deposit is designed to protect the landlord from any damage to the rental property caused by the tenant, as well as any unpaid rent or other fees incurred during the term of the tenancy. In some instances, the security deposit may also be used to cover the cost of cleaning or repairs to the rental unit. The security deposit must be returned to the tenant at the end of the tenancy, provided that there is no damage to the property or unpaid rent or other fees. It is important for both the landlord and tenant to keep a record of all payments made in relation to the security deposit.
About the author:
Daniel H. Weberman, The Kabinet Founder – Terry I. Weberman, The Kabinet CPA
Daniel is an attorney and the founder of Kabinet. He is always here to help answer your home ownership questions as well as anything related to using your Kabinet app. Ask Daniel a question by sending an email to info@completehome.io and put “Daniel” in the subject line. This is a complimentary service as part of Kabinet’s commitment to you!
Note
Daniel, The Kabinet Founder, has made every effort to ensure the accuracy of the information within this article was correct at time of publication. He does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause. Speak to your advisor to make sure you qualify for such benefits or opportunities. Do not rely solely on this abbreviated article, it is for informational purposes only.
