A security deposit is money you pay upfront when you sign a lease. Your landlord holds onto the deposit while you live at the rental. It’s refundable, meaning that the full amount should be returned to you when you move out, if you have paid your rent and left the place in a good condition.
Deposits can be large, often running somewhere around one to two months’ rent. They can also hit harder than you expect. Imagine that you’ve set money aside for the first month’s rent, and then the landlord asks for another $1,500 as a security deposit on top of that, due before you even pick up the keys. So, it is important to understand what a security deposit is, what it will cost you, and how to get it back.
Key takeaways:
- A security deposit is refundable money the landlord holds during your lease, not a fee you pay to live at the rental.
- Deposits often cost about one to two months’ rent. Many states cap how much a landlord can ask for a deposit.
- Landlords can only keep the deposit for specific reasons, usually unpaid rent or damage beyond normal wear and tear.
- Documenting the unit’s condition at move-in helps you protect your full deposit.
- After you move out, the landlord generally has a set number of days to return your deposit or explain what they deducted.
What actually is a security deposit?
A security deposit is a financial safety net for the landlord. It covers them if you stop paying rent or damage the rental. You give the security deposit to the landlord upon signing the lease, and they hold it for you until you leave the property. If you have paid the rent, upheld your side of the lease, and left the property in a good condition, you should receive your deposit back.
The specific language can vary. Some landlords call it a “damage deposit” or a “rental deposit.” However, the important question is whether the landlord has made clear that the charge is refundable. If it is not refundable, it is a fee, not a deposit.
How much does a security deposit usually cost?
The common range for a deposit is one to two months’ rent. So, for a place renting at $1,500 per month, the deposit is often somewhere between $1,500 and $3,000. However, the actual deposit amount depends on the property and the location.
Many states set upper limits on how much the landlord can ask for a deposit. For example, New York caps deposits at one month’s rent and Georgia caps it at two months’ rent. Some states, like Texas and Florida, do not have a legal cap in most cases, leaving the deposit amount to the market and the landlord.
You often pay the deposit as part of a larger set of charges paid upon move-in. These charges include move-in fees and first month’s rent. In a single day, you could owe up to two or three times your monthly rent. So, it is important to understand the size of the deposit and plan for it early.
If you want to be very clear on how much deposit is owed, you can ask the landlord. You can also find out about the size of deposits when looking at rentals on Trulia. Listings on Trulia show the deposit amount next to other fees and charges. Knowing all the fees and charges helps you calculate the full cost of moving into the rental and compare costs between homes to find homes that best fit your budget.
What can your landlord deduct from the deposit?
A security deposit can only be used by the landlord to pay for specific costs like rent you did not pay, damage that goes beyond ‘normal wear and tear’, cleaning the home, and replacing items like keys or furniture. If you are up to date on paying the rent and have kept the home in a good condition, you should receive your deposit back.
Normal wear and tear means the slow, ordinary deterioration of the rental that comes from everyday use. Paint that fades over time, a few nail holes from hanging pictures, and carpet that looks a little worn should be normal wear and tear. A home will not look brand new after a year of cooking, walking, and sleeping in it, and a landlord absorbs this deterioration as a cost of renting. You shouldn’t be charged for it.
On the other hand, you can be charged for damage. Damage comes from misuse, neglect, or accidents that go past everyday use. A large hole in the wall, cracked windows, and large stains on the carpet can be classed as damage, which can come out of your security deposit.
Examples of wear and tear compared to damage
| Normal wear and tear (not charged) | Damage (may be charged) |
| Faded paint from sunlight | Large holes or anchor damage in walls |
| Small nail holes from hanging pictures | Stained or burned carpet |
| Carpet worn thin in a hallway | Broken windows or doors |
| Scuff marks near doorways | Pet scratches gouged into hardwood |
| Minor scratches on a countertop | Mold from never ventilating a bathroom |
The line between normal wear and tear and damage can be blurry at the edges. A handful of nail holes is normal but twenty large anchor holes in one wall may not be. As the boundary between wear and tear and damage can feel like a judgment call, a landlord who is looking for reasons to keep your deposit might focus on these gray areas. So, it is important to take steps to protect your deposit.
How do you get your deposit back?
After you hand back the keys, your landlord generally has a set number of days to return your deposit or send an itemized deduction list. The deadline is set by state law.
Some states, like Alaska, Arizona, Nebraska, and New York, give landlords 14 days to return deposits. Many more states, like California and Ohio, give landlords up to 30 days. Some states allow up to 60 days. When a landlord misses the deadline or withholds money without a valid reason, there can be real consequences for them.
How can you protect your deposit?
Getting the full amount back starts the day you pick up the keys, not the day you leave the property. There are many tactics to get your security deposit back.
One effective tactic is to document the home’s condition before you unpack anything and agree on the baseline condition of the property with the landlord. You can walk through the rental with your phone and take photographs or videos of rooms, walls, floors, and appliances. You can get close-ups of scuffs, stains, or marks that already exist in the home. It can be helpful to be thorough and document the home’s condition beyond the surface, even in hard-to-see places like inside the oven or in closets.
Emailing your photos to the landlord that same day creates a timestamped record you can both point to. Having good documentation helps you clearly define the baseline condition of the property. So, if there is any dispute over any damage in the future, you can easily point to whether the damage existed at move in.
You can also do things while living in the rental to minimize the chance of damage. For example, reporting and fixing small problems when you notice them, like a dripping faucet, can avoid them from spiraling into larger issues.
If offered, a pre-move-out inspection could also be helpful. You can ask the landlord to walk through the property a couple of weeks early to flag anything they would deduct for. That gives you time to handle small fixes yourself. Patching a few nail holes with a dollar tube of spackle usually beats paying the landlord’s repair rate for the same thing.
Frequently asked questions
Is a security deposit refundable? Yes. A security deposit is your money held by the landlord. You get it back when you move out, as long as your rent is paid and the home has no damage beyond normal wear and tear. That makes it different from a non-refundable fee.
Can a landlord keep my deposit for normal wear and tear? No. Faded paint, small nail holes, and carpet worn from everyday use count as normal wear and tear, and landlords should absorb that cost. A deposit can only be tapped for damage that goes beyond ordinary living.
How long does a landlord have to return my deposit? It depends on your state, but the window is usually 14 to 60 days.
Do I get interest on my security deposit? In some locations, landlords must hold deposits in interest-bearing accounts and pay the accumulated interest when you move out.
