Each state has regulations that govern security deposits. It’s important that both landlords and tenants know and understand these laws. Landlords need to follow these laws and stay in compliance, while tenants need to understand their rights and responsibilities under the statutes.
A security deposit first indicates to the landlord in the initial stage of a rental agreement that the tenant is serious about renting the unit and assures the tenant that the unit is being held for their occupancy. More importantly, security deposits serves to ensure that a landlord is compensated, at least in part, for any loss, if a tenant is responsible for any damage to the rental property beyond ordinary wear and tear, or vacates the unit without notice and first paying delinquent rent.
See our state-by-state guides below: