Security deposit rules explained

A security deposit is money held by the landlord to cover unpaid rent or damage beyond normal wear and tear.

It is not an extra month's rent — it must be returned when the tenant moves out, minus lawful deductions.

One month's rent is common for residential leases. Some states cap deposits at one or two months' rent.

Separate pet deposits or fees may be allowed where permitted by law.

Unpaid rent and utilities

Damage beyond normal wear (holes in walls, broken appliances due to misuse)

Cleaning required to return unit to rentable condition (if lease specifies)

Normal wear — faded paint, minor carpet wear — is generally not deductible.

Many US states require deposit return within 14–30 days with an itemized deduction list.

Document condition at move-in and move-out with photos and a signed checklist.

AgreementKit templates are for informational purposes only and do not constitute legal advice. Laws vary by state, province, and country — consult a qualified attorney before signing any lease or bill of sale.