Rates: What Is A Security Deposit?

A security deposit (also called damage deposit) is provided by the renter as collateral against accidental damage to the rental property. The property owner holds this amount until the renters have left and if the property is damaged a part or all of the security deposit may be retained by the owner to cover repair costs.

Your rental agreement should communicate to renters exactly what type of damage can result in partial or full loss of the security deposit.