A security deposit is a sum of money that a tenant pays to a landlord to guarantee that the tenant
will fulfill all obligations under the lease. The landlord holds the security deposit in trust for the term
of the lease to ensure that the tenant does not default on the terms of the lease agreement or
otherwise damage the property. Should the tenant damage the property (normal "wear and tear"
excluded) or if the Tenant has not paid rent, the landlord is entitled to recover the amount owing
from the security deposit. Usually the tenant must provide the landlord with the security deposit at
the start of the lease term. At the end of the lease term, the tenant will receive the deposit back
minus any allowable deductions for repairs/restoration/owing rent. Some jurisdictions do not allow
deposits to be used for damages and the deposits would be called rent deposits in that case.
