Security deposit
Names and abbreviations on this page
CFPB — Consumer Financial Protection Bureau. United States regulator for consumer financial products.
Housing terms & practical skills
What it means
A security deposit is money held in connection with a rental agreement to cover permitted obligations, such as certain unpaid amounts or damage. It is different from an application fee. Whether and how it is refundable depends on the agreement and local law.
Related skills
Separate chargesIdentify the deposit, rent and nonrefundable fees.
Document conditionKeep dated move-in and move-out records.
Track communicationSave receipts and written requests about deductions.
An everyday example
If first month's rent is $1,200 and a separate deposit is $1,200, the initial payment is $2,400 before any other permitted charges. In the spending plan, show the deposit on the move-in date and keep a separate record of the amount being held.
What to check
Do not assume the deposit can replace the final rent payment. Check local rules and the signed agreement for return procedures and deadlines.