What is the primary purpose of a security deposit?

The primary purpose of a security deposit is to cover potential damages or unpaid rent when the tenant moves out. This deposit acts as a financial safeguard for the landlord to protect against the risk of tenants causing damage to the rental property or failing to fulfill their rent obligations. Upon the termination of the lease, the landlord can assess any damages that exceed normal wear and tear, as well as any unpaid rent, and use the security deposit to cover those costs.

When a tenant moves out, the landlord will typically inspect the property and determine if any deductions from the security deposit are necessary for repairs or unpaid amounts. This practice ensures that landlords have a form of recourse for maintaining the integrity of their property and recovering lost revenue due to tenant actions.