Security Deposit Definition

A security deposit is a lump sum given to a landlord by a tenant at the time of rental. The security deposit is intended to offer some protection to the landlord in the even the property is damaged or then tenant leaves abruptly, without settling the account.

A security deposit is not an application deposit, and if the property is returned in good order and according to the rental agreement the security deposit should be returned (though they are often difficult to reclaim)-in other words, security deposits are refundable (there’s no such thing as a "nonrefundable deposit", because it wouldn’t then be a deposit).