← Glossary
Investing
Security deposit
Money a tenant pays at move-in to cover unpaid rent or damage beyond normal wear. State law often caps the amount and sets deadlines for returning it.
Also called: damage deposit, rental deposit
Related terms
Lease
A contract between a landlord and tenant that sets the rent, term, deposit and rules for using a property.
Tenant
A person or business that rents a property from a landlord under a lease.
Landlord
The owner who rents a property to a tenant. Landlords must follow fair housing law and state and local landlord-tenant rules.
Eviction
The legal process a landlord uses to remove a tenant, usually for unpaid rent or lease violations. It must go through the courts, and steps and timelines vary by state and city.