What Does a Security Deposit Cover?

A security deposit is a payment that a tenant makes before moving in that protects their landlord against financial loss. Once you move out, this money is refundable as long as certain conditions have been met.

As financial protection for the landlord or property owner, a security deposit can be used to remedy certain expenditures if the tenant has not complied with the lease agreement.

The landlord can use the security deposit – plus any accrued interest – to cover:

Early termination
If the tenant leaves before the lease ends, the landlord may retain all or some of the security deposit.

 

Unpaid rent
Landlords are entitled to all rent that is owed.

 

Late charges
If rent is not paid on time, there may be late charges involved.

 

Damages/excessive cleaning costs
If the landlord needs to fix or clean any excessively dirty or damaged areas, the tenant can be charged for the expenses with the security deposit.

 

Other unpaid charges
In addition to the ones listed, the landlord may use the security deposit for unpaid utility bills or the cost for court and attorney’s fees if there are court proceedings regarding the lease agreement.

GOOD TO KNOW
Landlords are legally required to supply a detailed receipt for any part of the security deposit that is not refunded to the tenant at the end of the lease term.

Note that the rate of the security deposit may change due to a tenant’s credit report. Landlords may also advertise for a special discount on security deposits as part of their marketing. Neither are discriminatory practices. However, charging a different amount because of race, color, religion, national origin, sex, disability, familial status or age is a violation of Virginia’s Fair Housing Act.

Finally, you should conduct an in-person inspection of the property before signing the lease. Note any issues (such as a broken doorknob, etc.) and take photos to present to the landlord in a timely manner. Make sure you keep copies for your own records.

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