Security deposit
Money a tenant pays up front to secure performance of the lease, returned at move-out minus lawful deductions.
A security deposit protects the landlord against unpaid rent and damage. When you move out, the landlord must return it, or explain in writing what was kept and why, within a deadline set by state law.
States define the deposit differently. Texas excludes a rental application deposit and advance rent from the definition, while Michigan counts a required prepayment of rent (other than the first full rental period) as part of the deposit.
Statutory definition
A security deposit is any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant.
Tex. Prop. Code §92.102
Security deposit by state
| State | Rule | Statute |
|---|---|---|
| New York | Maximum one month’s rent (most rentals) | GOL §7-108(1-a)(a) |
| Michigan | Maximum 1.5 months’ rent | MCL 554.602 |
| Arizona | Maximum 1.5 months’ rent, including prepaid rent | A.R.S. §33-1321(A) |
| North Carolina | 2 weeks’ rent (weekly), 1.5 months’ (monthly), 2 months’ (longer terms) | §42-51(b) |
| Washington | Written lease and signed move-in checklist required before collecting | RCW 59.18.260 |
| Florida | Held in a Florida bank account or covered by a surety bond | Fla. Stat. §83.49(1) |
Definitions and rules come from each state’s official statute text. This is general information, not legal advice. All terms