What are rental security deposits?
Most leases require tenants to give their landlords a security deposit. The security deposit is usually based upon the monthly rent. A typical security deposit equals one month’s rent. The landlord is obligated to return the security deposit, minus any justifiable deduction, to the tenant at the end of the lease or within a reasonable time after termination thereof. Generally, a landlord may use the security deposit: (1) as reimbursement for the reasonable cost of repairs to the premises beyond normal wear and tear, if the tenant damages the apartment; or (b) as reimbursement for any unpaid/additional rent which may become due during the term of the lease. Landlords must treat the deposits as trust funds belonging to their tenants and they may not merge deposits with their own money. Landlords of buildings with six or more apartments must maintain all security deposits in bank accounts earning interest at the prevailing rate. Tenants must be informed, in writing, of the bank’s name and
