How Much Is the Security Deposit and Will You Get It Back?

You may have heard the term “security deposit” before if you’ve ever rented a home or are about to sign your first lease. It’s the money you pay up front before you move in to protect the landlord in case something goes wrong.

• But what is it really for?
• What should you expect to pay?
• And maybe the biggest worry of all: will you really get it back?

This guide tells you everything you need to know about security deposits for renting a house, including how they work, how much they cost, and what factors will determine whether or not you get your money back.

We’ll also answer some of the most common questions:

• How much do you usually have to pay as a security deposit to rent a house?
• Is a security deposit counted as rental income?
• Is the first month’s rent the same as the security deposit?

Let’s get to work.

What is a security deposit for renting a house?

A security deposit is money that a tenant gives to a landlord before moving into a rental property. It’s basically a type of insurance that protects the landlord from losing money on unpaid rent, repairs, or other problems if the tenant breaks the lease.

It’s important to remember that the landlord doesn’t own the deposit outright. During the lease, it is kept in trust. If everything goes well, you’ll get it back after you move out, which is usually within a few weeks.

Why landlords need it?

The purpose of security deposits is to cover:

• Any damage that isn’t normal wear and tear
• Not paying rent or ending a lease early
• Cleaning costs too much if the property is left in bad shape

Even though it may seem like a lot of money up front for tenants, it also makes them more responsible and gives both sides a sense of safety.

What is the average security deposit for a rental home?

In the United States, the average security deposit for renting a house is usually equal to one month’s rent. But it can be anywhere from half a month’s rent to two months’ rent, depending on a number of things.

The amount depends on a few things:

• Location: Some states have rules about how much landlords can charge.
• Rental market: Landlords may charge a little more in competitive areas to protect their investment.
• Credit history: Tenants with good credit and a long history of paying rent on time may pay less.
• Pets: If you want to rent a home that allows pets, you may have to pay an extra pet deposit or fee.
• Furnishings: Homes that come with all the furniture or are very nice may need bigger deposits.

It’s okay to ask before you sign the lease if you’re not sure what’s normal in your area. Being open and honest helps both sides understand what to expect.

Is the security deposit the same as the rent for the first month?

This is one of the most common mistakes people make when renting. The first month’s rent and the security deposit are not the same thing. They are two different payments that serve very different purposes.

This is the difference:

• First Month’s Rent: This is the rent for the first month you live in the property.
• Security Deposit: This is money that is held as collateral to protect against damage or missed payments.
• Most of the time, you’ll have to pay both amounts before you move in.

Some landlords may be willing to work with you, such as letting you use your deposit to pay your last month’s rent. However, this must be clearly stated in your lease. It’s usually not okay to do it any other way.

So no, the deposit isn’t your first month’s rent. If you think it is, you might be in for a nasty shock later.

Can I get my security deposit back?

Yes, in most cases the security deposit is refundable. You just have to follow all the rules of your lease and return the property in good shape.

That means:

• You paid your rent on time.
• You didn’t cause major damage
• You cleaned up before you moved out.
• You gave the right amount of notice and gave back the keys.
• You should get your full deposit back, usually within a few weeks of moving out, if everything is in order.

But landlords can legally take money out of your deposit if

• You leave behind damage that isn’t normal wear and tear.
• You don’t pay your rent or break your lease early.
• You leave the house too dirty or full of things.

What is “normal wear and tear”?

This phrase can be hard to understand. Things like this are usually included:

• Small holes in the nails or scuff marks on the walls
• A little worn carpet or floor
• Faded paint or discoloration from the sun

In short, anything that happens naturally over time because you use it a lot. But big stains, broken fixtures, or holes in doors usually go beyond that and can cause deductions.

Is a security deposit considered rent?

This question is most important for landlords, but tenants should also know the answer.

Most of the time, a security deposit isn’t considered rental income, at least not when it first comes in. This is because the money is meant to be given back to the tenant.

But if the landlord keeps part (or all) of the deposit, like to pay for repairs or unpaid rent, that part becomes taxable rental income.

The deposit isn’t income for tenants at all. It’s just money that is being held in trust until the lease ends.

How to Get Your Security Deposit Back

A lot of the time, getting your deposit back depends on how well you plan, how well you talk to people, and how well you pay attention to details. Here are some useful tips to help you keep your hard-earned money safe.

1. Check Everything Before You Move In

Before you start unpacking, walk through the house and take pictures or videos of each room. Make sure the landlord signs your move-in condition report, and write down any scratches, marks, or other problems that are already there.

This step makes sure that you won’t be blamed for damage that was already there.

2. Know what the lease says

Take a close look at your lease. It will tell you exactly what you need to do for cleaning, maintenance, and moving out. Ask for clarification before signing if you’re not sure about any part.

3. Take care of the property while you’re there.

Take care of the house like it’s your own.

• Let the maintenance team know about problems as soon as they happen, like leaks or broken fixtures.
• Don’t damage it more than you have to, and keep it clean.
• Follow the rules for pets and don’t make any changes that aren’t allowed.
• Landlords like tenants who take care of the property, and they are much more likely to give back full deposits.

4. Give the Right Notice

If you want to move out, you need to give your landlord written notice according to your lease, which is usually 30 or 60 days. If you don’t do this, you could lose part of your deposit.

5. Before you go, clean up

A clean house makes a good impression and helps you avoid getting cleaning deductions. Clean the floors, appliances, bathrooms, and windows really well. Don’t forget to clean the insides of the ovens and refrigerators. They are easy to miss.

If you don’t like cleaning, hiring a professional cleaner can be worth the money.

6. Set up a walkthrough

If you can, ask your landlord or property manager for a final walkthrough before you move out for good. This lets you fix small problems right away instead of losing part of your deposit later.

7. Give your forwarding address

Provide your forwarding address and updated contact or payment details. Even if your deposit will be returned electronically, your landlord may still need a mailing address for final correspondence or documentation.

What to Do If You Don’t Get Your Money Back

Even careful tenants can sometimes have problems with their deposits, like delays or disagreements. If that happens, do this:

• Request an Itemized Statement: Most states require landlords to give you a list of any deductions.
• Send a polite letter asking for what you want. If you don’t agree, ask for proof or receipts. Always write down what you say.
• Check the laws in your state. Each state has its own time frame for returning deposits, which is usually between 14 and 60 days.
• Think about going to Small Claims Court. Tenants can file a small claims case to get back money that was wrongfully held.

Most of the time, staying calm and organized will help you solve the problem without having to take it to the next level.

Other Options for Security Deposits

These days, not all rentals need a traditional security deposit. As many renters worry about how much things cost, new options are coming up.

1. Surety Bonds or Deposit Insurance

Tenants pay a smaller, nonrefundable fee to a third-party company that guarantees the landlord coverage in case of damage instead of a large sum up front.

This can lower the costs up front, but remember that you won’t get that fee back.

2. Rentals Without a Deposit

Some property management companies let tenants pay a low monthly fee instead of a deposit. It’s easy to use, but always read the fine print. You could still be responsible for damages later.

3. Deposit Options That Are Flexible

Some landlords may allow you to split your deposit into installments or pay a lower deposit if you have an excellent rental history.

Knowing the Law About Security Deposits

The rules about security deposits are different in each state. Some places have strict rules about how much landlords can charge, how quickly they have to give back deposits, and whether or not they have to pay interest on money they hold.

Before signing a lease, it’s best to look up your state’s tenant laws. This information is free and available online from most state housing departments.

Finding a great place to rent shouldn’t be stressful, and knowing how deposits work can help things go more smoothly.