Describe what a security deposit is.

A security deposit is primarily a sum of money that a tenant provides to a landlord at the beginning of a rental agreement. Its main purpose is to cover potential damages to the property beyond normal wear and tear as well as any unpaid rent that may occur during the tenancy. This amount serves as a financial safeguard for the landlord, ensuring that they have the means to repair any significant damages caused by the tenant or to account for any lease violations, particularly in terms of not paying rent.

When the tenancy ends, the landlord typically inspects the property and determines if any deductions from the security deposit are necessary to cover damages or unpaid obligations. If there are no issues, the full amount is usually returned to the tenant. Thus, the security deposit is an important part of leasing agreements, providing both parties with a layer of financial protection and a way to encourage responsible tenant behavior.