At move-in, the landlord collects money that may later be used for unpaid rent or damage beyond ordinary wear and tear. What is that payment called?
Correct Answer
B) Security deposit
A security deposit is money collected at the start of a tenancy and held as security for the tenant's performance. It can be applied to unpaid rent and to damage beyond ordinary wear and tear, and whatever remains must be returned, generally with an itemized statement, within the period the law allows. The other charges collected at move-in are earmarked for narrower purposes or are not refundable at all.
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