What is a security deposit?

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A security deposit is where a landlord takes a sum of money from their tenant to hold throughout the course of the tenancy. The landlord holds this money to have cash on hand in case the tenant breaches a term of the agreement and needs to pay damages. Damage fees are paid (deducted) from the deposit money. The landlord can also take this money to cover unpaid rent at the end of the tenancy.

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