The full explanation
The landlord holds it and, when you move out, must return it minus the charges the law allows, such as past-due rent or damage beyond normal wear and tear. You should not be charged for damage that was already there when you moved in. The maximum amount and the deadline to return it depend on your state's law and sometimes your city's.
An example
When Marta moves out, the landlord returns her deposit minus the cost of fixing a door her son broke. The old carpet stains, which were there when she arrived and were written down in the move-in inspection, cannot be charged to her.
You will see it in…
- The lease, in the payments section (security deposit)
- Your state's tenant rights page, under limits and return deadlines
- The itemized list of charges the landlord sends when you move out
