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of <h1>Security deposits protect landlords from tenant damage and must be refunded unless breach occurs</h1> A security deposit is money deposited by a tenant with a landlord as security for faithful performance of lease terms, including potential damages to premises. It remains refundable unless the tenant causes damage, injury to property, or breaches tenancy terms or governing laws. Some states require landlords to make security deposits for essential repairs on rental property. The essential ingredients include: an advance ensuring faithful contract performance, payment covering essential functions for performance, and refund entitlement dependent upon whether damage, injury, or default occurs.
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