Items Covered by a Security Deposit

The law defines a security deposit as money or property a landlord holds as security that a tenant will fulfill an obligation or pay a liability, or money or property that will be returned to a tenant when a condition has been fulfilled.

This means that a landlord can deduct money from the security deposit for items the tenant is liable for at the end of the tenancy. This can include rent arrears, cost of repairs for damage caused by the tenant, costs of cleaning for items that are beyond normal wear and tear. If a tenant considers they are not liable for any costs, legal action can be taken against a landlord.

The tenancy agreement can also specify any other condition for return of the security deposit. For example, in respect of the return of keys, or for specific maintenance and repair items. It is important to have a clear understanding about exactly what the deposit represents and what conditions have to be filled for the deposit to be returned at the end of the tenancy.

May 2005