From Jennifer Lai,
Your Guide to Apartment Living / Rental.
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Definition: A security deposit is money that the tenant pays to the landlord. It provides monetary security to the landlord, in case of damage to the apartment or failure by the tenant to comply with the agreement (such as moving out before the lease ends). The tenant receives the deposit back at the end of the lease, minus any deductions for repairs / restoration.

Also Known As: pet deposit, key deposit, closing fee