A tenant derives no particular benefit from posting a security deposit other than its use as a means to conclude lease negotiations. A security deposit is merely part of that package of rights and duties we call a lease. Every single term and condition of a lease is economic in nature, and it takes no giant intellectual step to recognize that security deposits are merely a matter of dollars and cents. For a landlord—it is dollars; for a tenant—it makes no sense.
Being a “landlord” issue, security deposit clauses in leases are almost always drafted by the landlord, in its favor. Like most other lease provisions prepared for a landlord’s benefit, the proposed language may be only a starting point for a fair and balanced outcome. Knowledge being power, the following exploration of security deposit issues should serve as useful armament for a tenant willing and able to do battle with a landlord over this often ignored area. [Read more…]