In what situation would a security deposit not be returned to a tenant?

A security deposit is typically intended to cover potential damages to the rental property, as well as other expenses that might arise from a tenant's occupancy. When a situation arises where damages exceed normal wear and tear, landlords have the right to retain part or all of the security deposit to cover the costs of repairs necessary to return the property to its original condition. Normal wear and tear refers to the expected deterioration of the property due to age and use, while excessive damages indicate a failure to uphold the responsibilities outlined in the lease agreement.

In contrast, if the tenant pays rent on time, leaves the apartment clean, or renews the lease, these actions generally do not provide lawful grounds for a landlord to withhold the security deposit. Timely payment of rent and maintaining cleanliness are indicators of responsible tenancy. Similarly, renewing the lease suggests ongoing agreement and compliance with lease terms. Therefore, the situation in which damages exceed normal wear and tear is a clear justification for retaining the security deposit, as it directly relates to the financial protection landlords seek through this requirement.