What purpose do security deposits serve for landlords?

Security deposits primarily serve as safeguards against damages to the property. When a tenant enters into a lease agreement, the deposit provides financial protection to the landlord. It ensures that if there are any damages beyond normal wear and tear incurred during the tenant's occupancy, the landlord has the funds available to cover repairs. This not only protects the landlord's investment but also encourages tenants to maintain the property in good condition during their tenancy.

In addition to covering damages, security deposits can also be used to recover unpaid rent or to address other lease violations. However, the essential function remains to safeguard the property against potential losses linked to tenant behavior or negligence. By requiring a security deposit upfront, landlords can minimize their financial risk while fostering responsible tenant conduct.