Security deposits protect the landlord's right to receive rent as well as her right to reversion of the property in good condition.

Question

Quizplus · Accepted Answer

Security deposits serve as a form of insurance for landlords, protecting them in case tenants do not pay rent or cause damage to the property. By withholding a portion of the deposit in case of such events, the landlord can ensure that they receive compensation for any losses they may incur. Additionally, security deposits incentivize tenants to take good care of the property, as they risk losing the deposit if they damage it beyond reasonable wear and tear.

Security Deposits Protect the Landlord's Right to Receive Rent as Well