What is a Security Deposit and why is it required?

A security deposit is money a tenant pays a landlord or property manager, on top of rent, to protect the owner against unpaid rent, damage beyond normal wear and tear, and cleaning left undone at move-out. It is refundable. This guide explains the rules for rentals in Nevada and California, where EBMC manages properties: how much a landlord can charge, what a deposit can and cannot be used for, and when you should get it back.

What a security deposit covers

A deposit is not a fee, and it is not a way to pay for the ordinary aging of a unit. A landlord may apply it only to:

• Unpaid rent and, where the lease and the law allow, other amounts the tenant owes
• Repairs for damage the tenant caused, other than normal wear and tear
• Cleaning needed to return the unit to its move-in condition

Your lease should spell out the terms, and the lease cannot override the limits set by state law.

Normal wear and tear is not deductible

Nevada (NRS 118A.242) and California (Civil Code 1950.5) both bar landlords from charging a deposit for normal wear and tear. Normal wear and tear is the gradual aging that comes from ordinary living, such as faded paint, minor scuffs on walls, or carpet worn by regular foot traffic. Damage beyond that, such as holes in walls, burns, pet damage, broken fixtures or heavily stained carpet, can be deducted.

How much can a landlord charge?

• Nevada: the total deposit, including any surety bond and last month's rent collected up front, cannot exceed three months' periodic rent (NRS 118A.242).
• California: generally no more than one month's rent, in addition to first month's rent paid at move-in. A landlord who is a natural person (or an LLC whose members are all natural persons) and owns no more than two rental properties with no more than four dwelling units in total may charge up to two months' rent. That higher limit does not apply to service members (Civil Code 1950.5).

The California limit applies to security "however denominated," so a deposit labeled as a pet or cleaning deposit counts toward the cap.

How landlords set the amount

Within the legal limit, landlords consider the type of property, local market rents, the monthly rent itself and the tenant's rental application. The limit is a ceiling, not a recommended amount, and many landlords charge less.

When is a deposit paid?

Tenants usually pay the full deposit before receiving the keys, by whatever method the landlord accepts, typically a money order, cashier's check or electronic payment. Ask your property manager how the deposit will be held and where to find it in your lease before you sign.

Getting your deposit back

• Nevada: the landlord must return the remaining deposit, with an itemized written accounting of how it was used, no later than 30 days after the tenancy ends.
• California: the landlord must send an itemized statement and return the remainder no later than 21 calendar days after the tenant has vacated.

California landlords must also photograph the unit after the tenant moves out and before any repairs or cleaning they plan to deduct for, and again after that work is done (required since April 1, 2025). For tenancies that begin on or after July 1, 2025, they must photograph the unit at the start of the tenancy as well. It is smart to take your own dated photos on move-in day and move-out day.

Give your landlord a forwarding address in writing so the refund and the itemized statement reach you.

Common reasons a deposit is reduced

Unpaid rent or fees

If rent or other amounts the lease makes the tenant responsible for are unpaid, the landlord may apply the deposit to them. Fees such as early-termination charges can only be deducted if the lease provides for them and the law allows it.

Damage beyond normal wear and tear

Every rental ages over time, and the landlord bears that cost. The deposit is for damage the tenant or their guests caused, and the landlord must itemize each deduction.

Cleaning

Leases usually require tenants to leave the unit clean. A landlord can charge for the cleaning needed to bring the unit back to the condition it was in when the tenant moved in, not for ordinary cleaning that a new tenant would expect to do themselves.

This article is general information, not legal advice. Deposit laws change, and some cities add their own rules. For a specific situation, talk to a qualified attorney or your property manager.

Want to know what else your lease may require? Browse EBMC's resident resources or find out whether you need renters insurance before move-in.