Resident funds held to secure obligations under a rental agreement, subject to detailed state and local rules.
What security deposit means in practice
Deposits are generally tracked as a liability rather than rental income because the owner may owe the funds back. Rules can govern limits, account location, interest, receipts, deductions, deadlines, and itemized statements.
Example
A $1,500 deposit is recorded in a dedicated liability account and reconciled to the resident-level deposit ledger each month.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.