What happens to a tenant's security deposit if they do not follow the lease terms?

When a tenant does not adhere to the terms of their lease, the landlord has the right to withhold part or all of the security deposit. This action is typically justified if the tenant damages the property beyond normal wear and tear, fails to pay rent, or otherwise violates the terms of the lease agreement. The purpose of the security deposit is to protect the landlord from financial loss due to such violations.

If the lease terms are breached, the landlord can assess the extent of the violation and determine how much of the deposit, if any, should be retained. This withholding serves as a form of financial security for the landlord and ensures that they can address any necessary repairs or lost income due to the tenant's failure to comply with the lease.

Options that suggest the deposit is returned fully or held as a penalty misrepresent the legal framework surrounding security deposits. Additionally, the idea of donating it to charity is not a practice supported by law and diverts from the purpose of the deposit, which is to protect the landlord’s interests while providing a financial safety net for tenant liabilities.