What typically happens to a security deposit if a tenant defaults on their lease?

When a tenant defaults on their lease, the typical outcome regarding the security deposit is that the landlord may partially or fully retain it. This retention is often justified to cover damages to the property or unpaid rent that the tenant accrued during their tenancy. A security deposit is intended to protect the landlord's financial interests and serve as a form of insurance against various forms of damage or loss caused by the tenant.

The law typically allows landlords to withhold a portion or all of the security deposit if there are legitimate claims for repairs or lost rent. However, any deduction from the deposit must be made in accordance with local and state regulations, which generally require landlords to provide an itemized list of any deductions.

This reasoning aligns with the common practices in landlord-tenant relationships, where a security deposit is seen as collateral to ensure that tenants uphold their lease agreements, and it can provide financial recourse for landlords in the event of a breach.