Your security deposit isn’t just “held for damages”—it’s often a sneaky cash grab.
Moving into a rental usually means handing over a fat security deposit, with the promise that you’ll get it back if you take care of the place. But many landlords treat that money less like a refundable deposit and more like an extra revenue stream. They know most tenants either don’t fully understand their rights or don’t want to fight over a few hundred dollars during the stress of moving out.
The truth is, landlords have gotten creative in finding ways to keep as much of your deposit as possible, sometimes bending the rules—or flat-out breaking them. If you aren’t paying attention, you can lose money that should’ve come back to you. The good news is, once you know their most common tactics, you’ll be way better prepared to challenge unfair deductions and protect your wallet. Here are 9 ways landlords quietly use security deposits to pad their profits—and how you can fight back.
1. They charge for “normal wear and tear” even though it’s not legal.
Normal wear and tear is part of renting. Small nail holes, worn carpets, minor scuffs on walls—these aren’t your financial responsibility. But many landlords still try to bill tenants for these minor, unavoidable signs of regular use, according to the authors at RentSpree.
Legally, landlords can only deduct for actual damage beyond normal wear. If they try to charge you for things like slightly faded paint or worn flooring, you can dispute it. Taking dated move-in photos and documenting your move-out condition can help prove your case if you need to escalate the fight.
2. They inflate cleaning fees way beyond what’s reasonable.
Some landlords hit tenants with massive “cleaning fees” even when the place is left spotless. They might claim they had to hire professional cleaners or found dust in obscure places, justifying an exaggerated deduction from your deposit, as reported by authors at Three Movers.
To protect yourself, always do a thorough deep clean and take time-stamped photos before handing over the keys. Provide copies to your landlord so you have proof of the property’s condition. If you get hit with an unreasonable cleaning bill, you can use this documentation to dispute it or even take them to small claims court.
3. They replace items unnecessarily to justify charges.
A chipped countertop or a slightly stained carpet may not actually need replacing, but some landlords will replace entire items anyway and bill you for the full cost. This allows them to upgrade their property at your expense, as stated by Kyla Adam at Law Depot.
Unless the damage was excessive or negligent, you shouldn’t be charged for full replacement costs. In many states, landlords must prorate charges based on the item’s age and expected lifespan. Always request receipts and itemized invoices if they claim replacements were necessary.
4. They deduct for pre-existing issues you didn’t cause.
Some landlords count on tenants forgetting about minor flaws that were already there when they moved in. If you didn’t thoroughly document the property’s condition at move-in, they may blame you for scratches, stains, or damages you had nothing to do with.
Before moving in, do a full walkthrough, take detailed photos, and submit a signed move-in checklist noting any pre-existing damage. Keep copies of everything. If your landlord tries to blame you later, you’ll have solid evidence to push back.
5. They delay returning the deposit to pressure tenants into accepting deductions.
Many landlords stall the return of security deposits, assuming tenants won’t fight over partial refunds if it means faster access to the money. They may send vague statements or “final bills” that reduce your deposit without clear justification.
Most states have laws requiring landlords to return security deposits within a specific timeframe, often 14 to 30 days after move-out. If your landlord drags their feet, send a written demand citing the legal deadline. If they still don’t comply, filing in small claims court often gets their attention.
6. They use vague or fake “repair estimates” without receipts.
Instead of providing actual receipts for work done, some landlords present rough estimates or generic repair invoices to justify deductions. These documents often lack details and can’t be independently verified.
You have the right to request copies of actual receipts and proof that work was completed. If they refuse, that can work in your favor if you escalate the dispute. Courts typically expect landlords to prove both the necessity and cost of any repair they deduct.
7. They double dip by charging you and insurance for the same damage.
In some cases, landlords file insurance claims for damage and still charge tenants for repairs, essentially getting reimbursed twice. This practice is shady and often illegal, but many tenants don’t realize it’s happening.
If you learn that your landlord received insurance payments for the same damage you’re being billed for, you have strong grounds to challenge the charge. Ask for transparency about any insurance claims related to your deposit deductions.
8. They try to deduct for unpaid rent or made-up fees.
Landlords sometimes treat security deposits as a catch-all for anything they feel entitled to collect, including late fees, unpaid rent disputes, or charges that were never part of your lease agreement.
Your lease should clearly outline what can and cannot be deducted from your deposit. If you believe a charge isn’t valid, put your objections in writing. In many cases, landlords who realize you know your rights will back off rather than face a legal dispute.
9. They count on tenants not knowing state-specific deposit laws.
Every state has different laws governing security deposits, but landlords bet that most tenants won’t take the time to learn them. They rely on your confusion or intimidation to avoid being challenged.
Before signing a lease—or definitely before moving out—research your state’s security deposit laws. Knowing the deadlines, allowable deductions, and tenant protections in your state gives you a huge advantage. When you demonstrate that you know your legal rights, landlords are far less likely to pull shady moves.