What does a security deposit cover?

A security deposit is typically collected by landlords to provide financial protection against various potential issues that might arise during a tenant's occupancy. The correct answer indicates that a security deposit covers potential damages to the property as well as unpaid rent.

This means that if a tenant causes damage beyond normal wear and tear, the landlord can use the security deposit to cover the costs of repairs. Additionally, if the tenant fails to pay their rent, the landlord can use the deposit to offset those unpaid amounts. The dual purpose of covering potential damages and unpaid rent is a standard practice under many rental agreements, ensuring that landlords have a safeguard against financial losses caused by tenant behavior.

While other options mention specific costs like unpaid rent or maintenance, they do not encompass the full scope of what a security deposit is intended to cover, which is both protection against financial loss due to damages and unpaid rent.