Direct answer
What does security deposit mean?
A security deposit is money held to secure a tenant's performance under a lease and governed by the applicable lease and law.
Exam cue: New York limits most residential security deposits to one month's rent and requires the landlord to return the deposit, or an itemized statement of deductions, within 14 days after the tenant leaves.
What does it look like in a question?
Example
A manager records the deposit separately and follows the required process when the tenancy ends.
Common exam trap
What should you not confuse it with?
A security deposit is not automatically the landlord's income when received.
Related property management terms
Sources used3 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself.
- Real Estate Salesperson 77-Hour CurriculumNew York State Department of StateSupports: Exam scopeSection: Subject 19, Property Management
- General Obligations Law section 7-103New York State SenateSupports: New York ruleSection: Trust treatment and separation of deposit funds
- General Obligations Law section 7-108New York State SenateSupports: New York ruleSection: Residential deposit limits, inspections, deductions and return
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Put the term back into its full subject.
A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.