Who keeps the Security Deposit?

It is held in an escrow account by either the landlord or the Management Company

Once the security deposit has been collected it is deposited into an escrow account and held there until the disposition of the security deposit is finalized.

In tenancy, a security deposit is a sum of money paid by the tenant to the landlord or property manager at the beginning of the lease term. Its primary purpose is to provide financial protection for the landlord against any potential damages or unpaid rent during the tenancy.

The security deposit belongs to the tenant, and it is held by the landlord or property manager as a form of collateral. It is not payment for the use of the property but serves as a safeguard for the landlord's interests. At the end of the lease term, if the tenant has fulfilled all the lease obligations, the security deposit should be returned to the tenant in full or with deductions for any agreed-upon expenses, such as repairs for damages beyond normal wear and tear or unpaid rent.