What is a deposit and why is one required?

The deposit, often referred to as the security deposit is an amount of money that the tenant pays to the landlord or agent prior to moving into the property. It is separate to the rent payment and is held as security against damages, rent arrears or outstanding bills. The deposit is the tenant’s money and you need to take some steps to ensure that it is returned to you at the end of the tenancy subject to certain criteria being met.