How much is a security deposit? 2025 guide

A security deposit is a sum of money that protects a landlord against potential property loss or damage. You’ll pay your deposit before you move in – and you should get it back when you move out.

We take a look at everything you need to know about security deposits. What is the average security deposit amount? How can you ensure you get your full deposit back?

Moving overseas? Use Wise to spend, send, and receive your money around the world – all at the fair mid-market exchange rate. Let’s take a look.

What is a security deposit?

A security deposit is a lump sum, typically paid to your landlord before you move into a new property. It serves as proof of intent to move into the property and keep it free from damage.

You should receive your deposit back when your tenancy comes to an end, provided there isn’t any damage and you’ve kept up with your rent.¹

How much is an average security deposit?

The average security deposit amount is typically 1 month’s rent. However, some states may let your landlord charge up to 3 months of rent in advance.¹

You’ll need to confirm the full amount with your landlord before you move.

If you're renting in the US

Let’s take a look at the average security deposit in 5 US states, using the idea that a security deposit is typically 1 month’s rent.

State	Average
New York	1,507 USD
Massachusetts	1,588 USD
California	1,856 USD
Florida	1,444 USD
Hawaii	1,868 USD²

If you're renting abroad

If you’re renting outside the US, your security deposit may work a little differently. Let’s take a look at a rough average for 5 countries around the world.

Country	Average
London, UK	5 to 6 weeks of rent, which works out to roughly 2,433 GBP³
Madrid, Spain	Typically 2 to 3 months of rent.⁴ This works out to 2,672.12 EUR⁵
Tokyo, Japan	1 month’s rent, which works out to 71,583 JPY⁶
Sydney, Australia	Typically 1 month’s rent.⁷ This is roughly 3,284.56 AUD⁸
Toronto, Canada	Typically 1 month’s rent.⁹ This works out to 2,531.59 CAD¹⁰

What can influence your security deposit amount?

Your security deposit amount may differ, depending on:

The amenities included in your lease, like new renovations Your rent and the value of your property The current market competition Security deposit laws in your state or country¹

Your landlord may also perform a background check on your finances, criminal history, and employment status. If your landlord views you as a risky tenant, you may have to make a larger deposit.¹

Interest on security deposits

In some states, landlords are required to put your money in an account that earns interest. You’ll receive your deposit, plus interest, when you move out.

In Arizona, your landlord must add 5% interest to your deposit each year, so you’re guaranteed to get back more than you paid.

However, this isn’t the case everywhere. In some states, your landlord may only be required to pay interest on your deposit once you’ve lived in a home for more than 6 months, for example.¹¹

How to pay for your security deposit

There are a few different ways to pay the security deposit for your apartment. Let’s take a closer look.

In the US

In the US, many landlords will ask for an ACH transfer. This is an electronic bank-to-bank transfer that’s easy to set up yourself.

However, some may prefer a cashier’s check or money order. These forms of payment are similar to personal checks, but you set them up through your bank – and they won’t bounce.¹

Abroad: try Wise

If you need to make a payment — whether to pay back a friend who bought you dinner, or to cover a supplier invoice for your small business — you have choices. PayPal can be convenient for some transaction types, but there are fees to take into consideration.

And if you’re making an international payment, the costs can be pretty steep. Before you make your decision, it could save you money to check all the options available to you to make sure you’re not paying too much for your particular transaction.

You could consider using Wise as an alternative, and if you need to make international payments regularly, opening an account for free* could also be a good option for you. For a fee, you can also get the Wise debit card, which you can use to pay for goods and services all over the world.

See how much you can save with Wise:

What can a landlord deduct from a security deposit?

If your landlord is unhappy with the state of their property after you move out, they may deduct money from your security deposit.

This includes:
Cost of damages Cleaning costs Unpaid rent or utilities Non-compliance with the lease agreement

A landlord can’t deduct money for ordinary wear and tear. It’s also worth noting that every state has slightly different regulations about what a landlord can deduct from your deposit.¹²

How to get your security deposit back

Let’s take a look at how to ensure you get your full security deposit refund when you move out.

Document the condition of the property when you move in

Your landlord may give you an inventory that documents the condition of your property when you first move in. Go around your new home and check that the inventory is accurate. If not, make a note of any discrepancies.

Tell your landlord if there’s any damage to the property, however small, and take plenty of photos for proof.

Fulfill your lease obligations

Consult your rental agreement carefully to ensure you understand your financial and legal obligations.

Always pay your rent, bills, and utilities on time – and hand back your keys when you move out. You may also need to write a lease termination letter to formally tell your landlord that you wish to leave your rental agreement.¹³

Make sure to keep the place clean

Keeping your apartment clean can reduce damage and repairs. When you move out, remove all your belongings, clean your home, and take photos to prove that you left the property in a good state.

Report if there are need for repairs

If something breaks, make sure to report it as soon as possible, as repairs are typically your landlord’s responsibility.

If you don’t report repairs, your landlord will most likely deduct the cost from your security deposit once you move out.

What if there is a security deposit dispute?

Unfortunately, there are some cases when you may not receive your full deposit back.

If your landlord deducts money for unfair damages, you can dispute it. Keep hold of all your communication and use photos to back up your claims.

If you want to raise an official security deposit dispute, you can file a suit in small claims court. If you win, you could get 3 times the amount of your original security deposit back.¹⁴

How long does a landlord have to return a security deposit?

You should receive your security deposit refund 30 to 60 days after your lease ends. Make sure to tell your landlord your new address, as you’ll likely receive a check in the mail.¹

Landlords outside the US may have different time constraints. In the UK, for example, you should get your deposit within 10 days of you and your landlord agreeing on how much you’ll get back.¹⁵

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A security deposit protects landlords or letting agents from property damage, but it’s important to make sure you’re getting a fair deal.

Report repairs, fulfill your lease obligations, and keep your apartment clean to ensure you get your full deposit refund when you move out.

To pay your security deposit in over 80 countries – all at the mid-market exchange rate – check out Wise.

Sources:

1. Apartments
2. World Population Review
3. Rentoo
4. Moving2Madrid
5. Numbeo
6. Japan Whisper
7. SoHo
8. Numbeo
9. West Haven Rentals
10. Numbeo
11. I Property Management
12. I Property Management
13. Rent
14. Find Law
15. UK Government

Sources checked on 11.07.2024