What it means
Purpose and evidence
In a rental setting, a deposit can secure defined obligations such as eligible damage or unpaid amounts. It is different from ordinary rent or a fee merely because all three involve a transfer of funds.
Handling and return
Keep records of the amount, payer, purpose and any later deductions or return. Where an arrangement uses cryptocurrency, it also needs clear valuation, custody and repayment terms. Whether an asset or account is permitted cannot be inferred from the technical ability to receive it.
Related concepts
In practice
A concrete example
A property manager records the deposit separately from rent and documents the basis for any proposed deduction before returning the balance.
Technical notes & boundaries
Limits, deadlines, account requirements and allowed deductions vary by jurisdiction. The California Courts source is an example; no California amount or deadline is presented as universal.
Go to the source.
Original references used for this definition. Product details and standards can change.