What is one of the typical reasons a landlord may retain part of a tenant's security deposit?

A landlord may retain part of a tenant's security deposit for damage that exceeds normal wear and tear because this is a common practice within the rental industry. When a tenant moves out, the property is expected to be returned in a condition that is, at minimum, equivalent to what it was at the start of the lease, barring any normal wear and tear that naturally occurs over time. Normal wear and tear may include minor scuffs on walls or slight carpet wear, which are anticipated as part of a property’s use.

However, if damages are identified—such as significant holes in walls, broken fixtures, or stained carpets that go beyond what would be considered normal—the landlord is justified in deducting repair costs from the tenant's security deposit. This serves to protect the landlord's investment in maintaining the property's condition for future tenants. The ability to retain part of the security deposit in such cases is often regulated by state laws, which outline the allowable deductions for damages.