Illinois Leasing Agent Practice Exam

What does a security deposit primarily protect against?

1. Non-payment of rent

2. Damage to the property

3. Unauthorized guests

4. Rent increases

The correct answer is: Damage to the property

A security deposit primarily serves as a form of financial protection for landlords against potential damage to the property. When a tenant moves into a rental unit, they typically pay a security deposit, which can be used by the landlord to cover costs associated with repairing damage that exceeds normal wear and tear. This means that if a tenant causes any significant damage during their occupancy, the landlord can deduct the repair costs from the security deposit before returning the remainder to the tenant upon their departure. In addition to covering damage, it is important to note that security deposits can also serve as leverage to encourage tenants to adhere to the lease terms. However, the primary function is explicitly tied to protecting the landlord from excessive repair costs. Understanding this role helps clarify the importance of security deposits in the leasing process and highlights the responsibility that tenants have in maintaining the property.