Question

Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when he moves in. his landlord explained to him that he would need to pay a refundable fee to cover any potential damages that might occur while chad is living in the apartment. this fee is called the:

Answer 1

Answer: Security Deposit

Explanation:

A Security Deposit is an amount you pay when you first move into a house.

It is held in abeyance until you move out. In other words when you pay a Security Deposit, it doesn't become the Landlord's. It is still your money but it is held in trust. The purpose being that when you move out, any damages made to the house is fixed from the security deposit. If no damages need fixing then your entire security deposit is returned to you.

This fee is what Chad's landlord just explained to him.