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Security deposits can be either be refundable or nonrefundable, depending on the terms of the transaction. A security deposit is intended as a measure of security for the recipient, and can also be used to pay for damages or lost property.
The most common fees are for cleaning. However, fees must be specifically designated as non-refundable and cannot be considered deposits. Under the law, deposits are by nature refundable.
Yes, the landlord can charge a non-refundable pet fee and the security deposit. The non-refundable pet fee may go towards that expense. Tenants can try to negotiate with the landlord if they do not want to pay the fee, or want to pay a lower amount. For more information, see our Renting with a Pet booklet.
What is a non-refundable deposit? A deposit is part of the total cost of something or an advance payment paid for at the time of booking. Businesses will sometimes insist it's non-refundable if you cancel and even write it into the contract.
The landlord should credit all funds from any non-refundable deposit towards any amount paid by the landlord. For example, if you pay a $200 non-refundable cleaning fee, the landlord cannot charge you for normal cleaning. Cleaning fee — the landlord can use this to pay for cleaning the rental after you move out.
Your landlord may deduct from your security deposit for: Unpaid rent. Repairs for damage other than normal wear and tear. Under some state laws, the security deposit may also be used for cleaning a rental unit after move-out, but only to make the unit as clean as it was when you first moved in.
Holding deposits are normally non-refundable. In the event of a deal falling through, the landlord or letting agent will most likely decide to keep the holding deposit to compensate for any inconvenience caused and the property will go back on the market.
If the tenant changes their mind and doesn't take the property, you must grant a holding deposit refund and return their holding deposit minus any costs you've incurred on their behalf and any loss of rent you've suffered as a result of their action.

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