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Landlords typically require security deposits for both residential and commercial leases to cover damages beyond normal wear and tear. The deposit amount must be specified, and it should generally be returned within 30 days, although this may vary by state. Tenants and landlords should verify local laws for specific timelines. Before collecting a security deposit, landlords should inspect the property with the tenant present. Many states impose limits on the amount that can be collected as a security deposit. The lease agreement must state the deposit amount, and landlords are required to hold it in an interest-bearing account. If part or all of the deposit is withheld, proper documentation is necessary.