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Landlords typically require security deposits for residential and commercial leases to cover potential damages beyond normal wear and tear. The deposit amount must be clearly stated, and it generally should be returned within 30 days, though specific time limits may vary by state. Both landlords and tenants should check local laws for precise regulations. Before collecting a deposit, landlords are advised to inspect the property with the tenant present. Many states impose limits on the amount that can be charged for security deposits. If any portion of the deposit is withheld, the lease agreement must detail the amount and the landlord must maintain the security deposit in an interest-bearing account.