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Landlords typically require security deposits for both residential and commercial leases to recover costs for damages beyond normal wear and tear. The amount of the deposit must be specified, and it generally should be returned within 30 days, though exact timelines may vary by state. Landlords and tenants are advised to check local laws for precise regulations regarding deposit returns. Prior to collecting a security deposit, landlords should conduct a property inspection with the tenant present. Some states impose limits on the amount that can be collected. If a deposit is withheld in part or in full, the terms must be clearly outlined in the lease agreement. Additionally, the security deposit should be held in an interest-bearing account.