Unpaid Rent

Full Definition

Unpaid rent is one of the most clearly permitted security deposit deductions in every U.S. state. If a tenant owes back rent at the time of move-out -- whether due to non-payment, short payment, or leaving before the lease end date without proper notice -- the landlord may apply the deposit to cover that amount. What counts as unpaid rent: base rent, late fees (if provided for in the lease), and sometimes utility bills the tenant was responsible for under the lease. What does not count: rent for periods after the landlord re-rented the unit (landlords have a duty to mitigate), and additional damages that are not specifically provided for in the lease or by statute. The landlord must include any rent deduction in the itemized statement with dates and amounts. If there is a dispute about whether rent was owed -- for example, if the tenant claims a rent withholding was justified due to habitability conditions -- that issue will be resolved by a court.