What is the difference between a deposit and a fee?

In the context of property leasing, deposits are normally refundable, while fees are nonrefundable one-time payments. Tenants must be notified if they are being charged a "deposit" that is nonrefundable.

For instance, security deposits are meant to protect landlords against tenants not paying for any damage they cause. At the end of the tenancy, deductions may be made from the deposit as permitted by state law, and the remaining funds must be returned to the tenant.

Examples of common fees include upfront fees for pets, administration costs, application processing, and cleaning fees.

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