What is the purpose of a security deposit?

The purpose of a security deposit primarily revolves around protecting the landlord's financial interests. A security deposit serves as a safeguard against potential damages to the property that may occur during a tenant's occupancy, as well as covering any unpaid rent when a tenant vacates. This deposit is typically collected at the onset of the lease agreement and held in trust, allowing landlords to manage potential risks associated with property rentals.

When a tenant moves out, the security deposit can be used to cover the cost of repairs for any damage beyond normal wear and tear. If the tenant fails to pay rent, the landlord can also apply the deposit to recover the lost income. This mechanism is a standard practice designed to create a level of security for landlords in their rental agreements, ensuring they do not face financial losses due to tenant actions.

Other options, such as covering moving costs or utility bills, do not align with the primary purpose of a security deposit. Additionally, while ensuring tenant loyalty might be a secondary effect of a good landlord-tenant relationship, it is not the primary function of the deposit itself. Overall, the security deposit exists to provide a financial cushion to landlords, making option B the most accurate representation of its purpose.