The total collateral held by the landlord to ensure lease performance.
By Angel Campa, Founder · Updated March 2026
The security deposit is a significant upfront cash outlay that ties up working capital for the entire lease term. A deposit equal to 3 months of a $25,000/month rent obligation requires $75,000 in locked-up funds. Some leases allow the deposit to decrease over time ("burn down") as the tenant establishes a payment track record. Understanding the deposit amount, form (cash vs. letter of credit), and return conditions is critical for cash flow planning.
Found in the "Security Deposit" section, typically within the first 10-15 pages. The amount, form, conditions for application by the landlord, interest accrual, and return timeline are usually addressed in the same section.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the security deposit from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Deposit Type
The form of the collateral provided.
Has Guaranty
Indicates if an external party has guaranteed the lease obligations.
Governing Law
The legal jurisdiction whose laws dictate the interpretation of the contract.
SNDA Requirement
Duty to sign a Subordination, Non-Disturbance, and Attornment agreement.
Estoppel Turnaround
The number of days the tenant has to return a signed estoppel certificate.
Security deposits commonly range from 1 to 6 months of base rent. Strong-credit tenants may negotiate 1-2 months. Startups or lower-credit tenants may be asked for 3-6 months. Some landlords calculate the deposit as a percentage of total annual rent including estimated operating expenses.
This varies by state law and lease terms. Some states (like Illinois and Massachusetts) require landlords to hold deposits in interest-bearing accounts and pay interest to the tenant. Other states have no such requirement. The lease should specify whether interest accrues and how it is paid.
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