--- title: "security deposit: Definition and Meaning | NPSA" description: "A security deposit is money a renter pays at the start of a rental. The company holds it to cover possible damage, cleaning or unpaid charges." url: https://npsa.preview.multisites.ai/glossary/security-deposit publisher: National Portable Storage Association (NPSA) phone: "(816) 960-6552" email: info@npsa.org --- Leasing and finance # security deposit A security deposit is money a renter pays at the start of a rental. The company holds it to cover possible damage, cleaning or unpaid charges. HZ Containers says a lessor may require a refundable deposit, often equal to one month's rent or a share of container value. Practice varies by company. ## Why it matters A deposit protects the operator if a unit returns dirty or damaged. If the unit is in good shape and charges are paid, the renter should get the money back. A common mistake is to treat the deposit as a fee. It is usually refundable, minus valid deductions. Renters should ask when and how it is returned and what deductions may apply. Rules on return timing differ by state and by country. Many portable storage companies do not charge deposits at all and use other tools, such as a card on file. This is not legal advice. [Read: How much does portable storage cost? Monthly rent, fees and totals](https://npsa.preview.multisites.ai/guides/portable-storage-cost) Definition source: [hz-containers.com](https://hz-containers.com/en/news/penalties-for-returning-a-dirty-or-damaged-container-from-rental/) ## Related terms [### rental agreement A rental agreement is the contract that sets the terms for renting a container or similar unit. RentalModo says it is usually two or three pages. It covers the rate, minimum term, damage rules, delivery and pickup, and fees. The fine print is often in clauses that renters skim.](https://npsa.preview.multisites.ai/glossary/rental-agreement)[### damage waiver A damage waiver is an optional fee in a rental agreement that limits what the renter owes if the rented unit is damaged. RentalModo's guide gives sample contract language saying a Loss and Damage Waiver, if elected, limits liability for physical damage only. Terms and exclusions differ by company.](https://npsa.preview.multisites.ai/glossary/damage-waiver)[### minimum rental term A minimum rental term is the shortest period a customer must pay for. RentalModo's sample agreement language says the minimum period is three months and that early termination requires payment of the remaining minimum balance. Other companies use one month or another length.](https://npsa.preview.multisites.ai/glossary/minimum-rental-term)[### rental rate A rental rate is the price charged for keeping a container for a billing period, often a month. Complete Container Services says a monthly rental rate generally refers to the cost of keeping the container for the agreed rental period. Delivery and pickup may be billed separately.](https://npsa.preview.multisites.ai/glossary/rental-rate)[### delivery fee A delivery fee is a charge for bringing a container to the customer's site. Complete Container Services notes that delivery and pickup may be handled separately from the monthly rental. The fee often depends on distance, placement needs and site access.](https://npsa.preview.multisites.ai/glossary/delivery-fee)[### pick-up charge A pick-up charge is a fee for collecting a container. In container leasing, One Way Lease describes it as a one-time fee at the origin depot for releasing a container into the lessee's possession. In portable storage rentals, companies often charge a separate fee to pick up a unit from the customer.](https://npsa.preview.multisites.ai/glossary/pick-up-charge) [All 220 terms](https://npsa.preview.multisites.ai/glossary) For the industry ## Grow your portable storage business with NPSA Members get event rates, the Community Forum, the directory listing and leads from this website. [Join NPSA](https://npsa.preview.multisites.ai/join-us)[See member benefits](https://npsa.preview.multisites.ai/member-benefits) Need storage? ## Get quotes from NPSA member companies Tell us what you need and where. A member company that serves your area will contact you. [Request a quote](https://npsa.preview.multisites.ai/request-a-quote)[Which unit do I need?](https://npsa.preview.multisites.ai/find-storage)