Question

1. the purpose of a security deposit is to ______.

a) pay for potential damages
b) cover the costs of utilities
c) pay for the tenants portion of real estate property taxes
d) cover increases in monthly rent

Explanation:

A security deposit in a rental context is typically collected by landlords to have funds available to pay for any damages the tenant may cause to the property during the tenancy. Option A aligns with this purpose. Option B: Utilities costs are usually paid separately or as part of rent, not from the security deposit. Option C: The security deposit is not for paying monthly rent (rent is paid separately). Option D: Security deposit doesn't cover rent increases; rent increases are handled through rent adjustments as per agreements.

Answer:

A) pay for potential damages