Which situation could lead to the loss of a security deposit?

The situation that could lead to the loss of a security deposit is associated with unpaid rent or damage to the property. When a tenant is responsible for unpaid rent, the landlord may deduct the amount owed from the security deposit before returning the remaining balance to the tenant. Additionally, if the tenant causes damage beyond normal wear and tear—such as broken windows, holes in walls, or other significant alterations to the property—the landlord has the right to deduct the cost of repairs from the security deposit.

This aligns with the purpose of the security deposit, which is meant to protect the landlord from financial losses due to a tenant's failure to meet lease obligations or to maintain the property in good condition. Normal wear and tear does not qualify for deductions, nor does simply finding a new tenant or moving out early, unless other lease violations or financial dues apply.