Landlords who incorporate a security deposit to lessen their financial risk are completely in their rights as a landlord, but these landlords also have a responsibility to refund the amount at the lease's ends. A security deposit refund refers to this amount of money that is refunded from the security deposit at the end of the lease. During the lease, the security deposit may be used to pay for damages, nonpayment of rent, or other costs incurred directly as a result of the tenant. When the lease ends, all funds that remain from the original security deposit must be refunded to the lessee. Each state has their own guidelines concerning the alloted time to deliver a refund, which generally must also include a receipt for the lessee. Landlords that neglect to deliver a security deposit refund within the stated length of time may be seriously penalized.