Which of the following statements about security deposits is NOT true?

The statement that security deposits will increase if a resident's income rises after moving in is not true. Security deposits are typically predefined amounts that are collected before a tenant moves into a unit, serving as a safeguard for the landlord against potential damages or unpaid rent. They are usually calculated based on a fixed criterion, such as a flat fee or a percentage of monthly rent, rather than fluctuating with the tenant's income after moving in.

The other statements reflect accurate practices in the realm of security deposits. Owners are often required to keep security deposits in separate accounts to ensure proper management and protection of the tenant's funds. The refunding of security deposits must be done within a specific timeframe, commonly 30 days after the tenant vacates, allowing time for any necessary deductions to be calculated for damages. Additionally, security deposits are not income-based; they do not change based on the tenant's financial status post-lease initiation. This understanding is critical for both landlords and tenants to ensure compliance with housing laws and to maintain clear communication regarding rental agreements.