What is the maximum amount a security deposit can be according to housing regulations?

The correct answer is that a security deposit can be equivalent to the first full month's rent. This means that when a landlord collects a security deposit, they can charge an amount that is equal to what the tenant pays for their first month of rent. This regulation is in place to ensure that tenants are not overburdened by excessive security deposit requirements, which could create financial strain.

Having a security deposit that matches the first month's rent can serve as a reasonable safeguard for the landlord against potential damages or unpaid rent, without being excessively burdensome for tenants who are already managing moving costs and other expenses associated with relocating.

In many jurisdictions, such regulations aim to promote fair housing practices and protect the interests of both tenants and landlords.