Under what circumstance can a property manager retain a tenant's security deposit?

A property manager can retain a tenant's security deposit under various circumstances that are typically outlined in the lease agreement and governed by state law. When considering all the options provided, it is clear that each scenario offers a legitimate basis for retaining the deposit.

If a tenant has unpaid rent, the property manager is entitled to deduct these amounts from the security deposit. Security deposits are often seen as a form of financial protection for landlords against losses incurred due to the tenant's failure to meet their rental obligations.

In cases where damages to the property exceed the amount of the security deposit, the property manager can retain the deposit to cover those costs, and may seek additional compensation for the remaining amount of damages through other legal means.

Additionally, if the tenant breaks lease terms—such as moving out before the lease expires or failing to adhere to agreed-upon property rules—the property manager may also retain the security deposit as compensation for potential losses, including re-renting the unit.

Therefore, it is permissible for a property manager to retain the security deposit in all these situations, which is why the correct answer encompasses all the scenarios outlined. This practice not only safeguards the property manager's financial interests but also reinforces the importance of adherence to lease agreements by tenants.