A landlord agrees to let a tenant avoid a $200 security deposit by cleaning their dirty unit upon arrival. The tenant leaves the unit clean with no damage at move-out. What must the landlord do?

The correct answer indicates that the landlord must refund the tenant a $200 security deposit for the value given for the cleaning at the start of the lease. This is based on the agreement made between the landlord and the tenant. When the landlord allowed the tenant to forgo the deposit in exchange for cleaning the unit, there was a clear understanding that the tenant would provide value through their cleaning efforts.

Since the tenant fulfilled their part of the agreement by leaving the unit clean and undamaged at move-out, the landlord is obligated to reciprocate by refunding the $200 equivalent to the security deposit that was initially waived. This action aligns with the principles of fair dealing and contractual obligations. The landlord must honor the initial agreement; therefore, the tenant is entitled to receive the refund because the condition for avoiding the deposit (i.e., cleaning the unit) was met successfully.

Other options do not recognize the contractual relationship established when the tenant was allowed to bypass the security deposit. For instance, stating that the landlord need not return a deposit because none was paid overlooks the agreed-upon value of the tenant's cleaning service. Thus, the tenant is rightfully entitled to the $200 refund as it represents the agreed value exchanged at the start of the lease.