Security Deposit Return Letter

Security Deposit Return Letter Template_1 on iPropertyManagement.com

A Security Deposit Return Letter is a letter sent by a landlord to a tenant indicating how much of the original security deposit is being returned at the end of the tenancy, as well as itemized information for any deductions made. Note: Some states require a landlord to provide this letter before withholding any of the tenant’s security deposit.

Why Write a Security Deposit Return Letter?

  1. Documentation – Providing a letter when returning a security deposit provides written documentation that the landlord returned a tenant’s security deposit. If a former tenant later claims that they never received their security deposit, this letter can come in handy for a landlord to dispute the tenant’s claim.
  2. Itemize Deductions – If a landlord is going to withhold any portion of the security deposit, it is important (and sometimes required by state law) to provide the tenant with an itemized list of those deductions. This will help the tenant understand why they are not receiving their full deposit. It also serves as supporting documentation if there is a legal dispute over the amount of security deposit that was withheld.
  3. Legal Requirement – In some states, it’s illegal to withhold any portion of a tenant’s security deposit without providing a detailed explanation.

What to Include in a Security Deposit Return Letter

A Security Deposit Return Letter will provide details on the return of a tenant’s security deposit and should include the following:

  1. Date
  2. Tenant’s name and current address
  3. A friendly greeting to the tenant
  4. The Lease End Date – The landlord should check the first box if the lease ended on the date provided in the lease agreement. The landlord should check the second box for leases terminated early, for whatever reason
  5. An introduction to inform the tenant of the purpose of the letter
  6. The date the tenant provided their security deposit
  7. The security deposit amount (include any accrued interest if state law requires the landlord to maintain the security deposit in an interest-bearing account for the benefit of the tenant)
  8. The date the lease agreement was signed
  9. The rental property address
  10. Briefly describe the actions taken to determine the amount of the security deposit to return to the tenant
  11. Itemized Deductions – The letter should itemize all deductions that the landlord is taking from the security deposit. Those can include things such as past due rent, late fees, and damage to various parts of the rental property
  12. Amount Due to Owner – This is the total amount that the landlord is deducting from the security deposit.
  13. Tenant Balance – This is the remaining amount of the security deposit that will be returned to the tenant.
  14. A closing paragraph that indicates what additional information is included with the letter such as supporting documentation for any deductions and payment for the balance of the security deposit
  15. Landlord’s contact information
  16. Landlord’s name and signature

It is helpful to include any documentation that will support the content of this letter. For example, you can provide a copy of the inspection that was performed, pictures that highlight any damages, invoices for repairs, or proof of unpaid rent and fees by providing a copy of the landlord’s rent ledger .

When to Send this Letter and Return a Security Deposit

While many states do not have a specific requirement for when this letter must be sent, almost all states have a specific requirement for when a security deposit must be returned after a lease agreement has ended or been terminated. See the chart below for every state’s requirements for returning a tenant’s security deposit.

State Time to Return Security Deposit
Alabama 60 days
Alaska 14 days with proper notice, 30 days without proper notice, or if the landlord is deducting any amount from the security deposit
Arizona 14 days
Arkansas 60 days
California 21 days
Colorado 1 month, unless a longer period is provided in the lease agreement (no more than 60 days)
Connecticut 30 days, or within 15 days of receiving the tenant’s forwarding address (whichever is later)
Delaware 20 days
Florida 15-60 days (depending on whether the tenant disputes any deductions)
Georgia 30 days
Hawaii 14 days
Idaho 21 days
Illinois 7 days
Indiana 30-45 days (depending on whether the tenant disputes any deductions or if the landlord provided any statements or receipts)
Iowa 30 days
Kansas 30 days
Kentucky 30-60 days (depending on whether the tenant disputes any deductions)
Louisiana 1 month
Maine 30 days for a written agreement and 21 days for a tenancy at will
Maryland 45 days
Massachusetts 30 days
Michigan 30 days
Minnesota 21 days
Mississippi 45 days
Missouri 30 days
Montana 10 days
30 days (if there are deductions)
Indefinite, subject to court order [1]
Nebraska 14 days
Nevada 30 days
New Hampshire 30 days
New Jersey 30 days
New Mexico 30 days
New York 14 days
North Carolina 30 days
North Dakota 30 days
Ohio 30 days
Oklahoma 45 days
Oregon 31 days
Pennsylvania 30 days
Rhode Island 20 days
South Carolina 30 days
South Dakota 14 days (45 days for an itemized accounting if requested by the tenant)
Tennessee No statute
Texas 30 days
Utah 30 days
Vermont 14 days
Virginia 45 days
Washington 30 days [2]
Washington D.C. 45 days
West Virginia 60 days, or within 45 days of the occupancy of a new tenant (whichever is shorter). The deadline can be extended by 15 days if damage exceeds the amount of the security deposit and the landlord has to hire a contractor to fix it
Wisconsin 21 days
Wyoming 30 days (an additional 30 days are allowed if there are deductions due to damage)

This letter should be sent simultaneously with the return of a tenant’s security deposit. Deliver it in a way that requires signature confirmation when received, such as certified mail. Even better if a landlord sends it by restricted certified mail which requires the tenant to be the only person that can sign for the letter.

The letter should be sent to the tenant’s forwarding address. If none was provided, it is advised to send it to their last known address and via email to ensure receipt. A copy of this letter should be filed with a notation of the means used to deliver the letter and any other relevant information.

Reasons for Deducting from a Security Deposit

There are several reasons a landlord can deduct from a tenant’s security deposit. Most lease agreements will provide those specific reasons. When a lease term ends, it’s important to conduct a final inspection and make sure all required payments have been made. Reasons a landlord can deduct from a security deposit typically include:

It’s important to note that, while landlords may deduct from the security deposit to return the property to its original condition, they cannot charge the tenant for repairs they originally authorized.

Sources

This section [relating to security deposit return timelines] does not apply if a rental agreement is terminated pursuant to 70-24-427 or 70-33-427 and the landlord has a pending claim for actual damages filed in court.

Within 30 days after the termination of the rental agreement and vacation of the premises or, if the tenant abandons the premises as defined in RCW 59.18.310, within 30 days after the landlord learns of the abandonment, the landlord shall give a full and specific statement of the basis for retaining any of the deposit, and any documentation required by (b) of this subsection, together with the payment of any refund due the tenant under the terms and conditions of the rental agreement.

The landlord complies with this subsection if these are delivered to the tenant personally or deposited in the United States mail properly addressed to the tenant’s last known address with first-class postage prepaid within the 30 days.

Frequently Asked Questions

Do You Get Your Security Deposit Back? The security deposit is held by the landlord during the entire tenancy. When the tenancy concludes, the landlord is required to return the security deposit minus the cost of repairs to the property caused by the tenant(s), unpaid rent, utilities or other property-related fees. Read more » How Do I Write a Letter to Return My Security Deposit? Include the following information in a security deposit return letter: Name and new address of the tenant(s), start date and end date of the lease, amount of the security deposit given by the tenant, interest accrued (if applicable), a financial statement that contains any legitimate deductions, a check for the amount owed to the tenant or a request from the tenant to pay the amount due, including the date by which the payment should be made, landlord’s signature and the date of signing. Read more » What Can You Deduct From the Security Deposit? Landlords can only deduct or keep the entire security deposit for legitimate reasons, such as cleaning costs, damages, repairs, unpaid rent, late fees, unpaid utilities, and other expenses. Read more » What Is the Law on Returning Security Deposits? Each state has its own unique landlord-tenant laws that regulate the collection, handling, and return of security deposits. When a tenancy has terminated, a landlord might be legally required to return the security deposit within a specific amount of time (usually 15-45 days). Read more » Are Holes in the Wall Considered Normal Wear and Tear? Landlords can charge for the repair of any damages to the property the tenant (or their guest) caused. The landlord will need to distinguish the difference between damages and normal wear and tear. A few nail holes or small holes in the wall are typically considered normal wear and tear. However, if there are many or large holes in the wall, the landlord will probably charge for damages. Read more »