Security Deposit Return Letter Template

A security deposit return letter tells the tenant what you're keeping and why. You list every deduction with amounts. You include the check for the balance.

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What Your Deposit Return Letter Must Include

Miss any of these and you could lose the right to keep deductions. Some states make you pay 2-3x the deposit as penalty.

  • Original deposit amountThe total they paid at move-in
  • Itemized deductionsEach deduction listed separately with cost
  • Reason for each deductionWhat the charge is for
  • Amount being returnedThe balance owed to tenant
  • Forwarding addressWhere you're sending the check

Important: Attach receipts or invoices for any repair costs. Some states require it. Even where not required, it prevents disputes.

5 Mistakes That Trigger Deposit Penalties

Missing the deadline

California: 21 days. Texas: 30 days. New York: 14 days. Miss it and you may owe 2-3x the entire deposit.

No itemization

"Deductions: $500" isn't enough. You must list each item: "Hole repair: $75. Carpet cleaning: $150. Broken blinds: $60."

Deducting for normal wear and tear

You cannot charge for faded paint, carpet wear in traffic areas, or minor nail holes. Courts will throw out these deductions.

Wrong address

Sent the letter to the old rental address? Tenant never lived at forwarding address you had? You missed the deadline.

No receipts for repairs

Some states require proof of costs. Even where not required, "I charged $200 to paint" without evidence gets disputed.

Security Deposit Return Letter Example

SECURITY DEPOSIT DISPOSITION

Date: [Date]

To: [Tenant Name]
[Forwarding Address]

Re: Security Deposit for [Property Address]

Original Deposit: $1,500.00

Itemized Deductions:

Carpet cleaning (pet stains): $150.00

Wall repair (3 large holes): $125.00

Broken window blinds: $85.00

Unpaid rent (5 days): $200.00

Total Deductions: $560.00

Amount Returned: $940.00

Enclosed is a check for $940.00. Receipts for repairs are attached.

[Landlord Name]

This is a simplified example. The generator above creates a complete letter with proper formatting and all required sections.

Why Generate Your Letter with LandlordForms

Done in 30 seconds

Enter deposit amount. Add deductions. Click generate. Stop struggling with Word documents.

Math done for you

Enter your deductions. We calculate totals and balance automatically. No math errors.

Proper itemization

Format that shows each deduction clearly. Courts accept it. Tenants understand it.

Avoid costly penalties

Generate it quickly so you meet your state's deadline. Penalties for late return are severe.

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Frequently Asked Questions

What is the deadline to return a security deposit?

It varies by state. California: 21 days. Texas: 30 days. New York: 14 days. Florida: 15-30 days depending on deductions. Check your state law.

What happens if I miss the deadline?

Penalties vary. You may lose the right to keep any deductions. Some states require you to pay 2-3x the entire deposit amount to the tenant.

Can I deduct for carpet cleaning?

Only if the carpet is damaged beyond normal wear or excessively dirty. You cannot charge for routine cleaning that you'd do between any tenants.

What if the tenant doesn't give me a forwarding address?

Send the letter to their last known address (the rental unit). Keep proof of mailing. You've fulfilled your obligation.

Do I need to include receipts?

Some states require receipts or invoices for any repair deductions. Even where not required, including them prevents disputes.

Can I keep the deposit for unpaid rent?

Yes. Unpaid rent, unpaid utilities (if you provide them), and damage beyond normal wear are typically allowable deductions.

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