A security deposit return letter is a communication a landlord sends to a tenant to inform them of their security deposit refund. It includes the tenant’s information, a reference to the original lease, the original security deposit amount, any deductions the landlord will make (if applicable), and reasons for the deductions.
This letter provides legal protections for both parties, ensuring that the tenant is charged for deductions fairly and the landlord has proof if the tenant later claims that the landlord improperly withheld the deposit.
When Do I Have to Return a Tenant's Security Deposit?
Follow the guidelines in your state to return a security deposit in compliance with state laws. Some states may have differing timeframes if certain conditions apply, like if the tenant didn’t provide proper notice or the landlord had to withhold some of the amount for damages.
When Can a Landlord Keep the Security Deposit?
A landlord may keep part or all of the security deposit for the following reasons:
- Property Damage: Excessive property damage, such as broken appliances or water damage caused by tenant negligence, can result in the landlord keeping the deposit.
- Unpaid Rent: If the tenant owes unpaid rent, utility charges, or late fees when they move out, the landlord can subtract those amounts from the security deposit.
- Cleaning Costs: If the tenant’s lack of care for the property results in the landlord needing to hire professional cleaning services, the landlord can deduct cleaning costs from the security deposit.
- Unauthorized Alterations: If the tenant made unauthorized alterations to the property, the landlord can keep some of the security deposit to restore the property to its original condition.
- Missing Items: If the tenant removes any items from the property (like light fixtures or appliances) that were part of the rental unit, the landlord can deduct the replacement cost from the security deposit.
The landlord should not keep any part of the security deposit for normal wear and tear. Normal wear and tear includes expected minor deterioration such as light carpet stains, faded paint, dirty blinds, lightly scuffed walls, and door warping due to age and regular use.
When to Return the Entire Security Deposit
If the tenant didn’t break any lease agreement terms and left the rental unit in good condition, the landlord can notify the tenant that they will return the entire amount of the original security deposit.
How to Write a Security Deposit Return Letter
Include the following elements in your security deposit refund letter:
- Tenants’ names: Include all the names of the tenants on the lease.
- Original lease reference: To avoid confusion, refer to the original lease, including its start and end dates.
- Property address: Write the property address.
- Initial security deposit amount: State how much the tenant originally paid to the landlord for their security deposit.
- List of expenses: Include an itemized list of expenses that the landlord incurred for the tenant’s negligence. Clarify that the landlord will use the tenant’s security deposit to pay these expenses.
- Evidence of expenses: Include receipts of the expenses, such as receipts from cleaning service companies or repair technicians.
- The remaining balance: Clarify the amount that the landlord will pay to the tenant after accounting for deductions. If there’s no remaining amount, specify this detail.
A tenant may send a security deposit demand letter if they believe their landlord is unjustly withholding their security deposit beyond the legally allowed timeframe or without providing a valid itemized deduction list.
How to Send a Security Deposit Return Letter
Once you write your security deposit refund letter, you can address it to the tenant’s specified forwarding address. You should always ask the tenant for a valid forwarding address when they decide not to renew the lease. If you don’t acquire their forwarding address, you can contact them for their current address. As a last resort, you can mail it to their last known address.
Returning Security Deposit Interest
Some states require landlords to store security deposits in an account that earns interest until they have to return them to tenants. In most cases, if this requirement applies to you, you’ll also have to return the security deposit interest to the tenant.
Mistakes to Avoid When Writing a Security Deposit Return Letter
Here are some common mistakes when writing a security deposit return letter:
Common Mistakes
- Not itemizing deductions
- Returning the deposit late
- Deducting normal wear and tear
- Ignoring local laws
Do Instead
- Specify each deduction and include receipts
- Adhere to state guidelines for return deadlines
- Exclude normal wear and tear
- Familiarize yourself with local laws
Example Security Deposit Return Letters
Here are some examples of security deposit return letters based on different scenarios:
Example 1 – Full Return
James Saunders
1601 Birch St
Denver, CO 80220
(303) 555-8129
[email protected]
October 3, 2024
Mia Thompson
PO Box 67890
Denver, CO 80203
RE: Security Deposit Refund
Dear Mia Thompson,
This letter serves as confirmation of the refund of your security deposit in connection with your tenancy at 4327 West Colfax Ave, Denver, CO 80204, which commenced on October 1, 2023, and ended on October 1, 2024.
Security Deposit Details:
- Total Security Deposit Paid: $1,500
- Interest Earned on Security Deposit: $0
- Total Deductions: $0
- Unpaid Rent: $0
- Refunded Amount: $1,500
Enclosed, please find your full refund of $1,500, which has been issued via personal check. If you have any questions or concerns regarding the deductions or the refund, please don’t hesitate to contact me at (303) 555-8129 or [email protected].
Sincerely,
James Saunders
Example 2 – Partial Return
Tyler Brooks
2457 NE 65th St
Seattle, WA 98115
(206) 555-7294
[email protected]
October 3, 2024
Sophia Adams
PO Box 12345
Seattle, WA 98101
RE: Security Deposit Refund
Dear Sophia Adams,
This letter serves as confirmation of the refund of your security deposit in connection with your tenancy at 3780 E Howell St, Seattle, WA 98122, which commenced on September 30, 2023, and ended on September 30, 2024.
Security Deposit Details:
- Total Security Deposit Paid: $1,000
- Interest Earned on Security Deposit: $0
-
After Inspection of the Property, deductions:
- Cleaning service to remove significant pet stains on the living room carpet: $200
- Replacement of broken blinds in the primary bedroom: $100
- Total Deductions: $300
- Unpaid Rent: $0
- Refunded Amount: $700
Enclosed, please find your partial refund of $700, which has been issued via money order. If you have any questions or concerns regarding the deductions or the refund, please don’t hesitate to contact me at (206) 555-7294 or [email protected].
Sincerely,
Tyler Brooks
Example 3 – No Return
Chloe Evans
7845 Lake Underhill Rd
Orlando, FL 32822
(407) 555-3147
[email protected]
October 3, 2024
Ava Parker
PO Box 54321
Orlando, FL 32801
RE: Security Deposit Refund
Dear Ava Parker,
This letter serves as confirmation of the refund of your security deposit in connection with your tenancy at 5301 S Orange Blossom Trl, Orlando, FL 32839, which commenced on September 25, 2023, and ended on September 25, 2024.
Security Deposit Details:
- Total Security Deposit Paid: $1,000
- Interest Earned on Security Deposit: $0
-
After Inspection of the Property, deductions:
- Painting fee to cover up the drawings on the primary bedroom wall: $200
- Total Deductions: $200
- Unpaid Rent: $1,000
- Refunded Amount: $0
Due to these deductions from your security deposit and the unpaid rent, I cannot return any portion of the deposit to you. If you have any questions or concerns regarding the deductions or the refund, please don’t hesitate to contact me at (407) 555-3147 or [email protected].
Sincerely,
Chloe Evans
Security Deposit Return Letter Sample
Download a security deposit return letter template in PDF or Word format below:
