Landlord Security Deposit Return Letter Template

A security deposit return letter is a document that is to be sent by the landlord to the tenant. It is a kind of receipt that is paid by the landlord at the end of the rental period. The time frame in which it must be sent is governed by the State laws. The letter is sent with complete details of the payment returned and cut.

If any charges are cut due to the taxes, they are mentioned in this security deposit return letter. Also, the damage or other loss is to be debited from this security amount. This is done by taking into account the agreement at the time of the handover of the property.

Security deposit return letters can be written in different templates depending on the state and country. There can be a few terms of expenses that are set by the landlord and tenant. This letter should be written according to the agreement of the lease contract. Correct figures, digits, and format are very important while writing this letter. Double-check the letter before sending it out to the tenant. It will help you avoid problems later.

Free Template

File Format
  • MS Word

Writing the Security Deposit Return Letter

In order to write the security deposit return letter, you have to follow some format in order to provide all the complete and necessary information.

Following are the steps to be followed to write the letter:

Standard Information

First, write the standard information regarding the receiver’s name and address.

To: __

Premises Location: ________ Apt.: _

City: Zip Code: _

Premises location tells the building number and street name. Apt. is used only if it is applicable and available. The city and zip code of the rental property is written to avoid any misunderstanding regarding property location.

Security Deposit Returns discussion

Discuss the security deposit returns in a manner to avoid any missing information. Step by step, provide each information in the letter to avoid any haphazard. It must be clear, understandable, precise, and concise information regarding each step.

  • First, mention the submitted security amount. The amount can be of any currency regarding the state and its used currency. For example, for America, it is in dollars. Enter the numeric value after the sign of currency, such as for the dollar it is $. Use the following format to write it:

Security Deposit: $_________

  • Then, state the interest rate at the security deposit return letter. It may be applicable or not, depending on the case. This amount is recorded and calculated on the total amount of paid security deposit. After putting the interest rate percentage, write down the total value of the interest in the next field. In order to write it in a proper way, use the following format:

Interest on Deposit: @ _______% $ _______

  • The next step is to add the total deposit value. It is obtained by adding the security deposit and interest rate value. It is the amount in the security deposit account which was opened for tenant’s lease. It is written in the format:


  • Following this step, next, you must write the time period for which the tenant has paid rent. First, write the due date of rent and then write the end date of the rent payments. It is quoted in the format:

Rent Due From: Month, Year to Month, Year

  • Further next, write the monthly rent amount. It is written in from of the rent due. It looks like:

Rent Due: From: Month, Year to Month, Year: $___________

Summary of Balance

This step is to summarize the balance for each party, tenant, and the landlord. It provides information regarding the spending of the landlord on the property during the rental period of the tenant. Any spending by the landlord, such as painting, carpets, repairing, or furnishing, can be added here. This amount is deducted from the security deposit. The format of these charges is:

Late Fees Due: $________

Cleaning: $________

Carpets: $________

Painting: $________

Repairing: $________

Another row of additional charges can be added below the expenses to accommodate any charges left behind. The sum of all other charges is entered in this field.

Other: $________

In the end, enter the total sum of all the money from late fees due to other charges.

Payment by Landlord or Tenant

By listing all the charges in the security deposit return letter, it is taken into consideration that some charges are paid by the landlord while others are paid by the tenant. So, it is necessary to clear the amount which is to be paid by each party. For that, add two blanks below the Other row. It is put in the following format:



Landlord Address and Undertaking

It is the last stage of writing the security deposit return letter. It is the undertaking of the landlord that all the information is correct. It will require the following information in the format:


Address: __________________________________________________________

City: _ State: _____ Zip: _____

In the end, add signature of the Landlord and date. It is in the format:

Landlord’s Signature: Date:

All the above steps are merged together in order to create the Security Deposit Return Letter. Each step is to be filled carefully in order to avoid any problems (Stewart, 2014).

Laws for Security Deposit Return Letter

Landlord Deductions:

The landlord can deduct the payment of major wear & tear in the property. It includes huge holes in walls, broken tiles, animal stains, and major damage to carpets or curtains. It also includes the misuse of appliances, washroom accessories, and other things in the house. But the dirty goods, a bit faded paint, etc. are not included in these deductions.

Time to Collect Security Deposit:

The security deposit is only taken in the beginning. It can’t be taken as the rent for last month.

Holding the Security Deposit:

The security deposit is to be returned by the landlord within 30 days after the tenant has moved out of the house.

Deposit Work:

The security deposit is the amount that is paid by the tenant before taking charge of the property as rented. This amount is based on the monthly rent amount. It is mostly taken as the rent of one or two months.

Not Getting the Money:

If the landlord doesn’t return the security, one can sue the landlord after seven days of letter sending. The sue can be made in the small claims court. Your landlord can withhold the money by responding to your letter, but if you don’t agree, you can sue him/her in the small claims court (Stewart, 2013).

Return Periods By State


The security deposit return letter is written to ask the landlord to return the security deposit taken at the beginning of the contract for the rent of the property. Usually, it is a period of 10 days before which the tenancy dispute for the security deposit can’t be opened. You must pay last month’s rent in order to be eligible for requesting the security deposit return. It is to be paid within 30 days’ notice. If any misunderstanding arises regarding the security deposit return, it is advised to sort out the issues peacefully without involving the court.

The format must be followed for the security deposit return letter, as shown in the templates. It will help you not to miss any details required for the return. It covers all the minor details of the expenses, returns, payables, and other small give & takes amounts. It is a legal document, so it needs to be accurate and precise.

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