As a landlord, it is essential to provide your tenants with a security deposit return letter once they have moved out. This letter serves as the official document regarding the deposit that the tenant had initially paid to move into the property. It is crucial to include an itemized list of all the funds used from the tenant’s security deposit to cover repairs and damages. In addition, the letter should include a check for any remaining funds.
Such a letter serves as a detailed receipt outlining how the funds from the tenant’s initial deposit were used. In many states, it is mandatory to itemize all the reasons for withholding the security deposit funds. Even in states where it is not mandatory, it is advisable to provide this information to the tenant to avoid any future disputes.
It is crucial to include as many details as possible in the security deposit letter. It is best to include the amount of each deduction from the deposit and an explanation for each deduction if necessary. Additionally, it would be helpful to include the total amount of all the deductions and copies of any necessary cleaning and repair bills.
If the tenant is owed any money after these deductions, a check should be attached to the letter. However, if the tenant did not take good care of the rental property, this letter might request more money from the tenant instead of returning the check.
Security Deposit Return Letter Templates
Writing a security deposit return letter does not have to be complicated. The more items you need to deduct from the deposit, the longer it will be. If you are worried about writing this letter, then downloading a standard template can make things easier.
What You Can and Cannot Deduct From Security Deposit
As a landlord, it is essential to know what you can and cannot deduct from a tenant’s deposit when they move out. The rules for deductions are often outlined in the lease, and it is crucial to adhere to them. Generally, the tenant will receive some or all of their security deposit back, depending on how well they have taken care of the property.
If the tenant is past due on rent, you can use some or all of their deposit to cover this amount. Normal wear and tear is expected, but excessive damage that requires significant repairs can be deducted from the security deposit. Additionally, the tenant may be charged for early termination of the lease, unpaid utilities, and costs associated with removing any property left behind.
It is important to note that tenants cannot be charged for normal wear and tear or damage resulting from everyday living on the property.
EXAMPLE
Light stains on the carpet, faded wallpaper or paint, scuffed walls, pin and nail holes that are not excessive, and dirty curtains and blinds are all considered normal wear and tear. Similarly, dust, dirt, and grime that are not excessive should not be charged to the tenant.
Even some damage or broken components of the property can fall under the category of normal wear and tear. For instance, warped floors or doors from moisture or age, broken light bulbs, or an old appliance breaking are not expenses that can be charged to the tenant’s security deposit.
What to Include in a Security Deposit Letter?
As a landlord, it is essential to provide your tenants with a security deposit letter once they have moved out. The letter serves as the official document regarding the deposit that the tenant had initially paid to move into the property.
Here are the essential components that should be included in the letter:
Tenant’s personal details
Begin the letter with the tenant’s personal details, such as their name, address, and phone number. Ensure that all the details are accurate and up to date.
Rental period
Include information on how long the tenant stayed at the property or the duration of the rental period. This information helps the tenant and landlord to keep track of the rental term.
Total security deposit
Mention the original amount of the security deposit near the top of the letter. This helps both parties see the original amount of the deposit to avoid confusion once the deductions are taken out.
Interest on deposit
Depending on your location, you may need to add interest accrued on the security deposit to the amount being returned to the tenant. Provide clear details on the interest accrued and how it is being handled.
Legitimate itemized deductions
You can deduct certain expenses from the deposit and add them to an itemized list, including an explanation and the amount used for each deduction. Ensure that each expense is legitimate and appropriately explained.
Total amount of deductions
Add up the total sum of deductions to show how much of the deposit is being used. This helps the tenant to understand how the deductions were arrived at.
Security deposit paid
Subtract the total sum of deductions from the original security deposit amount to determine the balance being returned to the tenant. If the deductions are higher than the deposit, request that the tenant pays the outstanding amount.
Landlord’s address
Include your address and contact information on the letter. This helps the tenant to get in touch with you if they have any questions or need to remit additional payment.
Landlord’s signature and date
Sign the letter and include the date it was written. This helps to provide a paper trail of when the letter was sent out and when you expect the money to come back.
note
You can choose to add receipts of any deductions you make in the security deposit. You can either itemize the deductions and add them to the letter, or include the additional receipts and information for the tenant’s convenience.
Templates
Below are samples of the security deposit letter that you can use as a guide for writing yours:
template 01
Dear [Tenant],
I am writing to confirm that we have received your security deposit in the amount of [original deposit amount] for the property located at [property address] during the lease period of [lease period].
We would like to inform you that after conducting a thorough inspection of the property, we have found that there are no outstanding balances or damages that need to be deducted from your security deposit. Therefore, we are happy to inform you that we will be returning your full security deposit in the amount of [full deposit amount].
Please allow [number of days] for the refund to be processed and appear in your account. If you have any questions or concerns regarding this matter, please do not hesitate to contact us.
Thank you for your cooperation and for being a responsible tenant during your stay with us. We wish you all the best in your future endeavours.
Sincerely,
[Your Name]
[Property Management Company]
template 02
Dear [Tenant’s Name],
I hope this letter finds you well. I am writing to discuss the return of your security deposit for the rental property located at [Property Address], where you resided during the period of [Lease Start Date] to [Lease End Date].
As a responsible landlord, it is my obligation to provide you with an itemized list of any deductions made from your security deposit. After a thorough inspection of the property, I have deducted [Deduction Amount] from the original deposit of [Original Deposit Amount] to cover the costs of the following expenses:
[Expense 1]
[Expense 2]
[Expense 3]
The remaining balance of your deposit is [Remaining Balance], which I have enclosed in the form of a check with this letter. Please feel free to contact me if you have any questions or concerns.
I would like to express my gratitude for your tenancy and cooperation during your stay at the property, and I wish you all the best in your future endeavors.
Best Regards,
[Landlord’s Name]
Sample Letter
If you are in search of a tangible example for the proper communication of security deposit returns, the subsequent segment presents a sample letter from a landlord, illustrating a professional and clear approach to the matter.
sample
Dear Emily Johnson,
I hope this letter finds you well. This letter is in reference to the security deposit of $1,000 you made for the property located at 789 Pine Lane, Anytown, AN, which you rented from January 1, 20XX, to December 31, 20XX.
I am pleased to inform you that after conducting a thorough inspection of the property upon your move-out, I found it to be in good condition, consistent with the terms of our lease agreement. Therefore, I will be returning the full amount of your security deposit.
Enclosed with this letter is a check for $1,000. Please deposit this check within 30 days of receipt.
I would like to take this opportunity to thank you for being a responsible tenant and for maintaining the property in excellent condition during your tenancy. It was a pleasure having you as a tenant, and I wish you all the best in your future endeavors.
If you have any questions or require further assistance, please feel free to contact me at (555) 123-4567 or johnsmith@email.com.
Thank you once again for your time at 789 Pine Lane. Your prompt and courteous behavior as a tenant was greatly appreciated.
Sincerely,
John Smith
Key Takeaways
This letter is a useful guide for landlords who wish to write a similar letter for several reasons:
- The letter maintains a professional and respectful tone throughout. This is crucial in maintaining good relations with the tenant, even after the tenancy has ended.
- It clearly specifies the subject at the beginning (the security deposit) and mentions specific details like the amount ($1,000), property address, and rental period. This helps in avoiding any confusion.
- The landlord acknowledges the tenant’s good condition of the property and their responsible behavior. This positive reinforcement can be encouraging for the tenant and is a good practice in tenant management.
- The inclusion of a check and instructions for its deposit within a specific time frame (30 days) provides clear next steps for the tenant.
- Expressing gratitude and well wishes for the tenant’s future endeavors helps in ending the relationship on a positive note, which can be beneficial for future references or interactions.
- By providing contact details, the landlord remains approachable for any future queries or assistance, which is a sign of good customer service and professionalism.
- Recognizing the tenant’s promptness and courtesy reinforces positive tenant behavior and sets a good example for future tenants.
Overall, this letter is an effective sample for landlords to communicate effectively and professionally with former tenants, especially regarding security deposit returns and expressing appreciation for responsible tenancy.
Return Periods
Every state has different rules about when the security deposit needs to be returned, with some requiring it done within 10 to 14 days and some giving you a maximum of 60 days to complete. You should aim to get the deposit back to the tenant as soon as possible to avoid issues with local statutes and complaints from your tenant about how long it is taking to get their security deposit back. Sometimes it is possible to write a check to the tenant after the final walk-through if you can estimate the costs of cleaning and repairs at that time.
| AL – 60 days (§ 35-9A-201) |
| AK – 14 days (§ 34.03.070) |
| AZ – 14 days (§ 33-1321) |
| AR – 60 days (§ 18-16-305) |
| CA – 21 days (§ 1950.5(g)(1)) |
| CO – 1 month (§ 38-12-103) |
| CT – 15 days (§ 47a-21) |
| DE – 20 days (Title 25 § 5514) |
| FL – 15 days (83.49(3)(a)) |
| GA – 30 days (§ 44-7-34) |
| HI – 14 days (§ 521-44) |
| ID – 21 days (§ 6-321) |
| IL – 30 days (765 ILCS 710/1) |
| IN – 45 days (§ 32-31-3-12) |
| IA – 30 days (§ 562A.12(3)(a)) |
| KS – 30 days (§ 58-2550(b) |
| KY – 60 days (§ 383.580) |
| LA – 1 month (§ 9:3251) |
| ME – 21 or 30 days (§ 6033) |
| MD – 45 days (§ 8–203) |
| MA – 30 days (186, § 15B) |
| MI – 30 days (§ 554.609) |
| MN – 3 weeks (§ 504B.178) |
| MS – 45 days (§ 89-8-21) |
| MO – 30 days (§ 535.300) |
| MT – 10 days (§ 70-25-202) |
| NE – 14 days (§ 76-1416) |
| NV – 30 days (NRS 118A.242) |
| NH – 30 days (RSA 540-A:7) |
| NJ – 30 days (§ 46:8-21.1) |
| NM – 30 days ((§ 47-8-18) |
| NY – 14 days (§ 7-108(1-a)(e)) |
| NC – 30 days (§ 42-52) |
| ND – 30 days (§ 47-16-07.1) |
| OH – 30 days (§ 5321.16) |
| OK – 45 days (§ 41-115) |
| OR – 31 days (§ 90.300) |
| PA – 30 days (§ 250.512) |
| RI – 20 days (§ 34-18-19) |
| SC – 30 days (§ 27-40-410) |
| SD – 2 weeks (§ 43-32-24) |
| TN – 30 days (§ 66-28-301) |
| TX – 30 days (§ 92.103) |
| UT – 30 days (§ 57-17-3) |
| VT – 14 days (§ 4461) |
| VA – 45 days (§ 55.1-1226) |
| WA – 21 days (§ 59.18.280) |
| WV – 60 or 45 days (§ 37-6A-1(7)) |
| WI – 21 days (§ 134.06) |
| WY – 30 or 15 days (§ 1-21-1208(A)) |
Detail of security deposit return periods is given in this table.
Final Thoughts
A security deposit letter is the final thing you need to do to work with your tenant. It helps them take back the deposit they gave you from the beginning and helps keep you cover any of the excessive damage or unpaid rent that they left behind. There are different rules for when to return the deposit, and it can depend on whether the tenant is owed the money or owes you more money for the damage they caused. Take a look at the security deposit refund letter writing tips explained above to help you get this done.
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