Security Deposit Refund Letter Template

Create a professional security deposit refund letter that protects your legal interests and clearly communicates deposit deductions. Follows state regulations and includes itemized documentation.

Security Deposit Refund Letter Template

A security deposit refund letter is a formal document landlords use to return security deposits to tenants after they move out. This essential document details the original deposit amount, any deductions made, and the final refund amount, ensuring compliance with state laws and protecting both parties' interests.

What This Template Is For

This template helps landlords create a professional and legally-compliant security deposit refund letter. It's designed to clearly communicate deposit deductions, include required documentation, and meet state-mandated timelines for security deposit returns. The template ensures all necessary information is included and properly formatted.

When To Use This Template

Use this template within the legally required timeframe after a tenant moves out (typically 14-30 days, depending on your state). It's particularly important when: making deductions for damages beyond normal wear and tear, documenting cleaning charges, addressing unpaid rent, or returning the full deposit amount.

How To Customize It

  1. Enter your property management details and tenant information
  2. Include the move-out date and original deposit amount
  3. List any deductions with specific descriptions and costs
  4. Attach supporting documentation (photos, receipts, repair estimates)
  5. Calculate and clearly show the final refund amount
  6. Include state-specific language and requirements
  7. Review all calculations for accuracy

Common Use Cases

  • Full deposit refund with no deductions
  • Partial refund with itemized deductions for repairs
  • Deductions for cleaning or unpaid rent
  • Documentation of property damage beyond wear and tear
  • Multiple tenant refund situations

Best Practices

  • Send the letter via certified mail with return receipt
  • Include detailed documentation for all deductions
  • Keep copies of all correspondence and receipts
  • Follow state-specific timeline requirements
  • Use professional, neutral language
  • Provide clear calculation breakdowns

Template Variations

  • Full refund letter format
  • Partial refund with deductions format
  • No refund due to damages format
  • Multiple tenant refund format

Success Stories

Property managers report fewer deposit disputes and legal challenges when using this structured template. One landlord avoided a potential lawsuit by clearly documenting $850 in damage repairs with photos and contractor estimates using this format.

Frequently Asked Questions

How long do I have to return a security deposit?

Timeline requirements vary by state, typically ranging from 14 to 30 days after tenant move-out.

What can I legally deduct from a security deposit?

You can typically deduct for property damage beyond normal wear and tear, unpaid rent, and cleaning costs to restore the unit to move-in condition.

Do I need to include receipts with the letter?

Yes, most states require documentation for deductions exceeding a certain amount (often $125).

What happens if I miss the deadline?

Missing the deadline can result in penalties, including having to return the full deposit regardless of damages.

Should I send the letter by certified mail?

Yes, sending via certified mail provides proof of mailing and protects you legally.