Free Templates

Free Security Deposit Return Letter

When a tenancy ends, the deposit has to come back with an accounting — on a statutory clock, itemized in writing if anything is withheld. This template does it properly, whether you're refunding in full or deducting for damage.

Before You Write It

Know your state's deadline — commonly 14–45 days from move-out. Late itemization can forfeit every deduction and trigger damages. The security deposit guide covers the rules in depth.
Deduct damage, not wear — traffic-worn carpet and faded paint are yours to absorb; stains, holes, and neglect are deductible. The line between them is drawn in normal wear and tear vs. damage.
Anchor every deduction to evidence — the signed move-in checklist, move-out photos, and repair receipts. Unpaid rent comes straight off the rent ledger.
Send it provably — certified mail to the forwarding address (or last known address if none was given), and keep a copy.

The Template

Print this page or copy the letter. Delete the deduction table for a full refund.

Security Deposit Disposition

Date: ____________________

To (former tenant(s)): _______________________________________________

Forwarding address: _______________________________________________

From (landlord / property manager): _______________________________________________

Rental property address / unit: _______________________________________________

Tenancy ended / keys returned on: ______________

This letter is the accounting of your security deposit as required by law.

Security deposit held: $__________
Interest owed (where required): $__________

Itemized deductions (attach receipts / estimates where required):

Description (item, reason)	Amount
	$
	$
	$
	$

Total deductions: $__________
Refund enclosed / transferred: $__________

If you have questions about this accounting, contact me in writing at the address above.

Landlord / agent signature:

_______________________________

Date signed:

_______________________________

Frequently Asked Questions

What is a security deposit return letter?

A security deposit return letter (or deposit disposition letter) is the landlord's written accounting of a departed tenant's deposit: the amount held, each deduction itemized with its cost, and the balance being returned. Most states require this itemization in writing within a statutory deadline whenever any portion of the deposit is withheld — and it's good practice even for a full refund.

How long does a landlord have to return a security deposit?

State law sets the clock, commonly 14 to 45 days after move-out — for example 21 days in California, 30 in many states, 14 in a few. The same statute usually sets what must accompany any deductions: an itemized statement, sometimes receipts or estimates for repairs. Missing the deadline can forfeit the right to deduct at all and, in many states, expose the landlord to double or triple damages.

What can be deducted from a security deposit?

Typically: unpaid rent, damage beyond normal wear and tear, cleaning needed to restore move-in condition (state rules vary), and other lease breaches with a money cost. Never normal wear and tear — the gradual deterioration of ordinary living is the landlord's cost of doing business in every state.

What if the tenant never provided a forwarding address?

Send the itemization and any refund to the tenant's last known address — usually the rental unit itself, where mail forwarding will catch it if the tenant set that up. Most state statutes define this as sufficient compliance. Document the mailing (certified mail is the standard). The obligation to account for the deposit doesn't disappear because the tenant went quiet.

What should a tenant do if deductions seem unfair?

Respond in writing: dispute the specific line items, attach move-in/move-out photos and the signed condition checklist, and request receipts for the claimed repairs. If the landlord doesn't budge and the amount justifies it, small claims court handles deposit disputes cheaply and without lawyers — and judges expect landlords to prove deductions with documentation, not adjectives.

This template and guide are general information, not legal advice. Deposit deadlines, interest, itemization, and penalty rules vary by state — check your state's statute before sending.

Deposits Are Easy When the Records Exist

With Kelpic®, the deposit amount, the rent balance, and every maintenance event are already on the tenancy's record — so the disposition letter is arithmetic, not archaeology.

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