A security deposit return letter is a formal document written by a landlord outlining the necessary use of the tenant’s security deposit and an amount due or deposit amount returned. Every landlord should have a basic security deposit return letter. This letter should be utilized when a tenant moves out to formally document the costs of cleaning and repairing the vacated property. These costs are generally partially routine, such as painting, and partially tenant-specific, such as repairs to the property not generally required through normal wear and tear.
The letter should provide spaces a landlord can use to complete with costs for common requirements like cleaning and painting expenses. Many landlords find that attaching copies of receipts to these letters can make disputes less likely. Although informing a previous tenant that part or all of their security deposit will not be returned is unpleasant, offering a detailed list of costs can make the job less problematic.
Important: This letter should be written in professional language and printed on property management’s letterhead, like any formal document you write for your properties. Be sure to include all costs that impact the security deposit return amount. If the cost to the tenant is higher than the security deposit, include information about where the amount due should be sent.
Here is a list of the information a detailed security deposit return letter should include:
- Property address
- Security deposit amount
- Interest percentage and amount paid on deposit
- First and last month property was inhabited
- Monthly rent amount
- Late fees currently due
- List of common cleaning and repair items
- Space for other expenses
- Total expense amount
- Landlord’s amount due
- Tenant’s amount due
- Amount tenant needs to remit
- Amount refunded to tenant
- Address for tenant to send amount due
Security Deposit Return Letter Format
Here is a basic format for a Security Deposit Return letter. This format can easily be adapted for your use.
{Your name}
{Property name}
{Your address}
Leave this line blank.
{Recipient name}
{Recipient address}
{Date}
RE: Security Deposit Return
Dear {Recipient name}:
I am writing regarding the security deposit you paid for the property below.
Address of Property:
{Property address}
Security Deposit: {Amount of Deposit}
Interest on Deposit: {Interest percentage}% {Interest amount}
Total Security Deposit: {Total amount with interest added}
Rent Due: From {date occupancy began} To {date occupancy ended}, {Monthly rent amount paid}
Late Fees Due: {Amount currently due}
Cleaning: {Expense amount}
Carpets: {Expense amount}
Painting: {Expense amount}
Window Coverings: {Expense amount}
Other: {Expense amount}
Total Charges: {Total expense amount}
Balance Owner: {Amount owner pays}
Balance Resident: {Amount tenant pays}
Balance Due: {Current Amount Due}
Security Deposit Refund: {Amount refunded}
Please remit balance due, if any, to:
{Property name and Address}
Sincerely,
{Landlord’s signature}
{Landlord’s name}
{Contact information}
Enclosures: {Note any enclosed receipts, refund if any}
Sample Security Deposit Return Letter
Here is a sample letter based on the format above.
Matt Hines
Elysium Properties
2006 South Louis Road
Athens, GA 28657
Abigail Newsome
3278 West Lansing
Athens, GA 28658
June 1, 2020
RE: Security Deposit Return
Dear Abigail Newsome:
I am writing regarding the security deposit you paid for the property below.
Address of Property:
2006 South Louis Road
Apt. 308
Athens, GA 28657
Security Deposit: $1,200.00
Interest on Deposit: 6%, $152.59
Total Security Deposit: $1,352.59
Rent Due: From May 1, 2018 To May 1, 2020, $1,200.00 Monthly
Late Fees Due: $0.00
Cleaning: $125.00
Carpets: $0.00
Painting: $125.00
Window Coverings: $45.00
Other: $0.00
Total Charges: $295.00
Balance Owner: $150.00
Balance Resident: $145.00
Security Deposit Refund: $1,207.59
Balance Due: $0.00
Please remit balance due, if any, to:
Elysium Properties
2006 South Louis Road
Athens, GA 28657
Sincerely,
Matt Hines
Matt Hines
hinesmatt@elyseumproperties.com
Enclosures: Receipts, Refund Check
Security Deposit Return Letter Examples and Templates
Property owners and managers frequently find themselves in the difficult situation of writing previous tenants about their security deposits and how these deposits were used. A basic format for a security deposit return and a sample letter to read can make this unpleasant job easier. Modifying the above letters can provide you with a clear, concise, professional document that is easy to use – regardless of the deposit status.
Letter to Request Security Deposit Refund
A letter to request security deposit refund is written by a previous tenant, requesting a refund of the security deposit they paid. This letter can be a simple document with a basic request for a refund. Although it does not need to be complex, it does need to be professional. “I am writing to request a refund of the security deposit I paid on {date}.” is effective and concise. Note the property address when writing this letter.
Damages Exceeding Security Deposit Letter
A damages exceeding security deposit letter is a formal document written by a landlord explaining the expense for damages to the premises exceeds the total amount of a security deposit. Unfortunately, this is a common occurrence. The above letter will work well in this situation.
Security Deposit Acknowledgement Letter
A security deposit acknowledgement letter is a formal document written by a landlord acknowledging the payment of a security deposit. A professional, clear acknowledgment could read: “A Security Deposit for the property located at {address} in the amount of {amount} was paid on {date}.” Thank your resident for their tenancy!
Deposit Acknowledgement Letter
A deposit acknowledgement letter is a formal document like the Security Deposit Acknowledgement Letter. It notes the amount of the deposit paid, the date it was paid, and the address of the property for which it was paid. Landlords can use it as a professional receipt for these funds.
Landlords rely on their tenants for their livelihood, making professional communications paramount. Whether a previous tenant has a security deposit refund due to them, or their former landlord has a payment due to them, a basic format for a security deposit return letter works. The format provided above can produce an effective and professional letter either way.
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