How to Write a Demand Letter (with Template & Examples)

A demand letter is a formal correspondence that makes a demand to the recipient. It holds a legal obligation which the reader must honor and consequences that will follow if they don’t. When well-drafted, a demand letter can encourage the recipient to resolve an issue or act upon an agreement.

If you have tried to resolve an issue to no avail, you can send this correspondence to all involved parties. This should help you reach an amicable solution fast and without a lawsuit.

If this is your first time writing a demand letter, here are some guidelines to help you write a thorough and effective letter. When drafting your message:

• State your reasons for writing – Why are you writing the letter? What do you want the recipient to know? Always include a detailed explanation of all the matters at hand.
• Be polite and professional – Even if you are frustrated at the current situation, don’t insult the recipient. This may reduce the effectiveness of your letter.
• Provide demands – If you are requesting payment, make this clear in your letter. Provide the recipient with the demands they should honor.
• Give a deadline – This is the date by when the recipient should have responded. You can also provide possible alternatives to the demands.
• State the potential consequences for non-compliance or inaction

A demand letter can serve as official evidence, should a dispute go to trial. As such, it should be drafted appropriately to cover all the essential fields. Here are a template and sample to help you draft an effective letter.

Demand Letter for Payment

This letter is written to a party that owes you money. It could be to a tenant, or for property damage, a defective product, or breach of contract.

Demand Letter to Landlord

Any official correspondence with the landlord concerning unfair deductions, lease matters, or other tenant complaints is considered a demand letter.

Demand Letter for Refund

This is a formal request for the return of payment for a product or service. It is addressed to the merchant or provider and should detail the transaction and why you need a refund.

Demand Letter for Security Deposit

This letter is written to a landlord when they fail to send you a written itemization of your deposit. It could also be to work out an agreement or if the landlord performs unfair deductions.

Final Demand Letter Before Legal Action

A final demand letter is written as a final attempt to collect a payment or debt. It follows a series of demand letters that have received no acceptable response and is sent before you seek legal action.

Demand letters are critical official documents. They can help a recipient realize the gravity of a situation, especially when the alternative is litigation. When drafting this letter, remember to provide all the key information concerning your demand. Don’t leave the recipient guessing. Finally, a recipient is only considered liable after they received the demand letter. Make sure you get their address right.