Security Deposit Return Letter (With Itemized Deductions)
A deposit return letter with a clean itemized deduction statement — the format that satisfies state deadline laws and prevents small-claims disputes.
Reviewed by Milo, our property management expert · Updated July 20, 2026
When to use this
Send this within your state's deadline after a tenant moves out — whether you're returning the full deposit or deducting. The itemization format matters legally: vague deductions ('cleaning — $400') lose in small claims; specific ones with receipts win.
Check your state first
Return deadlines run from 14 to 60 days depending on state, and many states void your right to deduct anything if you miss the deadline or skip the itemization. Check your state's exact deadline in our security deposit guides before sending.
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Letter
[LETTER DATE] [TENANT NAME] [TENANT'S FORWARDING ADDRESS] Re: Security deposit for [RENTAL ADDRESS, UNIT] Dear [TENANT NAME], Your tenancy ended on [MOVE-OUT DATE]. Your security deposit of $[DEPOSIT AMOUNT] has been accounted for as follows (this statement is provided within [STATE]'s deposit-return window of [STATE DEPOSIT RETURN DEADLINE]):
Itemized statement
Security deposit held: $[DEPOSIT AMOUNT][STATE DEPOSIT INTEREST LINE] Deductions: 1. [ITEM — e.g., Unpaid rent for MONTH]: $[AMOUNT] 2. [ITEM — e.g., Replace bedroom door damaged beyond normal wear (receipt attached)]: $[AMOUNT] 3. [ITEM]: $[AMOUNT] Total deductions: $[TOTAL DEDUCTIONS] Amount returned: $[AMOUNT RETURNED] by [CHECK ENCLOSED / METHOD]
Closing
Copies of receipts and the signed move-in/move-out condition reports are enclosed. If you have questions about this statement, contact me at [LANDLORD CONTACT]. Sincerely, [LANDLORD NAME]
Educational starting point, not legal advice — the PDF carries the same note. Have a local professional review before signing.
The annotated reference
[BRACKETS] mark fill-in fields
Letter
[LETTER DATE] [TENANT NAME] [TENANT'S FORWARDING ADDRESS] Re: Security deposit for [RENTAL ADDRESS, UNIT] Dear [TENANT NAME], Your tenancy ended on [MOVE-OUT DATE]. Your security deposit of $[DEPOSIT AMOUNT] has been accounted for as follows (this statement is provided within [STATE]'s deposit-return window of [STATE DEPOSIT RETURN DEADLINE]):
Milo's note
Send to the forwarding address the tenant provided — by mail with proof of mailing, not just text or email, unless your state explicitly allows electronic delivery.
Itemized statement
Security deposit held: $[DEPOSIT AMOUNT][STATE DEPOSIT INTEREST LINE] Deductions: 1. [ITEM — e.g., Unpaid rent for MONTH]: $[AMOUNT] 2. [ITEM — e.g., Replace bedroom door damaged beyond normal wear (receipt attached)]: $[AMOUNT] 3. [ITEM]: $[AMOUNT] Total deductions: $[TOTAL DEDUCTIONS] Amount returned: $[AMOUNT RETURNED] by [CHECK ENCLOSED / METHOD]
Milo's note
Each line needs what, why, and how much — with receipts or invoices attached. Deduct for damage beyond normal wear and tear, never for ordinary aging: worn carpet paths and faded paint are your cost of doing business.
Closing
Copies of receipts and the signed move-in/move-out condition reports are enclosed. If you have questions about this statement, contact me at [LANDLORD CONTACT]. Sincerely, [LANDLORD NAME]
Milo's note
The move-in checklist you both signed at the start is what makes deductions stick — condition disputes are evidence contests, and the side with photos and signatures wins.
These templates are educational starting points, not legal advice. Real estate law varies by state — and sometimes by county — so adapt the bracketed fields to your situation and have a local professional review anything before you sign it or send it.
Common questions
What if the tenant never gave a forwarding address?
Most states have a fallback — mailing to the last known address (the rental itself) within the deadline usually preserves your rights. Document the attempt; don't treat a missing address as permission to keep the deposit.
What happens if I miss my state's deadline?
In many states you forfeit the right to deduct anything, and some award tenants double or triple damages for bad-faith withholding. The deadline is the single most important number in this letter — calendar it the day the tenant gives notice.
Goes with this template
Questions about filling this in?
Milo covers property management — ask anything, free.