What deductions can a landlord make from a security deposit?

Generally allowable deductions include: unpaid rent and fees, damage beyond normal wear and tear (large holes in walls, broken fixtures, pet damage), unreasonably dirty conditions requiring professional cleaning, and sometimes unpaid utilities. Normal wear and tear — minor scuffs, faded paint, worn carpet from regular use — is not deductible in most states.

What is 'normal wear and tear'?

Normal wear and tear refers to the gradual deterioration of property that occurs through ordinary, careful use over time. Examples include: small nail holes, minor carpet wear in traffic areas, faded paint, and small scratches on appliances. Damage from neglect, abuse, or pet damage is generally beyond normal wear and tear and may be deducted.

What happens if the deductions exceed the deposit?

If your legitimate deductions exceed the security deposit, you may seek the balance through small claims court. Document all damages thoroughly with photos, contractor invoices, and move-out inspection reports. The tenant will receive a letter showing a zero refund plus notice of any remaining amount owed.

Does the landlord need to send receipts or invoices with the itemization letter?

Some states require landlords to attach receipts, invoices, or contractor estimates to support deduction claims. California requires receipts for deductions over $125. Even where not required, attaching supporting documentation helps demonstrate the legitimacy of deductions and reduces the likelihood of disputes.

Free Security Deposit Return Letter — Fill Out & Download Instantly

Free — No Sign-Up RequiredPDF & WordUpdated April 15, 2026

⚠️ Legal Disclaimer: This template is attorney-reviewed and built to US legal standards. It does not substitute for professional legal advice. For complex situations, we recommend consulting a licensed attorney.

Document Completeness0%

State*

Landlord / Property Manager Name*

Landlord Address*

Tenant Full Name*

Tenant Forwarding Address*

Rental Property Address*

Lease End Date / Move-Out Date*

MM/DD/YYYY

Original Security Deposit ($)*

Deduction 1 — Description

Deduction 1 — Amount ($)

Deduction 2 — Description

Deduction 2 — Amount ($)

Total Deductions ($)

Sum of all deductions above

Amount Being Returned ($)*

Deposit amount minus total deductions

Payment Method*

Letter Date*

MM/DD/YYYY

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[Landlord / Property Manager Name]

[Landlord Address]

Date: [Letter Date]

To: [Tenant Full Name]

[Tenant Forwarding Address]

Re: Security Deposit Accounting — [Rental Property Address]

Dear [Tenant Full Name],

This letter constitutes the itemized accounting of your security deposit for the rental property located at [Rental Property Address], as required by [State] law. Your tenancy ended on [Lease End Date / Move-Out Date].

════════════════════════════════════════

SECURITY DEPOSIT ACCOUNTING

════════════════════════════════════════

Original Security Deposit: $[Original Security Deposit ($)]

DEDUCTIONS:

AMOUNT RETURNED TO TENANT: $[Amount Being Returned ($)]

════════════════════════════════════════

If you have any questions regarding this accounting, please contact me at the address above within the time period permitted by [State] law.

Sincerely,

_______________________________________

[Landlord / Property Manager Name]

Date: [Letter Date]

Please retain this letter for your records.

Document Completeness0%

State*

Landlord / Property Manager Name*

Landlord Address*

Tenant Full Name*

Tenant Forwarding Address*

Rental Property Address*

Lease End Date / Move-Out Date*

MM/DD/YYYY

Original Security Deposit ($)*

Deduction 1 — Description

Deduction 1 — Amount ($)

Deduction 2 — Description

Deduction 2 — Amount ($)

Total Deductions ($)

Sum of all deductions above

Amount Being Returned ($)*

Deposit amount minus total deductions

Payment Method*

Letter Date*

MM/DD/YYYY

What Is a Security Deposit Return Letter?

A security deposit return letter is a formal written statement from a landlord itemizing any deductions from a tenant's security deposit and accounting for the amount being returned. All states require landlords to return a tenant's security deposit (or provide an itemized statement of deductions) within a specific deadline — typically 14 to 30 days after the tenancy ends. Failure to comply can result in the landlord forfeiting the right to keep any portion of the deposit and being liable for double or triple damages in many states.

When Do You Need It?

A security deposit return letter should be sent to the tenant as soon as possible after the tenancy ends — within the deadline specified by your state's landlord-tenant law (typically 14–30 days from the move-out date or return of keys). Even if you are returning the full deposit with no deductions, it is best practice to send a letter confirming receipt and returning the funds. If you are making deductions, every deduction must be itemized and described.

What's Included in This Template

State of governing law
Landlord name and address
Tenant name and forwarding address
Rental property address
Lease end date
Original security deposit amount
Up to two itemized deductions with descriptions and amounts
Total deductions
Net return amount
Payment method
Letter date

How to Fill It Out

Enter Landlord and Tenant Information — Select the governing state. Enter the landlord's name and address, the tenant's name, and the tenant's forwarding address (not the rental property address). Also enter the rental property address and the date the lease ended.

Enter Deposit Amount and Deductions — Enter the original security deposit amount. For each deduction, provide a brief description (e.g., 'carpet replacement due to damage beyond normal wear and tear') and the dollar amount. Leave unused deduction fields blank. The total deductions should equal the sum of all individual deductions.

Calculate the Return Amount — The return amount is the deposit amount minus total deductions. Verify this calculation is correct before completing the letter. If the return amount is zero or negative (deductions exceed deposit), note that no refund is owed.

Select Payment Method and Date the Letter — Describe how you are returning the deposit (e.g., enclosed check, mailed check, direct deposit). Enter the letter date. Send the letter and refund check to the tenant's forwarding address within your state's required deadline.

Legal Requirements & Notes

Security deposit return deadlines vary by state — common timeframes range from 14 days (California, New Jersey) to 30 days (Texas, Florida), with some states allowing up to 45 days (Georgia). Most states require both an itemized statement and return of any remaining deposit within the deadline. Failure to comply may result in forfeiture of all deductions, statutory penalties of 2x or 3x the deposit amount, and attorney's fees. Allowable deductions vary by state but generally include unpaid rent, damage beyond normal wear and tear, and cleaning costs. Normal wear and tear (minor scuffs, carpet wear from use) cannot be deducted. Consult your state's landlord-tenant statute for specific requirements.

Frequently Asked Questions

Deadlines vary by state: California and New Jersey require 21 days, Texas requires 30 days, New York requires 14 days, and Florida requires 15–60 days depending on whether deductions are made. The clock generally starts when the tenant vacates or returns the keys, whichever is later. Missing the deadline can result in losing the right to make deductions and liability for penalties.

Free Security Deposit Return Letter — Fill Out & Download Instantly

════════════════════════════════════════

SECURITY DEPOSIT ACCOUNTING

════════════════════════════════════════

DEDUCTIONS:

════════════════════════════════════════

What Is a Security Deposit Return Letter?

When Do You Need It?

What's Included in This Template

How to Fill It Out

Legal Requirements & Notes

Frequently Asked Questions

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