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Free security deposit return letter template (Word)

Reviewed by Clausery editors · · 3 min read

A letter from the landlord to the tenant returning the security deposit (less itemised deductions for unpaid rent, cleaning, or damages beyond normal wear) after move-out.

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A security deposit return letter (or itemised deduction statement) is sent to a tenant after move-out, returning whatever portion of their deposit is not being withheld, along with a detailed list of deductions. Most US states require this within 14-30 days of move-out, and many impose penalties (double or triple damages) if you miss the deadline or fail to itemise.

Deductions must be for unpaid rent, cleaning to restore the unit to move-in condition, or damage beyond normal wear and tear — not for ordinary wear from living in the property.

What to include#

  • Tenant and property. Former tenant names, forwarding address, property address and unit, move-out date.
  • Original deposit. Amount originally paid and date received.
  • Itemised deductions. List each deduction with category (unpaid rent, cleaning, repairs, key replacement, etc.) and the amount.
  • Refund amount. The net amount being returned (deposit minus deductions).
  • Payment method and deadline. How the refund is sent (cheque, transfer), enclosure, and the legal deadline being met.

How to fill it in#

  1. Step 1: Do a move-out walkthrough

    Compare condition to the move-in inspection report; photograph damage.

  2. Step 2: Collect invoices

    Get actual repair/cleaning receipts — lump-sum estimates may not hold up in court.

  3. Step 3: Itemise deductions

    List each deduction with a short description and cost; withhold only lawful categories.

  4. Step 4: Calculate the refund

    Deposit minus total deductions; return the balance.

  5. Step 5: Send on time

    Mail to the tenant forwarding address within the statutory window (e.g. 21 or 30 days), with proof of mailing.

Questions

How long do I have to return the deposit?

14-60 days depending on the state — most common is 21 or 30 days after move-out/key return.

What can I deduct?

Unpaid rent, cleaning beyond normal wear, damages beyond normal wear, key replacement — not ordinary wear.

Do I need receipts?

Many states require you to provide invoices/receipts for deductions on request; attach them to be safe.

What if I miss the deadline?

In many states you forfeit the right to withhold anything and the tenant can sue for double or triple damages.

Can I deduct for repainting?

Only for damage beyond normal wear — repainting after a long tenancy is normal wear in most places.

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These are general templates, not legal or tax advice. Have anything unusual reviewed for your jurisdiction.

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