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Security Deposit Return Letter

Last revision Last revision 04/01/2024
Formats FormatsWord and PDF
Size Size1 page
4.8 - 6 votes
Fill out the template

Last revisionLast revision: 04/01/2024

FormatsAvailable formats: Word and PDF

SizeSize: 1 page

Rating: 4.8 - 6 votes

Fill out the template

This Security Deposit Return Letter is a document that a landlord can use when returning a security deposit to a former tenant. Additionally, if the landlord needs to make deductions from the deposit for issues such as damage to the property or lack of sufficient notice from the tenant prior to vacating the property, the landlord can use this letter to explain to the tenant the basis of the deductions. In situations where tenants upheld all terms of the lease agreement and no deductions were necessary, tenants often use their Security Deposit Return Letter as a reference letter to help them rent other properties in the future. A clear and detailed Security Deposit Return Letter can be beneficial for both landlords and tenants.

How to use this document?

This letter allows the landlord to include information such as the location of the rental property, the amount of the initial security deposit, and whether or not the full deposit will be returned. If the full deposit will not be returned, the landlord can describe reasons for deductions from the deposit, including damages to the property, failure to sufficiently clean and dispose of trash, failure of the tenant to provide sufficient advance notice prior to vacating the property, and any other miscellaneous issues such as replacing missing items or needing to change the locks due to the tenant's failure to return the keys. Once the landlord finishes describing any necessary deductions, the letter explains how much, if any, of the deposit the tenant will be getting back and the manner in which the refund will occur (e.g. cash, money order, check, etc.).

After completing the Security Deposit Return Letter, the Landlord can send an original signed copy of the letter to the tenant by registered mail, so as to have a record that the letter and security deposit were sent in a timely fashion in case of later dispute.

Applicable Law

The return of security deposits is governed by landlord-tenant law, which is specific to each province. Nearly all provinces and territories require that landlords return security deposits to their tenants in a timely fashion and provide an explanation for any deductions made from the deposit. Provincial and territorial housing bureaus and tenants and landlord boards have information about the specific requirements for each province or state.

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