Demand Letter for Return of Security Deposit

What is a Demand Letter for Return of Security Deposit?

A Demand Letter for Return of Security Deposit is a document that a tenant can use to demand the return of the security deposit. This can be used when the landlord fails to return the security deposit after the tenant moves out of the leased property upon the end of the lease period or, if applicable, within the period agreed upon under the lease agreement.

The security deposit can be used to settle rent, unpaid electric, telephone, water, or such other utility bills or repair any damage to the property caused by the acts or negligence of the Lessee. If at the end of the lease, the rent and utility bills are paid and there is no damage to the property, the security deposit should be returned to the tenant and this document should be used to demand the same.

A demand letter is necessary to put the landlord in default. Being in default means the landlord has failed to pay within the period stated in the demand letter and he shall be liable for the payment of interest, among others. This document can also be used to request the return of the security deposit at an earlier time than that agreed upon.

Note that this document can be used in relation to a Residential Lease Agreement or a Commercial Lease Agreement.

What are the different types of Demand Letters?

The following are the different types of Demand Letters:

• Demand Letter for Return of Security Deposit. This is a document that a tenant can use to demand the return of the security deposit under a lease contract. Further, this Demand Letter for Return of Security Deposit may be used as any of the following:
  • Demand Letter. This letter can be used to demand the return of the security deposit if the landlord refuses to return the security deposit after the tenant has moved out and if there is no damage to the property or any unpaid rent.
  • Request Letter. This letter can be used to request the return of the security deposit if there is a period for making such a request under a lease agreement between the tenant and the landlord after the tenant has moved out, and if there is no damage to the property or any unpaid rent.
• Monetary Demand Letter. This is used to demand the payment of money owed by another person.
• Demand Letter for Ejectment. This is used when the owner of a property wants to take back or recover the possession of the property from a person who is currently possessing the same.

Is it mandatory to have a Demand Letter for Return of Security Deposit?

If the tenant wants to bring the issue of non-payment or failure of the landlord to return the security deposit, to a court of law, such court will require that a written Demand Letter be sent to the landlord. Otherwise stated, a Demand Letter is a mandatory pre-requisite before a complaint of a sum of money (i.e. Return of Security Deposit) is initiated in a court of law.

What must a Demand Letter for Return of Security Deposit contain?

A Demand Letter for Return of Security Deposit contains the following information:

• The details of the landlord,
• The details of the tenant,
• The amount of the security deposit,
• The location of the leased property,
• The start and end date of the lease, and
• The period for requesting the return of the security deposit.

Who is involved in the Demand Letter for Return of Security Deposit?

The sender is the tenant who wants to demand the return of the security deposit. And the recipient is the landlord or his authorized representative. The sender must affix his signature thereon to signify that he demands the return of the security deposit.

What has to be done once the Demand Letter for Return of Security Deposit is ready?

If it will be sent via registered mail, at least two original copies should be printed. Both original copies of the letter should be signed by the sender (the tenant), one original copy should be kept by the sender and the other should be sent to the recipient (the landlord) by registered mail. After sending, the registry receipt or mail receipt in relation to the mailing of the second original copy must be kept by the sender.

If it will be sent via email, the sender must send an email attaching one scanned copy of the letter that is duly signed by the sender or one digital copy that is electronically signed by the sender. An email is a recommended way of sending this letter as the letter is sent instantly and it will enable the parties to keep their records in a convenient manner.

Which documents should be attached to the Demand Letter for Return of Security Deposit?

The lease agreement between the tenant and the landlord may be attached to this letter if there is one.

What are the costs involved in the finalization of the Demand Letter for Return of Security Deposit?

Costs for sending the Demand Letter may depend on the method used by the sender in sending the letter. Email and instant messaging are the most cost-efficient ways of sending a letter as they are generally free, whereas costs for registered mail or courier will be dependent on the distance between the residence of the sender and the recipient.

Which laws are applicable to the Demand Letter for Return of Security Deposit?

Laws on contracts and obligations are generally governed by the Civil Code of the Philippines.

How to modify the template?

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