How to Get your Security Deposit Back

Last revision: Last revision:April 23rd, 2023

Most tenants moving out of a rental property are interested in getting their security deposit as soon as possible, either to use the money to pay for a deposit for a new rental or to use as part of a down payment to buy a house or condo. Unfortunately, some landlords drag their feet and try to delay returning the security deposit for as long as they can get away with. Some landlords also try to wrongfully withhold some or all of the money from a deposit to which they are not entitled. This guide outlines the things a tenant needs to know to make sure they get their security money back in a timely manner.

Security deposit: A sum of money that a new tenant gives to their landlord or property manager that ensures the tenant will pay rent and follow the lease. The landlord holds this money, often in an escrow or savings account, and may not use this money for anything other than damages made to the apartment or unpaid rent after the tenant has moved out.


Planning Ahead

Most tenants don't spend time thinking about their security deposit until they are ready to move out of their rental. However, smart tenants plan ahead and take steps ahead of time that will help them get their deposit back on time and, as much as possible, in full.

For tenants with a month-to-month tenancy, they should give their landlord the legally-required notice to end their tenancy. The amount of notice varies from state to state but is usually 30 days. If tenants do not give the proper amount of notice, they may end up owing extra rent, which the landlord can deduct from the security deposit. Tenants can send a Termination of Tenancy Letter if they are breaking the lease early or a Notice of Intent to Vacate if they do not plan to renew their existing lease once it ends through certified mail, return receipt requested. This way, they will have evidence that proper notice was sent if they end up in small claims court fighting over the return of their deposit.

If a tenant is leaving before their lease ends, they should make their best effort to find another tenant to rent the unit. If they do not find someone to take over the lease and the landlord is not able to quickly re-rent the property, the tenant may end up owing rent until the end of the lease term. This could quickly use up the entirety of the security deposit.

In situations with multiple tenants on the lease but only one tenant leaving the property, the tenant who is leaving should try to negotiate with their co-tenants or the landlord for the early return of their share of the security deposit. Landlords have no legal duty to return the deposit until all co-tenants leave. So, the tenant who is leaving will have to try to work something out if they want their deposit back before their co-tenants move out as well.

Preparing to Leave

Moving can be a hectic and chaotic process for tenants. That said, tenants should do their best to leave the property in as good condition as possible when they move out so that their landlord has no reason or excuse to deduct from their security deposit to pay for cleaning or to repair damages. The tenant should confirm their cleaning plans with the landlord so that they understand what their landlord expects to be done before they move out. They should try to get their rental in good shape, cleaning thoroughly and fixing any damages they may have caused.

When the tenant leaves, they should return all keys and remove all property, including garbage, food, and cleaning supplies. It is a good idea for the tenant to document their cleaning and repair work with photos and videos of the rental. Once the landlord inspects the property, the tenant can request to be present during this process. This way, the tenant will have the chance to do additional cleaning or repairs if necessary before the landlord deducts from the security deposit.

Finally, the tenant should provide the landlord with their forwarding address in writing. In many states, a landlord who cannot locate their former tenant within a specified period of time because they did not receive a forwarding address may keep the security deposit. The tenant can use a Tenant Security Deposit Return Request Letter to provide the landlord with their forwarding address, remind the landlord of the security deposit amount, and request the return of their deposit in a timely manner.


What a Tenant is Entitled To

Most states hold landlords to strict guidelines as to when and how to return security deposits. Landlords who violate the laws may lose the deposit entirely or face hefty penalties. Every state's laws are different. Tenants should research their state's rules, since knowing security deposit limits and deadlines for returning deposits is crucial to making sure tenants get what they are owed.

Using a security deposit as last month's rent

For tenants who have paid a sum of money clearly labeled "last month's rent" before moving into a rental, they are allowed to use it to cover the last month's rent before they move out. However, the money that a tenant has paid that is called a "security deposit" may not necessarily be used for the last month of rent unless approved by the landlord. Many rental property owners will typically want to hold on to the whole deposit until the tenant moves out, in case they need to make repairs or do extensive cleaning. If the tenant uses a portion of their security deposit to cover the last month's rent, the landlord may not have sufficient funds to cover replacing items, making repairs, and cleaning the rental unit.

When the landlord must return the deposit

Most states set a deadline, usually between two and four weeks after the tenant moves out, for the landlord to mail the following:

  • an itemized statement as to how the deposit has been applied toward back rent, cleaning, and repairs
  • what's left of the deposit, including any interest that is required by their city or state
  • if required by their state, a list of proposed deductions before they are actually made

How the landlord may use the deposit

State laws typically allow landlords to use deposits to cover:

  • unpaid rent or other charges such as unpaid utility bills
  • repairing damages the tenant or their guests caused, above and beyond ordinary wear and tear
  • cleaning the premises so that it's as clean as when the tenant moved in

The general rule is that the tenant is not responsible for paying to repair normal wear and tear. Ordinary wear and tear includes things such as minor marks or nicks on the walls, carpet worn thin by normal use, faded paint, curtains faded by the sun, and other damages that occur in the ordinary course of living. Further, the longer a tenant has lived in a place, the more wear and tear can be reasonably expected.


Following Up With the Landlord

Once the landlord provides a list of itemized deductions from the security deposit, the tenant can review to make sure all of the deductions are valid. If the tenant is unhappy with the landlord's deductions, doesn't receive a thorough itemization of deductions, or believes the landlord broke state security deposit law in some other way, they can follow up with landlord to try to work something out before going to court. If the landlord and tenant come to an agreement, for example, if the landlord agrees to return some portion of the deposit if the tenant does additional cleaning, it should be put in writing and both parties should sign it. This agreement is a legal contract binding on the parties and if the landlord fails to honor it, the tenant has the option of taking them to small claims court to enforce the contract.

If negotiations fail, the tenant can write the landlord a Security Deposit Demand Letter asking for the return of the deposit. Many states require that a demand letter be sent before the tenant can sue in small claims court. So, if the tenant does not make a written demand for the return of the deposit, they risk losing their deposit altogether. Even for states where this step is not required by law, it can be useful to the tenant to motivate the landlord to act since it shows them that the tenant knows their rights and is willing to pursue legal action. The demand letter should include:

  • A concise summary of the main facts and the reasons why the landlord owes the tenant the money
  • Copies of relevant letters, documents, and agreements, such as notice to move out
  • A description of what the tenant is asking for, such as the amount of the deposit and the deadline by which they would like it returned
  • Relevant state security deposit law
  • Warning that the tenant will promptly sue in small claims court if necessary


Suing in Small Claims Court

If the landlord does not respond by the deadline or the tenant is dissatisfied with their response, the tenant can file a lawsuit in small claims court, also known as the Justice of the Peace, Conciliation, Justice, City, or County court, depending on where the parties are located. The tenant may sue for the amount of the security deposit that the landlord wrongfully withheld and, if allowed by the state or city, for interest. Further, in many states, a tenant can also claim additional punitive damages, meant to punish a landlord for acting in bad faith. Each state has a different limit for small claims court, but the limits tend to range from $5,000 to $10,000. This information should be available on the local small claims court website. There is usually a small fee associated with filing in court. Having a lawyer is not a requirement and disputes typically go before a judge, without a jury, within a month or two. Prior to the hearing, the tenant should focus on gathering evidence, such as notice of intent to move out, photos of the rental unit when they left, and any demand letters that they sent.


Final Takeaways

Often, tenants do not know their rights when it comes to getting their security deposit back at the end of their rental agreement. These delays can stand in the way of a tenant having the funds to rent or purchase a new dwelling. By familiarizing themselves with the security deposit return process ahead of time, tenants can ensure that they get what they are owed.

  • Tenants should send the appropriate amount of notice to their landlord that they are ending their tenancy and make arrangements with any co-tenants if they want to receive their deposit back before all of the co-tenants move out.
  • If ending a lease early, the tenant should make an effort to find a new tenant to replace them.
  • When leaving, tenants should leave the property in as good condition as possible.
    • Tenants can request to tour the property with the landlord at the end of the tenancy so they have notice of any additional repairs to be made or cleaning that must be done before they are charged.
    • Keys should be returned and all property should be removed from the rental.
  • Tenants should be sure to provide the landlord with a forwarding address where their security deposit can be sent.
  • Most landlords do not allow the tenant to use the security deposit to cover their last month's rent without prior approval.
  • It varies from state to state, but most states require that the landlord return the security deposit or an itemized list of deductions to the tenant within 2 to 4 weeks of them moving out.
  • Landlords may only use to deposit to cover fixing damages above normal wear and tear, cleaning, and unpaid rent.
  • If a tenant does not receive the security deposit or a list of deductions by the deadline, they can send a demand letter to the landlord asking for their deposit and a warning that they will file in small claims court if it is not returned.


About the Author: Malissa Durham is a Legal Templates Programmer and Attorney at Wonder.Legal and is based in the U.S.A.


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