Security Deposit Demand Letter

A Security Deposit Demand Letter is a letter from a tenant to a landlord demanding the return of a security deposit as required by law and/or legal contract.

Reasons To Write a Security Deposit Demand Letter

Landlords don’t always return a tenant’s security deposit in a timely fashion. They often require a tenant’s demand as a reminder. These are some other reasons to write a Security Deposit Demand Letter to a landlord:

1. Documentation – A demand letter is written documentation of the tenant’s request. If the landlord later claims that they returned the deposit or never received a demand, this letter is evidence to dispute the landlord’s claim.
2. Legal Requirement – In some states, a tenant can’t file a lawsuit over a security deposit without first showing that they’ve delivered a demand letter to the landlord.
3. Dispute the Landlord’s Claim – Landlords often seek significant deductions from the security deposit. Sometimes they even deduct the entire security deposit. A demand letter is usually the first step in challenging the landlord’s decision to withhold some or all of the tenant’s security deposit.

Valid Landlord Deductions From a Security Deposit

A landlord can make many valid deductions from a security deposit. Tenants who demand the return of validly deducted funds risk unnecessary legal trouble with the landlord.

The landlord and tenant can agree in the lease on any specific standard for deductions they want. These are some common reasons a landlord can validly retain some or all of the security deposit:

• Cost of repairs or cleaning beyond normal wear and tear, or as needed to restore the property to the condition it was in before the lease.
• Unpaid rent, utilities, and other fees.
• Any costs associated with violations of the law or the lease, including liability for early lease termination.

What To Include in a Security Deposit Demand Letter

A security deposit demand letter typically includes the following information:

1. Date.
2. Landlord’s name and business address.
3. General Lease Information – Identifies the details of the specific lease, including the address of the rental property, the dates the lease began and ended, and the amount of the security deposit. Note here that rent was paid timely with the property left in good condition. (If it was not, note the appropriate amount of valid deductions.)
4. Security Deposit Requirements – Recites the state requirements for return of a security deposit.
5. Notice of Deposit Violation – Notice to the landlord that the tenant has not had the security deposit returned in the manner required by law
6. Payment – A specific demand for the security deposit, including an address for mailing the payment.
7. Closing – A request for the landlord to get in touch with any concerns, plus the tenant’s contact information (including address), name, and signature.

It’s appropriate to attach any supporting documentation to a demand letter. For example, if a move-out inspection showed there was no damage to the property, the tenant should attach a copy of the inspection report. Likewise, proof of timely rent payments can support a tenant’s rejection of deductions for unpaid rent.

It’s critical to be able to prove delivery of the notice represented by a demand letter. This means most demand letters are either delivered by hand or shipped through certified mail, to establish an acknowledged delivery.

Timing a Security Deposit Demand Letter

Timing matters when demanding the return of a security deposit. A demand letter before the landlord has a legal requirement to return a deposit is both unlawful and needlessly antagonizes the landlord.

The minimum wait before a tenant can demand the return of a security deposit varies by state, and can also sometimes be up to the specific lease terms. This chart lists every state’s timeline for returning a tenant’s security deposit.