Security deposit deduction letter

A deduction letter is the written explanation you owe a tenant for every dollar you keep. Pick your state below and the generator applies the right deadline and produces the letter.

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Format
Formal letter: date, RE line, itemized table, signature block
Required in
Nearly every state whenever you retain any part of the deposit
Delivery
Certified mail with return receipt to the forwarding address
Cost
Free — the PDF downloads from your browser

Enter your move-out date above to see your deadline

Property & Parties

Security Deposit

$
$

Required in some states: NY, IL, others

Deductions

Deduction #1
$
Original deposit$0.00
Total deductions− $0.00
Refund amount$0.00
✦ Save your common deductions as reusable templates. Unlock for $19 →
⚠ This tool generates a document for your reference only. State laws on security deposit returns vary — required language, receipt requirements, delivery method, and interest calculations differ by jurisdiction. Verify requirements with a local attorney before sending.

Add state + move-out date

What the statement has to say

A security deposit deduction letter has four jobs: identify the property and the tenancy, list each deduction separately with a description and dollar amount, reconcile those deductions against the original deposit and any interest owed, and state the resulting refund or balance due. Anything less than a line-by-line breakdown invites a dispute you will probably lose.

Tone matters less than arithmetic, but keep it factual. Describe the condition, not the tenant — "repair of two gouges in the living room drywall, $180" reads better in court than "damage caused by careless tenants." Note which items have receipts or estimates on file, and attach copies when you mail the letter.

Send it by certified mail with a return receipt so the postmark proves you met your state's deadline, and keep a copy of the signed letter with the receipts. Every state's clock starts at the end of the tenancy, so build the letter the week the tenant moves out rather than the week the deadline lands.

Frequently asked questions

What should a security deposit deduction letter include?

The date, the property address, the tenant names, an itemized list of every deduction with a description and amount, the original deposit and any interest owed, the resulting refund or balance due, and your signature. Note which deductions have receipts attached.

Do I need to send a letter if I'm returning the full deposit?

Most states don't require one, but sending a short statement showing a zero-deduction accounting is still smart — it creates a dated record that you met the deadline.

Can I email the deduction letter instead of mailing it?

Some states allow electronic delivery if the tenant agreed to it in writing; many still require mail to the forwarding address. Certified mail is the defensible default everywhere.

What can I legally deduct?

Typically unpaid rent, cleaning needed to restore move-in condition, and repair of damage beyond ordinary wear and tear. Ordinary wear and tear is never deductible, and several states require proration for items with a limited useful life.

Deciding whether to renew instead?

Field Renewal compares the true cost of a lease renewal against a turnover — vacancy days, make-ready, leasing fees — so you know whether raising rent is worth the risk of a move-out.

Run a renewal vs. turnover comparison →