Reconcile the deposit. Itemize deductions.
Return the balance.
Create a clear security-deposit accounting with each lawful deduction, supporting cost detail, the arithmetic and the remaining balance returned by the applicable deadline.
- Line-by-line deductions
- Balance calculation
- Deadline and evidence check
How it works
From the move-in record and final inspection to a timely, supported accounting
- 01
Reconcile the deposit file
Confirm the amount held, interest if applicable, tenancy end, surrender date and forwarding address.
- 02
Evaluate each deduction
Separate lawful tenant responsibility from pre-existing conditions, ordinary wear and owner maintenance.
- 03
Send the accounting and balance
Attach required evidence, complete the arithmetic and deliver payment within the local deadline.
Last updated August 20, 2026
Written by LawLease EditorialReviewed by LawLease Legal Team
By move-out task
Which condition or deposit document you need
The checklist records condition; the return letter performs the final statutory accounting. Termination notices and key surrender happen earlier in the process.
- MI
Move-in / move-out inspection checklist
Compare signed condition records and dated photographs before deducting.
Learn more - NT
Notice to vacate
Document the termination date and request the tenant's forwarding address.
Learn more - NO
Notice of non-renewal
End a fixed term on the required notice timeline.
Learn more - RR
Rent receipt
Preserve payment records relevant to any claimed unpaid-rent deduction.
Learn more - RL
Residential lease agreement
Check the deposit amount and lawful obligations that governed the tenancy.
Learn more
What is a security deposit itemized return letter?
A security deposit itemized return letter is the landlord's written accounting after a tenancy ends. It states the deposit and any required interest, lists each permitted deduction with its amount and basis, totals the deductions, and shows the balance returned or any claimed amount remaining.
State and local laws control the deadline, permitted deductions, evidence, delivery, interest and penalties. Some require invoices, receipts, estimates, sworn statements or special language. A generic letter must be completed with those requirements. It is also called:
- Security deposit disposition
- Itemized deduction statement
- Deposit accounting letter
- Security deposit return statement
Compare the final walkthrough with the signed move-in / move-out inspection checklist and supporting photographs before claiming damage.
Deduction, evidence and deadline rules
Return deadlines vary and may run from termination, surrender, delivery of possession or another statutory event. Missing the deadline or required accounting can forfeit deductions or expose the landlord to enhanced damages, interest, fees or penalties. Calendar the controlling date immediately.
Permitted deductions differ, but ordinary wear and pre-existing conditions should not be charged as tenant damage. Apply local rules to unpaid rent, cleaning, utilities, labor, useful life and depreciation, and provide the exact supporting documents required.
One deadline
calculated from the event defined by the property's law
Every deduction
described, priced and supported separately
Exact balance
deposit plus required interest minus lawful deductions
- Start with the amount actually held
- Reconcile transfers, interest, prior lawful applications and any deposit increase rather than copying the original lease figure.
- Distinguish damage from wear
- Use age, useful life, length of tenancy, move-in evidence and ordinary use. Do not charge replacement cost automatically.
- Describe and support each cost
- Identify the location, condition, work, vendor or labor basis and amount. Attach receipts, invoices, estimates or photographs when required or useful.
- Do the arithmetic visibly
- Show deposit, interest if required, each deduction, total deductions and balance returned. Explain separately if a lawful claim exceeds the deposit.
- Deliver payment and statement correctly
- Use the forwarding address and permitted delivery method. Retain the letter, payment proof, inspection records and supporting evidence.
How to prepare a security deposit itemized return letter
Five checks produce an accounting the tenant can audit and the landlord can support.
Identify the trigger and exact last day.
- Termination or surrender event
- State and local deadline
- Required delivery method
Free sample security deposit itemized return letter
This sample shows the accounting structure before you start. Your answers supply the real deposit, deductions, evidence and balance.
Security Deposit Itemized Return Letter
TENANCY. Tenant: Property: Tenancy ended / possession returned:
DEPOSIT ACCOUNT. Security deposit held: Required interest, if any:
ITEMIZED DEDUCTION. Description and basis: Amount:
TOTAL. Total deposit and interest: Total lawful deductions: Balance returned:
SUPPORT. Required receipts, invoices, estimates, photographs or other supporting documents are enclosed or identified as applicable.
Closing out a security deposit?
Real humans read every message. For disputed damage, missed deadlines or state-specific penalties, get a local lawyer on it.