Security Deposit Demand Letter and Settlements

In most cases, when a tenant rents property or an apartment from a landlord, that landlord will require a security deposit from the tenant in order to guarantee the landlord that the tenant will observe the elements of the rental agreement.  If the tenant does not fulfill those obligations, the landlord has the right to retain a portion, or in some cases all, of the security deposit in payment.  The law also requires that the landlord transmit the remainder of the security deposit refund, and in some cases interest as well, in a timely manner to the tenant.  If they do not do so, the tenant should pursue that money by, first, sending a demand letter for payment. 

Security Deposit

A security deposit generally provides a guarantee of several elements of a rental agreement:

• Regular payment of the agreed upon rent
• A reasonable notice of when the tenant intends to move
• Repair costs for unreasonable wear and tear or cleaning costs if necessary

Once a tenant moves from a property, the landlord has between 21 and 30 days, depending on the state, to send a security deposit refund letter to inform the tenant of any deduction that may have been required and to return the remainder of the security deposit refund. 

Security Deposit Deductions

A landlord must accept reasonable wear and tear on a property; however, if there are unreasonable repairs or cleaning costs, the landlord may deduct those expenses from the security deposit refund.   

Landlord Demand Letter

If the landlord does not return a security deposit refund with a letter of explanation for the deductions within the required period, the tenant has the right to send a demand letter for payment including these elements: 

• A review of the terms of the rental agreement
• A review of the state laws regarding security deposits
• The time allowed for the landlord to resolve this dispute

Security Deposit Refund Legal Help

This letter should be sent by certified mail to ensure legal grounds for pursuing the case further if required.  If the landlord does not respond to this final demand letter within the required time, the tenant may take the landlord to court and get the help of an experienced security deposit issues lawyer.