Hey there! As a landlord or property manager, one of the most important pieces of communication you'll have with a tenant after they move out is the Security Deposit Disposition Letter. This letter officially explains what happened to their security deposit. Think of it like a report card for the apartment! We're going to dive deep into what this letter is all about, why it's crucial, and even look at some real-life Security Deposit Disposition Letter Sample examples so you can see exactly how it works.
Why Your Security Deposit Disposition Letter Matters
The Security Deposit Disposition Letter is more than just a formality; it's a legally required document in most places that tells your former tenant exactly how their security deposit was handled. This includes outlining any deductions made for damages beyond normal wear and tear or unpaid rent. This letter is your proof that you followed the law and were fair with their money. It helps prevent misunderstandings and potential legal disputes down the road.
Here's a breakdown of what typically goes into this important letter:
- Tenant's full name and address.
- Landlord's full name and address.
- Date of move-out.
- Original security deposit amount.
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Itemized list of all deductions, including:
- Rent owed
- Cleaning costs
- Repair costs for damages (beyond normal wear and tear)
- The amount of the deposit returned (if any).
- Copies of receipts or invoices for repairs and cleaning.
- A deadline for returning the remaining deposit or any additional payments owed by the tenant.
Here’s a quick look at what might be considered normal wear and tear versus damage:
| Normal Wear and Tear | Damage |
|---|---|
| Faded paint from sunlight | Holes in walls |
| Minor scuffs on floors | Stains on carpets that won't come out |
| Worn carpet in high-traffic areas | Broken fixtures or appliances |
Security Deposit Disposition Letter Sample: Full Refund
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - Full Refund for [Property Address] Dear [Tenant's Name], This letter serves as the disposition of your security deposit for the property located at [Property Address]. Your lease agreement for this property ended on [Move-Out Date]. The original security deposit collected was $[Original Deposit Amount]. After a thorough inspection of the property following your departure, we are pleased to inform you that no deductions are necessary. Therefore, the full amount of your security deposit, $[Original Deposit Amount], is being returned to you. Your refund check is enclosed with this letter, or will be mailed separately by [Date, if mailed]. Please allow [Number] business days for delivery. We appreciate you being a tenant and wish you the best in your new residence. Sincerely, [Your Signature] [Your Typed Name/Company Name]
Security Deposit Disposition Letter Sample: Partial Refund with Deductions
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - Partial Refund for [Property Address] Dear [Tenant's Name], This letter details the disposition of your security deposit for the property located at [Property Address]. Your lease agreement concluded on [Move-Out Date]. The total security deposit collected was $[Original Deposit Amount]. Following your move-out, we conducted an inspection of the premises. Based on this inspection, the following deductions have been made from your security deposit: 1. Unpaid Rent: $[Amount] for outstanding rent from [Date] to [Date]. 2. Cleaning Costs: $[Amount] for professional cleaning required due to excessive grime and uncleaned areas. (See attached invoice from [Cleaning Company Name]). 3. Repair Costs: $[Amount] for damage beyond normal wear and tear. This includes [Briefly describe damage, e.g., a large hole in the living room wall, stained carpet in the master bedroom]. (See attached repair estimate from [Contractor Name]). Total Deductions: $[Total Deductions Amount] Your remaining security deposit refund is calculated as follows: $[Original Deposit Amount] (Original Deposit) - $[Total Deductions Amount] (Total Deductions) = $[Refund Amount] A refund check for the amount of $[Refund Amount] is enclosed with this letter. If you have any questions regarding these deductions, please do not hesitate to contact us within 10 days of the date of this letter. We appreciate your tenancy and wish you well. Sincerely, [Your Signature] [Your Typed Name/Company Name]
Security Deposit Disposition Letter Sample: No Refund - Damages Exceed Deposit
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - No Refund Due to Damages Exceeding Deposit for [Property Address] Dear [Tenant's Name], This letter outlines the disposition of your security deposit for the property at [Property Address]. Your tenancy ended on [Move-Out Date]. The security deposit collected was $[Original Deposit Amount]. Upon inspection of the property after your move-out, significant damages beyond normal wear and tear were identified. The costs to repair these damages and address outstanding issues exceed the amount of your security deposit. The itemized list of costs is as follows: 1. Extensive Cleaning: $[Amount] (professional deep cleaning required due to heavy soiling). 2. Repair of Damaged Drywall: $[Amount] (repair and repaint of multiple holes and significant gouges). 3. Replacement of Broken Window: $[Amount] (cost to replace a broken pane in the kitchen window). 4. Carpet Replacement: $[Amount] (due to permanent stains and tears that could not be repaired). 5. Unpaid Rent: $[Amount] for outstanding rent from [Date] to [Date]. Total Costs: $[Total Costs Amount] As the total costs to restore the property to its original condition (minus normal wear and tear) amount to $[Total Costs Amount], which is greater than your security deposit of $[Original Deposit Amount], there will be no refund of your security deposit. Furthermore, you owe an additional amount of $[Amount Owed] ($[Total Costs Amount] - $[Original Deposit Amount]). Please remit this payment within 15 days of the date of this letter. Please make checks payable to [Your Name/Company Name] and mail to the address above. Enclosed are copies of receipts/invoices for your reference. We regret that the condition of the property necessitates these actions. Sincerely, [Your Signature] [Your Typed Name/Company Name]
Security Deposit Disposition Letter Sample: Deductions for Unpaid Utilities
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - Deductions for Unpaid Utilities for [Property Address] Dear [Tenant's Name], This letter details the disposition of your security deposit for the property at [Property Address], with your lease concluding on [Move-Out Date]. The total security deposit collected was $[Original Deposit Amount]. As per the terms of your lease agreement, you were responsible for the payment of [List specific utilities, e.g., electricity, gas]. Our records indicate that these utilities remain unpaid as of your move-out date. The following deductions have been made from your security deposit: 1. Unpaid Electricity Bill: $[Amount] (as per attached statement from [Utility Company Name]). 2. Unpaid Gas Bill: $[Amount] (as per attached statement from [Utility Company Name]). 3. Cleaning: $[Amount] (minor cleaning required to prepare the unit for the next tenant). Total Deductions: $[Total Deductions Amount] Your remaining security deposit refund is calculated as follows: $[Original Deposit Amount] (Original Deposit) - $[Total Deductions Amount] (Total Deductions) = $[Refund Amount] A refund check for $[Refund Amount] is enclosed. Please ensure all future utility accounts are settled promptly. Sincerely, [Your Signature] [Your Typed Name/Company Name]
Security Deposit Disposition Letter Sample: Deduction for Minor Repairs
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - Deduction for Minor Repairs for [Property Address] Dear [Tenant's Name], This letter serves as the disposition of your security deposit for the property located at [Property Address]. Your lease term ended on [Move-Out Date]. The total security deposit collected was $[Original Deposit Amount]. Following your move-out, an inspection of the unit was completed. While the property was generally in good condition, we noted a few minor repairs needed that go beyond normal wear and tear. The following deductions have been made from your security deposit: 1. Repair of damaged screen door: $[Amount] (cost to repair a small tear in the kitchen screen door). 2. Patching and painting small nail holes: $[Amount] (numerous small holes in walls throughout the unit). Total Deductions: $[Total Deductions Amount] Your remaining security deposit refund is calculated as: $[Original Deposit Amount] (Original Deposit) - $[Total Deductions Amount] (Total Deductions) = $[Refund Amount] A refund check in the amount of $[Refund Amount] is enclosed with this letter. We appreciate your tenancy. Sincerely, [Your Signature] [Your Typed Name/Company Name]
Security Deposit Disposition Letter Sample: Deduction for Professional Cleaning
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - Deduction for Professional Cleaning for [Property Address] Dear [Tenant's Name], This letter details the disposition of your security deposit for the property at [Property Address]. Your lease agreement concluded on [Move-Out Date]. The total security deposit collected was $[Original Deposit Amount]. While we appreciate your effort in cleaning the unit, the property required professional cleaning to bring it up to our standard for the next tenant. This is due to [Briefly mention reason, e.g., accumulated grease in the oven, extensive soap scum in the bathroom, dusty blinds throughout]. The deduction for professional cleaning is $[Amount]. (Please see attached invoice from [Cleaning Company Name]). Your remaining security deposit refund is calculated as: $[Original Deposit Amount] (Original Deposit) - $[Amount] (Cleaning Deduction) = $[Refund Amount] A refund check for $[Refund Amount] is enclosed. We encourage tenants to refer to the move-out cleaning checklist provided at the beginning of their lease to ensure all areas are addressed to avoid such deductions in the future. Sincerely, [Your Signature] [Your Typed Name/Company Name]
Security Deposit Disposition Letter Sample: Late Return of Letter (Important Reminder)
[Your Name/Company Name] [Your Address] [Your Phone Number] [Your Email Address] [Date] [Tenant's Full Name] [Tenant's Forwarding Address] Subject: Security Deposit Disposition - [Property Address] - FINAL NOTICE DUE TO DELAY Dear [Tenant's Name], This letter serves as the final disposition of your security deposit for the property located at [Property Address]. Your lease agreement ended on [Move-Out Date]. We apologize for the delay in sending this letter. Per state regulations, we are required to provide this disposition within [Number] days of your move-out. We acknowledge that this notice is being sent on [Date], which is beyond that timeframe. The total security deposit collected was $[Original Deposit Amount]. Due to the administrative delay in issuing this notice, we have waived any potential deductions for minor cleaning and repairs that may have been identified. Therefore, we are returning your full security deposit. Your refund check for $[Original Deposit Amount] is enclosed with this letter. We are committed to adhering to all legal requirements and regret any inconvenience caused by this delay. Sincerely, [Your Signature] [Your Typed Name/Company Name]
So, as you can see, the Security Deposit Disposition Letter is a super important document for both landlords and tenants. It’s all about being clear, honest, and following the rules when it comes to that security deposit. Using a Security Deposit Disposition Letter Sample as a guide can make the process much smoother and help everyone stay on the same page. Remember, clear communication is key to happy renting!