How it works
As a responsible landlord, you're returning what's owed on a tenant's security deposit after they move out. To make sure there are no misunderstandings and to help document the transaction, it's important to create a Security Deposit Return Letter.
If you're a landlord, a Security Deposit Return Letter protects you and shows you've met legal responsibilities. If you're a tenant it confirms that your security deposit was returned and explains any deductions made from the deposit. A Security Deposit Return Letter creates a record of the date and the amount returned and serves as proof that a tenant's deposit was returned. State law requirements also may require it when returning your tenant's deposit. The Security Deposit Return Letter shows state law requirements were met. It serves as protection from any future claims with an itemized list of deduction and why each was made.
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