When a tenancy ends, the landlord must return the security deposit within a state-set deadline, along with an itemized statement of any deductions. Skipping the statement or missing the deadline can cost the landlord two or three times the deposit in many states.
This template produces the itemized deposit statement courts expect to see: the deposit held, each deduction with its amount, the refund due, and how the refund is being sent.
Deposit return deadlines by state
The clock usually starts when the tenant moves out and returns the keys. Common deadlines include:
| Deadline | Example states |
|---|---|
| 14 days | Vermont, Hawaii, Nebraska (with itemization) |
| 21 days | California, Minnesota (interest may apply) |
| 30 days | Texas, Florida (without claim), New York, Pennsylvania |
| 45 days | Illinois (itemization within 30 days), Indiana |
Missing the deadline is expensive
In many states a landlord who misses the deadline or skips the itemization forfeits the right to withhold anything, and can owe the tenant double or triple the deposit plus attorney fees. Send the statement on time even if the inspection is not fully settled.
What can and cannot be deducted
- Deductible: unpaid rent, damage beyond normal wear and tear, cleaning to restore the move-in condition, unpaid utilities the lease assigns to the tenant.
- Not deductible: normal wear and tear (faded paint, worn carpet from ordinary use, small nail holes), pre-existing damage, and routine repainting on a normal cycle.
Each deduction should be specific: what was damaged, what it cost to fix, and ideally a receipt or estimate. Vague lines like 'cleaning: $300' are the first thing a small claims judge strikes.
Protecting yourself as a landlord
Document the unit's condition at move-in and move-out with dated photos, use a walk-through checklist signed by both parties, keep every receipt for repairs, and send this statement by certified mail to the tenant's forwarding address. If the tenant left no forwarding address, send it to the last known address (the rental unit) to preserve compliance.
Frequently asked questions
What counts as normal wear and tear?
Deterioration from ordinary living: faded paint, minor scuffs, carpet worn by foot traffic, loose door handles. Damage from negligence or misuse (burns, large holes, pet stains, broken fixtures) is deductible; ordinary aging is not.
Do I need receipts for every deduction?
Several states require receipts or estimates above a threshold (California requires them over $125). Even where not mandatory, receipts are your best evidence if the tenant sues in small claims court.
What if the deductions exceed the deposit?
Send the itemized statement showing the full accounting and a demand for the balance. You can pursue the excess in small claims court, using the statement as your primary evidence.
The tenant left no forwarding address. What do I do?
Send the statement and refund to the tenant's last known address, usually the rental property itself, within the deadline. That preserves your compliance in most states even if the letter is returned.
Can the tenant use the deposit as last month's rent?
Not unless the lease or the landlord agrees. A tenant who withholds the last month's rent expecting the deposit to cover it is technically in nonpayment, though many landlords settle it in the final accounting.