The Security Deposit Return Letter is traditionally executed at the end of a lease agreement’s term. When a lesser begins their tenancy, they are typically obligated to provide a certain amount of funds upfront to protect the landlord from potentially enduring the cost of damages. These funds are accepted by the lessor and kept in an account (possibly interest-bearing) until the occupant has vacated the premises. At this point, the landlord is compelled, by law, to return the balance of the deposit to the tenant. With that being said, if the tenant caused harm to the unit or didn’t provide certain payments, the landlord may then deduct the damages from the security deposit.
In order to do this, the lessor must indicate within this form the reasons for the subtractions along with the final amount owed to the vacating occupant. If the damage was extensive enough that the repairs exceeded the amount of the deposit, the landlord may request the difference within the corresponding area of the document. The lessee will have a certain amount of time to respond to the letter if they feel that the charges are unjustified. This letter may also be sent if no deductions were made, confirming the notion that the full deposit was returned. Any interest accrued should also be added to the sum of money that is to be returned.
(The landlord or their agent is required to sign the letter to confirm that they supplied the itemized breakdown.)