Security Deposit Demand Letter

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A Security Deposit Demand Letter is a letter from a tenant to a landlord demanding the return of a security deposit as required by law and/or legal contract.

Reasons To Write a Security Deposit Demand Letter

  1. Documentation – A demand letter is written documentation of the tenant’s request. If the landlord later claims that they returned the deposit or never received a demand, this letter is evidence to dispute the landlord’s claim.
  2. Legal Requirement – In some states, a tenant can’t file a lawsuit over a security deposit without first showing that they’ve delivered a demand letter to the landlord.
  3. Dispute the Landlord’s Claim – Landlords often seek significant deductions from the security deposit. Sometimes they even deduct the entire security deposit. A demand letter is usually the first step in challenging the landlord’s decision to withhold some or all of the tenant’s security deposit.

Valid Landlord Deductions From a Security Deposit

A landlord can make many valid deductions from a security deposit. Tenants who demand the return of validly deducted funds risk unnecessary legal trouble with the landlord.

The landlord and tenant can agree in the lease on any specific standard for deductions they want. These are some common reasons a landlord can validly retain some or all of the security deposit:

What To Include in a Security Deposit Demand Letter

A security deposit demand letter typically includes the following information:

  1. Date.
  2. Landlord’s name and business address.
  3. General Lease Information – Identifies the details of the specific lease, including the address of the rental property, the dates the lease began and ended, and the amount of the security deposit. Note here that rent was paid timely with the property left in good condition. (If it was not, note the appropriate amount of valid deductions.)
  4. Security Deposit Requirements – Recites the state requirements for return of a security deposit.
  5. Notice of Deposit Violation – Notice to the landlord that the tenant has not had the security deposit returned in the manner required by law
  6. Payment – A specific demand for the security deposit, including an address for mailing the payment.
  7. Closing – A request for the landlord to get in touch with any concerns, plus the tenant’s contact information (including address), name, and signature.

It’s appropriate to attach any supporting documentation to a demand letter. For example, if a move-out inspection showed there was no damage to the property, the tenant should attach a copy of the inspection report. Likewise, proof of timely rent payments can support a tenant’s rejection of deductions for unpaid rent.

It’s critical to be able to prove delivery of the notice represented by a demand letter. This means most demand letters are either delivered by hand or shipped through certified mail, to establish an acknowledged delivery.

Timing a Security Deposit Demand Letter

Timing matters when demanding the return of a security deposit. A demand letter before the landlord has a legal requirement to return a deposit is both unlawful and needlessly antagonizes the landlord.

The minimum wait before a tenant can demand the return of a security deposit varies by state, and can also sometimes be up to the specific lease terms. This chart lists every state’s timeline for returning a tenant’s security deposit.

State Time To Return Security Deposit
Alabama 60 days.
Alaska 14 days with proper notice, 30 days without proper notice, or if the landlord is deducting any amount from the security deposit.
Arizona 14 days.
Arkansas 60 days.
California 21 days.
Colorado 1 month unless a longer period (up to 60 days) is agreed in the lease.
Connecticut 30 days, or within 15 days of receiving the tenant’s forwarding address (whichever is later).
Delaware 20 days.
Florida 15-60 days (depending on whether the tenant disputes any deductions).
Georgia 30 days.
Hawaii 14 days.
Idaho 21 days.
Illinois 7 days.
Indiana 30-45 days (depending on whether the tenant disputes any deductions or whether the landlord provided any statements or receipts).
Iowa 30 days.
Kansas 30 days.
Kentucky 30-60 days (depending on whether the tenant disputes any deductions).
Louisiana 1 month.
Maine 30 days for a written agreement. 21 days for an at-will tenancy.
Maryland 45 days.
Massachusetts 30 days.
Michigan 30 days.
Minnesota 21 days.
Mississippi 45 days.
Missouri 30 days.
Montana 10 days. 30 days if there are deductions.
Nebraska 14 days.
Nevada 30 days.
New Hampshire 30 days.
New Jersey 30 days.
New Mexico 30 days.
New York 14 days.
North Carolina 30 days.
North Dakota 30 days.
Ohio 30 days.
Oklahoma 45 days.
Oregon 31 days.
Pennsylvania 30 days.
Rhode Island 20 days.
South Carolina 30 days.
South Dakota 14 days. 45 days if the tenant requests an itemized accounting.
Tennessee No statute.
Texas 30 days.
Utah 30 days.
Vermont 14 days.
Virginia 45 days.
Washington 21 days.
Washington D.C. 45 days.
West Virginia 60 days, or within 45 days of the occupancy of a new tenant (whichever is shorter). Can be extended by 15 days if property damage exceeds the amount of the security deposit and the landlord has to hire a contractor for repairs.
Wisconsin 21 days.
Wyoming 30 days. 30 additional days allowed (60 total) if there are deductions due to damage.

Additional Property Management Resources

Not Refunding Security Deposit Letter