Draft Letter to Tenant returning Security Deposit less Deductions

A landlord has a right to deduct a certain amount of money from the security deposit of the tenant, if the tenant has caused any genuine damages to the property of the landlord, or has violated any of the conditions of the rent agreement, or has not paid rent for one or more months.

It is important that the landlord inform the tenant the details of money being deducted from the security deposit and the reasons behind such deductions.

After the deductions, the landlord should refund the balance amount. Such communication from the landlord to the tenant should be in writing; it may be of use legally if matter is disputed.

Here are sample letters and emails from landlords to tenants returning security deposits less deductions.

TEMPLATE #1 (Letter)

Date: ________

To

(Name of the Tenant)

(Full Address)

(Phone Number)

Sub.: Security deposit and deductions

Dear ________,

Thank you for handing over the keys to the premises earlier rented to you under the rent agreement between us dated ________.

I have personally inspected the property after you vacated it completely on (Date). I noticed a few damages to the property, viz. there are new holes in the walls of the rooms, a couple of water taps are not functioning properly, the wall painting is very dirty with hand and other marks, the bathroom floors need major cleaning and light bulbs are not working.

Please understand I had strictly advised you at the beginning of your stay to be careful while using the property and not to cause any damage. Now I have to spend some money to repair all the above damages, the estimated cost of which would be around (Amount).

I have your interest-free security deposit amount of ________. I am hereby deducting a sum of ________ from it to incur money on fixing the said damages. The rest amount of ________ is hereby refunded by a cheque no. ________ dated ________. The deduction is being done as per the clause ___ of the said rent agreement.

Thank you for your understanding!

Have a good day/ evening!

Sincerely,

    (Signature)

(Name of the Landlord)

TEMPLATE #2 (Email)

Dear ________,

I acknowledge the receipt of the keys to the premises vacated by you on (Date).

As you are aware, there is still ___ month(s) of rent pending to be received from you.

Hence, the same is being adjusted from the security deposit paid by you under the rent agreement between us dated ________.

The rest of the amount will be refunded to you. Please send me your bank account details for wire transfer.

Kind Regards,

(Name of the Landlord)