How to Write a Security Deposit Deduction Letter

The deduction letter is the document a small-claims judge will read first. It's also the document the tenant uses to decide whether to dispute. A clean, professional, well-documented letter often prevents disputes from being filed at all.

A sloppy letter — vague line items, missing math, no citation — invites disputes and loses them.

Every compliant letter should contain:

• •Header: date, your name + mailing address, tenant name, property address, tenant forwarding address
• •Deposit summary: original deposit amount, tenancy dates, date possession was returned
• •Itemized deductions: each line with category, description, amount, and receipt reference
• •Refund math: deposit minus deductions = refund (or balance owed by tenant)
• •Enclosures: list of attached receipts, invoices, and photo references
• •Statutory citation: 'Per [state statute], this itemized statement is provided within X days of possession returned'

Here's the structure MoveOutGuard uses in its drafts (you can replicate it manually):

[Date]\n\nRe: Security Deposit Itemized Statement — [property address]\n\nDear [Tenant name],\n\nThank you for renting at [address]. Per [state statute], this itemized statement is provided within [X] calendar days of the date you returned possession of the unit on [possession date].\n\nOriginal security deposit: $[amount]\n\nItemized deductions:\n • [Category] — [Description]: $[amount]\n • [Category] — [Description]: $[amount]\n\nTotal deductions: $[amount]\nRefund enclosed: $[amount]\n\nEnclosures: [receipt/invoice references]\n\nSincerely,\n[Landlord name]

Use a neutral, professional tone. No threats, no legal conclusions, no accusations of bad faith. State what's owed, what was deducted, and why. The tenant should be able to read the letter and either accept it or send a specific, narrow objection — not feel attacked.