A security deposit is a payment required by a landlord from a tenant to cover the expenses of any repairs of damages to the premises greater than normal "wear and tear." Everyday usage is normal wear and tear, but excess damage is a debated definition. A security deposit is not the same as rent. It is money that actually belongs to the tenant but is held by the landlord for tenant-caused damages and sometimes past-due rent. Without the agreement of the landlord, a security deposit may not legally be used as the last month's rent.
Laws vary by state, but some states place a limit on the amount of a security deposit that a landlord may charge. Some states also regulate where residential security deposits must be kept and when interest payments on the security deposits must be made to the tenant. State laws also define the time period after the tenant vacates within which the deposit must be returned to the tenant. Dear [Tenant's Name], Subject: Return of Security Deposit with Deductions I hope this letter finds you well. We write to provide you with a detailed breakdown of the deductions made from your security deposit in accordance with the terms and conditions of your lease agreement for the property located at [property address] in Elizabeth, New Jersey. Upon thorough inspection of the property after your departure, we noted several issues that needed attention. The deductions outlined below are duly justified based on the expenses incurred to rectify the damages or outstanding liabilities incurred during your tenancy: 1. Cleaning and Repairs: A sum of $[amount] has been deducted to cover the cost of professional cleaning services required to restore the property to its original condition. We also had to address damages caused by [specific damages]. The total for necessary repairs is $[amount]. 2. Unpaid Rent: An outstanding rental payment of $[amount] remained unpaid at the end of your tenancy. Accordingly, this amount has been deducted from your security deposit. 3. Utility Charges: After verification with the utility providers, it was brought to our attention that there were unpaid bills amounting to $[amount]. These charges have been deducted accordingly from your security deposit. 4. Replacement of [Item]: During the move-out inspection, it was observed that [specific damaged item(s)] will need to be replaced due to excessive wear and tear from your tenancy. The cost of replacement for these items totals $[amount]. 5. Other Deductions: [Explain any other deductions made, such as late fees, damaged furniture, or any outstanding bills]. After considering the aforementioned deductions, the remaining balance of your security deposit is $[amount]. Please allow [number of days] from the receipt of this letter for the refunded amount to be processed and credited back to your designated account. Should you have any questions or concerns regarding the deductions made, please do not hesitate to contact us at [landlord's contact details] within [number of days] of receiving this letter. We appreciate your understanding and cooperation throughout your tenancy, and we wish you the best in your future endeavors. Sincerely, [Landlord's Name] [Landlord's Contact Details]
Dear [Tenant's Name], Subject: Return of Security Deposit with Deductions I hope this letter finds you well. We write to provide you with a detailed breakdown of the deductions made from your security deposit in accordance with the terms and conditions of your lease agreement for the property located at [property address] in Elizabeth, New Jersey. Upon thorough inspection of the property after your departure, we noted several issues that needed attention. The deductions outlined below are duly justified based on the expenses incurred to rectify the damages or outstanding liabilities incurred during your tenancy: 1. Cleaning and Repairs: A sum of $[amount] has been deducted to cover the cost of professional cleaning services required to restore the property to its original condition. We also had to address damages caused by [specific damages]. The total for necessary repairs is $[amount]. 2. Unpaid Rent: An outstanding rental payment of $[amount] remained unpaid at the end of your tenancy. Accordingly, this amount has been deducted from your security deposit. 3. Utility Charges: After verification with the utility providers, it was brought to our attention that there were unpaid bills amounting to $[amount]. These charges have been deducted accordingly from your security deposit. 4. Replacement of [Item]: During the move-out inspection, it was observed that [specific damaged item(s)] will need to be replaced due to excessive wear and tear from your tenancy. The cost of replacement for these items totals $[amount]. 5. Other Deductions: [Explain any other deductions made, such as late fees, damaged furniture, or any outstanding bills]. After considering the aforementioned deductions, the remaining balance of your security deposit is $[amount]. Please allow [number of days] from the receipt of this letter for the refunded amount to be processed and credited back to your designated account. Should you have any questions or concerns regarding the deductions made, please do not hesitate to contact us at [landlord's contact details] within [number of days] of receiving this letter. We appreciate your understanding and cooperation throughout your tenancy, and we wish you the best in your future endeavors. Sincerely, [Landlord's Name] [Landlord's Contact Details]
