Security Deposit Return: A Landlord Checklist
Security deposit disputes are among the most common landlord-tenant conflicts. Most can be avoided with good records and a clear process.
Know your state's rules
States set rules for:
- Maximum deposit amounts (in some states)
- Deadlines to return the deposit or send an itemized list of deductions, often somewhere between 14 and 60 days after move-out
- Whether deposits must be held in a separate account or earn interest
- What happens if you miss the deadline, which can include penalties
Look up your state's statute or a guide from your state attorney general.
Normal wear and tear vs. damage
| Usually normal wear | Usually damage |
|---|---|
| Faded paint, minor scuffs | Large holes, unapproved paint colors |
| Worn carpet in walkways | Burns, pet stains, tears |
| Loose door handles | Broken doors or windows |
| A few small nail holes | Missing fixtures or appliances |
The process
- Ask the tenant for a forwarding address in writing
- Do a move-out inspection using the same form as at move-in, and take photos
- Compare the condition with move-in
- Get receipts or estimates for any repairs or cleaning you'll deduct
- Send an itemized statement of deductions with the remaining deposit before the deadline
- Keep copies of everything, including proof of mailing
Tips
- Deduct actual, reasonable costs, not round numbers
- Unpaid rent can usually be deducted, if your lease and state allow
- A friendly move-out checklist given to tenants ahead of time reduces surprises
General information, not legal advice.
The Small Landlord Toolkit includes a move-out and deposit page and an editable deposit itemization letter.
Small Landlord Toolkit — $19
18-page toolkit for 1-10 unit landlords: rental application, fair screening criteria, move-in inspection, rent ledger and Schedule E expense totals. Instant download: PDF + DOCX + XLSX.
Get the Small Landlord ToolkitFamily Paperwork Bundle — $34More guides
- Landlord Checklist: Before You Rent Out Your Property
- Rental Application: What To Include (and What Not To Ask)
- Tenant Screening Criteria and Fair Housing: A Plain-English Guide
- Adverse Action Notice for Landlords: When and How To Send One
- Move-In Inspection Checklist for Landlords and Tenants
- Rent Ledger: How To Track Rent Payments (Free Template Layout)
- Rental Property Maintenance Schedule: A Year-Round Checklist
- Schedule E Rental Expenses: Categories Small Landlords Should Track
- Notice of Entry: How Landlords Should Give Notice Before Entering