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MoveOutReport

Free template · updated for 2026

Security deposit deduction letter — the format that holds up in court.

Copy the template below, fill in your numbers, send. Or skip the typing — generate the whole itemized letter from a 5-minute walkthrough on your phone.

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How to write the letter.

  1. 1.

    Walk the unit and list every deduction

    Use a checklist to make sure you don't miss anything. Note location, description, and estimated cost for each item. Photos are required.

  2. 2.

    Get a cost basis for each deduction

    Either contractor estimates, regional pricing, or actual receipts. The cost must be reasonable and documented if challenged.

  3. 3.

    Format as an itemized statement

    Tenant info, lease info, deposit held, each deduction line item, total deducted, refund balance. Use the template below.

  4. 4.

    Send within your state's deadline

    Certified mail to the tenant's forwarding address. Keep a copy with the receipt for your records.

Template

Itemized security deposit deduction letter.

Bracketed text [like this] gets replaced with your specifics. Keep the structure — the line items, the citations, the totals — that’s what makes it defensible.

[Landlord name] [Landlord address] [City, State ZIP] [Date] [Tenant name] [Tenant forwarding address] [City, State ZIP] RE: Security Deposit Itemization — [Property address, Unit #] Dear [Tenant name], This letter is the itemized accounting of your security deposit required under [State statute, e.g. "Texas Property Code §92.104"]. LEASE & DEPOSIT Lease term: [Move-in date] to [Move-out date] Deposit held: $[2,200.00] Move-out walkthrough date: [Date] DEDUCTIONS 1. [Living Room — carpet stain near sofa, 8" diameter] Cause: [tenant negligence — not present at move-in inspection] Cost basis: [contractor estimate / regional pricing] Amount: $[150.00] 2. [Kitchen — broken cabinet door hinge, lower-left cabinet] Cause: [exceeds normal wear; replacement required] Cost basis: [parts $35 + labor $40, estimate attached] Amount: $[75.00] 3. [Bathroom — wall damage from removed TV mount, drywall repair + paint] Cause: [unauthorized installation per Lease §7.b] Cost basis: [contractor estimate, attached] Amount: $[280.00] ────────── Total deductions: $[505.00] REFUND CALCULATION Deposit held: $[2,200.00] Less total deductions: −$[505.00] ────────── Refund amount enclosed: $[1,695.00] [If deductions exceed deposit, list the unpaid balance and give the tenant your address for payment.] ENCLOSURES • Itemized inspection report with dated photographs • [Contractor estimates / receipts as referenced above] • Refund check #[1234] in the amount of $[1,695.00] If you dispute any of the deductions above, please contact me in writing within [X] days so we can attempt to resolve the dispute informally. State law gives you the right to pursue any unresolved claim in [small-claims court / housing court]. Sincerely, [Landlord signature] [Landlord printed name] [Phone] · [Email]

Not legal advice — this template is a starting point. State requirements vary; always verify your state’s statutory deadline and itemization rules. See deposit laws by state →

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Common questions

Deduction letter FAQ.

What must a security deposit deduction letter include?
Most states require an itemized statement listing each deduction with a description, the amount, and (often) supporting documentation like receipts or contractor estimates. The letter must be sent within the state's statutory deadline — typically 14–60 days after move-out — to the tenant's last known or forwarding address.
What happens if I don't send a deduction letter on time?
Many states void the landlord's right to deduct anything — even for documented damage — if the deadline is missed. Some states impose double or triple damages plus attorney fees. Texas, for example, can require landlords to refund three times the wrongfully withheld amount plus $100 and reasonable fees.
Do I need receipts for deductions?
It depends on the state. California requires receipts (or a good-faith written estimate) for any deduction over $125. Some states require itemization but not receipts. As a practical matter, attaching receipts or estimates always strengthens your position if the tenant disputes the deduction.
Can I deduct for cleaning?
Yes, if the unit was left in a condition substantially worse than at move-in. Routine turnover cleaning is a landlord cost in most jurisdictions. Document the move-in cleanliness baseline and the move-out condition with photos.
Should I send the deduction letter by certified mail?
Yes, when possible. Certified mail with return receipt creates proof of timely delivery — often the difference between winning and losing a deposit dispute. Email or text in addition is fine, but the certified mail timestamp is the legally meaningful one.
Can I deduct the deduction letter prep time?
No. Administrative time, including time spent writing the deduction letter or photographing the unit, is not deductible from the security deposit. Only the actual cost of repairs and replacements caused by tenant damage (above normal wear) is deductible.