Boilerplate Series: Withholding Security Deposit Letter
If you are a landlord and you do not plan to return the security deposit to your tenant, you should communicate this to the tenant in writing. You can do this by sending a letter to the tenant explaining the reasons why you are not returning the security deposit.
When writing the letter, be sure to include the following information:
The date of the letter
The address of the rental property
The tenant's name
The amount of the security deposit that is being withheld
The reason for withholding the security deposit
Photos / video / documentation of the damages
Dear [Tenant's Name],
I am writing to inform you that I will not be returning your security deposit in the amount of $[amount]. The reason for this is that the rental property sustained significant damages during your tenancy, including [list of damages]. These damages exceed the amount of the security deposit.
I have attached photographs and receipts as documentation of the damages. I understand that you may disagree with my decision to withhold the security deposit. If you would like to discuss this further, please do not hesitate to contact me.
Sincerely, [Your Name]
It is important to be specific and provide a detailed explanation for why you are withholding the security deposit. If the tenant disagrees with your decision, they may choose to challenge it in small claims court. Providing a clear and detailed explanation will help to support your position if the matter goes to court.
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