The Security Deposit Disposition Letter serves as a crucial document in the landlord-tenant relationship, required by law in most U.S. jurisdictions. This document must be sent within a state-specified timeframe after lease termination (typically 14-60 days) and provides a detailed accounting of how the tenant's security deposit was handled. It includes information about the original deposit amount, any accrued interest where legally required, itemized deductions for damages beyond normal wear and tear, unpaid rent, or other permitted charges, and the final amount being returned. The letter helps prevent disputes by providing transparent documentation and complies with state-specific requirements for security deposit handling. It serves as both a legal record and a communication tool, protecting the interests of both landlords and tenants by clearly documenting the final settlement of the security deposit.
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1. Header Information: Date, landlord's name and address, tenant's name and forwarding address, and property address
2. Security Deposit Information: Original amount of security deposit and date received
3. Move-out Details: Date of move-out and lease termination
4. Deposit Calculation: Detailed breakdown of the security deposit, including original amount, any accrued interest (if required by state law), and total amount subject to disposition
5. Deductions List: Itemized list of all deductions with specific amounts and reasons
6. Final Amount: Clear statement of the final amount being returned or owed
7. Payment Information: How and when the remaining deposit will be returned, or payment instructions if tenant owes additional money
8. Signature Block: Landlord's signature, name, and date
1. Interest Calculation: Required in states where interest must be paid on security deposits, showing the calculation method and period
2. Dispute Rights: Information about the tenant's rights to dispute the deductions and the process for doing so
3. Additional Charges: If damages exceed the security deposit amount, detail of additional charges and payment requirements
4. Forwarding Address Request: If tenant hasn't provided a forwarding address, a request for this information
5. State-Specific Disclosures: Any additional disclosures required by state law
1. Itemized Deductions Schedule: Detailed list of all deductions with corresponding amounts and explanations
2. Photo Documentation: Photos of damage or conditions leading to deductions
3. Repair Receipts: Copies of invoices, receipts, or estimates for repairs or cleaning
4. Move-out Inspection Report: Copy of the move-out inspection report documenting property condition
5. Original Lease Agreement: Reference copy of relevant lease sections pertaining to security deposit and damage charges
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