Check the deadline first
Most states set a deadline for returning the deposit or sending the itemized list, and some set what the list must include and how it must be sent. Miss it and you can lose the right to keep anything, whatever the damage. Put the move-out date and your deadline at the top of the file before you write a word.
This is a working template, not legal advice. Notice periods, fee limits and required wording depend on your lease and on state and local law. Check yours with your own counsel before using it.
What every line needs
Each deduction is one line, and each line answers the question the resident would otherwise call to ask.
| Part | Example | Why it is there |
|---|---|---|
| What it is | Carpet cleaning, bedroom two | Specific enough to find in the photos |
| Why it is charged | Pet stains, noted on the move-out inspection | Damage beyond normal wear, not age |
| What it cost | From the vendor invoice | A real invoice or estimate, not a guess |
| The evidence | Move-in and move-out photos, invoice | Kept on file, attached where your state requires it |
Normal wear and tear is the line most disputes turn on. Faded paint after three years is wear. A hole in the wall is damage. If you would struggle to explain the difference for one charge, it probably does not belong on the list.
The flow
From move-out to letter
Send it the way your lease and state rules say, and keep proof of when it went.
The letter
Hi [first name], thank you for returning the keys to [address] on [move-out date]. Your security deposit was [deposit amount]. After the move-out inspection, we have made the deductions below. Each one is for damage beyond normal wear and tear, and the photos and invoices are on file.
[Item], [reason], [amount]
[Item], [reason], [amount]
Total deductions: [total]. Amount returned to you: [refund], sent by [method] on [date] to [forwarding address or account]. If you have a question about any line, reply to this email and we will send you the photos for it.
Offering the photos up front ends most disputes before they start. The resident who sees the stain does not argue about the stain.
Draft it with AI
The facts already exist: the inspection notes, the photos list, the invoices and the lease. Put your letter template in a ChatGPT or Claude Project, attach the move-out inspection and the invoices, and send:
Using only the attached move-out inspection, move-in inspection and invoices, list every deduction as: item, location, reason, amount, and the invoice it comes from. Flag any item where the move-in report already noted the same condition, and any item that looks like normal wear and tear. Then draft the deduction letter from the template in this Project. Do not add any charge that has no invoice or estimate.Read every flagged line yourself. The AI drafts the letter; you decide what is charged.
Before you send
- You are inside the deadline where the property is.
- Every charge has a photo and an invoice or estimate behind it.
- Nothing on the list is normal wear and tear.
- The totals add up and the refund matches.
- It goes by the method your lease and state rules require.
Questions
What should a security deposit deduction letter include?
Each deduction as its own line with what it is, why it was charged and what it cost, the total deducted, the amount returned, and how and when the refund was sent. Your state may require more.
How long do I have to send the itemized deduction list?
It depends on the state, and the deadlines differ. Check the rule where the property is with your counsel and put the date in the file at move-out.
Can I charge for normal wear and tear?
Generally no. Deductions are for damage beyond normal wear and tear, unpaid rent or other charges your lease and state law allow.
Can AI write the deduction letter?
AI can draft it from your inspection notes and invoices and flag lines that look like wear and tear. A person decides each charge and signs it off.