How to write an itemized security deposit deduction list

What the statement is for

When you keep any part of a security or damage deposit, the tenant is usually entitled to know exactly why. An itemized deduction list, sometimes called a statement of account or a deposit disposition letter, shows the deposit held, each deduction with a reason and an amount, and the balance returned or owing.

A clear statement does two jobs. It meets your legal duty where one applies, and it heads off disputes because the tenant can see each charge and the photo behind it.

What to include

• Tenant and property details. Tenant names, rental address, tenancy start and end dates, and the forwarding address you are sending it to.
• Deposit held. The original deposit amount, plus any interest if your province or state requires it.
• Each deduction on its own line. Room or area, a short description, whether it is damage, cleaning, unpaid rent or another allowed item, and the amount.
• Evidence. A reference to the move in and move out photos for each line, and receipts or quotes where you have them.
• Totals. Total deductions, and the balance returned to the tenant or still owing.
• Date and signature. The date you sent it and who prepared it.

Example layout

This is example data to show the format only.

Notice what is missing: no vague "general wear" line, no round lump sum, and nothing for normal aging like faded paint. See Normal wear and tear vs damage for where that line sits.

Timing and rules to check

Every province and state sets its own deadline and format. A few examples landlords often ask about:

• Alberta. The landlord must return the deposit, or send a statement of account for any deductions, within 10 days after the tenant gives up possession.
• British Columbia. Generally within 15 days after the later of the tenancy ending and receiving the tenant's forwarding address in writing, unless the tenant agrees in writing or the landlord applies for dispute resolution.
• Ontario. Damage deposits are generally not allowed, so there is usually no damage deposit to deduct from. Damage claims go through the Landlord and Tenant Board.
• California. An itemized statement and any refund are due within 21 days after the tenant moves out.
• Texas. The refund and a written description of deductions are due within 30 days after the tenant surrenders the premises.
• Florida. If the landlord intends to make a claim, written notice must go to the tenant by certified mail within 30 days of the tenant vacating, otherwise the deposit is returned within 15 days.

Rules change and have exceptions. This is general information, not legal advice. Confirm the current rules for your province or state before you send.

How to build it faster

The slow part is not the letter. It is going back through photos, matching them to the move in report, and pricing each item after the fact. Doing the pricing during the move out walkthrough means the statement is basically done when you leave the unit.

Read How to charge a tenant for damages at move out for the walkthrough process, and How to settle security deposit disputes if the tenant pushes back.

The best tool for move out charges

Our top pick is Easy Inspections. It adds customizable, itemized move out repair charges priced on site, each with timestamped photos, so the finished report already reads like a deduction statement you can send the tenant. It compares against the move in report and also handles routine inspections on iPhone. Free for 0 to 2 units. Starter is $9.99/mo for 3 to 10 units and Portfolio is $29.99/mo for 11 to 50 units, with fixed plan prices and no per unit surcharge. Available in Canada and the US.

Questions