California Security Deposit Return Letter

Date: [[Notice Date]]

To: [[Former Tenant Full Name(s)]]
[[Forwarding Address]]
[[City]], CA [[ZIP Code]]

From: [[Landlord / Authorized Agent Name]]
[[Landlord Mailing Address]]
[[City]], CA [[ZIP Code]]

Re: Return of Security Deposit for Premises at [[Property Address]]

Dear [[Former Tenant Full Name(s)]]:

You vacated the Premises located at [[Property Address]] on [[Move-Out / Key Return Date]]. Under California Civil Code § 1950.5, the landlord must return the security deposit or provide an itemized statement of deductions within 21 calendar days after the tenant vacates the Premises and returns all keys and access devices.

Original Security Deposit

Amount Received: $[[Original Security Deposit Amount]]
Date Received: [[Deposit Receipt Date]]

The security deposit was held to secure performance of the lease, including payment of rent, repair of damage beyond ordinary wear and tear, and cleaning to restore the Premises to the condition at move-in (ordinary wear and tear excepted).

Itemized Statement of Deductions

Balance Due to Tenant: $[[Balance Owed to Tenant or 0.00]]

Supporting Documentation

Copies of receipts, invoices, or reasonable estimates for deductions exceeding $125 are attached as Exhibit A.

Deductions for normal wear and tear are prohibited. Normal wear and tear includes minor scuffs, faded paint, and carpet wear from ordinary use. The landlord may not charge for repainting, new carpet, or cleaning that would be expected at the end of a normal tenancy.

Forwarding Address and Payment

The balance, if any, is being returned by:

☐ Check mailed to the address above
☐ Direct deposit / electronic transfer to account on file
☐ Other: [[Method]]

Check Number (if applicable): [[Check Number]]

Interest on Security Deposit (Local Requirements)

In certain jurisdictions, landlords must pay interest on security deposits:

1. San Francisco requires interest on security deposits held for more than one year under the local rent ordinance.

2. Los Angeles requires interest for certain tenancies under the Rent Stabilization Ordinance.

Interest Owed (if applicable): $[[Interest Amount]] for the period held.

Bad Faith Remedies (Civil Code § 1950.5)

If the landlord fails to comply with the 21-day requirement or makes deductions in bad faith, the tenant may be entitled to recover the deposit plus up to twice the amount wrongfully withheld, plus court costs and reasonable attorney fees.

The tenant may also recover statutory damages in a small claims action without needing to prove actual damages in certain bad faith cases.

Pre-Move-Out Inspection and Walkthrough

Landlord provided tenant the right to a pre-move-out inspection as required by Civil Code § 1950.5.

Tenant requested / declined pre-move-out inspection: [[Requested / Declined]] on [[Date]].

Any issues noted during the walkthrough that were not remedied by tenant are listed in the deductions above.

Tenant Acknowledgment

I acknowledge receipt of this itemized statement and any enclosed payment.

Former Tenant Signature: ______________________________ Date: ___________

Printed Name: [[Former Tenant Full Name(s)]]

Additional Notes and Legal References

1. The 21-day period is calculated in calendar days, not business days.

2. The landlord must provide an itemized list even if the full deposit is returned.

3. If any portion of the deposit is withheld, the landlord must provide the itemized statement and supporting documents.

4. Tenants should retain copies of the move-in checklist and photographs for dispute purposes.

[[Additional Notes Specific to This Tenancy or Property]], -

*Template, not legal advice. This letter complies with Cal. Civ. Code § 1950.5 (as amended, including AB 12 deposit cap rules effective 2024). The 21-calendar-day deadline is strict. Interest rules apply in San Francisco and Los Angeles. Always attach actual receipts for deductions over $125. Verify current local interest requirements and any additional city rules before use. References current as of June 2026.*

Detailed Deduction Guidelines

The following categories are commonly used when itemizing deductions. Only actual, documented costs beyond normal wear and tear may be deducted.

1. Unpaid Rent and Other Charges: Include any rent, late fees (if enforceable), or other amounts owed under the lease that remain unpaid after move-out.

2. Cleaning: Deduct only for cleaning required to return the unit to the condition at the start of the tenancy, excluding ordinary dust, minor marks, and normal use.

3. Repairs: Deduct only for damage caused by the tenant, occupants, or guests that exceeds ordinary wear and tear. Provide before-and-after documentation when available.

4. Replacement of Items: Only when repair is not feasible and the item was damaged beyond normal use.

5. Administrative or Other Costs: Rarely permitted; must be specifically authorized by the lease and law.

Move-In / Move-Out Checklist Reference

A copy of the original move-in/move-out inventory and condition checklist is attached as Exhibit B. Any discrepancies between the move-in and move-out condition that are not normal wear and tear are reflected in the deductions.

Dispute Process

If you disagree with any deduction:

1. Contact the landlord in writing within a reasonable time with specific objections and supporting evidence (photos, receipts, etc.).

2. Consider mediation or small claims court if the dispute cannot be resolved.

3. Note the 21-day rule is a deadline for the landlord; tenants have additional time to pursue claims.

Certification

I certify under penalty of perjury that the foregoing itemized statement is true and correct to the best of my knowledge, that the deductions are permitted under Civil Code § 1950.5, and that supporting documentation is attached where required.

Landlord / Agent Signature: ______________________________ Date: ___________

Printed Name: [[Landlord / Agent Name]]

Record Retention

Landlord will retain copies of this letter, receipts, the move-in checklist, photographs, and any correspondence for a minimum of three years or as required by law.

Acknowledgment of Receipt by Tenant (Optional)

Tenant may sign below to acknowledge receipt of the statement and payment (if any). Signature does not constitute agreement with the deductions.

Tenant Signature: ______________________________ Date: ___________