Iowa Security Deposit Return Letter

This package contains ready-to-use letters and notices for the return of a residential security (rental) deposit under Iowa Code § 562A.12 (Uniform Residential Landlord and Tenant Act).

Key Iowa rules (current as of 2026):

• Maximum deposit: two (2) months' rent.

• Deposits must be held in a federally insured bank, savings and loan, credit union, or qualifying trust account. Interest during the first five years belongs to the landlord.

• Permissible deductions only: (1) unpaid rent or other sums due under the lease; (2) cost to restore the unit to move-in condition, ordinary wear and tear excepted; (3) expenses to recover possession from a tenant who did not act in good faith.

• Landlord must return the deposit or provide a written itemized statement of deductions within thirty (30) days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions.

• If no written statement is furnished within the 30-day period, the landlord forfeits all rights to withhold any portion of the deposit.

• Bad-faith retention may result in punitive damages not to exceed twice the monthly rent, plus actual damages, and the court may award reasonable attorney fees to the prevailing party.

• Tenant must be given the opportunity to participate in a pre-move-out inspection (best practice, though not strictly mandated by statute).

Use the appropriate letter below. All user-supplied values appear as [[Token Name]] placeholders., -

Letter A, Pre-Move-Out Inspection Offer (Recommended Best Practice)

Date: [[Date of Letter]]

TO: [[Tenant Full Legal Name(s)]]
[[Tenant Current or Last Known Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Legal Name]]
[[Landlord Mailing Address]]
[[City]], Iowa [[ZIP Code]]
Phone: [[Landlord Phone]]
Email: [[Landlord Email]]

RE: Offer of Pre-Move-Out Inspection, [[Property Full Address, City, Iowa ZIP]]

Dear [[Tenant First Name(s)]]:

Your tenancy at the above property is scheduled to end on [[Move-Out / Lease End Date]]. To help minimize any disputes over the condition of the Premises and the return of your security deposit of $[[Original Security Deposit Amount]], I am offering you the opportunity to walk through the unit with me (or my representative) before you surrender possession.

The purpose of the inspection is to identify items you may wish to address (cleaning, minor repairs, removal of personal property) prior to vacating so that deductions, if any, can be kept to a minimum.

Please contact me no later than [[Deadline for Response, e.g. three (3) business days before scheduled move-out]] to schedule a mutually convenient time.

Whether or not you choose to participate, a full written accounting of your security deposit (with refund or itemized deductions) will be mailed or delivered to the forwarding address you provide within thirty (30) days after you vacate and supply delivery instructions, as required by Iowa Code § 562A.12.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Legal Name]]
Date: [[Date]], -

Letter B, Full Security Deposit Return (No Deductions)

Date: [[Date of Letter]]

TO: [[Tenant Full Legal Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Legal Name]]
[[Landlord Mailing Address]]
[[City]], Iowa [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Return of Security Deposit, No Deductions, [[Property Full Address]]

Dear [[Tenant First Name(s)]]:

You vacated and surrendered possession of the Premises located at the above address on [[Move-Out / Surrender Date]].

Your original security deposit was $[[Original Security Deposit Amount]].

After inspection of the Premises (with or without your participation), no deductions are being made. The unit was returned in satisfactory condition, ordinary wear and tear excepted, with all rent and other charges paid in full.

Refund Due: $[[Full Refund Amount]]

A check or electronic transfer in the above amount is enclosed / being issued today.

Forwarding Address Confirmation: The refund is being sent to the address shown above. If this address is incorrect, please notify me immediately in writing.

Thank you for your tenancy. Please contact me if you have any questions.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Legal Name]]
Date: [[Date]]

Enclosure: Check / Payment Confirmation No. [[Payment Reference]], -

Letter C, Security Deposit Return with Itemized Deductions (Partial Refund)

Date: [[Date of Letter]]

TO: [[Tenant Full Legal Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Legal Name]]
[[Landlord Mailing Address]]
[[City]], Iowa [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Return of Security Deposit with Itemized Deductions, [[Property Full Address]]

Dear [[Tenant First Name(s)]]:

You vacated the Premises on [[Move-Out / Surrender Date]]. Your security deposit was $[[Original Security Deposit Amount]].

After final inspection, the following lawful deductions are being made pursuant to Iowa Code § 562A.12. Only amounts reasonably necessary for the permitted purposes are withheld.

Itemized Statement of Deductions:

1. Unpaid rent for the period [[Rental Period]]: $[[Unpaid Rent Amount]]

2. Repair of damage beyond ordinary wear and tear:
- Description: [[Specific Damage Description, Location, and Extent]]
- Cost: $[[Repair Cost]] (supported by attached invoice/estimate dated [[Date of Invoice]])

3. Cleaning required to restore the unit to move-in condition (ordinary wear and tear excepted):
- Description: [[Specific Cleaning Items and Areas]]
- Cost: $[[Cleaning Cost]] (supported by attached documentation)

4. Other (expenses to recover possession from bad-faith holdover):
- Description: [[Specific Expense]]
- Cost: $[[Other Deduction Amount]]

Total Deductions: $[[Total Deductions Amount]]

Net Amount Returned to You: $[[Net Refund Amount]]

A check or electronic payment in the net amount is enclosed / being issued today.

Supporting Documentation: Copies of all invoices, receipts, estimates, and photos documenting the above deductions greater than any applicable threshold are attached to this letter.

Your Right to Dispute: If you disagree with any deduction, you may respond in writing within a reasonable time. In any court action concerning the deposit, the burden is on the landlord to prove the reason for withholding.

If you provided no forwarding address or delivery instructions within one year of termination, the deposit (or remainder) reverts to the landlord per statute.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Legal Name]]
Date: [[Date]]

Enclosures:
- Payment (check/transfer reference [[Payment Reference]])
- Itemized receipts and photos (total pages: [[Number of Pages]]), -

Letter D, Notice of Forfeiture of Right to Withhold (Landlord Failure to Timely Account)

*(Use only when landlord failed to meet the 30-day requirement)*

Date: [[Date of Letter]]

TO: [[Landlord or Former Landlord Full Legal Name]]
[[Landlord Mailing Address]]

FROM: [[Tenant Full Legal Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

RE: Demand for Return of Security Deposit, Forfeiture of Withholding Rights, [[Property Address]]

Dear [[Landlord Name]]:

On [[Move-Out Date]] I vacated the Premises at the above address. My security deposit was $[[Original Security Deposit Amount]].

More than thirty (30) days have passed since termination of the tenancy and your receipt of my forwarding address / delivery instructions on [[Date Landlord Received Address]]. You have failed to return the deposit or furnish a written itemized statement of any deductions within the time required by Iowa Code § 562A.12(3).

Pursuant to Iowa Code § 562A.12(4), you have forfeited all rights to withhold any portion of the rental deposit.

DEMAND: Return the full amount of $[[Original Security Deposit Amount]] to me within ten (10) days of the date of this letter.

Failure to do so will leave me no choice but to pursue all available remedies, including recovery of the deposit, actual damages, punitive damages up to twice the monthly rent, and reasonable attorney fees.

Sincerely,

___________________________________
[[Tenant Full Legal Name]]
Date: [[Date]], -

Additional Notices and Recordkeeping

Record of Tenant Forwarding Address / Delivery Instructions

Date Received by Landlord: [[Date]]

Method Received: [[Mail / Email / In-Person / Form Submitted]]

Address on File: [[Full Forwarding Address Recorded]]

Landlord Internal Checklist (Do Not Send to Tenant)

1. Date tenancy terminated / keys returned: [[Date]]

2. Date forwarding address received: [[Date]]

3. 30-day deadline: [[Calculated Deadline Date]]

4. Date accounting mailed/delivered: [[Date Accounting Sent]]

5. Method of delivery: [[Certified Mail / Email with Read Receipt / Hand Delivery]]

6. Supporting documents attached? [[Yes / No, list: [[List]]]]

7. Payment issued: [[Amount]] via [[Method]] on [[Date]]

Important Reminders for Landlords

• Always document the move-out inspection with dated photos and a signed checklist (with or without tenant present).

• Keep copies of all invoices and receipts for at least three years.

• Never deduct for ordinary wear and tear (faded paint, minor carpet wear, etc.).

• If the tenant disputes in good faith, consider prompt resolution to avoid statutory penalties., -

*Iowa Security Deposit Return Letter template, not legal advice. All timing, itemization, and forfeiture rules are taken directly from Iowa Code § 562A.12 as of 2026-06. Local practices or court interpretations may apply. Verify current law and consult qualified counsel. All variables use [[Token Name]] placeholders.*