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Free security deposit return letter template
Return deposits on time, deduct only what you can show, and keep the paper trail. The kit lists each deduction with its cost and receipt, shows the math from deposit to refund, and walks you through the Chicago and Illinois deadlines.
The Word file opens in Microsoft Word, Google Docs and Pages. The printable PDF has blank lines to fill in by hand.
What's inside
- Return letter and itemized statement: each deduction with its location, the damage compared with move-in, the cost and the receipt number, then deposit plus interest, minus unpaid rent and damage, equals the refund.
- Receipts follow-up: if your statement used repair estimates, send the paid receipts and any extra refund afterward.
- Wear and tear vs. damage guide: common examples for walls, carpet, floors, kitchens, bathrooms and more, plus how to charge fairly.
- Move-out inspection checklist: room by room, move-in vs. move-out, with photo numbers.
- Chicago deposit interest worksheet: track the yearly interest owed on deposits held more than six months.
- Delivery log: when and how each statement, receipt and payment went out.
How long do you have to return a security deposit?
In Chicago and the rest of Illinois (as of September 2026):
- Within 30 days of move-out: to deduct for damage, send an itemized statement with the repair costs and copies of paid receipts. If you only have estimates, send the paid receipts within 30 days after the statement.
- Within 45 days of move-out: return the deposit, plus any interest owed, minus unpaid rent and the itemized damage. If you send no statement, return the full deposit.
- Chicago extras: the Residential Landlord and Tenant Ordinance also requires a signed deposit receipt, a federally insured Illinois account, telling the tenant which bank within 14 days, and yearly interest on deposits held more than six months (the city set the 2026 rate at 0.01%). Units in owner-occupied buildings with six or fewer units aren't covered by the ordinance, but state law still applies.
Elsewhere, deadlines are often shorter: 21 days in California and 14 in New York, for example. Rules change, so check the current rules where your property is. In Chicago? Read our plain-English guide to Chicago's security deposit rules.
Deduct fairly and keep it on the record
- Compare with move-in. A deduction is strongest when your move-in record shows the item was fine before.
- Charge the real cost. Use receipts, estimates or a reasonable rate for your own labor, not a flat penalty. Normal wear and tear is a cost of renting.
- Take dated photos. They're strong evidence at move-in and move-out, and California requires them.
- Send it on time and keep proof. Mail, hand delivery or email to an address your tenant gave you, and log it the day it goes out.
More free tools: the rent ledger kit, the late rent notice kit and the rent increase letter kit. New tenant moving in? Start with the move-in checklist kit.
Want move-outs to start from the record?
Landlord's Desk keeps each tenant's deposit, rent ledger and documents together. You approve every change before it goes out. Founding members get up to 60 days free, then 30% off their first year.
These templates and examples are provided as-is and are not legal advice. Deposit rules, deadlines and interest rates change and vary by state and city. Check the rules where your property is, or talk to a local attorney. Sources: City of Chicago Department of Housing; Illinois Security Deposit Return Act (765 ILCS 710).