Document background
The Security Deposit Disposition Letter serves as a crucial document in the landlord-tenant relationship, required by law in most U.S. jurisdictions. This document must be sent within a state-specified timeframe after lease termination (typically 14-60 days) and provides a detailed accounting of how the tenant's security deposit was handled. It includes information about the original deposit amount, any accrued interest where legally required, itemized deductions for damages beyond normal wear and tear, unpaid rent, or other permitted charges, and the final amount being returned. The letter helps prevent disputes by providing transparent documentation and complies with state-specific requirements for security deposit handling. It serves as both a legal record and a communication tool, protecting the interests of both landlords and tenants by clearly documenting the final settlement of the security deposit.
