How to Return a Tenant's Security Deposit

Return your tenant's security deposit promptly.

Most landlords opt to collect a security deposit with the first month's rent to ensure compensation if their rental property is left in disarray. The amount of the security deposit depends on the landlord and whether the rental property is furnished or not. The general rule is up to two months rent for an unfurnished property, and up to three months rent if the property is fully furnished. Once the lease has come to completion, however, landlords must follow a set of rules when returning the security deposit to the tenants.

Things You'll Need

• List of repairs

Instructions

1. Notify your tenants in writing of the date you plan to do a walk through of the property if you don't go ahead and do it the day the tenants move out. Don't wait to do this as there is a time limit on returning the security deposit (see Resources to determine your state's time limit.)

2. Point out any damage that is not considered normal wear and tear. The tenant may choose to fix these things. If the tenant has no interest in completing the repairs, you can deduct them from the security deposit.

3. Refund the full amount of the security deposit to the tenants if no damage was found. Do this with a check so that you have proof you refunded the money. You may also choose to refund the interest collected, although you can keep it legally as an account maintenance fee.

4. Complete a detailed list of all items that require you to withhold money from the security deposit. This can include rent not paid, holes in the walls, doors off the hinges and cleaning costs that were incurred because the property was not left in the condition in which it was originally rented.

5. Mail the remaining security deposit balance along with a copy of the detailed list to the tenants new address (or last known address if no forwarding address was given.)

Tips & Warnings

• Take pictures of any damage that causes you to withdrawal funds from the total security deposit. Keep these for your records in case the tenant takes you to civil court.

• Normal wear and tear consists of such things as faded carpeting, chipped wall paint and worn spots on hardwood flooring.

• If the keys were not returned, you may charge the tenant the cost of changing the locks.

• If you were required to hold any belongs left behind by the tenants, you may deduct a storage fee from the security deposit.

References

• Pine Tree Legal Assistance: How to Get Your Security Deposit Back
• Georgia Legal Services: Georgia Landlord Tenant Handbook

Resources

• Rent Law: Security Deposit Guide