Property managers deal with move-outs all the time, but even if you’ve done hundreds, it still pays to handle every security deposit return with the same care you’d give your first. There’s no “quick send and forget” when it comes to these letters. They close out a resident relationship and can be the difference between a smooth transition and a frustrated phone call—or worse, a complaint. That’s why your letter needs to be clear, complete, and delivered on time. It sounds basic, but there’s more nuance here than most realize.
Be Specific Right Out of the Gate
Every return letter should open with the resident’s name and the exact address of the apartment they rented. You’d be surprised how often someone uses the wrong unit number or forgets the resident’s full name, especially in larger communities with shared last names or similar addresses. It’s a small detail, but when your letter starts off with the wrong info, it immediately makes the rest feel less credible.
If a resident rented Unit 3B at 215 West Elm Street, that’s exactly what you write. No vague references like “your former apartment” or “the unit you leased.” And definitely don’t assume they’ll know you’re talking about the right place—clarity now saves questions later.
Timeline and Numbers Must Be Crystal Clear
Once you’ve addressed the resident and confirmed the property, get straight into the key facts. List the start and end dates of the lease and the full amount of the original deposit. Don’t round it. If they paid $1,125, write $1,125. Rounding to $1,100 or saying “a little over $1,100” opens the door for disputes and undermines your attention to detail.
Here’s something that helps: put yourself in their shoes. They probably wrote that check a year ago, and they’re not thinking about the exact amount anymore. By stating the full figure, you’re showing that you’re organized and prepared, and that you’ve done your homework.
Deductions Are Where It Gets Real
This is the part most residents care about—and the one that gets property managers into trouble if it’s not handled well. Deductions need to be explained with real clarity. If you’re charging for cleaning, say why. If the unit was left with sticky cabinets, food spills in the fridge, and pet hair on every surface, say that. Generic statements like “cleaning required” won’t cut it. And honestly, they make it seem like you’re just looking to keep some of the deposit rather than reflect actual issues.
Same goes for damage. If you’re charging $175 for wall repairs, describe the damage. “Three holes in the living room wall near the window” is much stronger than just saying “wall repair.” The goal isn’t just to justify the charge—it’s to show that you actually saw the space, made notes, and are charging for something real.
Attach receipts or invoices where possible. If you used a third-party cleaner or maintenance tech, include a copy of their bill. If you handled the work in-house, still list the actual costs, not just an estimate. And be consistent with your pricing. If wall repair costs $75 in one unit and $225 in another, be ready to explain the difference. Residents talk, especially when they move out around the same time.
Keep Wear and Tear in Perspective
One of the easiest ways to land in hot water is by charging for things that are simply part of normal use. If the carpet looks slightly worn or the paint is faded near the windows, that’s wear and tear. You can’t charge for it, and trying to often leads to pushback. The more you show that you understand this difference, the more credible the rest of your deductions look.
I’ve seen managers make the mistake of charging for scuffed baseboards, and they ended up spending more time on that single deduction than on every other part of the letter. Save yourself the trouble and focus on what truly goes beyond normal use.
Deliver the Final Number with Confidence
After deductions, clearly state the amount being returned. Say it confidently and plainly. No need to over-explain unless there’s something unusual, like applying part of the deposit toward final utility bills or forwarding fees. In those cases, explain the amount and why it was deducted.
If you’re returning the balance by check, include the check with the letter or state when it’s being mailed. If you’re using direct deposit, say when the funds will hit their account and what account it’s going to. You want the resident to finish reading your letter knowing exactly how much they’re getting and when.
Make It Easy to Reach You—Then Actually Respond
Include a direct way for the resident to reach you in case they have questions. This part seems obvious, but it’s often missed. Don’t just drop a generic office number or info email address—give them a name and a phone number or direct line where someone actually answers.
Even better, if you know the move-out had some friction (maybe there were issues with rent or complaints during the lease), give them a heads-up in person or by phone that the letter is coming. You don’t have to go into every detail on the call, but saying “Hey, your security deposit return letter is on the way—let me know if you have any questions once you get it” can defuse a lot of tension before it builds.
Timing Can Make or Break the Whole Process
Most states give you a set window to return a security deposit, and that’s not something to play fast and loose with. If you send the letter even one day late, the resident may have grounds to claim they’re owed the full amount. And some places impose automatic penalties if you don’t meet the deadline.
More than just meeting the deadline, you want to send the letter in a way that confirms it was delivered. Certified mail or email with a read receipt works well. Some managers now use online portals that timestamp when the resident opens the letter, which is a great option too.
Don’t rely on verbal confirmation or hand-delivery without documentation. That’s asking for trouble if a disagreement comes up later.
A Quick Note on Pest Deductions
Here’s one that trips up a lot of managers: charging for pest issues. If a resident leaves behind a serious pest problem—like roaches or bed bugs—there are situations where a deduction might be justified. But this is one of those gray areas where it helps to have a service partner like Pest Share involved.
When Pest Share is used during the lease, the resident can report and resolve pest issues in real-time, which makes it way easier to determine responsibility at move-out. If you’ve got logs showing that pests were addressed during the lease, and the resident didn’t report new issues, you’re on solid ground. But if you didn’t offer a pest control option, trying to charge for it later can feel unfair to the resident, and you’ll want to tread carefully.
The Right Letter Sets the Tone for What Comes Next
Some residents move out quietly, others leave reviews, and a few might even come back to rent with you again. However they exit, the deposit return letter is the last impression you make. If it’s organized, professional, and fair, it reinforces that your property is well-run. If it’s vague or overly aggressive, it could do damage that lingers long after the keys are returned.
Keep it personal, direct, and well-documented. Think of the letter as a tool to protect your property and your team, while also respecting the resident’s time and money. When you treat this part of the move-out process with the care it deserves, everything else gets easier.
