How to Return a Tenant's Security Deposit
Sources reviewed .
Start with the amount of refundable security actually held. Then check what starts the return deadline, which deductions are permitted and how the law requires you to send the refund and any statement.
Compare three state deadlines
| State | Deadline | What to send |
|---|---|---|
| Arizona | For covered rentals, 14 days excluding Saturdays, Sundays and legal holidays after the tenancy ends, the tenant delivers possession and the tenant makes a demand. | Unless the tenant makes other written arrangements, send the itemized deductions and any refund by first-class mail to the tenant's last known residence. A.R.S. § 33-1321(D) |
| California | Generally 21 calendar days after the tenant vacates. | Return the balance and provide the required itemized statement. Check the statute for receipts, estimates, photographs and any exceptions. California Civil Code § 1950.5 |
| New York | Within 14 days after the tenant vacates for rentals covered by General Obligations Law § 7-108(1-a). | Provide the itemized statement explaining any amount retained and return the balance. Missing the deadline can forfeit the right to retain any of the deposit under this provision. New York General Obligations Law § 7-108 |
How to write the itemized statement
- Identify the property, tenant and amount of refundable security held.
- Compare the move-in and move-out records. Separate normal wear from damage and check whether each charge is permitted.
- Give each deduction its own line with the location, reason and amount. Attach required supporting documents such as photos, invoices or receipts. Follow the governing rule if you need to use an estimate and send a final accounting later.
- Total the permitted charges, subtract them from the deposit and show the refund due.
- Use the permitted delivery method and keep a copy of the statement, attachments, payment record and proof of delivery.
For example, if you held $1,500 and have $200 in lawful, documented deductions, show a $1,300 refund. The statement should tell the tenant what the $200 covered.