River
Y CombinatorBacked by Y Combinator
Log InStart Free

Free template

Security Deposit Dispute Response

A landlord's reply to a tenant who disputes deposit deductions, answering each charge from your records, with a table that lines up the proof.

Helpful to include

Rather fill it in yourself? Download (.docx + .csv) · No account needed

What you get

One document, with the spreadsheet that goes with it

RiverSecurity Deposit Dispute Response

Response to Your Security Deposit Dispute

[Landlord or management company name]
[Mailing address]
[Phone] | [Email]

[Date of this letter]

Sent by [delivery method, e.g. first-class mail, certified mail or email] to:
[Tenant's full name, and every other tenant on the lease]
[Forwarding address the tenant gave you]

Property: [Rental property address and unit]
Your letter: dated [Date of tenant's letter], received [Date received]

Dear [Tenant's name],

Thank you for your [letter / email] about the security deposit for the property above. I have reviewed each point you raised against the lease, the move-in and move-out inspection reports, the photographs and the invoices. My response to each point is below, followed by the revised amount.

Where things stand

Amount
Deposit and any required interest held$[Amount]
Deductions in my itemized statement dated [Date]$[Amount]
Deductions withdrawn or reduced in this letter-$[Amount]
Revised deductions$[Amount]
Revised refund to you or Balance you owe$[Amount]

Response to each point

Point 1: [Charge, e.g. Carpet replacement, bedroom 2, $Amount]

  • You said: [The tenant's objection, summarized fairly in one or two sentences.]
  • The record shows: [Condition at move-in and its evidence; condition at move-out and its evidence; the invoice; the lease clause.]
  • My decision: [Charge stands / Reduced to $__ because __ / Withdrawn.]

Point 2: [Charge and amount]

  • You said: [Objection]
  • The record shows: [Evidence]
  • My decision: [Decision]

Point 3: [Charge and amount]

  • You said: [Objection]
  • The record shows: [Evidence]
  • My decision: [Decision]

[Answer every point the tenant raised, including any about the deadline or delivery of your original statement. Reduce or withdraw a charge the evidence does not support, such as one with no move-in record to compare against, or wear from normal use. Several states penalize a landlord who keeps a deposit in bad faith.]

Next steps

[If a refund is due:] A [check / electronic payment] for $[Revised refund] is [enclosed / will be sent by Date].

[If a balance is owed:] Please pay $[Balance] by [Date] by [Payment method].

If you still disagree after reading this, I am open to [a call or meeting on Dates / mediation through Local program]. Please reply in writing by [Date].

[Keep the tone factual. Do not threaten any step you do not intend to take or that your state does not allow.]

Enclosures

  • My itemized statement dated [Date]
  • Exhibit A: Move-in and move-out inspection reports
  • Exhibit B: Photographs, numbered and dated
  • Exhibit C: Invoices, receipts or estimates
  • Dispute Evidence Table

Sincerely,

[Signature]
[Your name]
[Owner / Property manager], [Company]

[This template is a drafting aid, not legal advice. Deposit rules vary by state and sometimes by city. Delete this note before sending.]

Page 1 of 3431 words

How to respond to a tenant's security deposit dispute

A response to a security deposit dispute is a landlord's written reply to a tenant who objects to deductions from their deposit. A good one answers each objection in the tenant's order and checks every charge against the lease, the move-in and move-out records and the invoices. It says whether each charge stands, is reduced or is withdrawn, and ends with the revised refund or balance.

Treat the dispute as a second look, not a defense. Keep what your records prove, drop what they don't, and show the tenant why.

An empty apartment room with a wooden floor, tall windows, a radiator and faint marks on the walls
A bare room proves little without move-in photos of the same walls. Photo: Christian Lue on Unsplash

Read the letter, then check the clock

List every point the tenant raises, in their order, including any complaint about when or how your statement arrived. Note the date their letter reached you. In the US, each state sets its own deposit rules, and a few build the tenant's objection into the law.

Florida is one. Its deposit statute requires your notice of a claim to tell the tenant they have 15 days to object in writing1. If either side then sues, the winner recovers court costs and a reasonable attorney's fee, which makes a weak charge costly to defend.

Michigan goes further. If a tenant mails a dispute within 7 days of receiving your list2, you can keep the disputed damages only with their written agreement or a court judgment. You have 45 days after their occupancy ends to sue3. Keeping the money without either waives the claim and makes you liable for double the amount retained.

Audit the statement you sent

Before you defend a single charge, check the security deposit itemization letter you sent after move-out. A statement that missed a legal requirement can cost you the right to keep any of the deposit.

Four things to check in your original statement

CheckWhat to look forOne state's rule
TimingThe date it went out, and what starts your state's clockNew York: within 14 days of move-out, or you forfeit any right to retain any portion of the deposit4
DeliveryThe method your statute names, and proofFlorida: notice of a claim within 30 days, by certified mail or by email under s. 83.5051
ReceiptsCopies of invoices or receipts, where requiredCalifornia: invoices or receipts when deductions are over $1255
Forwarding addressWhether the tenant gave one in writingTexas: no duty to refund or itemize until the tenant gives one6

Checked October 2026. New York's row covers units that are not rent stabilized. Other states and some cities differ.

If your statement failed one of these tests, say so plainly and refund what the law requires. Washington, for example, makes a landlord who misses its 30-day statement liable to the tenant for the full amount of the deposit7.

Rebuild each charge from the record

Work from documents, not memory. New York's deposit law puts the burden of proof as to the reasonableness of the amount retained4 on the landlord. Treat every charge as one you may have to prove. For each disputed charge, check five things.

  1. The lease clause

    Find the term that makes the tenant responsible, such as pet damage or cleaning, and note its section number.

  2. The move-in record

    A signed checklist or a dated photo of the same spot. Without one, nothing shows the condition when the tenant arrived.

  3. The move-out record

    Dated photos or the move-out report, plus any written notice from the tenancy, such as a lease violation notice about an unapproved pet.

  4. The cost

    An invoice, receipt or estimate for that item, in the amount you charged. For your own labor, record the hours and the rate.

  5. The wear test

    Ask whether ordinary living would have caused it, like faded paint or a worn path in a hallway carpet. If it would, the charge doesn't belong on the deposit.

The move-in record matters as much as the damage photo. Washington bars withholding deposit money to repair or replace fixtures, appliances or furnishings whose condition was not reasonably documented in the written checklist7.

For the wear test, the Texas State Law Library quotes the state's definition of normal wear and tear: deterioration that results from the intended use of a dwelling6. It excludes deterioration caused by negligence, carelessness, accident or abuse.

Keep, reduce or withdraw each charge

Give every charge one of three outcomes. Keep it when the lease, both records and the cost line up. Withdraw it when nothing shows the condition at move-in, when it covers normal wear, or when it bills cleaning beyond move-in condition. California's court guide lets a landlord deduct for cleaning only to make it as clean as when the tenant first moved in5.

Reduce a charge that bills a whole item for damage to part of it, or a new item for an old one. Washington bars withholding more than the cost of repair or replacement of the damaged portion7. For an older item, charge for the life it had left, and show the math.

Conceding a weak charge costs less than losing it. The Texas State Law Library notes that a tenant can sue for three times the portion of the deposit wrongfully withheld6 when it is kept in bad faith. In New York, a willful violation can bring punitive damages of up to twice the deposit4.

ExampleOne disputed charge, answeredAn illustrative example written for this guide

Point 2: Carpet replacement, bedroom 2, $1,200

You said: The carpet was already old and worn when you moved in.

The record shows: The move-in checklist you signed on June 1, 2023 rates this carpet "good, no stains." Move-out photos 4 to 7 show three pet stains. The carpet was installed in 2019, and the replacement invoice is $1,200.

My decision: Reduced to $360. The stains are beyond normal wear, but the carpet was 7 years into a 10-year life, so I am charging for the 3 years it had left.

  • Their words, fairly. The objection is stated the way the tenant would put it.
  • Both dates. The move-in rating and the move-out photos sit side by side.
  • Math they can check. Three years left of a 10-year life is 30% of $1,200, or $360.

Write and send the dispute response

Open the reply with where things stand: the deposit held, your original deductions, what this letter withdraws or reduces, and the revised refund or balance. Then take each point in the tenant's order, stating their objection fairly before your answer. Keep the tone factual, and don't threaten a step you won't take.

If money is due back, send it with the letter. Deliver the reply in a way you can prove, attach the exhibits it cites and keep copies. If the damage cost more than the deposit covered, follow up with a demand letter for the balance.

If the tenant still disagrees, offer a call or mediation. California's court guide tells tenants to write first and then sue in small claims5, where they can claim up to $12,500.

When to call a lawyer

Talk to a local landlord-tenant lawyer before replying if your statement went out late, the tenant has a lawyer or has sued, or the amount is large. In Michigan, call well before the 45-day deadline to sue. This guide is general information, not legal advice.

Before you send the reply

  • You checked your original statement against your state's rules
  • Every point the tenant raised has an answer, in their order
  • Each charge you keep has move-in, move-out and cost records
  • Nothing charged is normal wear or cleaning past move-in condition
  • Older items are charged for the life they had left
  • The revised refund or balance adds up, and any refund is enclosed
  • You can prove delivery, and you kept copies

For a faster start, describe the dispute in the box at the top of this page. River fills the evidence table from the tenant's letter and your records, then drafts each answer and marks anything it couldn't confirm.

How to use this template

Fill in the two files yourself, or start in the box at the top of this page. Describe the dispute, choose the property's state, and attach the tenant's letter, your itemized statement, the lease, both inspection reports, photos and invoices. River looks up that state's deposit rules on an official source and tells you plainly if your original statement seems to have missed them.

It fills the Dispute Evidence Table first, then answers each point in the letter from the table and recommends which charges to reduce or withdraw. It ends with the revised refund or balance, the deadline that matters most in your state, and every gap it marked for you to confirm. It never sends anything.

  1. Download it or open it in River

    Download the Word reply and the CSV evidence table with no account, or describe the dispute in the box at the top of this page.

  2. Fill the evidence table first

    Give each disputed charge a row with the tenant's objection, the lease clause, both inspection records and the cost proof.

  3. Decide each charge, then draft

    Mark each charge as standing, reduced or withdrawn, then answer every point in the reply, or have River draft it.

  4. Send it with the exhibits

    Enclose any refund, attach the reports, photos and invoices it cites, and keep proof of how and when you sent it.

What's in the template

  • Security Deposit Dispute ResponseThe Word reply to your tenant: where things stand, an answer to each point, next steps and enclosures.
  • Dispute Evidence Table sheetOne row per disputed charge: objection, lease clause, move-in and move-out evidence, cost proof, decision and revised amount.
  • Where things standIn the reply: the deposit held, your original deductions, what this letter drops, and the revised refund or balance.
  • Response to each pointIn the reply: for each charge, what the tenant said, what the record shows, and your decision.
  • Next stepsIn the reply: refund or payment terms, a reply-by date, and an offer of a call or mediation.
  • EnclosuresIn the reply: your original statement, inspection reports, numbered photos, invoices and the evidence table.

Common questions

How do I respond to a tenant's security deposit dispute?

Reply in writing, one point at a time. First confirm your original statement met your state's deadline and delivery rules. Then compare each disputed charge with the move-in and move-out records and the invoice, and decide whether it stands, shrinks or goes. Send the revised refund or balance with copies of your evidence, and offer to talk.

How long do I have to answer a deposit dispute?

Answer within a week or two if you can, because other deadlines may keep running while you wait. In Michigan, a landlord who wants to keep a disputed charge must sue within 45 days after the tenant's occupancy ends, unless the tenant agrees in writing. Check your own state's statute for a similar clock before you reply.

Should I just refund the whole deposit?

Sometimes. If your original statement missed your state's deadline, delivery method or receipt rule, the law may already require a full refund. Otherwise decide charge by charge, keeping what your records support and dropping the rest. A partial refund with clear reasons can end a dispute without court, and it shows good faith.

What evidence carries the most weight in a deposit dispute?

Dated photos of the same spot at move-in and move-out, a move-in checklist the tenant signed, and an invoice or receipt for the actual work. A charge backed only by move-out photos is weak, because nothing shows how the unit looked when the tenant arrived. Written notices from the tenancy help too.

What if the tenant threatens small claims court?

Reply the same way, calmly and point by point, and keep every record. If the tenant files, your reply, the evidence table and the exhibits are what you bring to court. Don't let the threat push you to drop a charge your records support, or to defend one they don't. If they file or hire a lawyer, get local legal advice.

Is this security deposit dispute response template free?

Yes. Download the Word reply and the CSV evidence table with no account, using the link under the box at the top of this page. They open in Word, Google Docs, Excel or Google Sheets. Starting in the box instead opens the same template in a free River workspace, where River drafts it from your records.

What does River do when I start in the box at the top?

It reads the tenant's letter and anything you attach, looks up your state's deposit statute on an official source, and fills the Dispute Evidence Table. It then drafts each answer from the table, flags charges the evidence doesn't support and marks gaps for you to confirm. It never sends anything, and it's a drafting aid, not legal advice.

Sources

  1. Florida Legislature. “Florida Statutes § 83.49: Deposit money or advance rent; duty of landlord and tenant.” leg.state.fl.us (opens in a new tab)

  2. Michigan Legislature. “Section 554.612: Response to notice of damages.” legislature.mi.gov (opens in a new tab)

  3. Michigan Legislature. “Section 554.613: Action for damages; retention of security deposit; waiver.” legislature.mi.gov (opens in a new tab)

  4. New York State Senate. “Section 7-108: Deposits made by tenants of non-rent stabilized dwelling units.” nysenate.gov (opens in a new tab)

  5. California Courts. “Guide to security deposits in California.” selfhelp.courts.ca.gov (opens in a new tab)

  6. Texas State Law Library. “Landlord/Tenant Law: Security Deposit Refunds.” guides.sll.texas.gov (opens in a new tab)

  7. Washington State Legislature. “RCW 59.18.280: Moneys paid as deposit or security for performance by tenant.” app.leg.wa.gov (opens in a new tab)

Written by

Chandler Supple

Co-founder & CEO, River

Chandler has spent the last six years working in AI, building tools for millions of users and Fortune 100 companies. In 2025, he co-founded River to build a new kind of operating system for AI agents.

LinkedInGitHubX

Reviewed by

Brian Joseff, Co-founder, River

LinkedInX

Related tools and templates

More free templates