Returning a deposit?. Create a deposit return letter →
How long a landlord has to return a security deposit depends on the state. Deadlines range from 10 days in Montana (when you deduct nothing) and 14 days in New York to 60 days after the tenancy ends in West Virginia, and most states fall around 21 or 30 days. The clock usually starts when the tenant moves out or when the lease ends, and some states add a condition such as receiving the tenant's forwarding address.
By that deadline you return the deposit, or return the balance with a written, itemized statement of every deduction. Some states also require copies of receipts or invoices. Missing the deadline or skipping the itemization usually means you lose the right to keep anything, and in several states the tenant can recover two or three times the deposit plus attorney fees.
This guide covers the return process step by step, what counts as wear and tear versus damage, deductions for unpaid rent, the penalties in four states, a worked itemization and how a kept deposit is taxed.
Deadlines by state
The table below lists the return deadline, whether an itemized statement is required, and the statute for every state and DC. To turn a move-out date into an actual due date, open your state on the security deposit laws by state page; state pages such as California, Florida and Washington include a deadline calculator. Step-by-step guides cover Texas, Florida, New York and Ohio.
Generated from the MakeLease state-law dataset (51 jurisdictions, statutes last checked 2026-10-30). Researched and cited by MakeLease · not yet attorney-reviewed. City and county rules can be stricter.
Read the trigger, not just the number of days. Three examples from the statutes:
- Colorado: 30 days after the lease ends or the tenant surrenders the unit, whichever is later. A lease can extend this, but not past 60 days (C.R.S. § 38-12-103(1)(a), as amended by HB 25-1249, effective January 1, 2026).
- Connecticut: 21 days after the tenancy ends or 15 days after you receive the tenant's written forwarding address, whichever is later (Conn. Gen. Stat. § 47a-21(d)(2)).
- Florida: 15 days after the lease ends if you make no claim. If you intend to deduct, you must send a written notice of your claim by certified mail or by e-mail under § 83.505 within 30 days (Fla. Stat. § 83.49(3)(a)).
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Step-by-step: returning a deposit
1. Calendar the deadline and get a forwarding address
When notice to vacate is given, work out the trigger date and the due date (the calculator on your state's security deposit law page does the counting), and book contractor quotes early: the statement is usually due with the refund. Ask the tenant for a forwarding address in writing. Several states deliver to the forwarding or last known address, and Connecticut's deadline depends on it.
2. Offer a pre-move-out inspection where the law requires it
Some states give tenants the right to a walk-through before they leave so they can fix problems first:
- California: after learning the tenant plans to move, you must tell them they can ask for an initial inspection, held within the two weeks before move-out, with an itemized list of proposed deductions (California Attorney General, Know Your Rights: Security Deposits).
- New York: after either side gives notice, you must tell the tenant in writing of the right to request an inspection, held no earlier than two weeks and no later than one week before the tenancy ends, with at least 48 hours' written notice (N.Y. Gen. Oblig. Law § 7-108(1-a)(d)).
- Colorado: at either side's request, if reasonable and practicable, you hold a walk-through, in person or by video, before the lease ends (C.R.S. § 38-12-103(1.5)).
3. Inspect after move-out against the move-in checklist
Compare the unit room by room with the signed move-in record; the move-in/move-out checklist puts both inspections side by side. Take dated photos of every room and of each item you plan to charge for.
The move-in record matters. In Washington, you cannot collect a deposit at all unless the lease is in writing and you gave the tenant a signed, dated checklist describing the unit's condition at the start; if you didn't, you owe the full deposit back (RCW 59.18.260). In New York, if the tenant accepted a move-in inspection, you cannot deduct for any condition listed in that signed record (N.Y. Gen. Oblig. Law § 7-108(1-a)(c)). For how to run that first inspection well, see the move-in inspection checklist guide.
4. Sort wear and tear from damage
Normal wear and tear cannot come out of the deposit. California, New York and Washington say so expressly, and Colorado's 2026 amendment limits repair deductions to damage beyond normal wear and tear that did not exist before the tenancy (C.R.S. § 38-12-103(1)(b)). See the table in the next section.
5. Price each deduction and keep the paperwork
Charge what the repair or cleaning actually cost, or a reasonable estimate if the work isn't done yet. Get invoices from contractors, receipts for materials, and, if you or your staff do the work, a record of hours and the hourly rate. California and Washington both require that breakdown for landlord-performed work (California AG guide; RCW 59.18.280(1)).
For items with a limited life, such as carpet or paint, a defensible approach is to charge only the remaining useful life rather than the full replacement cost. The worked example below shows how.
6. Write the itemized statement
List each deduction with what was wrong, where, and how much. "Cleaning, $300" invites a dispute; "Oven and refrigerator degreased, 3 hours at $40/hour, $120" does not. State the deposit, any interest, total deductions and the refund. The free security deposit return letter lays out these lines for you. Requirements differ:
- California: an itemized statement within 21 days. For work by others, include a copy of the bill; for your own work, the work done, time spent and hourly rate. If work can't be finished in 21 days, send a good faith estimate, then the final statement within 14 days of finishing (California AG guide).
- Washington: a "full and specific statement" with copies of estimates or paid invoices and receipts for materials (RCW 59.18.280(1)).
- Colorado: a written statement listing the exact reasons, and supporting documentation when required (C.R.S. § 38-12-103(1)(a), (8)).
- Florida: the statutory notice text in § 83.49(3)(a), stating the amount and reason. The tenant has 15 days to object; if they don't, you deduct and return the balance within 30 days of the notice (§ 83.49(3)(b)).
California has more detailed rules than most states; the California security deposit law guide covers them, including the deposit cap.
7. Add interest where it's required
Most states don't require interest, but some do. Connecticut requires interest at no less than the yearly deposit index set by the Banking Commissioner, which is 0.49% for 2026 (Conn. Gen. Stat. § 47a-21(i); CT Department of Banking). In New York, buildings with six or more units must hold deposits in an interest-bearing New York account and credit the tenant with the interest minus a 1% annual fee (N.Y. Gen. Oblig. Law § 7-103). Some cities require interest even where the state doesn't, so check your city.
8. Deliver it with proof and keep the file
Send the statement and refund by a method that leaves a record, such as certified mail or e-mail where the statute allows it (Colorado accepts the last known address or a known e-mail address, C.R.S. § 38-12-103(1)(a)). Keep the checklists, photos, invoices, statement and proof of delivery together. If the tenant sues, you may carry the burden of proving the deductions were reasonable (California AG guide; C.R.S. § 38-12-103(3)(b)).
Normal wear and tear vs damage
No statute lists every example, and courts decide close cases on the facts. These are common ways landlords and courts sort them:
| Item | Normal wear and tear (no deduction) | Damage (deductible) |
|---|---|---|
| Walls | Faded paint, light scuffs, a few small nail holes | Large holes, crayon or marker, unapproved paint colors |
| Carpet | Worn traffic paths, light fading | Pet urine stains, burns, tears, large dye stains |
| Floors | Minor surface wear on hardwood or vinyl | Deep gouges, water damage from an unreported leak |
| Doors and blinds | Loose handles from use, sun-faded blinds | Broken doors, bent or missing slats |
| Kitchen | Worn countertop finish, aging appliance gaskets | Burned or cracked countertops, broken appliance parts |
| Bathroom | Dull grout, minor fixture wear | Cracked sink or tub, mold from ignoring ventilation |
| Cleaning | Light dust after a normal move-out | Grease buildup, trash left behind, unit dirtier than at move-in |
| Keys and locks | Worn locks | Unreturned keys requiring a rekey |
A useful test: would this have happened with an ordinary, careful tenant over the same period? If yes, it's wear and tear. For more room-by-room examples and how to prorate a partial deduction, see normal wear and tear examples; for cleaning charges and nonrefundable cleaning fees, see can a landlord charge for cleaning.
Deductions for unpaid rent
Unpaid rent is a standard deduction. California, New York and Colorado all list past-due or unpaid rent as an allowed use of the deposit (California AG guide; N.Y. Gen. Oblig. Law § 7-108(1-a)(b); C.R.S. § 38-12-103(1)(b)). New York and Colorado also allow unpaid utility charges in some cases.
On the statement, show the period, rent due, payments received and the balance. For a mid-month move-out, the prorated rent calculator shows the daily math, and how to calculate prorated rent explains the methods. If rent and damage exceed the deposit, still send the statement on time, then pursue the balance separately.
Don't apply the deposit to the last month's rent unless your lease and state law allow it. Treating it as last month's rent also changes its tax treatment (see below).
What happens if you miss the deadline
Penalties vary, but the pattern is consistent: you lose the right to keep deductions, and in many states you owe extra damages and the tenant's legal fees.
| State | Penalty | Statute |
|---|---|---|
| California | Bad-faith retention: the tenant's actual loss plus up to twice the deposit; landlord must prove deductions were reasonable | Cal. Civ. Code § 1950.5 |
| Colorado | Wrongful withholding forfeits all rights to keep any of the deposit; three times the amount wrongfully withheld plus attorney fees and costs if not refunded within 7 days of the tenant's written demand. Missing the deadline, vague reasons or bad faith all count as wrongful (since January 1, 2026) | C.R.S. § 38-12-103(2), (2.5), (3) |
| Connecticut | Twice the security deposit for violating the return rules (or the greater of $10 or twice the interest if only interest was missed) | Conn. Gen. Stat. § 47a-21(d)(2) |
| Florida | No claim notice within 30 days: you forfeit any claim against the deposit and must return it (you can sue separately for damages). The winner of a deposit lawsuit recovers costs and attorney fees | Fla. Stat. § 83.49(3)(a), (c) |
Two more examples: New York forfeits any right to keep part of the deposit if you miss the 14-day statement, and adds punitive damages up to twice the deposit for willful violations (N.Y. Gen. Oblig. Law § 7-108(1-a)(e), (g)). Washington requires the full deposit back if you miss the 30-day statement, and a court may award up to twice the deposit for intentional refusal (RCW 59.18.280(2)).
A worked itemization
A hypothetical example: rent is $1,800 a month and the tenant paid a $2,000 deposit. The lease ended March 31, 2026, and the tenant moved out that day, still owing $450 of March rent. You compare the unit with the signed move-in checklist and find:
| Item | Detail | Charge |
|---|---|---|
| Unpaid rent | March 2026 rent $1,800, paid $1,350 | $450 |
| Bedroom carpet | Pet urine stains. Replacement $1,200; carpet expected to last 10 years, installed 6 years ago, so 4 years (40%) remain | $480 |
| Living room wall | Fist-size hole patched and spot-painted (invoice attached) | $175 |
| Kitchen cleaning | Oven and refrigerator degreased, 3 hours at $40/hour (landlord labor) | $120 |
| Keys | Two keys not returned, rekey front door (invoice attached) | $85 |
| Total deductions | $1,310 | |
| Refund due | $2,000 − $1,310 | $690 |
Not charged: repainting the whole unit (faded paint is wear and tear), worn carpet in the hallway, and small nail holes from pictures. Listing what you didn't charge isn't required, but it shows good faith.
Tax treatment of a kept deposit
IRS Publication 527 says not to include a security deposit in income when you receive it if you plan to return it. If you keep part or all of it because the tenant didn't meet the lease terms, include the amount you keep in income for that year. If a "security deposit" is to be used as the final month's rent, it is advance rent and is income when you receive it.
In the example above, the $1,310 you keep is rental income for 2026. The repair and cleaning costs you pay are handled under the usual expense rules; see repairs vs improvements for carpet-type replacements and rental property accounting basics for recording deposits and refunds.
Sources
Official sources cited above (checked 2026-10-27):
- Cal. Civ. Code § 1950.5, security deposits
- California Attorney General, Know Your Rights: Security Deposits
- Colorado HB 25-1249 (2025 Colo. Sess. Laws ch. 401), amending C.R.S. § 38-12-103
- Conn. Gen. Stat. § 47a-21, security deposits
- Connecticut Department of Banking, Deposit Index and Interest Rates
- Fla. Stat. § 83.49, deposit money or advance rent
- N.Y. Gen. Oblig. Law § 7-108, security deposits for residential premises
- N.Y. Gen. Oblig. Law § 7-103, money deposited as security
- RCW 59.18.260, moneys paid as deposit or security, checklist
- RCW 59.18.280, return of deposit, statement of basis for retention
- W. Va. Code § 37-6A-1, definitions ("notice period")
- IRS Publication 527, Residential Rental Property
Frequently asked questions
Can a landlord keep the deposit if the tenant leaves no forwarding address?
Usually not just for that reason. Send the refund or statement to the tenant's last known address and keep proof; in Connecticut the deadline runs 21 days after the tenancy ends or 15 days after you receive a written forwarding address, whichever is later (Conn. Gen. Stat. § 47a-21(d)(2)).
Can a landlord charge for damage that exceeds the deposit?
Yes. Send the itemized statement on time showing the full amount owed, then pursue the balance separately, for example in small claims court. Florida's statute, for instance, lets a landlord sue for damages even after forfeiting a claim against the deposit (Fla. Stat. § 83.49(3)(a)).
Is the part of a deposit I keep taxable?
Yes. IRS Publication 527 says to include any part of a security deposit you keep because the tenant broke the lease terms in income for the year you keep it. A deposit you plan to return is not income when received.
Returning a deposit?
Fill in a security deposit return letter with itemized deductions and the refund, then print it. Free, no account needed.
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