Mistake 02 · Security deposits

Keeping a deposit without an itemized statement

The damage was real, the deduction was fair, and you still lose. Deposit disputes are rarely decided on whether the carpet was ruined — they are decided on whether you sent the right paperwork inside your state's deadline.

What it costs

Missing the deadline can forfeit your right to deduct anything at all, even for damage nobody disputes. Many states go further and award the tenant a penalty — commonly two or three times the amount withheld — plus their legal costs. A $600 repair becomes a four-figure judgment.

The deadline is shorter than most landlords think

Every state sets its own window for returning a deposit or accounting for it. They range from about two weeks to roughly two months, and the clock usually starts at the end of the tenancy or the day the tenant hands back possession — not the day you get around to inspecting.

Two details catch people out repeatedly:

What the statement has to contain

Requirements vary, but a statement that survives challenge almost always does these things:

  1. Lists each deduction separately — not one line reading "cleaning and damages"
  2. Gives an amount for each item, not a lump sum
  3. Describes the damage specifically — which room, what was damaged
  4. Attaches receipts or estimates where the state requires them
  5. Shows the arithmetic: deposit held, total deducted, balance returned

Normal wear and tear is not deductible anywhere. Faded paint, worn carpet in walkways and small nail holes are the cost of renting a property out. Deducting for them is the fastest way to turn a defensible statement into a losing one — it invites the tenant to challenge every other line.

The habit that prevents the whole dispute

Photograph the unit at move-in and at move-out, from the same positions, with dates. A deduction backed by a before-and-after pair is rarely argued with. A deduction backed by memory almost always is.

Then send the itemised statement early rather than on the last permitted day. Sending it in week one, with photographs attached, resolves most disputes before they are filed.

Generate an itemized deduction letter

Describe the deductions in plain language. Ailixy produces a formal move-out statement in the structure your state expects, with the arithmetic laid out — ready to send.

Generate the statement →

✓ First letter free ✓ No card needed ✓ All 50 states