Security Deposit Interest Demand Letter

Free professional demand letter template for security deposit interest disputes

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What is a Security Deposit Demand Letter?

A security deposit demand letter is a formal written request sent to a former landlord requiring the return of rental deposit funds after moving out. Most states require landlords to return deposits within 14-30 days or provide an itemized statement of deductions, and failure to comply can result in double or triple damages.

Key Points:

  • Cites your state's specific deposit return deadline
  • Demands itemized receipts for any claimed deductions
  • Triggers the legal clock for small claims court action
  • Often results in full refund to avoid court penalties
Last updated:

Demand unpaid interest on your security deposit when state law requires it.

Evidence to gather

Strong documentation makes your demand letter harder to ignore.
  • Contracts, invoices, or receipts tied to the dispute
  • Photos, screenshots, or inspection reports
  • A written timeline of events and communication

If they ignore your letter

Be ready to escalate with small claims or a regulatory complaint once your deadline passes.

The Rules They Don't Want You to Know

The Clock is Your Weapon

Most states give landlords 21-30 days to return your deposit or provide an itemized list of deductions. Know your state's deadline.

Document Everything

Photos, videos, inspection reports – evidence is king. Got proof? Use it.

Make Them Show Their Math

They can't just pocket your cash. Demand itemized deductions. No receipts? Demand a full refund.

Common Security Deposit Interest Issues

Our demand letter generator helps you address these typical problems:

  • No interest paid
  • Incorrect interest calculation
  • Deposit held too long
  • Landlord ignores interest rules

Security Deposit Interest Checklist

Gather these details before you generate your letter:

  • Lease term dates and move-out date
  • Deposit amount and payment records
  • State or local interest rules

How It Works

1

Describe Your Issue

Tell us about your Security Deposit Interest dispute, including dates, amounts, and what happened.

2

Select Your Location

Choose your state or region so we can include relevant laws and legal citations.

3

Generate Your Letter

Our AI creates a professional demand letter with proper legal formatting and references.

4

Send to Recipient

Download your letter and send it via certified mail or email to the other party.

Common Questions About Security Deposit Interest

Do all states require interest on deposits?

No. Only some states and cities require it. Check your local rules before demanding payment.

How do I calculate the interest owed?

Use the required rate and the length of time the landlord held the deposit.

About FreeDemandLetter

FreeDemandLetter provides free, AI-powered demand letter generation with location-specific legal citations. Our content is reviewed by subject matter specialists and regularly updated to reflect current laws. We help thousands of people resolve disputes effectively—but we're not lawyers, and this isn't legal advice. For complex situations, consult a licensed attorney in your jurisdiction.

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Generate a professional security deposit interest demand letter in minutes. Our free tool creates legally-formatted letters with relevant consumer protection and contract law references.

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Legal Information Verified: January 2026. Sources include official state statutes and government consumer protection agencies. Laws change—verify current requirements with official sources for your jurisdiction.