How to calculate a security deposit return
The math is simple: deposit held − allowable deductions = amount to return. The hard part is what counts as an allowable deduction and what paperwork has to accompany the refund. In most states you can deduct three things:
- Unpaid rent — including any prorated final month and, where the lease allows, unpaid utilities or fees.
- Cleaning — but only to bring the unit back to the condition it was in at move-in, not to make it cleaner than the tenant received it.
- Damage beyond normal wear and tear— repairs for things a reasonable tenant wouldn't have caused through ordinary use.
If you withhold anything, nearly every state requires a written itemized statement of deductions— each charge, described, with an amount — delivered within the state's deadline along with any remaining refund. That's the document the calculator above generates.
State deadlines at a glance (commonly-cited figures)
- 14 days — New York, Hawaii, Nebraska, Vermont, South Dakota; Arizona (business days).
- 21 days — California, Minnesota, Wisconsin, Idaho.
- 30 days — the most common figure: Texas, Georgia, Ohio, Pennsylvania, Michigan, New Jersey, Washington, and many more.
- 45 days — Virginia, Indiana, Maryland, Mississippi; Illinois for the refund itself.
- 60 days — Alabama, Arkansas, West Virginia.
The details vary more than the headline number: some states start the clock when the tenant provides a forwarding address, some require a faster refund when nothing is withheld, some count business days, and a few add interest. Where no single figure is commonly cited, plan on the typical 14–45 day range and read your statute. Missing the deadline is expensive — several states let the tenant recover double or triple the deposit, or strip your right to withhold anything at all.
Normal wear and tear vs. damage: the line that decides disputes
Nearly every deposit fight comes down to this distinction. Normal wear and tear is the gradual decline that happens no matter how careful the tenant is — you can't charge for it. Damage is caused by abuse, neglect, or accident — you can.
- Carpet:flattened pile and light traffic-path wear is normal; pet urine stains, burns, and rips are damage. If you replace carpet, most states expect you to prorate for its remaining useful life — you can't charge full price for ten-year-old carpet.
- Walls: a handful of small nail holes from hanging pictures is normal; fist-sized drywall holes, unapproved paint colors, and crayon murals are damage.
- Paint:fading and light scuffs are normal; if the unit needed repainting anyway after several years, that's your cost of turnover.
- Fixtures and appliances: dulling, minor scratches, and worn seals are normal; broken doors, cracked tile from impact, and missing hardware are damage.
What a defensible itemized statement looks like
- Each deduction on its own line — a specific description, not just "repairs: $800".
- A category for each charge — unpaid rent, cleaning, or damage — so it's obviously within what the law allows.
- Actual amounts — tied to invoices, receipts, or reasonable estimates. Several states require receipts above a threshold (California asks for them over $125).
- The math shown — deposit held, total deductions, amount returned.
- Dates — move-out date and statement date, proving you met the deadline.
- Your signature — and a record of how and when you sent it.
Common mistakes that cost landlords the whole deposit
Missing the deadline
The single most expensive mistake. In several states, a late or missing itemized statement forfeits your right to withhold anything — and can expose you to a multiple-damages penalty on top. Calendar the deadline the day the tenant moves out.
Charging for normal wear
Deducting for faded paint or worn carpet reads as bad faith to a small-claims judge and invites a counterclaim. When in doubt, treat it as turnover cost.
No move-in documentation
Without move-in photos or a signed condition checklist, a damage deduction is your word against the tenant's. Courts tend to side with the tenant when the landlord can't prove the unit's starting condition.
Round numbers with no backup
"Cleaning: $500" with no invoice looks invented. Itemize the actual work and keep the receipts — you may be required to produce them.
FAQ
Can I deduct for repainting or new carpet?
Only for the portion attributable to damage beyond normal wear — and prorated for the item's remaining useful life. If paint typically lasts 3 years and the tenant trashed the walls after 2, you can generally charge about a third of the repaint cost, not all of it. If the unit simply needed refreshing after a normal tenancy, that's your cost.
The tenant didn't leave a forwarding address. What do I do?
Send the statement and any refund to the last known address — usually the rental unit itself — by first-class mail, and keep proof of mailing. Some states pause or adjust the deadline until a forwarding address is provided (Texas is the well-known example), but don't assume yours does; sending to the last known address by the deadline is the safe default.
What if the tenant disputes a deduction?
Respond in writing with your documentation: move-in and move-out photos, the signed condition checklist, repair invoices, and the itemized statement. Most disputes die when the paper trail is solid. If it goes to small claims, the landlord who can show dated photos and receipts usually keeps the deduction; the one who can't usually doesn't.
Do I owe the tenant interest on the deposit?
In some states and cities, yes — New Jersey, Minnesota, Maryland, and a number of municipalities (including Chicago and several in California) require interest on held deposits. The rates are small but the obligation is real; check whether your state or city requires it before finalizing the refund amount.