SECURITY DEPOSIT DEMAND LETTER

STATE OF CALIFORNIA

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with California law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable statutory penalties, damages, and attorney's fees.

I. CALIFORNIA LEGAL FRAMEWORK

A. Governing Law

Security deposits in California are governed by California Civil Code Sections 1950.5 through 1950.7. These statutes provide comprehensive tenant protections regarding the collection, holding, and return of security deposits.

B. Security Deposit Limits

Under Cal. Civ. Code Section 1950.5(c):

For tenancies beginning before July 1, 2024:
- Unfurnished units: Maximum of two months' rent
- Furnished units: Maximum of three months' rent

For tenancies beginning on or after July 1, 2024 (AB 12):
- Most landlords: Maximum of one month's rent
- Small landlords (owning 2 or fewer residential rental properties with no more than 4 units total): Maximum of two months' rent

C. Return Deadline - 21 Days

Pursuant to Cal. Civ. Code Section 1950.5(g), a landlord must return the security deposit within twenty-one (21) calendar days after the tenant has vacated the premises.

The landlord must provide:
1. The remaining deposit amount; AND
2. An itemized statement specifying the basis for any deductions

D. Itemization Requirements

Under Cal. Civ. Code Section 1950.5(g)(2), the itemized statement must include:
- Each specific item of damage or cleaning
- The cost actually incurred or a good faith estimate
- Copies of receipts for any deductions for repair or cleaning (or an estimate if work not yet completed, with receipts to follow within 14 days after completion)

E. Permissible Deductions

Under Cal. Civ. Code Section 1950.5(b), security deposits may ONLY be used for:
1. Unpaid rent
2. Cleaning to return the unit to the same level of cleanliness as move-in
3. Repair of damages beyond ordinary wear and tear
4. Restoration or replacement of furniture, furnishings, or other items if the tenant fails to return them

F. Pre-Move-Out Inspection Right

Under Cal. Civ. Code Section 1950.5(f):
- The landlord must notify the tenant in writing of the right to request an initial inspection
- The tenant may request an inspection within a reasonable time before termination
- The landlord must provide an itemized statement of proposed deductions
- The tenant has an opportunity to remedy identified deficiencies before move-out

G. Interest Requirements (Local Ordinances)

While state law does not require interest on security deposits, several California cities require landlords to pay interest:
- San Francisco: Interest required at rate set annually
- Los Angeles: Interest required
- Berkeley: Interest required
- Santa Monica: Interest required
- West Hollywood: Interest required
- East Palo Alto: Interest required

[If applicable:] The rental property is located in [CITY], which requires payment of interest on security deposits at the rate of [RATE]%.

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email

Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Pre-Move-Out Inspection: [ ] Notice of right received [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered

C. Condition of Premises at Move-Out

Our Client left the premises in the following condition:

[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.

[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].

[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.

[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.

[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.

[ ] Pre-move-out inspection issues remedied - Our Client corrected all items identified in the pre-move-out inspection.

III. LANDLORD'S VIOLATIONS

You have violated California law in the following ways:

[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 21-day period required under Cal. Civ. Code Section 1950.5(g).

[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.

[ ] Failure to Provide Receipts: You have failed to provide receipts for claimed deductions as required by Cal. Civ. Code Section 1950.5(g)(2).

[ ] Excessive Security Deposit: You collected a security deposit exceeding the statutory limit in violation of Cal. Civ. Code Section 1950.5(c).

[ ] Failure to Notify of Inspection Right: You failed to provide written notice of our Client's right to request a pre-move-out inspection in violation of Cal. Civ. Code Section 1950.5(f).

[ ] Failure to Conduct Requested Inspection: You failed to conduct a pre-move-out inspection after our Client's request.

[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Deductions for repainting when not needed or beyond useful life
- [ ] Deductions for carpet replacement beyond useful life
- [ ] Other improper deductions: [SPECIFY]

[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]

IV. NORMAL WEAR AND TEAR

California Civil Code Section 1950.5 expressly prohibits deductions for "ordinary wear and tear." California courts have consistently held that landlords cannot charge for deterioration resulting from ordinary use.

The following items constitute normal wear and tear under California law:

[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures (reasonable number)
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper from age
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Cracked or yellowed blinds from sun exposure
[ ] Other: [SPECIFY]

Useful Life Doctrine: Under California law, landlords must prorate deductions based on the useful life of items. For example, if carpet has a 10-year useful life and was 8 years old, the landlord can only charge for the remaining 2 years of useful life.

V. DAMAGES AND PENALTIES

A. Return of Security Deposit

B. Statutory Penalties - Bad Faith

Under Cal. Civ. Code Section 1950.5(l), if a landlord retains a security deposit in bad faith, the tenant may recover:

• The amount of the deposit wrongfully withheld; PLUS
• Twice the amount of the security deposit as statutory damages

Bad Faith Penalty Calculation:
- Amount Wrongfully Withheld: $[AMOUNT]
- Statutory Penalty (2x deposit): $[AMOUNT]
- Total: $[AMOUNT]

C. Interest (If Applicable)

[If property located in city with interest requirement:]

Under [CITY] [Municipal Code Section], landlords must pay interest on security deposits:

• Principal: $[DEPOSIT AMOUNT]
• Period: [MONTHS] months
• Rate: [RATE]%
• Interest Due: $[AMOUNT]

D. Attorney's Fees and Costs

Under the lease agreement [or Cal. Civ. Code Section 1950.5(l) for bad faith cases], our Client is entitled to recover reasonable attorney's fees and costs.

E. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence to support this claim:

[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist
[ ] Pre-move-out inspection notice and results
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]

VII. DEMAND

We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:

1. Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]

2. Interest (if applicable): Pay to our Client accrued interest: $[AMOUNT]

3. Statutory Penalties: Pay to our Client the statutory penalty for bad faith retention: $[AMOUNT]

4. Total Payment: The total amount due is $[TOTAL AMOUNT]

Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT NAME] Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the time specified, we are authorized and prepared to:

1. File Suit: Commence legal action in California Small Claims Court (for claims up to $12,500 for individuals) or Superior Court for return of the deposit, statutory penalties, attorney's fees, and costs.

2. Seek Maximum Penalties: Request the court impose the statutory penalty of twice the security deposit for bad faith retention pursuant to Cal. Civ. Code Section 1950.5(l).

3. Seek Attorney's Fees: Request the court award reasonable attorney's fees.

4. Report Violations: Report your conduct to:
   - California Attorney General - Consumer Protection
   - California Department of Consumer Affairs
   - [LOCAL] Rent Board (if applicable)
   - Better Business Bureau

5. Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.

IX. RESPONSE REQUESTED

Please respond to this demand in writing within fourteen (14) days. Your response should include:

1. Your position on the amount owed to our Client
2. Any documentation supporting claimed deductions
3. Payment or a good-faith settlement offer

If we do not receive a satisfactory response, we will file suit without further notice.

X. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
[STATE BAR OF CALIFORNIA NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

CALIFORNIA SECURITY DEPOSIT QUICK REFERENCE

CALIFORNIA-SPECIFIC PRACTICE NOTES

[ ] 21-Day Deadline Strict: The 21-day deadline is strictly enforced. If the landlord misses it, they may lose the right to claim deductions entirely.

[ ] Receipt Requirement: Landlords must provide actual receipts for completed work, not just estimates. Failure to provide receipts is a violation.

[ ] Useful Life Proration: California requires landlords to prorate deductions based on useful life (e.g., carpet typically 8-10 years, paint 2-3 years).

[ ] Pre-Move-Out Inspection Critical: The landlord must provide written notice of the tenant's right to request an inspection. Use this to dispute any "surprise" deductions.

[ ] Local Ordinances Matter: Many California cities (SF, LA, Berkeley, Santa Monica, Oakland, West Hollywood) have additional tenant protections including interest requirements and rent control.

[ ] AB 12 Changes: Effective July 1, 2024, most landlords are limited to one month's rent as a security deposit. Verify the applicable limit.

[ ] Bad Faith Standard: Bad faith includes making deductions without any reasonable basis, refusing to return any portion of the deposit, or making clearly excessive deductions.

[ ] Small Claims Strategy: California Small Claims Court is tenant-friendly for security deposit cases. Individuals can sue for up to $12,500.

[ ] Rent Control Cities: In rent-controlled cities, there may be additional requirements and remedies available through the local rent board.

This template is for informational purposes only and does not constitute legal advice. California security deposit laws are complex and may vary by locality. Consult a licensed California attorney before use.