Security Deposit Demand Letter — Connecticut

SECURITY DEPOSIT DEMAND LETTER — CONNECTICUT

Pursuant to Conn. Gen. Stat. § 47a-21

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

[__/__/____]

[LANDLORD/PROPERTY MANAGER NAME]
[STREET ADDRESS]
[CITY], CONNECTICUT [ZIP]

Re: Statutory Demand for Return of Security Deposit, Accrued Interest, and Statutory Damages
Former Tenant: [________________________________]
Leased Premises: [________________________________]
Lease Commencement: [__/__/____]
Move-Out Date: [__/__/____]
Forwarding Address Provided: [__/__/____]
Security Deposit Amount: $[____]

Dear [LANDLORD NAME]:

This firm represents [TENANT FULL NAME] ("Tenant") in connection with your failure to comply with the Connecticut Security Deposit Statute, Conn. Gen. Stat. § 47a-21. This letter constitutes formal statutory demand for the immediate return of the full security deposit, accrued statutory interest, double damages, and attorney's fees pursuant to Connecticut law.

I. CONNECTICUT SECURITY DEPOSIT LAW — DISTINCT FEATURES

A. The 21-Day Rule (as Amended by P.A. 23-207)

Effective pursuant to Public Act 23-207, Connecticut reduced the statutory return period from 30 days to 21 days. Under Conn. Gen. Stat. § 47a-21(d)(2), a landlord must deliver to the tenant, within twenty-one (21) days after termination of the tenancy OR within fifteen (15) days after receiving the tenant's written forwarding address — whichever is LATER:

1. The full amount of the security deposit plus accrued interest; OR
2. The balance of the deposit after itemized lawful deductions, together with a written statement itemizing the nature and amount of each deduction.

Failure to comply with this 21-day deadline triggers automatic double-damages liability under Conn. Gen. Stat. § 47a-21(d)(2).

B. Connecticut's Unique Mandatory Interest Requirement

Connecticut is one of a small minority of states requiring landlords to pay interest on security deposits annually. Under Conn. Gen. Stat. § 47a-21(i):

• Interest accrues from the first day the deposit is held.
• Interest must be paid to the tenant on each anniversary of the tenancy, or credited to the next rent payment due.
• The applicable interest rate is the "deposit index" published annually by the Connecticut Banking Commissioner pursuant to Conn. Gen. Stat. § 36a-290, which is derived from the average rate paid on savings deposits by insured commercial banks in Connecticut as last published by the Federal Reserve Board.
• Accrued interest must be compounded annually.

Connecticut is distinctive in that the Banking Commissioner — NOT the Attorney General — is the agency charged with setting and publishing the annual security deposit interest index. The 2025 deposit index was announced at 0.52%; the applicable rate for each anniversary year must be used.

C. Deposit Limits — Unique Senior Citizen Protection

Under Conn. Gen. Stat. § 47a-21(b)(1), Connecticut caps security deposits as follows:

• Tenants under age 62: Maximum of two (2) months' rent
• Tenants age 62 or older: Maximum of one (1) month's rent

A landlord who has collected more than one month's rent as a security deposit from a tenant who has reached age 62 must, upon the tenant's written request, return the excess amount.

D. Mandatory Escrow Account — Connecticut Financial Institution

Under Conn. Gen. Stat. § 47a-21(h), the landlord must hold all security deposits in an escrow account in a financial institution located in the State of Connecticut. The account must:

• Be separate from the landlord's operating accounts;
• Be maintained in a bank or other financial institution organized or authorized to do business in Connecticut;
• Accrue interest for the benefit of the tenant at the statutory rate.

This is a separate statutory obligation distinct from the interest payment requirement, and failure to maintain a proper escrow account is itself a violation.

E. Enforcement by the Department of Banking

Unlike most states, which place deposit enforcement with the Attorney General, Connecticut's Department of Banking has jurisdiction over the escrow/interest provisions and may accept consumer complaints regarding the escrow and interest requirements. Landlords of ten or more dwelling units must register with the Department of Banking pursuant to Conn. Gen. Stat. § 47a-21(g).

F. Double Damages + Attorney's Fees

Under Conn. Gen. Stat. § 47a-21(d)(2), the remedy for willful violation is:

"Twice the amount or value of such security deposit."

Connecticut courts have held this double-damages remedy is a penalty designed to deter noncompliance; it is in addition to the principal deposit amount. Combined with Connecticut's Unfair Trade Practices Act (CUTPA) remedies (Conn. Gen. Stat. § 42-110g), a prevailing tenant may recover actual damages, double damages, punitive damages, attorney's fees, and costs.

II. TENANCY FACTS

III. CONDITION OF THE PREMISES AT MOVE-OUT

Tenant left the premises in the following condition:

☐ Broom-clean and in substantially the same condition as at commencement of the tenancy, reasonable wear and tear excepted.
☐ Professionally cleaned by [________________________________] on [__/__/____].
☐ All personal property removed.
☐ No damage beyond ordinary wear and tear.
☐ Dated move-in and move-out photographs preserved.
☐ Final walk-through inspection: ☐ Offered by Landlord ☐ Conducted ☐ Refused by Landlord

IV. LANDLORD'S VIOLATIONS OF CONN. GEN. STAT. § 47a-21

☐ Failure to Return Deposit Within 21 Days: You have failed to return any portion of the security deposit within the 21-day statutory period prescribed by Conn. Gen. Stat. § 47a-21(d)(2), as amended by P.A. 23-207.

☐ Failure to Provide Itemized Statement: You have failed to provide the written itemized statement of deductions required by Conn. Gen. Stat. § 47a-21(d)(2).

☐ Failure to Pay Connecticut Statutory Interest: You have failed to pay interest on the deposit for each anniversary year of the tenancy at the rate published by the Connecticut Banking Commissioner, in violation of Conn. Gen. Stat. § 47a-21(i).

☐ Failure to Maintain Connecticut Escrow Account: You have failed to hold the deposit in a segregated escrow account at a financial institution located in Connecticut, in violation of Conn. Gen. Stat. § 47a-21(h).

☐ Failure to Disclose Escrow Information: You have failed to disclose the name and address of the Connecticut financial institution holding the deposit, in violation of Conn. Gen. Stat. § 47a-21(h).

☐ Excessive Deposit from Senior Tenant: You collected a deposit exceeding one month's rent from a tenant 62 years of age or older, in violation of Conn. Gen. Stat. § 47a-21(b)(1).

☐ Failure to Register with Department of Banking: As a landlord of ten or more dwelling units, you have failed to register with the Connecticut Department of Banking as required by Conn. Gen. Stat. § 47a-21(g).

☐ Improper Deductions: You have claimed deductions for items constituting ordinary wear and tear, pre-existing conditions, or repairs exceeding actual cost, in violation of Conn. Gen. Stat. § 47a-21(d).

V. CONNECTICUT INTEREST CALCULATION

Interest must be calculated using the Connecticut Banking Commissioner's published deposit index for each applicable year (Conn. Gen. Stat. § 36a-290). Historical reference rates:

Note: Tenants should verify the applicable rate with the Connecticut Department of Banking at portal.ct.gov/DOB.

VI. TOTAL AMOUNT DEMANDED

VII. DEMAND AND DEADLINE

Tenant demands payment in full of $[____] by certified funds payable to "[TENANT NAME] c/o [LAW FIRM NAME]" and delivered to this office no later than fourteen (14) days from the date of this letter, i.e., by [__/__/____].

Payment should be delivered to:

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

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply within the time specified, we are authorized to:

1. File suit in Connecticut Superior Court (the Housing Session in Hartford, New Haven, Bridgeport, Norwich, Waterbury, or the geographic area where the premises are located) seeking the full statutory damages under Conn. Gen. Stat. § 47a-21(d)(2);

2. File a Small Claims action in the Connecticut Superior Court Small Claims Docket for amounts up to $5,000 pursuant to Conn. Gen. Stat. § 51-15;

3. Assert CUTPA claims under Conn. Gen. Stat. § 42-110a et seq., seeking punitive damages and attorney's fees;

4. File formal complaints with:
   - Connecticut Department of Banking — Consumer Affairs Division (for escrow/interest violations)
   - Connecticut Department of Consumer Protection
   - Connecticut Attorney General — Consumer Protection Division
   - Connecticut Fair Housing Center (if applicable)

IX. EVIDENCE PRESERVED

Tenant has preserved the following evidence:

☐ Fully executed lease agreement
☐ Proof of deposit payment (cancelled check, money order receipt, wire confirmation)
☐ Move-in condition report and photographs
☐ Move-out condition report and photographs / video walkthrough
☐ Certified mail receipt for forwarding address notice
☐ Landlord's itemization (if any)
☐ Documentation of missing interest payments
☐ Bank statements showing escrow account compliance (if obtained)
☐ Witness declarations regarding premises condition
☐ Correspondence with landlord

X. CONNECTICUT-SPECIFIC NOTES

• 21-Day Rule: Since P.A. 23-207, Connecticut's return period is 21 days — materially shorter than many states. Track both the termination date and the forwarding-address date carefully.
• Mandatory Interest: Connecticut is one of very few states requiring annual interest payments on security deposits. Do not overlook this — it is often the easiest violation to prove.
• Banking Commissioner Index: Unique to Connecticut, the applicable interest rate is published annually by the Department of Banking, not by the legislature or courts.
• Senior Cap: Automatic one-month cap for tenants 62+ is unique; collect proof of age if applicable.
• Housing Court: Connecticut Superior Court operates dedicated Housing Sessions in Hartford, New Haven, Bridgeport, Norwich, and Waterbury with specialized housing magistrates.
• CUTPA Overlay: Connecticut tenants routinely plead deposit violations as CUTPA violations to obtain punitive damages and attorney's fees beyond the § 47a-21 remedies. See Conaway v. Prestia, 191 Conn. 484 (1983).
• Registration Requirement: Landlords of 10+ units must register with the Department of Banking — failure to register is independently actionable.

XI. RESERVATION OF RIGHTS

This demand is made without prejudice to any additional claims or remedies that may be available to Tenant, all of which are expressly reserved.

Respectfully submitted,

[LAW FIRM NAME]

By: _______________________________
[ATTORNEY NAME]
Juris No. [____] (Connecticut)
[ADDRESS]
[CITY], CONNECTICUT [ZIP]
Tel: [____]
Email: [____]

Attorneys for [TENANT NAME]

ENCLOSURES:
☐ Copy of lease agreement
☐ Security deposit payment receipt
☐ Move-in / move-out photographs
☐ Forwarding address notice with certified mail receipt
☐ Landlord's itemization (if any)
☐ CT Banking Commissioner interest index reference

cc: Client; Property Management Company; Property Owner of Record

SOURCES AND REFERENCES

• Conn. Gen. Stat. § 47a-21 — Security Deposits (text: https://www.cga.ct.gov/current/pub/chap_831.htm)
• Conn. Gen. Stat. § 47a-22 — Deposit to be held in escrow
• Conn. Gen. Stat. § 47a-22a — Interest on deposits of senior citizens in public housing
• Conn. Gen. Stat. § 36a-290 — Banking Commissioner's duty to publish deposit index
• Public Act 23-207 — Reducing security deposit return period from 30 days to 21 days
• Conn. Gen. Stat. § 42-110a et seq. — Connecticut Unfair Trade Practices Act (CUTPA)
• Conaway v. Prestia, 191 Conn. 484 (1983) — CUTPA applies to landlord-tenant transactions
• Connecticut Department of Banking — Consumer Affairs Division (portal.ct.gov/DOB)
• Connecticut Fair Housing Center — ctfairhousing.org

This template is for informational purposes only and does not constitute legal advice. Laws change frequently; verify current requirements with a licensed Connecticut attorney.