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 demands the applicable statutory recovery for the deposit and accrued interest, with any separately available fees identified below.

I. CONNECTICUT SECURITY DEPOSIT LAW

A. Return Deadline

Under Conn. Gen. Stat. § 47a-21(d)(2), a landlord other than a rent receiver 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 the applicable later deadline can trigger twice-the-deposit liability under Conn. Gen. Stat. § 47a-21(d)(2), subject to that subsection's different remedy when the only violation is unpaid interest.

B. Interest on Deposits

Subject to the statutory exceptions, landlords must pay interest on security deposits under Conn. Gen. Stat. § 47a-21(i):

• Interest is paid on each tenancy anniversary or credited toward the next rent payment, as the landlord determines. Interest accrued on termination or an earlier return is payable within 21 days.
• The minimum annual interest rate is the "deposit index" published by the Connecticut Banking Commissioner under Conn. Gen. Stat. § 36a-26. The index averages the FDIC's national rates for savings and money market deposits for the last week in November of the prior year (or substantially similar federal rates if the FDIC no longer publishes them).
• The statute defines accrued interest as interest compounded annually to the extent applicable. Check prior payments or credits and the applicable tenancy years when calculating a balance.
• Section 47a-21(i) excludes qualifying educational-institution housing and limits interest for months when rent was more than ten days delinquent, unless the landlord imposed a late charge.

The Banking Commissioner sets and publishes the annual deposit index; use the rate applicable to each calendar year.

C. Deposit Limits

Under Conn. Gen. Stat. § 47a-21(b)(1)-(2), 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 under subsection (b)(2)

A landlord who collected more than one month's rent before the tenant turned 62 must return the excess after that birthday upon the tenant's request.

D. Mandatory Escrow Account — Connecticut Financial Institution

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

• Be maintained as an escrow account for the tenant's benefit at a financial institution located in Connecticut;
• Hold the deposit for the tenant's benefit, with the landlord paying statutory interest under subsection (i).

Within 30 days after receiving the deposit, receiving it from a prior landlord, or transferring it to another institution or escrow account, the landlord must give the tenant written notice of the amount held and the institution's name and address under § 47a-21(h)(4)(A).

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

The Connecticut Banking Commissioner may receive and investigate complaints alleging violations of the deposit limit, return, escrow, and interest provisions under Conn. Gen. Stat. § 47a-21(j)(1). Subsection (j)(2) excludes annual interest-payment failures and a landlord's good-faith claim for actual damages with written notice from the Commissioner's jurisdiction. Section 47a-21(g) permits an action in a court of competent jurisdiction to reclaim a deposit due.

F. Double Damages + Attorney's Fees

Under Conn. Gen. Stat. § 47a-21(d)(2), a landlord who violates the return requirements is liable for:

"Twice the amount of any security deposit paid by such tenant."

The twice-the-deposit amount is the total statutory recovery under this provision; it already includes the deposit and must not be added to the deposit again. If the only violation is failure to deliver accrued interest, the statutory amount is instead the greater of $10 or twice that interest. A tenant asserting a separate CUTPA theory must establish a prohibited practice, ascertainable loss, and causation under Conn. Gen. Stat. § 42-110g(a). CUTPA punitive damages, costs, and reasonable attorney's fees are not automatic; the court may award them in its discretion under § 42-110g(a), (d).

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 by the Statutory Deadline: You have failed to return the deposit by the later of 21 days after tenancy termination or 15 days after receiving the tenant's written forwarding address, as required by Conn. Gen. Stat. § 47a-21(d)(2).

☐ 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 Give Timely Escrow Notice: You failed to give written notice within 30 days stating the amount held and the name and address of the financial institution holding the deposit, as required by Conn. Gen. Stat. § 47a-21(h)(4)(A).

☐ 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)(2).

☐ Improper Deductions: You have claimed deductions for amounts that are not damages resulting from Tenant's failure to comply with Tenant's obligations, contrary to Conn. Gen. Stat. § 47a-21(d)(1)-(2).

V. CONNECTICUT INTEREST CALCULATION

Interest must be calculated using at least the Connecticut Banking Commissioner's published deposit index for each applicable calendar year (Conn. Gen. Stat. §§ 36a-26, 47a-21(i)). Account for the statutory delinquency rule, annual compounding where applicable, and payments or rent credits already made:

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 an action in a Connecticut court of competent jurisdiction seeking the available relief under Conn. Gen. Stat. § 47a-21(d)(2), (g);

2. Assert a separate CUTPA claim, if the facts support it, under Conn. Gen. Stat. § 42-110a et seq.;

3. Submit a complaint to the Connecticut Banking Commissioner, if the alleged conduct falls within Conn. Gen. Stat. § 47a-21(j)(1) and outside the exceptions in subsection (j)(2).

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

• Return deadline: Track both termination and the date the landlord received the written forwarding address; the later statutory deadline controls.
• Interest: Use each applicable year's index, account for payments or credits, and consider the exceptions in § 47a-21(i).
• Senior cap: Subsection (b)(2) limits the deposit for tenants age 62 or older; collect proof of age if applicable.
• CUTPA: A tenant may evaluate a separate CUTPA theory for a qualifying unfair or deceptive practice in trade or commerce that caused ascertainable loss. Punitive damages and attorney's fees are court-discretionary, not automatic.

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 (2026 supplement: https://www.cga.ct.gov/2026/sup/chap_831.htm)
• Conn. Gen. Stat. § 36a-26 — Banking Commissioner's duty to publish deposit index
• Conn. Gen. Stat. § 42-110a et seq. — Connecticut Unfair Trade Practices Act (CUTPA)
• Connecticut Department of Banking — annual deposit index (portal.ct.gov/DOB)

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