SECURITY DEPOSIT ITEMIZATION AND DISPOSITION LETTER
(Compliant with Ala. Code § 35-9A-201 and other applicable provisions of the Alabama Uniform Residential Landlord and Tenant Act)
[// GUIDANCE: This template is intentionally more robust than the typical “refund letter” so that counsel may (i) evidence statutory compliance, (ii) create a defensible record should litigation ensue, and (iii) provide the tenant with a clear reconciliation of all deposit-related charges.]
I. DOCUMENT HEADER
From (Landlord):
[LANDLORD LEGAL NAME]
[Street Address]
[City], Alabama [ZIP]
[Telephone] • [Email]
To (Tenant):
[TENANT FULL LEGAL NAME]
[Last-Known Street Address]
[City], [State] [ZIP]
Re: Security Deposit Disposition for the residential premises located at [PREMISES ADDRESS] (the “Premises”) under that certain [LEASE TITLE] dated [LEASE DATE] (the “Lease”)
Effective Date of This Letter: [DATE OF MAILING]
Method of Delivery:
☐ Certified U.S. Mail, Return Receipt Requested – Tracking No. [__]
☐ First-Class U.S. Mail
☐ Hand Delivery (acknowledgment of receipt required)
II. DEFINITIONS
For purposes of this Letter:
- “Deposit” or “Security Deposit” means the sum of $[AMOUNT] originally delivered by Tenant to Landlord on [DATE], together with any additional amounts designated as a security deposit under the Lease.
- “Termination Date” means [DATE TENANT RETURNED POSSESSION], the date on which Tenant surrendered exclusive possession of the Premises.
- “Damage” means any physical impairment to the Premises beyond ordinary wear and tear as that term is understood under Ala. Code § 35-9A-201(b).
[// GUIDANCE: Delete or add definitions as necessary for unique lease provisions (e.g., “Pet Deposit,” “Additional Deposit,” etc.).]
III. OPERATIVE ITEMIZATION
3.01 Deposit Accounting
| Line No. | Description | Amount ($) |
|---|---|---|
| A | Original Deposit Received | [______] |
| B | LESS: Unpaid Base Rent (specify period) | ([______]) |
| C | LESS: Late Fees / NSF Fees (if permitted) | ([______]) |
| D | LESS: Repair Charges (detail in § 3.02) | ([______]) |
| E | LESS: Cleaning Charges (detail in § 3.02) | ([______]) |
| F | LESS: Other Authorized Deductions (identify) | ([______]) |
| Subtotal of Deductions (Sum of B–F) | ([______]) | |
| Balance Due to Tenant (A – Subtotal) | [______] |
[// GUIDANCE: If the deductions exceed the deposit, state “$0.00” balance due to Tenant and insert “Additional Amount Owed by Tenant” line instead.]
3.02 Detailed Damage & Cleaning List
Pursuant to Ala. Code § 35-9A-201(e), the following constitutes a reasonably specific itemization of all damages and associated costs:
| Item No. | Location | Nature of Damage/Cleaning | Repair/Service Provider | Cost ($) |
|---|---|---|---|---|
| 1 | [e.g., Living Room Wall] | Sheetrock patch & paint | [Vendor/Invoice #] | [____] |
| 2 | [e.g., Kitchen Range] | Replacement of drip pans | [Vendor/Invoice #] | [____] |
| … | … | … | … | … |
| n | TOTAL (must match Lines D + E above) | [____] |
[// GUIDANCE: Attach copies of paid invoices, receipts, or good-faith cost estimates to strengthen evidentiary support.]
IV. REPRESENTATIONS & WARRANTIES
- Landlord represents that each deduction stated above is:
a. Authorized by both the Lease and Alabama law; and
b. Limited to actual and reasonable costs incurred or to be incurred. - Landlord further represents that the balance shown in § 3.01 is true and correct as of the Effective Date and that a check in that exact amount is enclosed herewith, payable to [TENANT NAME].
- No portion of the Deposit has been withheld in bad faith.
[// GUIDANCE: These statements help rebut any future “bad-faith” allegations that could expose Landlord to statutory penalties.]
V. COVENANTS & NOTICE OF RIGHTS
- Tenant is hereby advised that (i) Ala. Code § 35-9A-201(f) affords a tenant the right to bring an action to recover any deposit amount wrongfully withheld, together with potential statutory damages and reasonable attorneys’ fees, and (ii) all such claims must be filed within the applicable statute of limitations.
- Tenant shall have [30] days from receipt of this Letter to submit, in writing, any dispute regarding the itemization. Written disputes should be sent to the address in the header marked “ATTN: Deposit Dispute.”
- Failure by Tenant to cash or negotiate the enclosed refund check does not constitute an admission of any claims and does not toll any statutory period.
VI. DEFAULT & REMEDIES
If Tenant fails to remit any outstanding balance identified in § 3.01 within [15] days of the Effective Date, Landlord reserves all remedies available at law or equity, including but not limited to the recovery of money damages, court costs, and reasonable attorneys’ fees.
VII. RISK ALLOCATION & RESERVATION OF RIGHTS
- Nothing herein shall be construed as a waiver of Landlord’s right to pursue additional damages discovered after the mailing of this Letter that were not reasonably apparent as of the Termination Date.
- Landlord expressly reserves all rights and remedies under the Lease and applicable law.
VIII. DISPUTE RESOLUTION
- Governing Law: This Letter and any dispute arising herefrom shall be governed by the laws of the State of Alabama without regard to its conflict-of-laws principles.
- Forum Selection: The parties agree that the [COUNTY] Housing Court (or other court of competent jurisdiction within the State of Alabama) shall be the exclusive venue for any action relating to the Deposit.
- Arbitration: The parties acknowledge that arbitration is expressly excluded by prior agreement.
- Jury Trial: Nothing herein constitutes a waiver of either party’s constitutional right to a trial by jury.
IX. GENERAL PROVISIONS
- Entire Agreement: This Letter constitutes the entire required itemization under Ala. Code § 35-9A-201 and supersedes any prior oral or written communications regarding the Deposit.
- Amendments: Any amendment to this Letter must be in a writing signed by both parties.
- Severability: If any provision of this Letter is found unenforceable, the remaining provisions shall remain in full force and effect.
- Counterparts; Electronic Delivery: This Letter may be executed in counterparts and delivered electronically, each of which shall be deemed an original.
X. EXECUTION BLOCK
| Landlord | Tenant (Acknowledgment of Receipt) |
|---|---|
| ________ | ________ |
| [LANDLORD SIGNATORY NAME & TITLE] | [TENANT NAME] (optional) |
| Date: ________ | Date: ________ |
[// GUIDANCE: Tenant signature is not legally required for compliance but can be useful evidence of receipt. Landlord should always retain proof of mailing (e.g., USPS Form 3811).]
ENCLOSURES:
1. Refund Check No. [____] dated [DATE] in the amount of $[BALANCE DUE]
2. Copies of invoices/receipts referenced in § 3.02
3. Photographic documentation of damage (if applicable)
Please contact the undersigned in writing within the timeframe stated above should you have any questions or wish to dispute any portion of this itemization.
Respectfully,
[LANDLORD SIGNATORY NAME & TITLE]
For and on behalf of [LANDLORD LEGAL NAME]
Date: [____]
[// GUIDANCE: End of template. Counsel should confirm all statutory amounts, timelines, and county-specific housing court nomenclature before issuance.]