Security Deposit Itemization Letter

SECURITY DEPOSIT ITEMIZATION AND SETTLEMENT STATEMENT

(California – Compliant with Cal. Civ. Code § 1950.5)

TABLE OF CONTENTS

1. Document Header
2. Definitions

3. Operative Provisions
   3.1 Statutory Return Deadline
   3.2 Itemized Statement of Deductions
   3.3 Payment / Reconciliation
   3.4 Supporting Documentation

4. Representations & Warranties

5. Covenants
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

Security Deposit Itemization and Settlement Statement
Effective Date: [MM/DD/YYYY]

From (Landlord/Owner/Agent):
[LEGAL NAME]
[Street Address]
[City, State ZIP]
[Telephone] | [E-Mail] | DRE Lic. No. [___]

To (Tenant(s)):
[LEGAL NAME(S)]
[Forwarding Address]
[City, State ZIP] | [E-Mail]

Premises:
[Street Address of Rental Unit, City, CA ZIP]

Original Lease/Occupancy Period:
Commencement Date: [MM/DD/YYYY]
Termination / Move-Out Date (“Move-Out Date”): [MM/DD/YYYY]

Security Deposit Originally Paid (“Deposit”): $[___]

2. DEFINITIONS

For purposes of this Statement, capitalized terms have the following meanings (terms not defined herein have the meanings assigned under Cal. Civ. Code § 1950.5):

“Cleaning Charge” means any amount deducted to restore the Premises to the level of cleanliness documented at the inception of tenancy, exclusive of ordinary wear and tear.

“Estimate” means a good-faith written approximation of cost when actual invoices or receipts are not yet available as of the Statutory Return Deadline.

“Gross Deposit” means the total amount of the Deposit originally paid by Tenant to Landlord, inclusive of any pet, key, or additional deposits.

“Net Refund” means the amount of the Deposit, if any, remaining after all Allowable Deductions.

“Statutory Return Deadline” means twenty-one (21) calendar days after the Move-Out Date, as mandated by Cal. Civ. Code § 1950.5(g)(1).

3. OPERATIVE PROVISIONS

3.1 Statutory Return Deadline

In compliance with Cal. Civ. Code § 1950.5(g)(1), Landlord hereby issues this Statement and the enclosed payment (if any) on or before the Statutory Return Deadline.

3.2 Itemized Statement of Deductions

3.3 Payment / Reconciliation

Gross Deposit: $[___]
(–) Total Allowable Deductions: $[___]
= Net Refund Due to Tenant: $[___]

Enclosed herewith is a check payable to [Tenant Name(s)] in the amount of $[Net Refund].

3.4 Supporting Documentation

1. Copies of invoices/receipts for any single deduction exceeding $125.00.
2. Good-faith Estimates for work not yet completed, together with a commitment to provide final receipts within 14 days of completion in accordance with Cal. Civ. Code § 1950.5(g)(3).
3. Move-in/Move-out condition photos and inspection reports (for reference only).

4. REPRESENTATIONS & WARRANTIES

4.1 Landlord represents that each deduction enumerated herein:
(a) falls within an allowable category under Cal. Civ. Code § 1950.5(b);
(b) reflects the actual and reasonable cost incurred or to be incurred; and
(c) is not attributable to ordinary wear and tear.

4.2 Landlord warrants that the Net Refund, if any, constitutes the full balance of the Deposit lawfully owing to Tenant as of the Effective Date.

5. COVENANTS

5.1 Tenant shall promptly notify Landlord in writing of any change to the Forwarding Address until the sooner of (i) cashing the enclosed refund check, or (ii) sixty (60) days after receipt of this Statement.

5.2 Landlord shall provide supplemental receipts for any item supported by an Estimate within fourteen (14) days of completion of the related work, consistent with Cal. Civ. Code § 1950.5(g)(3).

6. DEFAULT & REMEDIES

6.1 Failure of Tenant to negotiate the refund check within one hundred eighty (180) days shall constitute an abandonment of the funds, permitting Landlord to escheat or otherwise dispose of such funds in accordance with applicable law.

6.2 In the event Tenant disputes any deduction, Tenant must deliver written notice specifying the contested item(s) within thirty (30) days of receipt of this Statement. Absent such notice, Tenant shall be deemed to have accepted this Statement.

6.3 Nothing herein limits Tenant’s statutory right to seek up to twice the amount wrongfully withheld if Landlord is found to have acted in bad faith. See Cal. Civ. Code § 1950.5(l).

7. RISK ALLOCATION

7.1 Indemnification: Not applicable (see Metadata).

7.2 Limitation of Liability: Liability is limited to the statutory penalties available under Cal. Civ. Code § 1950.5(l); consequential or punitive damages are expressly disclaimed to the fullest extent permitted by law.

8. DISPUTE RESOLUTION

8.1 Governing Law: This Statement shall be governed by and construed in accordance with the laws of the State of California.

8.2 Forum Selection: Any action arising out of or relating to this Statement shall be brought exclusively in the housing or small-claims division of the court having jurisdiction over the county in which the Premises are situated.

8.3 Arbitration: Excluded.

8.4 Jury Waiver: No waiver of constitutional jury rights is intended or effected by this Statement.

8.5 Injunctive Relief: The parties acknowledge that disputes concerning this Statement typically sound in money damages; however, nothing herein shall preclude equitable relief where authorized by law.

9. GENERAL PROVISIONS

9.1 Entire Statement: This document constitutes the entire and exclusive statement of accounting for the Deposit.

9.2 No Waiver: Failure by Landlord to enforce any right shall not be deemed a waiver of future enforcement of that or any other right.

9.3 Severability: If any provision of this Statement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

9.4 Counterparts; Electronic Delivery: This Statement may be executed in counterparts and delivered electronically, each of which shall be deemed an original. Tenant’s electronic acknowledgment or negotiated refund check shall constitute conclusive evidence of receipt.

10. EXECUTION BLOCK

Executed as of the Effective Date first written above.

LANDLORD / OWNER / AUTHORIZED AGENT

________________________________________
[Name]
[Title]

Date: ____________________

TENANT ACKNOWLEDGMENT (Optional)
Receipt of the foregoing Security Deposit Itemization and Settlement Statement, together with the enclosed Net Refund, is hereby acknowledged.

________________________________________
[Tenant Name]

Date: ____________________

This Statement is provided in strict compliance with Cal. Civ. Code § 1950.5 and is intended to fully satisfy Landlord’s statutory obligations regarding the return and accounting of Tenant’s security deposit.