SECURITY DEPOSIT ACCOUNTING & ITEMIZATION LETTER

(Texas Property Code Compliance)

[LANDLORD LETTERHEAD]
[Landlord Legal Name]
[Landlord Street Address]
[City, State ZIP]
[Telephone] • [Email]

Date: [MM/DD/YYYY]

VIA ☐ Certified U.S. Mail (Tracking No. [_])
  ☐ Hand Delivery
  ☐ Courier / Other: [_]

To:
[Tenant Full Legal Name]
[Forwarding Street Address]
[City, State ZIP]

I. INTRODUCTORY RECITALS

1. Parties. This Security Deposit Accounting & Itemization Letter (“Letter”) is issued by [Landlord Legal Name] (“Landlord”) to [Tenant Full Legal Name] (“Tenant”) with respect to that certain Residential Lease Agreement dated [Lease Date] (the “Lease”) for the residential premises located at [Street Address, Unit, City, Texas ZIP] (the “Premises”).

2. Security Deposit. Tenant tendered a security deposit in the principal amount of $[__] (the “Security Deposit”) as contemplated by Section [_____] of the Lease and in accordance with Tex. Prop. Code Ann. §§ 92.103–.104 (West).

3. Surrender Date. Tenant vacated and surrendered possession of the Premises on [MM/DD/YYYY] (the “Surrender Date”).

[// GUIDANCE: The “Surrender Date” should match the date keys were physically returned or, if later, the date Landlord obtained actual possession. See Tex. Prop. Code § 92.107.]

II. DEFINITIONS

Unless otherwise stated, capitalized terms in this Letter have the meanings set forth below:

“Applicable Law” means the Texas Property Code, Chapter 92, and any other controlling landlord-tenant statutes or regulations.

“Normal Wear and Tear” has the meaning assigned by Tex. Prop. Code § 92.001(4).

“Reasonable Cost” means the actual, good-faith, commercially-reasonable expense incurred or to be incurred by Landlord, supported by receipts, invoices, or credible written estimates.

“Surrender” means Tenant’s relinquishment of possession in accordance with Tex. Prop. Code § 92.103.

III. OPERATIVE PROVISIONS

1. Compliance Deadline. Pursuant to Tex. Prop. Code § 92.103, Landlord is required to refund the Security Deposit or provide a written description and itemized list of deductions within thirty (30) days after the Surrender Date. This Letter satisfies that statutory requirement.

2. Itemized Statement of Deductions. Landlord has made (or will timely make) only those deductions permitted under Applicable Law, specifically excluding Normal Wear and Tear. An itemized schedule is provided in Section III.3 below, and supporting documentation is enclosed as Exhibit A.

3. Schedule of Allowed Deductions

4. Refund Calculation

a. Original Security Deposit: $[__]
b. Less: Total Allowable Deductions (Section III.3): $(______)
c. Net Amount Refunded to Tenant: $[__]

Enclosed is Landlord’s check no. [_____] in the amount of $[__] payable to Tenant. Delivery of funds and this Letter occurs concurrently.

5. Reservation of Rights. Landlord reserves all rights and remedies available under the Lease and Applicable Law to pursue additional damages, if any are later discovered, that are not caused by Normal Wear and Tear and that could not reasonably have been detected on initial inspection.

[// GUIDANCE: Texas allows subsequent claims if initially undiscoverable; however, the burden of proof will be on the landlord.]

IV. REPRESENTATIONS & WARRANTIES

1. Good-Faith Estimate. Landlord represents that each deduction described herein reflects a Good-Faith, Reasonable Cost estimate based on actual invoices or reliable third-party estimates known as of the date of this Letter.

2. Statutory Compliance. Landlord further represents that this Letter is being provided in compliance with Tex. Prop. Code §§ 92.103 & 92.104.

3. Survival. The representations in this Section IV survive delivery of the refund and do not merge therein.

V. DISPUTE RESOLUTION & GOVERNING LAW

1. Governing Law. This Letter and any dispute arising herefrom shall be governed by and construed in accordance with the landlord-tenant laws of the State of Texas (“state_landlord_tenant_law”).

2. Forum Selection. Venue for any legal action relating to this Security Deposit shall lie exclusively in the appropriate Texas housing court or justice court having jurisdiction over the Premises (“state_housing_court”).

3. Arbitration Excluded. The parties acknowledge that mandatory arbitration is expressly excluded. Nothing herein constitutes a waiver of the parties’ constitutional right to trial by jury.

4. Remedies & Penalties. Tenant’s statutory remedies—including, without limitation, potential recovery of the deposit, a $100 penalty, up to three (3) times the wrongfully withheld amount, reasonable attorney’s fees, and court costs—are governed by Tex. Prop. Code § 92.109 and any other applicable provisions (“statutory_penalties”).

[// GUIDANCE: Do not attempt to limit Tenant’s statutory remedies; such limitations are void as a matter of public policy in Texas.]

VI. GENERAL PROVISIONS

1. No Waiver. Nothing contained in this Letter shall be deemed a waiver of any right or defense of either party under the Lease or Applicable Law.

2. Entire Statement. This Letter constitutes Landlord’s entire itemization under Tex. Prop. Code § 92.104 as of the date issued.

3. Method of Delivery. Service is effective on the earlier of (a) the date of personal delivery to Tenant, or (b) three (3) days after deposit in the U.S. Mail, certified, return-receipt requested, addressed to Tenant’s last known forwarding address.

4. Contact for Questions. Direct any inquiries or disputes in writing to:
   Attn: [Landlord Contact Name / Title]
   [Landlord Mailing Address] • Email: [_] • Phone: [___].

VII. EXECUTION

IN WITNESS WHEREOF, Landlord has executed and dispatched this Letter as of the date first above written.
text

[Landlord Authorized Signatory]
[Title, if applicable]

Date: _____
ACKNOWLEDGED (Optional – Tenant signature not required for compliance but may be obtained for receipt confirmation):

text

[Tenant Full Legal Name]

Date: _____

EXHIBIT A – SUPPORTING DOCUMENTATION

(Attach copies of invoices, receipts, photographs, third-party estimates, and/or contractor statements that substantiate each deduction listed in Section III.3.)

[// GUIDANCE:
1. Retain proof of mailing (certified receipt) for at least four (4) years—the statute of limitations for written contracts in Texas.
2. If Tenant failed to provide a forwarding address, the deposit must still be accounted for; mail to the last known residence and document the attempt.
3. Never deduct for routine painting, minor nail holes, or carpet wear consistent with “Normal Wear and Tear.” Doing so risks statutory penalties.
4. Keep all backup documentation organized in the leasing file to streamline any future small-claims or housing-court litigation.
]