SECURITY DEPOSIT ITEMIZATION & DISPOSITION LETTER

(Commonwealth of Virginia – Va. Code Ann. § 55.1-1226)

[LANDLORD LETTERHEAD]
[STREET ADDRESS] • [CITY, STATE ZIP] • [PHONE] • [EMAIL]

I. DOCUMENT HEADER

1. Effective Date: [DATE]
2. Parties:
   a. Landlord: [LANDLORD LEGAL NAME], a [TYPE OF ENTITY] organized under the laws of [STATE OF FORMATION] (“Landlord”).
   b. Tenant: [TENANT FULL LEGAL NAME] (“Tenant”).
3. Premises: [STREET ADDRESS OF LEASED PREMISES] (“Premises”).
4. Lease: Residential Lease Agreement dated [LEASE DATE] (the “Lease”).
5. Security Deposit Paid: $[ORIGINAL DEPOSIT AMOUNT] received on [DEPOSIT RECEIPT DATE].

[// GUIDANCE: Insert Landlord’s file/lease number or account reference if helpful.]

II. DEFINITIONS

For purposes of this Letter, capitalized terms have the meanings set forth below. Any term not defined herein but defined in the Lease or the Virginia Residential Landlord and Tenant Act (“VRLTA”) shall have the meaning assigned to it therein.

“Actual Cost” means the verifiable out-of-pocket amount paid by Landlord to third-party vendors or charged internally at a commercially reasonable rate for labor and materials to remedy Tenant Damage.

“Normal Wear and Tear” has the meaning ascribed in Va. Code Ann. § 55.1-1200 and expressly excludes damage, deterioration, or soiling that is the result of negligence, misuse, accident, or abuse by Tenant, any occupant, invitee, or pet.

“Security Deposit” means the funds delivered by Tenant to Landlord under the Lease as security for Tenant’s performance of all obligations.

“Tenant Damage” means damage to the Premises beyond Normal Wear and Tear occurring during the Term or while Tenant was in possession.

III. OPERATIVE PROVISIONS

3.1 Itemization of Security Deposit Disposition

Pursuant to Va. Code Ann. § 55.1-1226(C), Landlord hereby provides an itemized statement of all deductions from the Security Deposit:

[// GUIDANCE: Add or delete rows as needed. All deductions must be permissible under § 55.1-1226(C); avoid “routine” repainting or carpet replacement unless damage exceeds Normal Wear and Tear.]

3.2 Refund or Balance Due

Original Security Deposit: $[ ]
Less Total Deductions (from § 3.1): $( )

Amount Enclosed / Due from Tenant: $[REFUND OR BALANCE]

[// GUIDANCE: If balance is due from Tenant, insert precise payment instructions and due date. If refund is due, enclose check or ACH notice with this Letter.]

3.3 Items Pending Final Cost Confirmation (If Applicable)

If any Tenant Damage could not be reasonably quantified within the statutory 45-day period, Landlord hereby provides notice under Va. Code Ann. § 55.1-1226(F) that additional time is necessary. Landlord will forward a supplemental itemization and final reconciliation within 15 days of cost determination but in no event later than 60 days after Lease termination.

IV. REPRESENTATIONS & WARRANTIES

1. Landlord represents that:
   a. All deductions itemized above are lawful, reasonable, and directly attributable to Tenant’s obligations under the Lease or VRLTA; and
   b. All Actual Costs (or estimates, where expressly noted) are accurate and made in good faith.

2. Tenant’s acceptance, negotiation, or endorsement of any refund check shall not constitute a release of claims unless a separate, signed settlement agreement so provides.

V. COVENANTS

1. Tenant shall promptly notify Landlord in writing at the address shown above of any dispute concerning this itemization.
2. Landlord shall retain invoices, receipts, and other proof of Actual Cost for not less than two (2) years and will make the same available for Tenant’s reasonable inspection in accordance with § 55.1-1226(E).

VI. DEFAULT & REMEDIES

1. Failure by Tenant to pay any balance due within [NUMBER] days of the Effective Date constitutes a Lease default.
2. Upon default, Landlord may pursue all statutory and contractual remedies, including but not limited to suit for money damages, interest at the legal rate, and recovery of reasonable attorney fees and court costs as authorized by § 55.1-1245 and the Lease.

VII. RISK ALLOCATION

Statutory Penalties: Tenant is advised that, under § 55.1-1226(H), a landlord who willfully fails to comply with the security-deposit-return provisions may be liable for damages equal to any withheld portion of the deposit plus reasonable attorney fees.

[// GUIDANCE: Virginia does not permit general indemnity in this context; therefore, no indemnification language is included.]

VIII. DISPUTE RESOLUTION

1. Governing Law: This Letter, and any dispute arising from it, shall be governed by the laws of the Commonwealth of Virginia without regard to conflict-of-laws principles.
2. Forum Selection: Exclusive jurisdiction shall lie in the [INSERT NAME OF LOCAL] General District Court, Housing Division, or any other court of competent jurisdiction within the Commonwealth.
3. Arbitration: Expressly excluded.
4. Jury Trial: The constitutional right to a civil jury trial is preserved.
5. Injunctive Relief: The parties’ rights to seek money damages are not limited by this Letter.

IX. GENERAL PROVISIONS

1. Entire Agreement: This Letter constitutes the entire security-deposit disposition statement required under Va. Code Ann. § 55.1-1226 and supersedes inconsistent oral statements.
2. Amendments: Any modification must be in a signed writing.
3. Notices: All notices relating to this Letter shall be delivered in accordance with the notice provisions of the Lease or, if none, as permitted under § 55.1-1202.
4. Severability: If any provision herein is held unenforceable, the remaining provisions shall remain in full force.
5. Counterparts & Electronic Signatures: This Letter may be executed in counterparts and delivered electronically, each of which shall be deemed an original.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned have executed this Security Deposit Itemization & Disposition Letter as of the Effective Date first written above.

[// GUIDANCE: Tenant signature is not legally required for validity, but obtaining it acknowledges receipt and can streamline dispute resolution.]

Exhibits

A – Rent & Fee Ledger
B – Vendor Invoice(s)
C – Repair Estimate(s)
D – Utility Bill(s)
E – Photographs (Optional but Recommended)

IMPORTANT NOTICE TO TENANT
You have a legal right under Va. Code Ann. § 55.1-1226 to challenge any improper withholding. If you believe Landlord has wrongfully withheld any portion of your Security Deposit, you may file an action in the appropriate General District Court within the applicable statute of limitations.

[// GUIDANCE: Replace all bracketed fields with client-specific information; confirm statutory citations and monetary amounts prior to issuance.]