Landlord Won’t Return Security Deposit? Here is What to Do

Moving out is expensive, and you are counting on that security deposit. However, landlords often deduct excessive fees for “cleaning” or “repairs.” The law is strict: they generally have a specific deadline (often 21 to 30 days) to return your money or provide an itemized list of deductions. If they miss it, they may owe you double or triple the original amount. Here is how to fight back.

BMT Legal Team BMT Legal Team · 📅 Jan 2026 · ⏱️ 7 min read · LEGAL › RENTERS RIGHTS
Deadline
30 Days
Avg State LimitRule
Penalty
2x-3x
If Landlord failsBonus
Action
Letter
Demand LetterFirst

1. The Rule: The “Strict Strict” Deadline

State laws are very protective of deposits. The clock starts ticking the day you hand over the keys.

The Itemization Requirement
If the landlord deducts even $1, they generally must provide:
1. A written description of the damage.
2. Receipts or invoices proving the cost of repair.
3. The remaining balance check.
If they miss the deadline, they often forfeit the right to deduct anything.

2. What Can They Charge For? (Checklist)

This is the #1 dispute. You are not responsible for the natural aging of the apartment.

Item Normal Wear (Owner Pays) Damage (You Pay)
Walls Faded paint, tiny nail holes. Gaping holes, crayon marks.
Carpet Worn down traffic paths. Cigarette burns, wine stains.
Cleaning Dusty blinds (if you cleaned). Excessive trash left behind.
Light Bulbs Old fixtures failing. Missing or broken bulbs.

3. Timeline: When Delay Becomes Profit

If your landlord ignores the deadline, the law punishes them. This is your leverage.

Timeline Status Your Entitlement
Day 0 – 30
(Depends on State)
Waiting
Original Deposit Amount
Day 31+
(Deadline Missed)
Late
Deposit + Forfeit Rights
Court Judgment
(Bad Faith)
Penalty
Up to 3x Deposit
Planning Note
If the landlord fails to return funds by the state deadline, it is generally effective to send a Demand Letter citing the “Bad Faith” penalty statutes before filing a Small Claims suit.

4. Strategy: The Demand Letter

Do not sue yet. Send a letter. It is cheaper and faster.

  • The Format: Use a formal template. State the facts clearly: “I moved out on [Date]. The law requires return by [Date]. You are late.”
  • The Threat: Cite your state’s specific code (e.g., “California Civil Code 1950.5”). Mention that you will seek “treble damages” (3x) if forced to go to court.
  • The Delivery: Always send it via Certified Mail with Return Receipt. This green card is your golden ticket in court.

5. Warning: The “Paid in Full” Trap

Landlords sometimes send a partial check with a trick attached.

⛔ Don’t Cash It Yet

If the check memo line says “Settlement” or “Paid in Full”:

  • The Risk: Cashing it may legally waive your right to sue for the rest of the money (Accord and Satisfaction).
  • The Fix: Cross out “Paid in Full” and write “Partial Payment – Under Protest” on the back endorsement line, or return the check entirely if you plan to sue for the full amount.

6. Frequently Asked Questions

Can they charge for carpet cleaning?
It depends. In many states (like CA), they cannot deduct for routine carpet cleaning unless the carpet was left unusually dirty (beyond normal use). Check your lease for a “mandatory cleaning fee” clause.
Can I just not pay the last month’s rent?
Generally, no. Unless your lease explicitly says “Security Deposit can be used for last month’s rent,” doing this puts you in breach of contract and risks an eviction record.
What is the limit for Small Claims?
It varies by state, usually between $5,000 and $10,000. If your deposit plus penalties exceeds this, you may need to sue in Civil Court (which requires a lawyer).