How to Dispute Security Deposit Deductions (A Simple Playbook)

A strong dispute letter is short, specific, and evidence-based. You're not trying to "win an argument" or prove your landlord is a bad person — you're building a record that a reasonable judge can follow if it goes to court.

This guide walks you through the complete dispute process: building your timeline, requesting documentation, challenging each deduction, and escalating when necessary.

Before you write: gather your evidence

The strength of your dispute depends on your documentation. Before drafting anything, collect:

• Lease and addendums: Shows deposit amount, terms, and any relevant clauses.
• Move-in documentation: Condition checklist, inspection report, photos with timestamps.
• Move-out documentation: Photos, video, key return confirmation, final walkthrough notes.
• The itemized statement: The landlord's list of deductions (or proof you never received one).
• All communications: Emails, texts, letters about the deposit or property condition.
• Receipts from landlord: Any documentation they provided to support their charges.

Step 1: Build your timeline

Create a clear timeline of key dates. This becomes the foundation of your dispute:

• Lease start date
• Move-out date and key return
• When you provided forwarding address (with proof)
• State deadline for deposit return
• When you received the itemization (or should have)
• Dates of any communications about the deposit

If the landlord missed the deadline, that's your strongest argument. In California, New York, and Florida, a missed deadline means forfeiture of all deductions. Even in other states, it creates significant penalties.

Step 2: Request documentation

If the itemization is vague or missing receipts, your first step is requesting documentation. This serves two purposes: getting information you need, and creating a record that you asked (which helps in court).

Request:

• Receipts or invoices for each charge
• Photos of the damage they claim
• Work orders or contractor bids
• Explanation of how amounts were calculated
• Age of items being replaced (for depreciation)
• Move-in condition documentation

Template: Request receipts/invoices.

Step 3: Dispute each line item

Go through the itemization charge by charge. For each deduction, use one or more of these arguments:

Normal wear and tear

Every state prohibits charging for normal wear and tear. This covers gradual deterioration from ordinary use: minor scuffs, worn carpet in traffic areas, faded paint, small nail holes.

Example dispute: "The carpet charge is for normal wear and tear. The carpet showed typical traffic patterns in the hallway, which is expected after a 3-year tenancy. No stains, burns, or tears were present, as shown in my move-out photos."

Depreciation / remaining useful life

Even for legitimate damage, you shouldn't pay full replacement cost for old items. Calculate depreciation based on useful life (carpet: 5-10 years, paint: 3-5 years, appliances: 10-15 years).

Example dispute: "Even if carpet damage is assumed, the carpet was 7 years old (installed 2019 per management records). With a 10-year useful life, it was 70% depreciated. The maximum I could owe is 30% of replacement cost ($360), not the $1,200 charged."

Pre-existing damage

If the condition existed when you moved in, you're not responsible. This is where move-in photos and condition checklists are crucial.

Example dispute: "The drywall damage noted was present at move-in. See attached move-in inspection checklist (dated 1/15/2023) noting 'small hole near bedroom door' and my move-in photo showing the same location."

Lack of proof

If the landlord can't document the charge — no photos, receipts, or specific descriptions — they may not be able to collect.

Example dispute: "The $300 'repairs' charge has no itemization of what was repaired, no photos showing damage, and no receipts. I request documentation proving this charge, or it should be removed."

Routine maintenance disguised as damage

Some landlords charge tenants for normal turnover costs: repainting after a multi-year tenancy, professional cleaning, replacing worn flooring. These are landlord expenses, not tenant responsibilities.

Example dispute: "The full-unit repaint charge is inappropriate after a 4-year tenancy. Paint has a 3-5 year useful life. Repainting at turnover is expected maintenance, not tenant damage."

Step 4: Structure your dispute letter

Format matters. A well-organized letter is easier to respond to and makes you look prepared. Use this structure:

1. Header: Property address, tenancy dates, deposit amount.
2. Timeline: Move-out date, when you received itemization, deadline status.
3. Line-by-line disputes: Each charge, your argument, and what you're requesting.
4. Total requested: Calculate what you believe you're owed.
5. Evidence list: Describe attached photos, documents, receipts.
6. Response deadline: 7-14 days is standard.
7. Next steps: What you'll do if they don't respond (escalate, file suit).

Template: Dispute deductions letter.

Step 5: Send and document

How you send the dispute matters for creating proof:

• Email: Fast, free, creates timestamp. Good for initial disputes.
• Certified mail: Creates delivery proof. Better for formal demands.
• Both: Send email first (for speed), follow with certified mail (for proof).

Keep copies of everything: your letter, attachments, proof of delivery, and any responses.

Step 6: If they don't respond — escalate

If your deadline passes without a satisfactory response, escalate:

1. Send a formal demand letter: Cite your state's law and penalties. This is more serious than a dispute letter.
2. For Colorado: Send 7-day notice of intent to sue (required for treble damages).
3. Consider settlement: Sometimes a 50-70% offer avoids court for both parties.
4. File in small claims: Low cost ($30-100), designed for exactly this situation.

Generate a state-specific demand letter: Start free analysis.

When to escalate vs. negotiate

Deciding whether to push for full refund or negotiate depends on:

• Strength of your evidence: Strong photos, clear deadline violation? Push harder.
• Amount at stake: Small amounts may not be worth the court time.
• Landlord's response: Are they engaging or stonewalling?
• Your time: Small claims requires a court appearance. Factor that in.