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Itemized Security Deposit Deduction Letter Template for England and Wales

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Key Requirements PROMPT example:

Itemized Security Deposit Deduction Letter

"I need to draft an Itemized Security Deposit Deduction Letter for a student property in Manchester where three tenants are moving out on March 15, 2025, with multiple deductions needed for property damage and unpaid utilities totaling £850."

Document background
The Itemized Security Deposit Deduction Letter is a crucial document in the English and Welsh residential letting process, used when a landlord needs to make deductions from a tenant's security deposit. It should be issued within 10 days of the tenancy end date and must provide detailed explanations for each deduction, supported by evidence such as photographs or invoices. The letter helps ensure compliance with deposit protection legislation and reduces the likelihood of deposit disputes. It provides transparency in the deposit return process and helps maintain clear communication between landlords and tenants regarding any charges for damages or unpaid rent.
Suggested Sections

1. Recipient Details: Full name and address of tenant(s)

2. Property Reference: Address of the rental property

3. Tenancy Details: Dates of tenancy and original deposit amount

4. Deduction Summary: Total amount being deducted and amount to be returned

5. Itemized Deductions: Detailed breakdown of each deduction with specific amounts

6. Justification: Explanation for each deduction

7. Payment Details: How and when remaining deposit will be returned

Optional Sections

1. Photo Evidence Reference: Used when photographic evidence supports deductions

2. Invoice Reference: Used when contractor invoices support deductions

3. Dispute Resolution Information: Include when significant deductions might be contested

Suggested Schedules

1. Photographic Evidence: Before and after photos showing damage

2. Contractor Invoices: Copies of repair/replacement invoices

3. Inventory Comparison: Check-in vs check-out inventory reports

4. Cleaning Records: Professional cleaning receipts or reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Industries

Housing Act 2004: Primary legislation governing tenancy deposit protection schemes and requirements for protecting and returning deposits

Tenant Fees Act 2019: Legislation controlling permitted charges, deposit return timelines, and deposit amount caps (5 weeks' rent for annual rent under £50,000)

Tenancy Deposit Schemes (prescribed information) Order 2007: Regulations specifying the information that must be provided to tenants regarding their deposit

Landlord and Tenant Act 1985: Legislation defining landlord's maintenance obligations and distinctions between fair wear and tear versus damage

Consumer Rights Act 2015: Legislation ensuring fairness and transparency in contracts and protection against unfair terms and practices

Deregulation Act 2015: Additional legislative requirements regarding deposit protection and prescribed information that must be provided to tenants

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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