Sample Letter
You have failed to notify me in writing, and within 30 days of my payment, of the name and
address of the banking institution in which you have placed my security deposit. On
(date)__ , I paid a security deposit to you in the amount of $ , by check #
. Therefore, I am hereby applying the remedy as prescribed by the Security Deposit Law,
by informing you to apply my security deposit plus the tenant’s portion of the accrued interest to
my rent for the month of . According to the law, I am without further
obligation to pay you a security deposit as long as I live in the rental unit.
Note: Make sure you date and sign your letter and send it certified or registered mail, return
receipt requested.
Exceptions
Security deposit investments and deposits to a banking institution are not required for seasonal
rentals. Seasonal rentals refer to properties being rented or leased for residential purposes, for a
term of 125 consecutive days or less, by a person having a permanent place of residence
elsewhere.
CONVEYANCE OF (RENTAL) PROPERTY
If the property is sold, foreclosed or conveyed for reasons of bankruptcy or insolvency, the
former owner within five (5) days of the date of delivery of the deed, instrument of assignment
or court order, must turnover to the new owner all securities plus the tenant’s portion of interest
earned and notify the tenant by registered or certified mail of the name and address of the new
person holding the tenant’s security deposit. Once transfer and notification is made, the former
owner is relieved of responsibility for the security deposit. The person receiving the security
deposit along with the tenant’s portion of the interest becomes responsible for the return of the
money to the tenant.