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  Policies & Procedures , Sample Vacation Rental Deposit Refund Letters (When Withholding for Damages)  
 
     
Sample Vacation Rental Deposit Refund Letters (When Withholding for Damages)

For the very rare occasions when you have to withhold a portion or all of your damage deposit.
 

Here are a couple examples of letters that you could send to your renters when you need to withhold some or all of the damage deposit. Note: these sample letters assume that you use my sample rental agreement. If you have a different version, then just be sure to refer the renters to the section of your contract that refers to the stipulations around damage deposits.

When you need to withhold a portion of the damage deposit:

Dear Mr/Ms. Renter,

Thank you for renting our home located at your vacation home address, from the dates of _______ to _______ , we hope you enjoyed your stay.

Regretfully, we have to withhold a portion of your damage deposit because damaged item . As per item #5a of the attached signed rental contract, it states damage deposit will be withheld for damages done to the unit.

Enclosed is a photograph of the damaged item, which shows the damaged item, which was discovered upon your check out. Also enclosed is a copy of the bill which shows the exact amount it cost us to replace the damaged item.

Enclosed is a check for $X which is equal to your original deposit of $X minus $X (the cost to repair the damaged item).

Sincerely,

Your Original Signature

When you need to withhold the entire deposit:

Dear Mr/Ms. Renter,

Thank you for renting our home located at your vacation home address,  from the dates of _______ to _______ , we hope you enjoyed your stay.

Regretfully, we have to withhold your damage deposit because damaged item. As per item # 5a of the attached signed rental contract, it states damage deposit will be withheld for damages done to the unit.

Enclosed is a photograph of the damaged item, which shows the damaged item, which was discovered upon your check out. Also enclosed is a copy of the bill which shows the exact amount it cost us to replace the damaged item.

Regretfully must keep your entire damage deposit as the damages $X for the damaged item equaled/exceed the amount of your damage deposit.

Sincerely,

Your Original Signature 

Things to include with the letter: A copy of their signed rental agreement with the damage deposit refund policy highlighted. Also enclose any receipts for the replacement of the damaged item as well as any fees associated with the damage. If you took a photo of the damaged item, (I hope you did), then send them a copy of the photo too.

How to deliver the message: Send this via USPS certified mail, signature required, and return receipt.

When to notify the renters: In some states, it's the law that you must notify renters or refund damage deposits within 30 days. You should notify the renters within the specified timeframe per your contact for damage deposit refunds. For example if your contact states damage deposit refunds will be mailed within 14 days, then be sure to abide by your timeframe in your contact.

© Christine Karpinski 2007



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