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. 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. Note: If you'd like, you can view a sample rental agreement.

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

Your name Your address Your City, State, Zip Your Phone Number Your email address Your webpage address http://your website address.com Today's date 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 of [damaged item]. Per item [clause/item #] of the attached signed rental contract, the damage deposit will be withheld for damages incurred during the dates of your reservation. Enclosed is a photograph of the [damaged item], which shows the [explanation of damages], which was discovered upon checkout after your stay. Also enclosed is a copy of the bill which shows the exact amount 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]

Your name Your address Your City, State, Zip Your Phone Number Your email address Your webpage address http://your website address.com Today's date 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 [explanation of damaged item]. Per item [clause/item #] of the attached signed rental contract, the damage deposit will be withheld for damages incurred during the dates of your reservation. Enclosed is a photograph of the [damaged item], which shows the [explanation of damages], which was discovered upon checkout after your stay. Also enclosed is a copy of the bill which shows the exact amount to replace the [damaged item]. Regretfully, we must keep your entire damage deposit as the total damages, [$X], for the [explanation of damages] equaled/exceeded the amount of your damage deposit. Sincerely, [Your Original Signature]

The Next Steps

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.

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Keeping Damage Deposits vs. Charging Fines Two ways to go about preventing damage to your vacation rental property.    How to Accept Security Deposits by Credit Card for Your Vacation Rental How to handle deposit payments from your vacation rental guests via credit card.   The Pros and Cons of Allowing Pets at Your Vacation Home Some considerations when deciding whether to make your vacation rental pet-friendly.   Security for Your Vacation Rental Home Tips for keeping your home, your possessions, and your guests safe at your vacation home. © Copyright, Christine Karpinski 2007, u.090224.af