Security deposit disposition: what an itemized statement should contain

“Disposition” is the accounting of what happened to the deposit. Depending on the state and the company it is also called an itemized statement, itemization, or statement of deposit. It usually goes out with a short cover letter, and in many states it is required whenever part of the deposit is kept.

Its job is to be understood by someone who was not at the property. Every line should answer three questions on its own: what changed, how you know, and where the amount came from.

State law answers that, and the answers differ. Statutes commonly refer to categories such as unpaid rent, cleaning, and repair of damage beyond normal wear and tear. In California, for example, the courts' self-help guide describes cleaning back to the move-in level, repairing damage other than normal wear and tear, and in some cases restoring furniture, and notes rules on rent owed.

This guide does not tell you what you may deduct. It covers how to document the lines you decide to enter. For the categories themselves, read your state statute, see normal wear and tear vs damage, and confirm with an attorney.

• For each line, the move-in and move-out photos of the same subject.
• The repair estimate or invoice behind each amount. Some states require copies for certain deductions.
• The move-in condition record and the move-out inspection, or a link to them.
• Anything else the resident should see to follow the call, such as a pre-move-out list.

Attach evidence to the line it supports, not as one pile at the end. A reviewer should not have to match “photo 47” to a line on page two.

Mistakes happen: a wrong amount, a missing invoice, a line that should not be there. The worst fix is quietly editing what the resident already received. Issue a corrected version, date it, and keep the original readable, so anyone can see what changed and when.

Follow the delivery method and timing your state requires; this guide does not compute deadlines. Whatever the method, keep proof of what was sent and when. A link that opens exactly one version, expires, and logs when it was opened gives you that record; a PDF by mail or email works with a dated copy kept on file.