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The security deposit letter is a document prepared by the landlord at the end of a lease, explaining the details of the security deposit return to the tenant. A security deposit is collected by the landlord to ensure payment of rent or to cover any property damage. The time frame for returning the deposit can vary by state, but it is typically returned within 30 days after the end of each 12-month rental period. The landlord is required to return the deposit in cash or as a credit applicable to the rent due.