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The security deposit letter is a document used by landlords at the end of a lease to explain the return of the security deposit to the tenant. A security deposit is collected by the landlord to ensure rent payment and cover any property damage. The timeframe for returning the deposit varies by state, but it is generally returned within 30 days after the completion of each 12-month rental period. The landlord must return the deposit in cash or as a credit applied to the rent due.