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The security deposit letter is a document from the landlord at the end of a lease, explaining what will be returned to the tenant as a security deposit. A security deposit is collected by the landlord to ensure rent payment or compensation for property damage. Return periods vary by state, but typically a security deposit must be returned within 30 days after each 12-month rental period. The landlord is required to return the deposit in cash or as a credit applied to the rent due.