If an individual is owed money, and the borrower shows no signs of repaying it, one of the first steps they should take is to send a demand letter. This is a formal letter that clearly states the circumstances for the loan, the required repayment and a suggestion that taking the issue to court may be an option if the debt is not repaid. The letter will demonstrate to the borrower that the lender is serious about wanting their money and it will also serve as evidence if the case needs to go to court. This letter could be the first step in the legal process of recovering debt.
Below is a sample letter demanding return of security deposit. It may be used as a legal document if the tenant needs to take the landlord to court, so it should be written in formal business-letter style and sent by certified mail, courier or other service that will give the tenant a return receipt. This receipt is proof that the letter was received.
Landlords require security deposits to protect against any damage done to the property by a tenant. If walls are damaged, appliances broken, carpet stained beyond repair or a number of other property damage possibilities, the landlord needs to have the damage repaired before he or she can rent to another tenant. It’s only fair that the tenant who damaged the property pay for the repairs. It is usually taken out of the security deposit.