Itemized Deduction Statement

Full Definition

An itemized deduction statement (also called an itemized statement of deductions or deposit accounting) is the written document a landlord is legally required to send to a departing tenant that explains what, if anything, is being deducted from the security deposit. Most states mandate this document be delivered within a specific deadline (often 14 to 30 days after the tenancy ends or the tenant vacates) along with any remaining deposit balance. The statement must be itemized -- meaning each individual deduction must be listed separately with a description of the damage or reason and the specific dollar amount being deducted. Vague entries like 'repairs: $500' are generally insufficient. Many states also require supporting documentation such as receipts, invoices, or repair estimates. Failure to send a proper itemized statement within the deadline is one of the most common grounds for a tenant to recover the full deposit plus penalties, because in most states the landlord forfeits the right to make any deductions if they miss the deadline.