Security Deposit Disposition Letter

Security Deposit Disposition Letter Template for Philippines

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Key Requirements PROMPT example:

"I need a Security Deposit Disposition Letter for my residential tenant who is moving out on March 15, 2025, with only minor deductions for wall repairs; the original deposit was ₱50,000, and I want to return ₱45,000 after documented repairs."

Document background

The Security Deposit Disposition Letter is a crucial document in Philippine real estate practice, used when a tenant vacates a rental property and the landlord needs to account for the security deposit's disposition. This document, required under Philippine rental laws and regulations, provides a detailed explanation of how the security deposit will be handled, including any deductions for damages beyond normal wear and tear, unpaid rent, or utility charges. The letter must comply with the Rent Control Act of 2009 and relevant provisions of the Civil Code of the Philippines, which require landlords to provide a written accounting of security deposit deductions within a specified timeframe. It serves as both a legal record and a communication tool, helping prevent disputes and ensuring transparency in the final settlement of the rental relationship.

Suggested Sections

1. Sender and Recipient Information: Complete contact details of both landlord/property manager and tenant, including property address

2. Lease Reference: Details of the original lease agreement, including dates and property identification

3. Security Deposit Amount: Statement of the original security deposit amount and date received

4. Inspection Results: Summary of the property's condition upon move-out inspection

5. Deposit Calculation: Breakdown of how the security deposit is being handled, including any deductions or full refund

6. Payment Details: Information about how and when the remaining deposit will be returned

7. Closing Statement: Final remarks including deadline for disputes and contact information for questions

Optional Sections

1. Damage Description: Detailed explanation of any damage beyond normal wear and tear, used when deductions are being made

2. Unpaid Charges: List of any outstanding rent or utility payments being deducted, included when applicable

3. Dispute Process: Extended explanation of tenant's rights and the dispute resolution process, included when required by local regulations or when deductions are contested

4. Forwarding Instructions: Special instructions for sending the deposit if the tenant has moved to a new address

5. Legal Citations: References to relevant laws and regulations, included when required by local law or when disputes are anticipated

Suggested Schedules

1. Schedule A - Itemized Deductions: Detailed breakdown of all deductions with specific costs and reasons

2. Schedule B - Photographic Evidence: Photos documenting any damage or conditions leading to deductions

3. Schedule C - Repair Invoices: Copies of invoices or estimates for repairs or cleaning services

4. Schedule D - Move-out Inspection Report: Complete inspection report with detailed observations and findings

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate

Property Management

Residential Housing

Commercial Property

Student Housing

Retail Space Rental

Office Space Rental

Industrial Property

Hospitality

Relevant Teams

Property Management

Real Estate Operations

Leasing

Legal

Finance

Tenant Relations

Facilities Management

Compliance

Administrative Services

Asset Management

Relevant Roles

Property Manager

Real Estate Agent

Leasing Manager

Building Administrator

Property Management Coordinator

Tenant Relations Officer

Real Estate Operations Manager

Facilities Manager

Housing Administrator

Rental Property Administrator

Legal Compliance Officer

Property Accountant

Real Estate Attorney

Lease Administrator

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