Security Deposit Return Letter Template (Bangladesh, English)

When a tenant hands back the keys, the last thing standing between a clean goodbye and a bitter argument is the security deposit return letter. In Bangladesh, most landlords take a security deposit (jamanat) or several months of advance rent at the start of a tenancy, and most disputes at move-out are not about whether the money should be returned but about how much, when and why. A short, well-written letter that lists every deduction with a reason and a figure removes most of that friction.

This page gives you ready-to-use, fill-in-the-blank security deposit return letter templates in English: a full refund letter, a partial refund letter with itemised deductions, a letter for a deposit that is being adjusted against unpaid rent, a delay letter, and a short SMS/WhatsApp version. You will also find a deduction table, a worked example with the arithmetic shown, a checklist for the final inspection, and the common mistakes that turn a simple refund into a dispute. The templates suit flats, houses, shops and offices in Dhaka, Chattogram and anywhere else in Bangladesh, and they work equally well for probashi (non-resident) owners whose caretaker or relative handles the handover.

What Is a Security Deposit Return Letter?

A security deposit return letter (sometimes called a deposit refund letter or deposit settlement statement) is a written note from the landlord to the outgoing tenant that does three things:

• States how much deposit or advance was originally received, and on what date.
• Lists any lawful and agreed deductions — unpaid rent, unpaid utility bills, damage beyond normal wear and tear — with an amount against each line.
• Confirms the balance being returned, the payment method (cash, bank transfer, bKash, Nagad, cheque) and the date.

It is not a legal notice and it does not need to be on stamp paper. It is a record. If you ever need to show what happened — to a family member who co-owns the building, to a mediator, to your accountant, or in the rare case of a formal complaint — a dated letter signed by both sides is far stronger than a verbal promise or a string of phone calls.

Why a Written Letter Matters in Bangladesh

Many rentals in Bangladesh still run on trust and handshakes. The rental agreement may be a single page, the deposit may have been paid in cash years ago, and the original caretaker may have left. That is exactly why a written settlement is valuable at the end:

• Memories differ. After three or four years, the tenant may remember paying Tk 60,000 advance while your notebook says Tk 50,000. A letter forces both sides to check the original agreement and receipts.
• Deductions need reasons. Tenants accept deductions far more easily when they see "Broken bathroom basin — replaced — Tk 3,200 (receipt attached)" rather than "Tk 5,000 cut for damage."
• It closes the tenancy. A signed acknowledgement means neither side can come back months later claiming more money.
• It helps your accounts. The refund and any deductions are income or expense entries in your rental accounts. A letter makes bookkeeping and tax records cleaner.

If the rules around deposits and advance rent are new to you, read our full explainer on advance rent and security deposits in Bangladesh before you settle. The Premises Rent Control Act, 1991 (Bari Bhara Niyantran Ain) contains provisions on advance and deposits; the current wording and how it is applied should be checked with a lawyer, but your agreement and your records are what matter most in practice.

What to Check Before You Write the Letter

Do the groundwork first. The letter is only as good as the numbers behind it.

1. Find the original agreement and receipts

Look for the rental agreement (deed), the receipt for the deposit or advance, and any clause about deductions, notice period and painting. If advance rent was being adjusted monthly (for example, Tk 5,000 per month out of a Tk 60,000 advance), calculate exactly how much is still left.

2. Settle the final month's rent and utilities

Check whether the last month's rent has been paid. Take final readings of any electricity sub-meter, and check the latest DESCO/DPDC/Palli Bidyut prepaid or postpaid position, WASA water, and Titas gas bills if they are in your name. Service charge for the final month should be calculated too.

3. Do a joint final inspection

Walk through the unit with the tenant, ideally using the move-in checklist or photos from the start. Note anything that is broken, missing or damaged beyond ordinary use. Take date-stamped photos. Normal wear and tear — faded paint, small nail holes, slightly worn floor tiles after years of use — should generally not be charged.

4. Collect keys, cards and remotes

Count keys, gate remotes, parking cards and any intercom devices. A missing key or remote is a fair and easily explained deduction.

Allowed vs Questionable Deductions

The table below is a practical guide. What you can actually deduct depends on your written agreement and on fairness; when in doubt, discuss with the tenant before writing anything down.

Template 1: Full Refund Letter (No Deductions)

Use this when the tenant has paid everything and the unit is in good order. Copy it, replace the blanks in square brackets, print two copies and sign both.

SECURITY DEPOSIT RETURN LETTER

Date: [DD Month YYYY]

To: [Tenant's full name]

Previous address: [Flat/Unit no.], [Building name], [House/Road no.], [Area], [City]

Subject: Return of security deposit for [Flat/Unit no.]

Dear [Tenant's name],

Thank you for staying at [Building name] from [move-in date] to [move-out date]. We completed the final inspection of the unit together on [inspection date] and found it in satisfactory condition. All rent up to [last month] and all utility and service charges have been paid.

At the start of the tenancy you paid a security deposit of Tk [amount] on [date] (receipt no. [number]). As there are no deductions, the full amount of Tk [amount] is being returned to you by [cash / bank transfer to account no. ____ / bKash or Nagad number ____ / cheque no. ____] on [date].

All keys ([number] keys, [number] gate remote) have been received. With this payment, both parties agree that the deposit is fully settled and there are no further claims regarding this tenancy.

We wish you and your family all the best.

Landlord/Owner: [Name] — Signature: ________ — Phone: [number]

Received the above amount in full. Tenant: [Name] — Signature: ________ — Date: ________

Template 2: Partial Refund Letter With Itemised Deductions

This is the template most landlords need. The key is to list each deduction on its own line with a short reason and amount, and to show the arithmetic clearly.

SECURITY DEPOSIT SETTLEMENT STATEMENT

Date: [DD Month YYYY]

To: [Tenant's full name], former tenant of [Flat/Unit no.], [Building name], [Address]

Dear [Tenant's name],

Following your move-out on [date] and our joint inspection on [date], please find below the settlement of your security deposit as per clause [number] of our rental agreement dated [date].

1. Security deposit received on [date]: Tk [A]

2. Less: Unpaid rent for [month(s)]: Tk [B]

3. Less: Electricity sub-meter bill ([opening reading] to [closing reading] = [units] units × Tk [rate]): Tk [C]

4. Less: [Damage item, e.g. broken kitchen cabinet door, replaced]: Tk [D] (receipt/quote attached)

5. Less: [Missing item, e.g. 1 main door key and 1 gate remote]: Tk [E]

Total deductions (B + C + D + E): Tk [F]

Balance refundable (A − F): Tk [G]

The balance of Tk [G] will be paid to you by [method] on or before [date]. Copies of the relevant bills, photos and receipts are attached. If you believe any item is incorrect, please contact me within [7] days at [phone] so we can review it together.

Sincerely,

[Landlord's name], [Phone], Signature: ________

Acknowledged and received Tk [G]. Tenant: [Name] — Signature: ________ — Date: ________

Worked Example: Calculating the Refund

For example (illustrative): A tenant in Mirpur paid a security deposit of Tk 40,000 two years ago for a flat rented at Tk 20,000 per month. They gave notice and left on 30 June. At the final inspection:

• June rent has not been paid: Tk 20,000.
• Sub-meter reading went from 4,820 to 5,030 units during the final unbilled period, i.e. 210 units. Using an agreed rate of Tk 9 per unit: 210 × 9 = Tk 1,890.
• A bathroom basin was cracked; a plumber replaced it for Tk 3,200 (receipt kept).
• One gate remote is missing; replacement costs Tk 800.

Notice what is not on the list: general repainting, a few scuffs on the walls and a worn doormat. After two years, those are normal wear and tear. Charging for them would feel unfair and invite a dispute that costs you more time than the money is worth.

Template 3: Deposit Adjusted Against Unpaid Rent

Sometimes a tenant asks to "use the deposit as the last month's rent", or leaves owing more than one month. If the deposit covers the dues exactly or nearly exactly, a short adjustment letter works better than a full statement.

Date: [date]

Dear [Tenant's name],

As discussed, your security deposit of Tk [amount] has been adjusted against rent for [month(s)] totalling Tk [amount]. [After adjustment, a balance of Tk ____ is being returned to you by ____ on ____.] OR [After adjustment, Tk ____ remains payable by you; please clear this by ____.] OR [After adjustment, nothing is payable by either party.]

All keys have been returned and the unit has been handed over on [date].

Landlord: [Name], Signature ________ | Tenant: [Name], Signature ________

A word of caution: many agreements say the deposit may not be used as the last month's rent, because the landlord needs it to cover damage found at move-out. If you do agree to adjust it, do the inspection first.

Template 4: Delay Letter (Refund Coming Later)

If you need a little time — a final utility bill has not arrived, or a repair quote is pending — tell the tenant in writing rather than going silent. Silence is the fastest way to lose a tenant's trust.

Dear [Tenant's name],

Thank you for handing over [Flat/Unit no.] on [date]. Your security deposit of Tk [amount] is being processed. We are waiting for [the final DESCO/DPDC bill / the plumber's final bill for ____], which we expect by [date]. We will send you the full settlement statement and pay the balance no later than [date]. There is no dispute about the rest of the amount. Please feel free to call me on [phone] with any questions.

Regards, [Landlord's name]

Set a realistic date and keep it. A delay of a week or two with a clear reason is acceptable to most tenants; an open-ended "we'll see" is not.

Template 5: Short SMS / WhatsApp Version

For a small deposit, or as a quick follow-up to the printed letter, a short message is enough. Keep a screenshot.

Dear [Name], your security deposit for Flat [no.] was Tk [A]. Deductions: [June rent Tk ___, electricity Tk ___, repair Tk ___]. Balance Tk [G] sent to your [bKash/Nagad/bank] today, [date]. Transaction ID: [ID]. Thank you for staying with us. — [Landlord's name], [Building name]

How to Pay the Refund Safely

How you pay matters almost as much as what you pay.

• Bank transfer is the cleanest record. Note the transaction reference on the letter.
• bKash/Nagad is convenient for smaller amounts; keep the transaction ID and a screenshot. Check the tenant's number twice before sending.
• Cheque works, but make it an account payee cheque in the tenant's name and note the cheque number.
• Cash is still common. If you pay in cash, get the tenant's signature on the "received" line of the letter at the moment of payment, and ideally have a witness such as the building manager.

For probashi owners, ask your local representative to send you a photo of the signed letter the same day, and make the payment from your own account where possible so you have a direct record.

Final Inspection Checklist

1. Compare the unit against the move-in checklist or photos.
2. Check doors, locks, windows and grills.
3. Test switches, sockets, fans, lights and the geyser.
4. Check taps, basins, commodes, showers and kitchen sink for leaks or cracks.
5. Look at kitchen cabinets, wardrobes and any furniture you provided.
6. Note wall damage beyond small nail holes (large holes, dampness caused by misuse).
7. Take final meter readings and photos of each meter.
8. Collect all keys, remotes, cards and the tenant's forwarding address and phone number.
9. Agree on the list of deductions verbally before you put it in writing.

Common Mistakes Landlords Make

• Deducting a round figure without explanation. "Tk 10,000 cut for damage" invites argument. Itemise.
• Charging for normal wear and tear. Paint fades and floors wear. That cost belongs to the owner.
• Inspecting alone after the tenant has left. Always try to inspect together; if the tenant cannot attend, take photos and video and share them the same day.
• Holding the deposit indefinitely. Delays without a reason damage your reputation — and tenants talk to neighbours and future tenants.
• Losing the original receipt. If you cannot show how much was received, the tenant's number tends to win the argument.
• Not getting a signature. A letter without the tenant's acknowledgement is only half a record.

If a tenant is leaving with rent owed, our guide on dealing with late rent payments explains how to handle the conversation before it reaches the deposit stage. For the wider move-out process, including notice, handover and re-letting, see the end-of-tenancy process.

A note on the law

This page gives general information and sample wording, not legal advice. The Premises Rent Control Act, 1991 and your written agreement both affect how deposits and advance rent should be handled. If the amount is large, if the tenant disputes deductions, or if you are dealing with a commercial lease, speak to a lawyer before sending a final settlement. Keep copies of everything.

Final Thoughts

A security deposit return letter takes fifteen minutes to write and can save weeks of arguments. Check the original agreement, inspect together, list every deduction with a reason and a number, pay promptly by a traceable method, and get a signature. Tenants who leave feeling they were treated fairly often recommend you to the next tenant — which is worth far more than a disputed Tk 2,000.

If you manage several units, keeping deposits, advance adjustments, meter readings and receipts in one place makes this step much easier. Bariwala ERP (বাড়িওয়ালা ERP) records each tenant's advance and payments, calculates sub-meter electricity bills, keeps the due list and stores the agreement against the unit, so the numbers for your settlement letter are already there when a tenant moves out.