I know of no basis to refuse to return a security deposit to a former tenant based on their location. Did he provide a basis for this contention? Did he cite to a certain lease provision?
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Simply put, your landlord is either badly misinformed, or just full of the smelly, brown stuff.
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Mail from the U.S. makes its way to Europe every day. I can't see why a letter from your landlord would have special difficulties.
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