This list
contains examples of what would qualify as normal
wear and tear, which you, as the property owner, are financially liable to
repair:
- Faded curtains, carpet, wallpaper
or paint due to age or sunlight
- Wear on rugs/carpet (especially in
high-traffic areas) due to normal use
- Minor scuffs on floors or trim
- Broken plumbing as a result of
daily use
- Broken appliances that are not the
result of misuse
- Warped doors and windows caused by
moisture, temperature or age
- Small nicks on walls (especially in
corners)
- A reasonable amount of holes in the
walls due to the hanging of pictures
- Broken seals on doors or windows
- Caulking
- Mold or mildew mitigation (if not
due to negligence of resident)
- Replacement of batteries or bulbs for lights and smoke detectors
This list contains
examples of what would qualify as damage
to the property, which the resident could be financially liable to repair:
- Stains on the curtains or walls that
were not previously present
- Ripped, stained or frayed carpets/rugs
- Major scratches or gouges to floors
or trim
- Broken or cracked tile
- Clogged drains and toilets due to
misuse
- Broken appliances, plumbing or
fixtures that are the result of misuse
- Broken doors or windows, including
torn or missing screens, blinds, locks and hardware
- Damaged drywall, including
excessive holes from hanging pictures
- Broken shelving or cabinetry
- Extermination of fleas or pests
- Cleaning of excessive filth, trash,
mildew or mold
- Unauthorized tenant alterations to
rental
- Loss income during rental repairs
(within reason)
- Depreciated value of the property due to destruction
Back-owed rent, fees or unpaid bills may
also be deducted from the security deposit.
Your resident
may also be financially responsible for failing to report issues that result in
damage to the property. In order to avoid at least partial responsibility for
these issues, however, the landlord must have conducted reasonable inspections
during the occupancy.
It is important
to remember that you need to notify the resident of exactly which items were
damaged or needing repair. Provide your renter with a clear list of repairs and
even a copy of any receipts. A sample checklist which itemizes conditions upon
occupancy and departure from the property, can be found through the following
link: Tenant
Move In Move Out Inspection
Offer to
inspect the unit a few weeks before move-out so that the renter can have the
opportunity to repair some of the damage themselves. This can save you some
time and effort though a second inspection to confirm completion and quality of
work, plus verification that there has been no further damage, is highly
advisable.
When calculating the resident’s financial responsibility
for repairs bear in mind these two key points:
- It is not legal to charge your
residents for upgrades to the property.
- Assess damages with an understanding for depreciation in value
It is important
to take into consideration the quality, age and prior condition of the damaged
item and then calculate the resident’s financial responsibility based on that
data. For example, if a rental unit had a new laminate counter in the kitchen
and at the final inspection it was discovered that the surface was marred by a
large burn, then the resident would be responsible for the entire cost of
replacement. (The item was new at move-in and destroyed at move-out.) The
landlord could upgrade to a marble countertop but could only charge the
resident for what would have been the cost of replacing the laminate counter.
In order to
calculate fees when depreciation is a factor, consider this example: Upon final
inspection it was discovered that there was irreparable damage to the carpet.
The carpet was of a quality manufactured to have a lifespan of 10 years and was
6 years old at the time of occupancy.
The resident is responsible for paying 40% of the replaced carpet expense
(which is the percentage equal to the remaining expected lifespan). The
replaced carpet value would need to be calculated based on carpet of equal quality
to the carpet that was present at occupancy.
If you are not
sure what a fair value is for a specific repair, consult with an experienced
contractor.
This article is
intended as a starting point to help guide you toward a fair and honest
assessment of security deposit deductions. There are specific laws in place for
each state, and these should be researched before any deductions are applied.
For more rental
property information refer to our website: www.eRentalServicesInc.com
