{"id":119381,"date":"2019-11-22T12:00:23","date_gmt":"2019-11-22T19:00:23","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=119381"},"modified":"2024-02-20T16:05:41","modified_gmt":"2024-02-20T23:05:41","slug":"rental-property-damage-normal-wear-tear-difference","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/rental-property-damage-normal-wear-tear-difference","title":{"rendered":"Rental Property Damage vs. Normal Wear &#038; Tear: How to Tell the Difference"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC1953303476&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n<p>It\u2019s a familiar story. Tenant moves out. Owners get upset at what they see as damage to their property. Tenant gets just as angry, believing the damage is simply &#8220;average wear and tear.&#8221;<\/p>\n<p><em><strong> The fight is ON!<\/strong><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Dealing with damage to a <a href=\"\/renewsblog\/2013\/01\/04\/how-to-rent-your-house\/\" target=\"_blank\" rel=\"noopener noreferrer\">rental property<\/a> when a resident moves out can be a very stressful situation, not to mention a huge undertaking. In order to be <a href=\"https:\/\/www.biggerpockets.com\/blog\/2016\/07\/30\/how-to-be-a-landlord\/\" target=\"_blank\" rel=\"noopener noreferrer\">successful as a landlord<\/a>, it is imperative that you have a good understanding of what is \u201cwear and tear\u201d and what is \u201cdamage.\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, I would like to explore not only the differences between the two but also the steps you can take as a landlord that will help streamline the move in\/move out process for you with as little stress as possible.&nbsp;<\/span><\/p>\n<h2>What Is Normal Wear &amp; Tear in a Property?<\/h2>\n<p><i><span style=\"font-weight: 400;\">\u201cDeterioration that results from the intended use of a dwelling, including breakage or malfunction due to age or deteriorated condition.\u201d <\/span><\/i><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Normal wear and tear is the expected decline in the condition of a property due to normal everyday use. It is deterioration that occurs in the course of living in a property, and it is not caused by abuse or neglect.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-72571\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/04\/wholesaling_gone_wrong.jpg\" alt=\"wholesaling_gone_wrong\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/04\/wholesaling_gone_wrong.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/04\/wholesaling_gone_wrong-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Examples of normal wear and tear might include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A couple of small stains on a carpet<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A couple of scrapes or dings in a wood floor<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Color of carpet or hardwood fading due to exposure to sunlight<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Dirty grout<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Loose door handles<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Silver finish on bathroom fixtures beginning to wear away<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Dustiness<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Dirty blinds<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Small pin holes in the wall (unless they are excessive)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Worn out batteries in smoke and carbon monoxide detectors<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fading in curtains, paint, or wallpaper due to age or sun exposure<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Broken light bulbs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Normal dirt and wear in carpets<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Plumbing issues arising from normal use<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Understand that expenses related to normal wear and tear cannot be deducted from your security deposit. The next question you need to ask yourself is what is <\/span><b>not<\/b><span style=\"font-weight: 400;\"> normal wear and tear. This would be damage caused by neglect, misuse, or excessive force and can fall outside the definition of normal wear and tear.&nbsp;<\/span><\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/landlord-never-evict-tenant\" target=\"_blank\" rel=\"noopener noreferrer\">I\u2019ll Never Evict a Tenant\u2014Here\u2019s Why<\/a><\/em><\/p>\n<h2>What Is Damage in a Property?<\/h2>\n<p><i><span style=\"font-weight: 400;\">\u201cDamage is not naturally occurring. It is harm that affects the value, usefulness or normal function of property. This damage can be committed on purpose or through neglect\u201d.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Examples of damage might include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A smashed bathroom mirror<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A broken toilet seat<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A hole in the middle of a door<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Damaged or missing door handles\/locks<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Carpet soaked with pet urine<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Numerous or sizable holes in the wall<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Appliances broken as a result of misuse<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Unapproved paint on the walls<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Excessive dirtiness in bathroom or kitchen<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pest infestation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Broken doors or disabled locks<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pet stains, burns, or holes in carpet<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Damage can be further defined as issues that are unexpected. For example, it is not normal or expected for there to be a large hole in a bedroom wall after a resident moves out of a unit. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">And l<\/span><span style=\"font-weight: 400;\">ike everything in life, there are other factors that must be taken into account when deciding how much normal wear and tear and how much actual damage is being done by a resident. <\/span>An example of this would be the length of tenancy. If a resident stays in a house for four years, there will be more wear and tear than if they only stay for one year.<\/p>\n<p>Life expectancy of the item should also be taken into consideration. In this instance, think about flooring. Ceramic tile flooring would have a much longer life expectancy than carpet, etc.<\/p>\n<h2>How to Avoid Disputes<\/h2>\n<p><span style=\"font-weight: 400;\">In order to make the rental process largely headache-free, here are some things that a landlord must always remember. <\/span><\/p>\n<h3>Security Deposit<\/h3>\n<p>The landlord should collect and hold a security deposit from each <a href=\"\/renewsblog\/2013\/01\/27\/tenant-screening\/\" target=\"_blank\" rel=\"noopener noreferrer\">tenant<\/a>. This is not the landlord&#8217;s money, however. This money is still the tenant&#8217;s money that is being held in lieu of the tenant not performing per the lease agreement.<\/p>\n<p>Many landlords think that they can spend that money or use it as a reimbursement to themselves as soon as they get it from the tenant. That money is legally still the tenant&#8217;s; the landlord is simply holding it in case of any damages. That mental shift is a large part of why these challenges happen.<\/p>\n<p><span style=\"font-weight: 400;\">The security deposit disposition is the payout that the tenant receives after moving out, minus the amount that is deducted for a specified reason. This normally causes disputes between both parties (landlord and resident), regarding perceived damage to the rental property upon move out and what was expected to be returned to both parties. The security deposit disposition is the number one reason that landlords get sued.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-83871\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/11\/security-deposits.jpg\" alt=\"security-deposits\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/11\/security-deposits.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/11\/security-deposits-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">It is important to remember that different geographic regions and states have their own rules and regulations as to how much can or cannot be deducted, as well as the time frame as to when the security deposit must be returned back to a resident. For example, in Houston, Texas, you have exactly 30 days (postmarked) to get the remaining security deposit back to the resident\u2014or you&#8217;re liable for three times the amount.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The challenge with the security deposit issue is that often neither party really has any type of system or formula to determine how much of the security deposit they will (or will not) be returned. Quite often, this is an assumptive prediction based on the perceived level of wear and tear versus damage that&#8217;s done to the property.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Frequently, the amount that is deducted from the security deposit is determined by how much work the landlord must personally have to do to get the property rent-ready or their opinion as to how badly the property was damaged. As a landlord, you must take into account the fact that there are rules, regulations, and laws that protect both parties in determining this amount.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Who is responsible?! That is the burning question!<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> The best way to know who should pay for the repairs is with documentation. This turns the issue into a fact and not an opinion about the property\u2019s condition. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, document the condition of the house before the resident moves in. Do this with <\/span><b>date-stamped photographs and video<\/b><span style=\"font-weight: 400;\">. Expect disputes regardless\u2014but have the proof to back your charges.<\/span><\/p>\n<h3>Move-In and Move-Out Walkthrough Inspections<\/h3>\n<p><span style=\"font-weight: 400;\">Doing an initial walkthrough with the resident is one way to avoid disputes regarding wear and tear versus damage. A landlord and new resident should walk through a property prior to the resident moving in. Pictures and video should be taken so that this can be used as a baseline, meaning there is no relying on memory a few years down the track when the resident moves out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> I also suggest adding a checklist to your lease agreement of all rooms, appliances, fixtures, etc., where residents should note the condition upon move in.<\/span><\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/2014-11-14-landlords-ultimate-34-step-property-management-checklist\" target=\"_blank\" rel=\"noopener noreferrer\">The Landlord\u2019s Ultimate 34-Step Property Management Checklist<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">When the resident is moving out of the rental unit, the landlord and resident should again walk through the property to document any changes to its condition. Again, record everything with both pictures and video, so that there is no misinterpretation of what is (or is not) damaged or worn. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The landlord can point out any issues he has with the current condition of the property and explain why he will be taking deductions from the resident&#8217;s <\/span><span style=\"font-weight: 400;\">security deposit<\/span><span style=\"font-weight: 400;\"> to cover those damages. He can use the initial set of pictures and video to further justify his position. The resident can agree with this or dispute the landlord&#8217;s findings.<\/span><\/p>\n<h3>Expectation Meetings<\/h3>\n<p><span style=\"font-weight: 400;\">I have always felt it is far more productive to have expectation meetings with your resident prior to moving in than to have to handle it post-move out. Why give them the opportunity to claim this was never discussed with them (this being the upkeep of the property)?<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> One suggestion is to set price points before the resident moves in of possible costs of items that are damaged. Putting this into the lease agreement, which both parties are aware of up front, is a good way to set a baseline expectation that you are serious about keeping the property in good shape.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Upon the move-in and move-out walkthrough, both landlord and resident should sign the document, acknowledging that they both agree with the current condition.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-70209\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/02\/property_inspection_why_important.jpg\" alt=\"property_inspection_why_important\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/02\/property_inspection_why_important.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/02\/property_inspection_why_important-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>Routine Inspections<\/h3>\n<p><span style=\"font-weight: 400;\">One of the best ways to avoid disputes is to ensure you carry out periodic inspections of your investment property to ensure it is being well cared for and routine repairs are being made. These inspections should address the following:&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The interior of the property is being maintained in a clean and tidy condition<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The exterior of the property is being maintained in a clean and tidy condition<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The property is not being damaged in any way<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There are no more than the number of people or pets specified on the lease agreement living at the property<\/span><\/li>\n<\/ul>\n<h3>Lease agreement<\/h3>\n<p><span style=\"font-weight: 400;\">When in doubt, always refer back to what is in writing and signed. This is commonly referred to as the &#8220;l<\/span><span style=\"font-weight: 400;\">ease agreement.&#8221; What is stated in this agreement is really what will prove or disprove your case in a court of law.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> You cannot dictate what you \u201cthink\u201d or \u201cfeel\u201d is the right way to get the property returned back to you when the resident leaves\u2014or what you think is a fair amount of compensation\u2014in retrospect. The more clearly it is defined in writing in the beginning, the easier things will be when it is time to discuss and address this situation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As I stated earlier: pictures are potentially worth <strong>thousands<\/strong> in <\/span><span style=\"font-weight: 400;\">words! The key is to have documentation of the condition of the property\u2014in detail\u2014prior to the resident moving in. And then, they should be documented equally as detailed at the time of move out. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without this, be prepared to give the deposit back! You don\u2019t stand a chance in court. And if you lose, you might have to pay far more than the deposit in the end!<\/span><\/p>\n<h2>In Conclusion<\/h2>\n<p><span style=\"font-weight: 400;\">Newer investors (or maybe people who are emotionally attached to their properties) tend to have a very hard time making these black and white calls. It could be because of their attachment to the property and\/or because they failed to set the standard of what is acceptable and what is not in writing prior to move-in. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many times it becomes an emotional decision, not a mathematical or business one.&nbsp;<\/span><span style=\"font-weight: 400;\">I, personally, have never seen anyone who is upset make an emotional decision and later on tell me it was the right one\u2014they were happy they reacted that way. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember, this is a business; it needs to be treated as such. You will not always have all the answers; however, as things arise, you will be able to create standards for situations that will come up during your investing career. Pretty soon, you will see all possible scenarios, and you will use past experiences as lessons of what not to do again\u2014or what you can do better in the future.&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/store\/managing-rental-properties-ultimate\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-94637\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/manage-rental-property-book-ad.jpg\" alt=\"\" width=\"800\" height=\"130\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/manage-rental-property-book-ad.jpg 800w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/manage-rental-property-book-ad-300x49.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/manage-rental-property-book-ad-768x125.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<p><em>Questions about the above? Points to add?&nbsp;<\/em><\/p>\n<p><strong>Let&#8217;s talk in the comment section below.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Tenant moves out. Owners get upset at what they see as damage to the property. Tenant gets just as angry, believing the damage is &#8220;average wear and tear.&#8221; The fight is ON! To be successful as a landlord, it is imperative that you have a good understanding of what is \u201cwear and tear\u201d and what is \u201cdamage\u201d in a rental.<\/p>\n","protected":false},"author":612019,"featured_media":119358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,7392],"tags":[],"class_list":["post-119381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-rehab-diy"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/119381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/612019"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=119381"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/119381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/119358"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=119381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=119381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=119381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}