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Updated almost 3 years ago on . Most recent reply

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Steven Barr
  • Atlanta, GA
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Are you allowed to use the security deposit to "turn" property?

Steven Barr
  • Atlanta, GA
Posted

Hi BP! 

Once a tenant leaves and you have to get your property "fix-up" ready for a new tenant, what are you allowed to use the previous tenant's security deposit for?

Are you legally allowed to use it to fix "wear & tear" items (spot painting, fixing damaged flooring, cleaning, etc..)? Or is it only to be used on major items (holes in the wall, etc..)?

Thanks!

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

You can generally use the deposit for cleaning, repairs, and unpaid balances on rent, utilities, etc.

You need to educate yourself on what is "ordinary" wear-and-tear and what is considered abuse and neglect. Generally speaking, there will always be some wear-and-tear on a rental, just like there is on your personal home. Putting a few small nail holes in a wall is ordinary; putting four lag bolts into a wall or 100 staples into the window trim is not ordinary.

I have no idea where your investment is, so I can't give you State-specific assistance.

  • Nathan Gesner
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