Damages Exceed Security Deposit

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @David Sledge:

What options are available to landlords if the damages caused by a tenant exceed the security deposit?


 Send them a list of itemized charges and demand they pay what is owed within 15 days. If they don't, take them to Small Claims court.

If you intend to sue, make sure everything is well documented. The one who documents usually wins.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @David Sledge:

    What options are available to landlords if the damages caused by a tenant exceed the security deposit?


     Send them a list of itemized charges and demand they pay what is owed within 15 days. If they don't, take them to Small Claims court.

    If you intend to sue, make sure everything is well documented. The one who documents usually wins.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    4Reply
  • David Sledge
    OP
    Member since 2022 · 2 posts · 0 votes
    3y

    Next question: where's threshold between letting it go, and pursuing it in small claims court?

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Take them to small claims court. 

    0Reply
  • Ishmael Johnson
    New to Real Estate · NY · Member since 2020 · 196 posts · 29 votes
    3y

    Can documentation be shown as all the damages post move in date of the tenant or would the damages have to be documented throughout the duration of the stay?

    0Reply
  • Torry McFall
    Member since 2023 · 13 posts · 2 votes
    3y

    A judgement is a piece of paper suitable for framing. Collecting is the hard part. Use the lawsuit as a scary stick, but give them an option to pay half by a certain date in exchange for you paying the other half. Don't forget it's a business. Your time matters. Get it fixed, rented, get what you can out of the former tenant, learn, pick better tenants, move on. That's my $0.02.

    0Reply
  • Phillip AustinPro Member
    Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
    3y

    @David Sledge While others are correct in recommending small claims, I don't think is going to solve your issue completely. If the tenant caused significant damage in excess of $10K, good luck collecting from the tenant even after you win in small claims.

    There are financial institutions out there that help landlords in your exact situation! I cannot recommend any here, however, a quick Google search should help you out.

    0Reply
  • Phillip AustinPro Member
    Property Manager · Denver, CO · Member since 2023 · 236 posts · 204 votes
    3y
    Quote from @David Sledge:

    Next question: where's threshold between letting it go, and pursuing it in small claims court?


     Depends on your market but I would be comfortable pursuing anything over $5K if I knew there was a possibility of collecting from the tenant.

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