Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

14
Posts
6
Votes
Marek Kucharski
6
Votes |
14
Posts

Returning deposits: Are invoices needed?

Marek Kucharski
Posted

Hello Everyone, 

My tenants have recently moved out, leaving the house in less than ideal condition. The condition of some walls went beyond normal wear and tear and the house in general was left quite dirty. I decided to clean the house myself (1 full day, house + windows) and the painting and garden cleanup took another 2 days.  Can I deduct my labor from their deposit or should I have hired people to do all this so that I had receipts as proof.  I have photographic documentation of what needed to be done, but I did the work myself. Can I provide my tenants with an itemized list of deductions (fair value) or do I need actual invoices from gardeners, cleaners etc.? 

Thank you for your help. 

Marek

Most Popular Reply

User Stats

28,238
Posts
41,444
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,444
Votes |
28,238
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Marek Kucharski:

Matt is correct that most States will not allow you to charge for your own labor, but that only comes into play if you end up in court. As long as you are honest and fair about the charges, the Tenant won't take you to court. Even if you did end up in court and the judge threw out charges for labor, you could still be reimbursed for materials or anything that was hired out to a professional.

Texas law requires you to provide "a written description of damages and charges" but it does not require you to provide copies of invoices. You can read the law yourself here: https://guides.sll.texas.gov/l...

Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.

  • Nathan Gesner
business profile image
The DIY Landlord Book
4.7 stars
185 Reviews

Loading replies...