Security Deposit: Loss of Rent to Complete Repairs After Moveout

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Security Deposit: Loss of Rent to Complete Repairs After Moveout

James Farrel
Columbia, MD · Member since 2012 · 20 posts · 0 votes

Is it permissible to deduct loss of rent from a security deposit due to a unit not being available to rent again pending repairs due damage that was chargeable to the tenant if I could not reasonably complete those repairs while the tenant was still in the unit due to clutter?  (ex. painting, damages I could not see in drywall etc.)

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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
10y
Originally posted by @James Farrel:

Is it permissible to deduct loss of rent from a security deposit due to a unit not being available to rent again pending repairs due damage that was chargeable to the tenant if I could not reasonably complete those repairs while the tenant was still in the unit due to clutter?  (ex. painting, damages I could not see in drywall etc.)

 So if the tenant moved out with notice on 9/30 and it took you two weeks to fix it up, and you got it rented for Nov 1, having a month of vacancy, you can only deduct the damages.

The only time you can charge them for loss of rent is when they break the lease and your lease states they have to pay rent until the unit gets rented out again

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    10y
    Originally posted by @James Farrel:

    Is it permissible to deduct loss of rent from a security deposit due to a unit not being available to rent again pending repairs due damage that was chargeable to the tenant if I could not reasonably complete those repairs while the tenant was still in the unit due to clutter?  (ex. painting, damages I could not see in drywall etc.)

     So if the tenant moved out with notice on 9/30 and it took you two weeks to fix it up, and you got it rented for Nov 1, having a month of vacancy, you can only deduct the damages.

    The only time you can charge them for loss of rent is when they break the lease and your lease states they have to pay rent until the unit gets rented out again

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    Second City Real Estate4.821 Reviews
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  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    10y

    No. Holding costs during vacancy can not be charged to the tenant who completed the term of their lease and moved out.

    Try to address maintenance and repair issues throughout the tenancy. Prepare for downtime for the make-ready between tenants. Establish efficient and effective turn-over procedures for quick turnovers. Try to reduce turnovers by finding and keeping good long-term tenants.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    No. Loss of rent is not deductible.

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  • James Farrel
    OP
    Columbia, MD · Member since 2012 · 20 posts · 0 votes
    10y

    Thanks all!

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  • Kathy Johnson
    Real Estate Professional · Hayfork, CA · Member since 2015 · 231 posts · 212 votes
    10y

    We once charged a previous tenants deposit for lost rent in addition to the repairs when they removed a door jamb and part of a wall to make moving their furniture out easier.

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