Normal Wear and Tear?

Question

Good Evening All,

In preparation for my tenants vacating a property on 4/30/19, I conducted a walk-through inspection, which revealed a long list of damages and cleanliness issues.  I'm specifically curious about everyone's opinion of a dented refrigerator - please see attached photo.  This fridge was brand new when the tenants arrived.  I had it delivered and installed on the second or third day of their occupancy so it was literally brand new.  To me, this is not normal wear and tear, but what do you think?  If you believe this to be actual damage, how would I go about assessing the value of the damage?  Does this warrant a new refrigerator?  repair?  Or, am I stuck?  I've never done this before so I'm relying on your knowledge and expertise.  All comments and insight is welcome, even if it's me eating the cost (sad face).  PS - the fridge is functioning normally as far as I can tell.

Rob

Brian Ploszay · Answer

I would say that is normal wear and tear.  You can take a portion of their security deposit, but doubt you'll get any money beyond that.

Cleanliness is ideal for you as a landlord, but clutter is the tenant's right.

Nathan Gesner · Answer

It is not normal wear-and-tear. I've owned many refrigerators and never dented them. I manage hundreds of homes and it is not normal for someone to dent a fridge. Yes, it's cosmetic but it still devalues the fridge.

I would tell the tenant they will pay me $XXX for the damages. If they claim the fridge is "perfectly fine" then offer to sell it to them minus one year of depreciation and let them live with the "perfect" fridge.

Thomas S. · Answer

It is damage and another example of why landlords should be doing regular inspections. Had you done quarterly inspections you would not now be in this position.

Deduct the full replacement cost from their deposit if it can not be returned to like new condition. Bill all contractor costs for all other repairs as well.

Next time do your inspections and charge tennats for repairs as you go.

Scott Mac · Answer

Hi Robert,

Here is a quick thumbnail of property classes.

There is lot more on the internet about property classes, but regarding the refrigerator replacement or not for a new tenant, it kind of comes down to a high rent tenant is probably less likely to accept dents like this than a lower rent tenant because they know they are getting what they pay for.

Class-C might like a Cadillac at Hyundai price but they don't expect it, but you don't want to go to far overboard in this area and make the place look like a flea market either because they are also shopping other units.

Class A Properties:

• Usually built within the last 10 years.
• Will have the highest rent in the area.
• Will have all the amenities. Pool, workout room, etc.

Class B Properties:

• Not as new as the Class A’s but still high end properties.
• Rents are fairly high but not as high as the Class A’s.
• Typical renters are white collar office type workers; mixed with higher paid blue collar type workers.

Class C Properties:

• Lower rent than Class B's but not in a War Zone.
• Typical renters are hardworking blue collar type workers; and possibly Section 8 renters.
• Probably never afford their own single family home.

Class D Properties.

• Typically located in the worst parts of the city.

Matt M. · Answer

@Robert Johnston

I would research what a new door would cost for that unit and deduct from their security deposit.

Mark S. · Answer

@Robert Johnston I would definitely not consider it normal. Never had a dent in any of my rentals. I would do as others suggest and check what a fridge with that type of dent would be discounted, document it and charge them.

Jim Cummings · Answer

@Robert Johnston. Based on the Price of the rental, investigate "Scratch & Dent" Stores for Appliances. Typically, the damage is on the side or back and does not affect the functionality of the appliance.

Robert Johnston · Answer

@Brian Ploszay Thanks for your thoughts.  I definitely reserve their right to clutter the place as much as they want.  That's their business.

Robert Johnston · Answer

@Jim Cummings Thanks for the input!  Unfortunately, all rentals in my area have these items.  I will say that I did not purchase an expensive fridge by any means - just enough to be suitable for the property.

Robert Johnston · Answer

@Scott Mac  Thank you for the input.  What do you mean by Classes A-C?  Those are new terms to me...

Normal Wear and Tear?

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