Can Abandoned Property Removal Costs be deducted?

Question

I am not sure on the specifics regarding the costs associated with tenants abandoning personal property.

Since we have 30 days to refund the security deposit, and if the tenant does not or refuses to claim any abandoned personal properties after X number of days, can the cost of storage or removal be deducted from the security deposit?

I understand I also have the right to sell the abandoned property after X number of days but if I need to remove the personal property immediately for the next tenant, can I deduct the cost from the security deposit?

Keith Barton · Answer

If PA state statutes are old and do not address as many things as other states do; and, if PA courts refer to other state statutes when deciding lawsuits - it sounds like a full understanding of the current status of landlord tenant law in PA requires knowing the common law rules.

This means:
1) read the statutes - if a statute addresses your question directly great - thay MAY be the answer
2) read any case law addressing your question. If the statute seemed to answer your question directly the common law (or case law) rule could have changed what you think the statute says. If the statutes do not address your question, then the case law very well may give you the answer.
3) make sure any case law answer to your question applies in your jurisdiction.

Note about jurisdiction:
Jurisdiction means a certain geographical area (for this conversation anyway - there are times when jurisdiction doesn't refer to geography.)

The size of the geographical area depends on a number of factors. Each state has different nomenclature for the following information - I am using the nomenclature used in the state of Ohio....

If a case in the Supreme Court of Ohio decides a matter and has not been overturned by a federal court, a more recent ruling by the Supreme Court of Ohio, or by a more recent statute directly on point (which means you shouldn't be looking at this case anyway) - then the case controls how this matter works throughout the state (generally speaking)

If the Supreme Court has never addressed the issue, then look to one of the Appellate Courts in Ohio. If a case in an Appelate Court in Ohio has addressed the issue, this case controls within the geographical area covered by this specific court's jurisdiction (which is 1 or more Ohio counties depending on which Appellate Court) - unless a federal court has overturned the decision, unless a more recent Ohio supreme court decision says something different (which means you wouldn't be looking at this appellate court decision anyway), or a more recent decision in the same appellate court decided something different, or there is a more recent statute enacted that governs this matter (which means you shouldn't be looking at the appellate court decision anyway).

If there is no case in the supreme court, or your appellate district, then you look at the Common Pleas Court of the Ohio county where the rental unit is located. If you find a case at the common pleas court, that answers your question, then there you go - unless there is a more recent decision that answers the question, or (insert all the other higher courts or statutes here, etc....)

Now, what if there is no case addressing your question in your appellate district, but the question is addressed in another appellate district in Ohio? You can use that decision as an argument that it should be the same way in your appellate district, but this is known as "persuasive authority" not "controlling authority". Persuasive authority may persuade a judge to rule the same way - but it does not require a judge to rule the same way.

And the discussion continues and gets more complicated as we go on.

SO - I recommend if you ever have questions about what you can or cannot do - you look for any kind of landlord tenant reference book published by a reputable publisher that is addressed specifically for PA and is a current publication; OR, consult a local attorney knowledgable in these matters....

Wendy Mullin · Answer

I believe that in pretty much ANY state, the Landlord Tenant Laws states something to the effect that "landlord may withhold from the security deposit amounts that are reasonably necessary for (a) rent or other amounts due the landlord and (b) to restore the unit to it's condition at the commencement of the tenancy". In Iowa, we are not required to "store" personal property, period. If they abandon it then we do what we want with it.  Some states require you to store abandoned property if the value is a certain amount even if this is the case in your state, you should still be able to deduct this and any other out-of-pocket expenses you incur from the security deposit. Just be sure to send them a statement as to what you are withholding and why! Hope this helps!

Mark M. · Answer

The PA laws are not very comprehensive and is basically all stemming from the Landlord Tenant Act of 1958 which does not really include specifics so I am researching other states and found more comprehensive information about bailment but no such specifics regarding what's permissible to be deducted from the security deposits or not.

If anything, the courts always seem to refer to other states' statues in helping define an area of law that hasn't been written down yet.

Keith Barton · Answer

It very well may depend on what PA law says. A very general rule of thumb is that if the tenant does something that causes the landlord to spend money, and the reason for the expense is due to more than standard wear and tear, the expense can be passed on to the tenant. I would suggest you might look at it as any other move-out - e.g., holes in the wall are more than standard wear and tear so deduct repair costs from deposit. Tenant leaves belongings in unit (do everything you can to ascertain whether they are comming back for property [if they still have time before the deadline], and document in detail all you do [in case they say you got rid of their family heirloom thingamabob]), any expense you incur to deal with those left behind belongings very well may be justification for charging against the security deposit.

Also, just a note - many landlords in OH do not know this, but OH law requires landlords to mail to the former tenant a written accounting of how the security deposit was spent (i.e., what % refunded and what was spent for what). If the landlord does not do this in 30 days, the tenant can sue the landlord for double the amount of anything that was improperly withheld.

In other words - always look at your state statutes governing landlord-tenant relationships because there may be some surprises in there. Also check any local ordinances if applicable....

Sherry Lewis · Answer

Mark,

I am not 100% certain of this, but it seems to me that it would be deductible.  The cost of removal and storing of their property as well as disposal thereafter if not retrieved are all expenses that were incurred in order to get the place rent able again through no fault of your own.  It would rest on the tenants shoulders as they created the expense.  Be sure to keep receipts for these expenditures if they decide to fight you on it and if you are having their items removed, pay someone to do it.  If you do it yourself and did not incur a cost you will not be able to claim it as an expense. Also when you refund their deposit or whats left of it, be sure to give them an exact accounting of what was held with copies of receipts.  Hope this helps!

Sherry