Determining appropriate deposit refund

[Anthony Porembski]

Hello all!! Super grateful for the time and insight you people put into helping the fellow enthusiasts and for that I thank you and appreciate you.

So my fiancé and I are gearing up to take the dive into real estate investing. We spend a good amount of time trying to get our minds Murphy’s law ready, to the best of our ability. We like to think of problems that may come up and find the best solution. May sound torturous but it’s opened my mind to a lot.

Sooo, this may sound rudimentary to a pro but I was wondering how you guys determine or if there is a formula to use when it comes time to give a tenant their deposit back. At what point do you take it all, give back partial or give back the entire amount.

🙏🏻 thanks

[Marc Winter]

@Anthony Porembski, take detailed photos of the unit before the move in and do a detailed move-out inspection with photos.  @Account Closed gave you the absolute best 'formula'--it's simple, but sometimes not easy.  The detailed documentation from your photos and inspection reports will be your best defence if you ever end up challenged in court for the security deposit refund deductions.

Make sure to follow your state's laws about the timeliness of sending the refund.  In PA if the refund letter/check is not sent out within 30 days, the ex-tenant may sue (and win) in court for 3x the security.  Be aware.