Have you ever given a tenants deposit back too early?

Question

Have you ever given a tenants deposit back too early and then discovered damages upon further review?

What were they and why did you miss them?

Also did you send them a bill?

Nathan Gesner · Answer

Very early on, I had a tenant ask if I could refund half his deposit the day he moved out because he really needed the gas money. I would still have the other half for cleaning. I agreed even though my gut told me not to.

Sure enough, he moved out and I discovered the 9-month-old carpet was trashed in the living room. He was a short-order cook and tracked grease in on his shoes every day, leaving a track right down the living room and bedroom carpet that could not be cleaned. $1800 in repairs and I had $300 from his deposit.

Don't even use the deposit for anything when the tenant lives there. Don't ever refund a dime until the tenant is completely out, has returned the keys, and you've inspected in detail.

Account Closed · Answer

@Jonathan Watt

Yes, I learned, confirm all utilities in your name (that tenant was responsible for) are paid.

Michael Peters · Answer

I agree with @Anthony Wick. Each States time frame is different but I wouldn't mail a deposit out any earlier then a few days before the cut off. I make sure to verify that the final water bill is paid before sending it out since in Iowa it follows the property and not the person. Nothing worse then finding a few hundred dollars in utilities after you send back the deposit. No matter how thorough your move out inspection some items you just can't see until someone lives in the house. Use all the time you have and don't feel pressured to send it back until you are completely satisfied.

Last note some tenants ask for items in writing before they move out. I did that once and never will I make the same mistake again.

Anthony Wick · Answer

@Jonathan Watt

In Iowa we have 30 days to refund. I generally use most of that 30 days. Even after they move out and you do an inspection, things might be found later, like during a move in inspection of new tenant.

Jonathan W. · Answer

@James Wise that’s how my last roommate felt about our damage bill. I called to pay the bill the minute I got it(roommate was already behind in rent so I didn’t expect help)

They wanted to charge me interest...lol

If someone has a very good or higher credit score, why not settle with them first? I’m sure that 3rd party collections company got a decent cut of the collected amount, something the management company could have gotten on first attempt. Zzz

Jonathan W. · Answer

@Nathan G. Only a chef can fool your gut.

what a bum, lol gas money, more like drive thru money.

Yeah, for the original post I am more worried about flat out missing something. I never could imagine some tracking cooking grease around a house. Once again, what a bum.

Amy A. · Answer

My first move-out I looked over the apartment while the tenant was standing there expecting his deposit, so I gave it to him. The next day I got an angry call from the neighbor about the trash he had left in the yard! Live and learn. Now I tell them in advance not to expect the refund that day, and I never inspect with a tenant breathing down my neck!

Jonathan W. · Answer

@Patricia Steiner that’s funny. I have one tenant who ask we do a walk through and gave an extra early notice so I am happy about that. I know with the amount I am going to do come a few days, I will miss something so I appreciate the feed back. Yeah I agree not touching the deposit until move out but it’s funny the way tenants ask me when the deposit will be return has the tone of, “everyone who I’ve left a deposit for has been a pain in my ass so give it to me straight”

Jonathan W. · Answer

@Anthony Wick that’s pretty much what I’m afraid of, someone moving in and discovering such n such. Tenants seem to like to ask with authority when they will be getting their deposit back. Using most of the 30 days sounds more wise then telling them sooner. Ty

Patricia Steiner · Answer

I'm with the others before me. No deposit is returned until an inspection is completed; we meet with the tenant with the move-in inspection report and photos in hand - and then complete the departure inspection. And, that's after it's completely empty. I know of landlords who have inspected before/during the moving process to later discover that something didn't quite make it out the door.

There's just some things that need to be chalked up to "Lesson Learned." To err is human, to repeat that same err is just stupid...

Have you ever given a tenants deposit back too early?

Have you ever given a tenants deposit back too early?

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